Trump Proposes Another $200 Billion in Tariffs on China

Lee Rogers
Daily Stormer
July 11, 2018

It looks like Trump is going to keep slapping tariffs on China until they come to their senses and strike a fair trade deal. Even if they don’t, we still win in the end.

The President is readying another round of tariffs on China. Considering the massive trade deficit the United States has with the chinks, this is definitely the right move. The more tariffs the better.

Politico:

The Trump administration on Tuesday published a list of $200 billion worth of Chinese goods that it proposes to hit with an additional 10 percent tariff, escalating a mounting trade war between the two countries.

“Rather than address our legitimate concerns, China has begun to retaliate against U.S. products,” U.S. Trade Representative Robert Lighthizer said in a statement. “There is no justification for such action.”

The move also comes after the U.S. last week imposed a 25 percent tariff on $34 billion worth of Chinese goods, prompting China to retaliate in lockstep. China immediately began adding tariffs on 545 American imports — many of them agricultural products such as soybeans, cotton, rice, sorghum, beef, pork, dairy, nuts and produce. Both countries have also pledged to add tariffs on another $16 billion worth of goods.

The latest action carries through on a threat that President Donald Trump made in June, when he ordered trade officials to draw up a list of $200 billion worth of Chinese goods that would be hit with a 10 percent tariff after Beijing vowed the retaliatory moves.

The United States currently has a trade deficit in goods floating around $800 billion a year with China. That number hit record levels this year.

If China refuses to strike a fair trade deal, Trump should slap as many tariffs on their products as possible. It’s of little consequence if we have to pay more for their poorly made chink crap. It just means that people will be more likely to buy American products. It also means more jobs and higher wages for the American worker.

And besides, it’s time for “Made in the USA” to make a comeback. Before this massive trade imbalance came about, most people considered Chinese products to be of inferior quality. American made products were always of higher quality because they were made by White men who took pride in their work. It was also considered the patriotic duty of Americans to buy American made products.

The fact of the matter is that China has screwed the United States on trade for many years. They’ve made it difficult to impossible for American companies to access the Chinese market. At the same time, Chinese companies have been allowed to access the American market with few barriers.

This era of insanity is coming to an end thanks to Trump. It’d be in the chinks best interest to recognize this and strike a deal that’s fair for both parties.

Will Trump’s trade war with China give the US military the breathing space it needs?

via National Interest.

The conventional wisdom of the international expert class is that “you can’t win a trade war.” What they really mean is that you can’t win a trade war in a fair game . If all sides start in balance, the rules are the same for everyone, and no player has coercive power over any other, the winning strategy is for everyone to cooperate. Economics 101.

But if one country starts with a massive trade deficit, the existing rules are written to favor its opponents. And when the country with the trade deficit just happens to be the most powerful country in the world, it’s safe to say that there are multiple paths to victory.

Despite being widely ridiculed in the press, the homespun wisdom encapsulated in President Donald Trump’s April 4 tweet that “When you’re already $500 Billion DOWN, you can’t lose!” is essentially correct. The only thing incorrect was the figure. The U.S. trade deficit was $568 billion in 2017, and that figure incorporates America’s trade surplus in services. America’s trade deficit in goods alone was a whopping $811 billion.

Story here.

If you’re focused on the Chinese military, the US military and how things are playing out then you can be excused if you see the trade war between the US and China as a good thing.

Fact.

The rise of the Chinese military has been fueled by the unfair trade practices of that regime.

Fact.

China has stolen intellectual property, coerced technology from greedy Western corporations in a SUCCESSFUL bid to cheat its natural development path and to accelerate it beyond what would be considered natural growth.

Theory.

This trade war could starve the Chinese military of much needed funds.  Their war machine could be strangled on its tricycle (we missed the opportunity to strangle it in its crib) and potentially disrupt their long range plans to supplant the US as the dominant military power on the planet.

Theory.

What might be seen as a reckless move by Trump could have a profound effect on the balance of power for generations.  If the Chinese don’t yield…If Trump doesn’t waiver in the face of blistering criticism from the globalist on both sides of the isle then we could have the breathing space we need to modernize, reequip and God help us — rest our forces….while at the same time causes so much internal chaos in China that they must turn inward to deal with the unrest caused by laid off workers.

Chaos Theory.

Another outcome is possible and while distasteful must also be considered.  This could cause the Chinese to accelerate their plans.  Where once they might have thought that they had 20 years, a successful trade war could cause them to act more quickly just to focus attention on an outward threat.  In this scenario we could probably kiss Taiwan goodbye.

Summation.

I don’t know how this will play out.  This was one of those cans that has been kicked down the road by both political parties for so long that it is essentially a crisis and must be dealt with.  How it plays out is anyone’s guess but I just laid out my theories, now I need to know yours.

Side note.

Some will ask why place our allies under these sanctions if the Chinese are the real target.  Blame that on globalization.  China has and will funnel products thru Europe, Mexico, Canada and others to avoid our efforts to reel them in.  As much as it might hurt this needs to be a global reckoning.  That’s another chestnut that you can lay at the feet of the fraudulent globalization scheme.

Trump Is Right: The U.S. Can’t Lose a Trade War

If President Trump is right about one thing, it’s that when you have a trade deficit of half a trillion dollars, you can’t lose a trade war.

by Salvatore Babones

The conventional wisdom of the international expert class is that “you can’t win a trade war.” What they really mean is that you can’t win a trade war in a fair game . If all sides start in balance, the rules are the same for everyone, and no player has coercive power over any other, the winning strategy is for everyone to cooperate. Economics 101.

But if one country starts with a massive trade deficit, the existing rules are written to favor its opponents. And when the country with the trade deficit just happens to be the most powerful country in the world, it’s safe to say that there are multiple paths to victory.

Despite being widely ridiculed in the press, the homespun wisdom encapsulated in President Donald Trump’s April 4 tweet that “When you’re already $500 Billion DOWN, you can’t lose!” is essentially correct. The only thing incorrect was the figure. The U.S. trade deficit was $568 billion in 2017, and that figure incorporates America’s trade surplus in services. America’s trade deficit in goods alone was a whopping $811 billion.

The headlines on April 4 blamed Trump for a 350-point intraday fall in the Dow Jones Industrial Average. They neglected to credit Trump’s for the fact that by the close of trading the Dow was up 610 points on the day. In fact, over the three months of Trump’s “trade war” to date, the Dow has been essentially flat (up 170 points).

Nor is market volatility particularly high. It’s now back at 2015–2016 levels, after a particularly calm 2017. That’s right: Trump’s first year in office war marked by historically low stock market volatility. All in all, the Dow has risen more than 30 percent since Election Day, 2018. Ah, the perils of using the market as a guide to politics.

Trump is right to push on trade. A simple return to anything resembling a balanced international trading system would result in massive gains for the United States. What presidential advisors Peter Navarro and Wilbur Ross call the deficit drag depresses the American economy by about 3 percent overall. That is to say, if international trade were balanced, the American economy would be 3 percent larger than it is now.

To be fair, there are lots of reasons why countries run trade deficits, and not all of them are bad. For example, the fact that foreigners want to invest in the dynamic U.S. economy pulls money in, which ultimately has to go somewhere. But it’s wrong to say that a trade deficit doesn’t matter at all. It all depends on the context.

The United States has consistently run a trade deficit since 1976. The worst deficit of all time was in 2006, when it hit $762 billion. That was 5.5 percent of GDP, nearly double the 2.85 percent deficit recorded in 2017. The trade deficit shrank sharply during the Global Financial Crisis (GFC) as consumers cut back, an “improvement” that was not at all a sign of strength. But the dramatic rise in the deficit between 2001 and 2006 didn’t do the economy any favors, either.

When trade flows change due to economic shocks, as in 2008–2009, the direction of causality is clear: the GFC caused a reduction in the U.S. trade deficit, and you can’t give the government any credit for that. But sometimes trade flows are changed as a direct result of government policy, and when that happens the government really is pulling the strings.

China’s entry into the WTO in 2001 was one such policy intervention that dramatically revised the rules of the international trading game. Like the creation of NAFTA (1994) and the WTO (1995), it was an active intervention in the economy that drove up the U.S. trade deficit. As a result, economic growth that would have happened in the United States under the old rules went instead to China.

In much the same way, if the Trump administration actively intervenes to tilt international trading rules back in America’s favor, that will boost U.S. economic growth—at the expense of its trading partners. That’s hard luck for Canada, Mexico, the European Union and (most of all) China. Depending on your point of view, it may not be right or fair. But that’s the fact.

Tit-for-tat

Put under pressure by the Trump administration, America’s trading partners are bound to squeal , and sure to mobilize Trump’s unpopularity against him. Truth be told, global trading rules are so complicated that it’s virtually impossible to tell how level the playing field is, or which way it’s tilted. But one thing seems certain: with a $568 billion trade deficit, the U.S. is not the overall beneficiary of the current rules.

The European Union and China have threatened the United States with tit-for-tat tariffs on iconic American products like Kentucky bourbon, Harley-Davidson and even fresh Maine lobsters. That may generate news headlines, but the simple fact is that Trump’s potential tariff list is $151 billion longer than Angela Merkel’s and $376 billion longer than Xi Jinping’s. Europe and China can’t win a trade war, and they know it.

If Trump is smart, he won’t use his bargaining leverage just to sell more bourbon and lobster, popular as that might be in Kentucky and Maine. He’ll use it to safeguard and expand America’s technological lead. Amidst all the talk of American decline, people seem to forget just how much the U.S. leads Europe and Asia in high technology. That’s the real foundation of America’s future prosperity.

The Trump administration has repeatedly used the authority of the Committee on Foreign Investment in the United States (CFIUS) to block direct Chinese purchases of American technology—and rightly so. In the brewing trade war with China, the administration could go further to rein in illegal Chinese practices like forced technology transfer and outright technology theft .

Trump could also pressure the European Union to roll back harsh data privacy rules that unfairly disadvantage American internet companies. China has a long history of directly blocking American companies from accessing the Chinese internet. Now the European Union seems intent on following China’s lead through seemingly even-handed regulations that disproportionately affect foreign firms—nearly all of them American.

American foreign policy has long been dominated by people who seemed to care more about being admired for their good works than about getting the best deal for the American people. That yearning for external validation has clearly been thrown to the wind. But being tough on trade is not enough by itself.

To win a trade war, the Trump team also has to play smart. Given all the weapons in at their disposal and all the advantages on their side, they should be able to win a trade war without a fight, the way Reagan beat the Soviet Union without firing a shot. With Europe in political turmoil and China on the verge of economic meltdown , a burst of presidential bluster might be all it takes for America to win on trade.

China Calls Trump Tariffs “The Biggest Trade War in Economic History”

Andrew Anglin
Daily Stormer
July 6, 2018

I’m gonna have to read a few economics history books to confirm the truthiness of this statement as absolute, but considering that large scale international trade hasn’t really been a thing for that much of history, it seems it is probably a legit characterization of the situation.

But whenever you’re looking at this situation, you must consider, as the Daily Stormer explained, that all of our goods already have tariffs on them going into China, and all Trump is doing is trying to level the playing field.

He didn’t start this war.

RT:

China’s commerce ministry says the country has no choice but to fight back after the US “launched the largest trade war in economic history,” as Washington’s 25 percent tariffs on various Chinese imports go into effect.

“On July 6, the US began to impose 25 percent tariffs on $34 billion worth of Chinese imports. The US has breached WTO trade rules and launched the largest trade war in economic history to date,” the ministry’s statement read​​​.

The Trump administration’s new 25 percent duties apply to 818 Chinese imports worth $34 billion. They are the first stage in levies threatened by the US on a total of $450 billion worth of Chinese goods.

China warned that while it promised not to “fire the first shot,” it will now be forced to “counterattack” in order to defend its core interests. Beijing has vowed to inform the World Trade Organization and work with other countries to “jointly safeguard free trade and the multilateral system.”

As Beijing geared up to respond to the new tariffs, it warned that the US would be “shooting itself in the foot and hurting the world” if it were to go through with the measure. Reciprocal levies had reportedly been prepared, which were set to take effect on the same day.

All of our manufacturing was stripped from this country not simply because of sweat shops (which hardly even exist anymore in China) but because of tax benefits. The government signed these agreements that were part of a globalist plan to make China the manufacturing center of the world. Ultimately, every company had to play ball in order to compete, unless they were some kind of luxury product.

An iPhone or a pair of Nikes made in China cost 30% more in China than it does in America. Figure that one out.

This may in the short term cause the price of some goods to go up, but the wages are already going up rapidly, so what difference does it make? What goods do normal people even buy? How many times a year do you have to buy a Chinese-made electronic product?

And just as an example here: if this makes the Chinese-made New Balances the same price as the US-made New Balances, importing New Balances from China becomes nonsensical. Instead, we can make them all in the US and export them to other countries.

China: $69.99

USA: $179.99

China, it has been leaked, is targeting their “tit-for-tat” at areas where Trump supporters live.

The Hill:

A leaked propaganda notice from the Chinese government states that the country is using to tariffs to try to disrupt and split President Trump’s base, Business Insider reported on Tuesday.

The notice, leaked and published by the China Digital Times, which monitors media censorship in China, states the tariffs are meant to split “apart different domestic groups in US.”

“We stop negotiation for now, acting tit for tat, roll out corresponding policies, hold public opinion at a good level without escalating it, limit scope, and strike accurately and carefully, splitting apart different domestic groups in US,” the propaganda notice reads.

“The trade conflict is really a war against China’s rise, to see who has the greater stamina,” the document continues. “This is absolutely no time for irresolution or reticence.”

The document also directs media to not report on comments from Trump or other officials, adding that outlets shouldn’t “attack Trump’s vulgarity; don’t make this a war of insults.”

So then.

Let the games begin.

I’m absolutely certain Trump is loving this. This is his field.

And I’m sure he appreciates that China responds with a diabolical plan, instead of dropped-eyebrow whining.

A strategic move can be responded to with a strategic move.

When someone is whining at you and calling you a mean person while their fake eyebrows are falling off, what are you supposed to do?

Call them a fag?

This is a war we’re going to win.

Pentagon Confirms Chinese Fired Lasers at U.S. Pilots – Two American Aircraft taken down by Chinese Military Laser Weapons.

The Pentagon confirmed Thursday that Chinese nationals fired lasers near a military base in east Africa against U.S. military aircraft in the region, injuring several pilots.

Pentagon Press Secretary Dana White said the U.S. government made diplomatic protests to the Chinese government over several recent incidents of laser firings near China’s first overseas military base at Djibouti.

“These are very serious incidents. There have been two minor injuries. This activity poses a threat to our airmen,” White told reporters.

“We have formally demarched the Chinese government, and we’ve requested that the Chinese investigate these incidents,” she added.

The number of incidents is “more than two but less than ten” and the laser firings took place in recent weeks, White said.

White said the Pentagon is confident that Chinese nationals were behind the laser firings but did not elaborate on the intelligence linking Beijing to the incidents.

She declined to speculate on the Chinese motive behind the laser attacks.

“I believe there have been cases where this has happened previously,” White said. “But what this started was these last few weeks we decided to become very serious about it, and we have demarched the Chinese, and we’ve asked for the investigation.”

China’s government has not commented on the incidents. A Chinese military expert told the state-run Global Times newspaper that the U.S. accusations that China used a laser weapon in Djibouti was “groundless.”

China opened the military base in Djibouti last year and plans to deploy some 400 troops there.

China’s government has asserted that the base is merely a logistics hub for anti-piracy operations as well as to support China’s international infrastructure project called Belt and Road Initiative.

The U.S. government regards the Chinese base as part of Beijing’s efforts to project military power around the world.

The Djibouti incidents appear similar to the 1997 incident involving a Russian merchant ship that was shadowing a Navy missile submarine and fired a laser on a Canadian surveillance helicopter.

The laser damaged the eyes of the Navy Lt. Jack Daly and Canadian pilot Captain Patrick Barnes near Washington state and was covered up by the administration of President Bill Clinton.

China and the United States have battled over international trade and finance after the Trump administration announced it will impose tariffs on China for its unfair trade practices.

The U.S. and Chinese militaries also have squared off in the South China Sea where China is seeking to take control of the strategic waterway. The U.S. military has been seeking to counter the illegal claim by sending ships and aircraft near disputed islands in the sea that have been militarized in recent years by China.

A Federal Aviation Administration notice to airmen reported April 14 that “there have been multiple lazing events involving a high power laser” near the Chinese military base.

“Use extreme caution when transiting near this area,” the notice states. “If a laser is seen in or near Djibouti, notify immediately tower…”

The notice also said U.S. military air crews were to contact military air controllers.

In one incident, air crew members flying aboard a C-130 transport suffered two minor eye injuries after exposure to what was described as “military-grade laser beams” that appear to have been fired from the Chinese base.

The laser incidents followed U.S. military exercises last month off the coast of Djibouti called Alligator Dagger. The exercise was canceled April 5 after two separate air mishaps, including the crash of a Marine Corps Harrier jump jet and a CH-53 helicopters, in Djibouti.

About 4,000 U.S. personnel are stationed at Camp Lemonnier in Djibouti. The base has been used as a major launch point for U.S. military and special operations commando raids in the region.

The Chinese military base in the country is located about a mile from Camp Lemonnier and is Beijing’s first overseas military base and has raised security concerns because it is located very close to the U.S. military base there.

The Washington Free Beacon disclosed in 2015 that China’s military has deployed several types of hand-held blinding laser weapons.

The weapons, according to state-run Chinese media, are used to interfere and damage laser and night vision equipment.

Use of the weapons violates China’s announced commitment to a section of the 1998 U.N. Convention on Certain Conventional Weapons that bans the use of blinding lasers in combat.

The Chinese have marketed four types of laser guns, designated the BBQ-905 Laser Dazzler Weapon, the WJG-2002 Laser Gun, the PY132A Blinding Laser Weapon, and the PY131A Blinding Laser Weapon.

Marine Corps Gen. Thomas Waldhauser, commander of the U.S. Africa Command, warned in congressional testimony in March that China is seeking to expand and possibly take over the strategic port in Djibouti, which owes Beijing an estimated $1.2 billion in construction debt.

China operates a naval port and “multi-purpose” port that offloads containers from freighters.

Waldhauser said a Chinese takeover of ports in Djibouti would have “significant consequences” for U.S. military operations there.

“We are not naive to think that some of the activities the Chinese are doing in terms of counterintelligence there are taking place, but it just means that we have to be cautious,” Waldhauser told the House Armed Services Committee March 6. “We have to be on guard for that type of situation.”

Pentagon: Chinese military producing 42,000 drones

The US Department of Defense says in an annual report that the Chinese military is set to build nearly 42,000 land-based and sea-based drones.

It added that China is also developing long-range Unmanned Aerial Vehicles (UAVs) for intelligence gathering and bombing attacks.

“The acquisition and development of longer-range UAVs will increase China’s ability to conduct long-range reconnaissance and strike operations,” the Pentagon said in the report on Friday.

The report — entitled Military and Security Developments Involving the People’s Republic of China 2015 — shows concerns from the US military about China’s growing military power.

“China is advancing its development and employment of UAVs,” the report said. “Some estimates indicate China plans to produce upwards of 41,800 land- and sea-based unmanned systems, worth about $10.5 billion, between 2014 and 2023.”

The report was handed to the US Congress for further assessment.

The US military also noted in the 2015 report that China has been adding UAVs into military exercises in recent years, including one drill in the East China Sea in 2013.

The Pentagon also expressed alarm over the scale of the Chinese army’s modernization campaign that seeks to depend on self-sufficiency rather than important defense equipment from the US or its allies.

The report concluded that the People’s Liberation Army Air Force “is pursuing modernization on a scale unprecedented in its history.”

In recent years, the Pentagon claimed that China has been building more advanced weapons that could target US interests in the future.

The US has expressed concern that the US might be losing its military superiority in areas such as fighter jets, missile systems and cyber warfare in the coming years.

Military spending worldwide amounts to $1.75 trillion and Washington is responsible for more than one third of all military spending.

Source: presstv.com

Apocalypse China

Apocalypse China

Or why the East will not inherit the earth

It’s hard not to notice that there’s a certain admiration for the Chinese among far rightist websites these days.  The reasons are obvious as their nation is large, numerous, proud, talented, industrial, relatively homogeneous, and – in the main – unaffected by cultural Marxism and the ideas that went into it.  To give one prominent example, Richard Lynn speculates that the Chinese will colonize the world on the grounds that they will most likely be the first large nation to fully embrace the eugenic potential of upcoming innovations in biotechnology.  But before we let ourselves get carried away with such analysis we should also consider whether there are any potholes that might obstruct the path to China dominating the earth.

And there are.  At least two.  The first being the prospect that China’s economy is, in certain key ways, propped up by massive government distortion and not nearly so strong as it appears, which I briefly touched on in this entry.  The second would have to be the potentially devastating long-term affects due to environmental degradation and pollution as a consequence of China’s unique path to development, and it is this second point that I would now like to concentrate my attention.

The conventional wisdom on that second point also takes two forms.  The first is that it is rude for us Westerners to point out such a thing given how we’ve polluted the earth ourselves and how much of what’s made in China these days is for our benefit.  The second is that China is merely following the development pattern that we pioneered but in a highly-compressed timescale – what happened to us over a couple centuries is happening to them over a few decades – and we should expect the current era of pollution to be followed by an era of cleanup.  The Yangtze and the Yellow will one day be what the Thames and the Cuyahoga are today, not perfect but serviceable.

The conventional wisdom seemed convincing enough until I found these pictures.  Please, follow the link before continuing below the fold.

Say it with me now, “Holy shit!”

To briefly recap, starting with Deng China has been undergoing an industrial revolution all its own over the last three decades using an economic “model” based on foreign exports.  Chinese goods dominate Western markets because they can be made more cheaply even after transportation costs are taken into account because the operating labor and environmental costs are obscenely low – the workers are paid slave wages and the waste is dumped without the additional expense of treatment into the rivers and onto the soil.  Intense competition within the mainland [China] keeps profit margins vanishingly small and sometimes even negative, due to the distortions that come from having state controlled companies.  The same Chinese rare earths industry that’s been making recent headlines provides a great of example of this model in action.

But the story of modern China’s environmental degradation does not begin with Deng, although you would be forgiven for thinking so, as it is not simply a story of industrial development gone haywire.  The real story begins with Chairman Mao.

In the Great Leap Forward Mao flicked his wrist and caused at least two ecological catastrophes.  The first was part of his plan for China to lead the world in steel production by smelting steel in their backyards, the Chinese were to get the energy to do this by completely cutting down the forest of the vast subtropical south China karst belt and turning them into coals; however, the trees didn’t produce enough coals and so the Chinese were – amazingly enough – made to uproot all the stumps that were left behind and use their wood as well.  The consequence of this is that the hot summer sun beat directly down onto the ground cover that once blanketed the forest floor and killing it in a few years, with the elimination of the trees and the ground cover the land was no longer able to retain the seasonal rainfall like it once did, which lead to massive flooding and soil erosion and rendered impossible those traditional farming practices in the region that have sustained the Chinese people throughout the ages.  All of this is discussed in a riveting – if poorly lit – one hour lecture available here or here.  This first catastrophe is a little known piece to the puzzle that was the Great Chinese Famine and the more recent droughts in the Southern provinces.

The second of Mao’s ecological catastrophes was his decision to send out large numbers of Chinese people to work the grasslands with the inevitable consequence being over-farming and overgrazing.  The over-farming led to massive dust storms, which carried away fertile top soil not unlike what happened in the American Dust Bowl, as well as flash floods, soil erosion, and desertification.  The disaster of overgrazing was made worse by the use of goats, which ate up the grasslands at their very roots and accelerated the desertification process.  The result has been that China has lost roughly enough farmland the size of Greenland to the encroaching desert since the Great Leap Forward and continues to experience desertification at the rate of losing enough farmland the size of England’s Kent per year and the size of America’s New Jersey every five years with an increasing rate of apocalyptic looking orange dust storms, which carry with them important top soil as well as sand.  As one can imagine, many livelihoods are lost in the desertification process and massive resettlement efforts are continually underway.

Factor into the equation all the dams that the ruling government has built in the modern era and it’s not wonder that nearly 40 percent of China is suffering from soil erosion problems.

Back to Deng and the pollution caused by a process of industrial development that began in earnest roughly three decades ago.  The central crisis here is water, roughly one-half of China’s water resources are no longer safe to drink, even when taking into consideration modern treatment methods, and one-fifth of it can’t even be used for industrial purposes.  By at least one estimate, China might possibly use up between 89-100% of all its sources of drinking water by 2030!  The Yangtze and Pearl river estuaries are now dead zones and the Yellow river is drying up, China is the only country in the world where seafood output from aquaculture outstrips live catch.  Anywhere from 75-90% of the groundwater in the fertile and densely populated North China Plain (home to Beijing) is polluted, causing cities and farms to increasingly rely on a rapidly dwindling unreplenishable fossil aquifer that is practically a mile below the surface.  In the face of such dire circumstances the Chinese authorities have decided to alleviate water shortages in the North by turning to none other than Chairman Mao and his harebrained, massively expensive, vastly complicated South-North water diversion project and melt snow in the meantime.

And then there are the smoggy skies caused by coal plants, underground coal seam fires, vehicle exhaust; toxic food; cancer villages; and even something so absurd as deodorant cannons applied to open landfills.  It’s not that environmental laws don’t exist, they do, but go unenforced because of political corruption stemming from the fact that local officials are rewarded for growing the economy and producing more GDP, not protecting the environment.  No wonder China is scrambling to cut deals with Africa and Brazil in order to have enough resources to meet its future resource needs.

China, and by extension the East, will not inherit the earth.  It can only have a few more years left until the sheer weight of these ecological catastrophes bring the country to its knees and become a textbook case of what it means to economically develop a country around an incomplete view of wealth.

China’s High-Wire Act: Working Without a Net

China’s High-Wire Act: Working Without a Net

July 18, 2010

China is walking a very shaky highwire right now as it comes to grips with its holdings of US bonds. One false move…one mistake…and they might fall off that highwire. But that fall might also bring down the entire circus tent.

China, the world’s largest economy, is the world’s largest holder of United States Treasury securities. In May 2009, the US owed China $772 billion. ..likely much more now. That places them in the position to entirely control the economic system of the United States. If Washington doesn’t go along with Chinese desires and directives, China could collapse the DC government overnight.

How, you say?

The world bond market is made up of debt instruments. The world’s reserve currency is the US Dollar. All China would need to do is sell off a small percentage of its US Treasuries at a steep discount. If it made its transaction at the end of a business day, or after hours, the bond market would collapse the very next business day. Other nations, investors, insurance companies and pension funds would see the precipitous decline of the US bonds and rush to market in a desperate attempt to sell and get SOMETHING…rather than waiting until after the market collapses and getting NOTHING.

China understands diplomacy and making appearances. That is why China allows Washington to bluff and bluster about monetary policy and the revaluation of the Yuan. They are allowing DC politicians to save face. But remember the old saying… “actions speak louder than words?”

China is dumping US Treasury debt instruments as fast as they can. At the same time, they are buying gold bullion in measured amounts.

Meanwhile, the rest of the world is trying to replace the dollar as the world reserve currency. We used to think that the Euro had a chance. But the Euro is nearly as bad off as the dollar.

Big governments are as addicted to fiat money as a heroin junkie, so looking to existing nations for answers is futile. Which of them would actually repudiate their debt, their central planning and their currency? Which of them would switch to a gold/silver money system?

Answer: Possibly China and India. That’s because they are the lenders, not the borrowers.

Answer #2: Possibly an American state that secedes.

We have written previously about a Chinese strategy in which China gets their own people to monetize their currency. Click HERE to learn more.

The National Inflation Association has just published a six-minute video about this issue. Watch and learn.

When you bow your head for your bedtime prayers tonight, pray for the Chinese leaders. Pray that they don’t slip and fall before you have bought enough gold and silver coins to protect yourself.

DumpDC. Six Letters That Can Change History.

© Copyright 2010, Russell D. Longcore. Permission to reprint in whole or in part is gladly granted, provided full credit is given.