The U.S. Bails Out Failed Industries, While China Buys The Rare Earth
Why not use a trillion of the Fed's QE to buy some global natural resources instead of treasuries. But that's not our style. We run deficits to bail and stimulate a deleveraging economy that will not revive, while China buys the globe.
We borrow money from our grandchildren to bailout banks, insurers, hedge funds, private-equity shops, car companies, states, unions, houseowners, new car buyers, new house buyers. Meanwhile China is using its surplus to buy every natural resource that's for sale, anywhere.
And not one word from Obama or anyone in Washington. We are so supremely fubar in the long run, exhibiting the mass insanity of all empires in decline. Fighting wars, spending massively, encouraging consumer debt, monetizing the national debt and destroying the greatest currency history has ever known - the once mighty U.S. Dollar.
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America vs. China In 2020 - A Zombie Battle For Rare Earth Resources
A Halloween theme from Paul Farrell
Here are 8 demonic reasons why China’s aggressive “economic warfare” is also a secret long-term defensive military strategy:
1. Zombie-eating China has a long-range plan to conquer America
Listen closely, because the nuttiest theories are so often revealed later as hidden truths. Remember Delaware Tea Party Senate candidate “I’m no witch” Christine O’Donnell. You may question her credibility about secret classified documents revealing that China has a “carefully thought out and strategic plan to take over America.”
But still, the facts are that the China Zombie Eaters are destroying and devouring millions of American jobs.
We also know China is stealing U.S. state secrets, stealing proprietary patents, stealing our technology. We know China is hacking away, aggressively engaged in a not-so-secret cyber war against America. We also know China has forged alliances with America’s enemies, including Iran, Venezuela and North Korea.
So while you’ll chuckle at a non-witch’s “classified” plans, the fact is China Zombie Eaters are our worst nightmare, aggressively engaged in wars against America on multiple fronts.
As Ross Terrill, a China expert at Harvard, put it in the Wilson Quarterly: “The Chinese Communists are very aware of this contest with the United States, though Americans (beyond the Pentagon) are not.”
Yes, Zombie America is clueless about the threat. And, Terrill warns, our lack of awareness will destroy us: “By being a shrinking violet, the United States would simply hand over the future to China.”
2. Zombie-eating China ‘buys’ Australia with surplus U.S. dollars
Want more proof? Read Malcolm Knox’s recent piece in Bloomberg-BusinessWeek. Wake up Americans. While our Zombie Politicians are fighting selfish turf wars this election cycle, China is using its foreign currency reserves (U.S. dollars) to buy rights to Australia’s commodities and natural resources, giving China Zombie Eaters long-term access to natural gas, minerals, iron ore and more.
A lot of those resources are found in Queensland, Australia, the home of John Quiggin, the economics professor who wrote the book “Zombie Economics.” Quiggin also summarizes the five main undead ideas of “Zombie Capitalism” in Foreign Policy magazine.
4. China Zombie Eaters are aware of Pentagon war strategies
That trawler incident got me thinking of the Pentagon study from Fortune back during the Bush/Cheney years: “By 2020 there is little doubt something drastic is happening.” The Pentagon warned that “as the planet’s carrying capacity shrinks, an ancient pattern of desperate, all-out wars over food, water, and energy supplies would emerge ... warfare is defining human life.” You can bet China’s generals have the same strategic playbook.
Krugman fears the Zombie Eaters long-range plans: “I don’t know about you, but I find this story deeply disturbing, both for what it says about China and what it says about us. On one side, the affair highlights the fecklessness of U.S. policy makers, who did nothing while an unreliable regime acquired a stranglehold on key materials. On the other side, the incident shows a Chinese government that is dangerously trigger-happy, willing to wage economic warfare on the slightest provocation.” Maybe even military action?
5. Zombie-eating China way ahead of Pentagon’s war planners
Krugman calls this “economic warfare.” But the Marine Corps veteran in me sees a long-range strategy of out-flanking a complacent Zombie America.
It’s well-known the China Zombie Eaters are making deals all over the world — in Africa, South America, Russia and Asia — tying up long-term natural resources, using their surplus credits of U.S. dollar reserves to lock up essential global commodity futures. Meanwhile America’s Zombie Politicians waste time in myopic election turf wars for personal gain, failing to see that America’s consumers and taxpayers are financing China’s war plans. Wake up. Admit it.
So to echo Krugman: I don’t know about you, but on so many fronts China’s behavior smells like their leaders are doing lots more than expanding China’s economy (the Foreign Policy Journal predicts China will explode from 11% to 40% of the global GDP by 2040, creating a $123 trillion economy that will dwarf America’s GDP).
But even more deeply disturbing, China’s behavior tells us they are obviously engaged in long-term defensive military strategies as well as economic planning, and that in the future, another trawler incident may well provoke dangerously trigger-happy Chinese leaders into escalating from defensive military strategies to a preemptive strike protecting China’s economic power.
Continue reading...
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Oct 26, 2010 at 10:40 PM
Reader Comments (20)
The paragraphs at the top were excellent, but Farrell's a fear-mongering idiot. China is making rational, non-confrontational moves in the face of our insanity. While we print money and run fraudulent Treasury auctions to keep interest rates low for a government that can't even pass a budget, they are buying things of value with our "monopoly" money.
It's not evil, it's smart.
And we have the audacity to call them currency manipulators? Fuck you, Krugnuts.
Believe this spook story if you want, America, but the real monsters are here, not in Beijing. China is securing precious resources for its future, while the only thing we care about is reflating the housing bubble. And don't flatter yourself either, America about China stealing all our super-secret secrets. We're not that bright. Remember how we couldn't fix a leaky pipe at the bottom of the ocean? We can fancy ourselves the smartest people, but that doesn't make it so.
It's not China's fault that they understand the strategic importance of rare earth metals more than us. All the wailing about how much we love education isn't gonna bring those resources back.
http://www.businessinsider.com/chinas-has-just-started-ban-of-rare-earth-metal-exports-to-the-us-2010-10
But hey, if you'd rather talk about mortgage fraud, party on.
Good analysis on Mexico! The Mexican government controls the so-called drug cartels, therefore any violence is government sanctioned. In the not too distant future China will repeat the fraudulent USSR democratization process, and become a 'democracy'. Contemporaneous with a new China, the 'drug violence' in Mexico will spread south, and Mexico will be 'forced' to ask her new 'democratic' Chinese ally for troops to assist in destroying the drug cartels. That's how Chinese troops will enter Mexico en masse without anyone raising an eyebrow.
mark mchugh,
you would be correct in your analysis if it were any other nation but China. You see, China is a communist nation and will never cease in her main goal (in cooperation with her ally the USSR, along with the nuclear umbrella the USSR provides China) to neutralize the West. When the United States is neutralized, then China can get serious and safely implement real capitalism in China. Until then, China's state controlled companies will continue to generate most of China's economic growth.
In 1960 China and the USSR (along with other communist nations) signed off on a new strategy to defeat the West. It's known as the Long-Term Deception Strategy. We know this thanks to KGB defector Major Anatoliy Golitsyn. Golitsyn warned the West in 1962 that the Berlin Wall would fall due to 'liberalization' in the USSR; that a false labor movement would rise in Poland (Solidarity); that the East Bloc would be set 'free' from the USSR; and that the USSR would liberalize into a 'democratic' state.
one mote thought. Yes, America does have evil persons in power. One only has to look at 9/11 and who really carried out those attacks to know what American politicians are capable of, but do you know why the Bush administration killed 3,000 Americans on 9/11? One problem with the 9/11 Truth Movement is that they can't answer that question satisfactorily. The common explanation they give is that 9/11 was for oil, forgetting that oil had been an important resource for over 100 years before 9/11!
The 9/11 attacks were a cover for the war the West is still fighting with the USSR (and China). That way America can defend increases in defense spending by pointing a finger at Al-Qaeda. The 'War on Terror' is a cover for the war we are still fighting with the USSR.
Gobie, for you this is called sarcasm.
Mother, do you think they'll like this song?
Mother, do you think they'll try to break my balls?
Mother, should I build the wall?
Mother, should I run for President?
Mother, should I trust the government?
Mother, will they put me in the firing line?
Is it just a waste of time?
http://www.youtube.com/watch?v=LWoyZixx1l4&feature=related
Hush now baby, baby, don't you cry
Momma's gonna make all of your nightmares come true
Momma's gonna put all of her fears into you
Momma's gonna keep you right here under her wing
She won't let you fly, but she might let you sing
Momma's will keep Baby cozy and warm
Oooo Babe
Oooo Babe
Ooo Babe, of course Momma's gonna help build the wall
It's not evil, it's smart."
Mark, you (and DB's paragraphs at the top) literally took the words right out of my mouth -- so the best I can do is simply paste it above. But I think Farrell's missed point is that America will never unravel it's economy from the global parasite it freely opens it's veins to. If it did, China wouldn't be the enemy.
Our captured federal government will never rise up against the global banker's dictatorship--it is complicit with it, and a party to it. Only the individual States have any hope to regain independent sovereign economies within their borders.
And even as they do, if they do, they will still have obligations to consider.
http://letthemfail.us/archives/6266
What I am saying is that we created the vulnerabilities that China now exploits, period. I don't care what somebody's plan for world domination were, if your system is the better system, and you stay true to it, you'll win.
We have adopted a socialist model for housing finance and no one cares, because it keeps your house price up. The financial burden of that idiocy alone will destroy America. Now we want people to sue for this fraud and that? Take a step back - The taxpayers are on the hook for bank losses AND Fannie and Freddie. All's we're doing is shifting our money from one pocket to the other.
You can measure the effects of the price distortions here:
http://finviz.com/futures_performance.ashx?v=15
By collapsing the dollar 5.4% the Fed was able to keep stock losses to -0.4% and that's what makes American's happy. Now look at the skyrocketing prices of everything people actually need to survive. I'll remind you that the Fed's mandate is "price stability", not "house price stability", not "stock price stability".
You can talk all you want about the evil plans of others, but the indisputable reality is that our government and the Fed have strayed so far from what should be their objectives (with most Americans cheering at every turn), that we brought this entirely upon ourselves.
For every dollar the US government collects in taxes, it borrows an additional 80 cents via Treasury auctions, which always go off without a hitch (yesterday's bid to cover was 3.43, I think). To put that in perspective, think of a junkie with a 900 dollar a week habit, who earns 500 a week. Now imagine people lining up to lend said junkie money.
Bullshit.
The Treasury auctions are 100% fraudulent. Nobody is buying this shit in any real sense. It's all driven by newly printed money supplied by the Fed. And Quantitative Easing is nothing more than the process of actually recognizing that money printing. That's all.
Providing cover for failed banks to illegally evict homeowners by defrauding the courts is indeed well beyond the charter of the government and the Fed. I see this as part and parcel of the other ills you articulate so well. Unless we bring criminally rogue banks and the Fed to heel, we're toast. Congress and the Executive Branch have failed abjectly on this score. In that regard, they are truly "real monsters." That leaves the third branch of government, the courts, to get something--anything, damnit, I'll take anything--right.
The Chinese got it right to approach the future with those Ideals on Hand. Especially in a unpredictable world we're headed towards.
"i agree mark...it ws more circumstance than anything else...i had wanted to do a story on this and i stumbled across farrell's article...so i stuck them together...if i get some time tonight i will take ferrell's piece out and plug in a better story...i'm not blaming the chinese at all as you know...i'm blaming us for not keeping up with them…"
If you agree so much of it why focus the attention of the story on the "EVIL CHINA"
China is looking out for their citizen while our Govt is looking out for their own pockets and foreign nations. Look the problems we're in now is that we're pointing fingers…
If you learn anything about America is don't believe the politicians. Its very popular to blame China now… Its to our nations interest not to let DC fool us on what the problem really is….
The problem is DC and its short sightedness.
I noticed quite a few people agree with my analysis also.
Short
If it wasn't for the Fear mongering Red China hysteria I would say this article is more credible...
Look China isn't our friend but, they aren't our enemy either...to make them into one is just stupid.
We shouldn't buy their stuff anymore but, they doesn't mean we shouldn't allow them to prosper and makes deals..
All this article is stating is that for China to be successful USA must go down...
While there might be some truth in that, The Chinese wants to grow for themselves while the Americans don't want them to grow because, fear from competition.
The Free ride is over...Welfare...
we're on the same page when it comes to economics and our creating the vulnerabilities we have with China, but that's the way with political parties. China doesn't have political parties, so she can plan decades into the future.
I know the disastrous effects of artificial low interest rates (or credit expansion), whether for the housing market or the economy in general. The end result is always a misallocation of capital and labor, resulting in the inevitable economic downturn.
As for China's global plans, I just needed to clarify a few points about China’s plans in the future.
With the aid of the U.S. government and the U.S. dollar.
"Meanwhile China is using its surplus to buy every natural resource that's for sale, anywhere."
With the aid of the U.S. government and the U.S. dollar. The government by turning a blind eye, and the dollar by plundering our economy with their junk goods.
"monetizing the national debt and destroying the greatest currency history has ever known - the once mighty U.S. Dollar."
With the aid of the U.S. government and the corporations for which it stands...
"China has a long-range plan to conquer America"
Communism's long range goals has always been to conquer everything, and replace it with more communism. With the aid of the U.S. government and the corporations, many believe communism is dead (Reagan killed it), and China if our friend looking out for our best interests...
"China is stealing U.S. state secrets, stealing proprietary patents, stealing our technology."
And the U.S. government continues to reward them for it by renewing things like the most favored nation status while ignoring civil rights violations or the thefts of state secrets as one example.
The United States is forbidden by law to grant MFN status to communist countries that do not have free-market economies. The practical effect is that imports from these countries are subject to much higher tariffs. An amendment to the Trade Act of 1974, however, created a loophole. The president may waive the MFN restriction on an annual basis if the communist country permits free emigration or if MFN status would lead to increased emigration. By law, the President must tell Congress each year of the administration's intention to renew or deny MFN status benefits to a communist country. Congress has sixty days to overturn the decision and would then need a two-thirds majority to override a presidential VETO.
China has been the main beneficiary of this loophole. Since 1979 China has been granted MFN status. After China suppressed its democracy movement and the Tiananmen Square protest in 1989, Congress opposed continuation of the country's MFN status, yet every President since GEORGE H. W. BUSH has continued to renew China's MFN benefits.
"China is using its foreign currency reserves (U.S. dollars) to buy rights to Australia’s commodities and natural resources, giving China Zombie Eaters long-term access to natural gas, minerals, iron ore and more."
They are doing this globally, do not leave out agricultural resources as well (as you said with the U.S. dollar profits from U.S. government approved raping of America). To counter growing domestic challenges in ensuring food self-sufficiency, China is drafting a policy to encourage agricultural companies purchasing farmland abroad. The fear is that it could lead to food scarcities in the host countries and also displace the native born farmers that now work the land.
Chinese companies have been criticized for violating laws, human rights and the environment in the process of acquiring their land concessions.
There is 20.9 million acres of U.S. agricultural land in which foreign persons held an interest through Feb. 28, 2008. China is not the only one in this game. If times get bad enough, those living in the bread basket of the world may watch while starving, the food resources of America leaving to feed the foreign owners.
Keep close attention to export data as exports will be driving grain prices over the next few years, and follow agricultural land and agribusiness purchases.
"tying up long-term natural resources, using their surplus credits of U.S. dollar reserves to lock up essential global commodity futures. Meanwhile America’s Zombie Politicians waste time in myopic election turf wars for personal gain, failing to see that America’s consumers and taxpayers are financing China’s war plans."
This is part of an offensive strategy. Our government is aiding this by doing everything in its power to make America weaker in the face of a rising possible threat.
"our government and the Fed have strayed so far from what should be their objectives"
By intention or ignorance or political profiteering these policies of weakening the dollar, destroying our economic base, pillaging our national coffers, or aiding the rise of a foreign entity with global aspirations is dangerous ground for the government to be obviously working towards.
Good to see many beginning to pick up on these things.
I can't see a common denominator, can you (that is sarcasm Gobie)?
http://www.euractiv.com/specialreport-rawmaterials/expert-foreign-interest-greenlan-news-514011
[snip]
Courted by multinational companies and foreign heads of state over its rare minerals and potential oil resources, Greenland could win full independence from Denmark and join the European Union as a free state, according to one expert on the Arctic.
Greenland’s leader Kuupik Kleist is boxing above his weight when it comes to foreign policy.
Although the premier represents an autonomous island of just 57,000 people, within the last couple of months he has met with US Secretary of State Hillary Clinton, European Commission President José Manuel Barroso and representatives from the Chinese government.
Greenland is a self-ruled territory in the Kingdom of Denmark. Although it was granted home rule in 1979, the Danish government is still in charge of foreign affairs, defence, police and justice, as well as financial policy.