Copyright: include link to this article on top of reproduction if you use it.
“Our retaliation should not be restricted to merely military matters, and we should adopt a strategic package of counter-punches covering politics, military affairs, diplomacy and economics to treat both the symptoms and root cause of this disease,” said Luo Yuan, a researcher at the Academy of Military Sciences in China.
All Empires rise and fall, and we have been witnessing the beginning of the Fall of another. The United States of American has started to teeter under it’s own debt. The Federal Reserve system has guaranteed the eventual end to its slaves (the American people), at the hands of the banks. Every dollar the Fed issues has to be paid back with interest, and only the Fed issues it. It’s a ponzi scheme that has finally caught up with them.
The inflationary system will reach a critical point where no one will be able to afford anything because everything is made in China, financed by the very banks that are un-doing the US. Now stuff is affordable, except no one has a job at least not a decent middle class job. Indeed, ff we aren’t manufacturing anything we are done. Manufacturing has always been the backbone of a strong middle class and with barely any “made in Canada” items in the stores, there are no Made in Canada jobs, or Made in USA.
With this three-year decline in China and foreigners buying US debt, it will soon happen that the greenback will no longer have enough domestic purchasing power or international conversion clout to be considered the currency of first resort. At that point, the US will finally be exposed as a truly financially broke nation, the shock of which will truly unsettle the world at large. Ask yourself, if still doubt what is said here, why G-8 nations are suddently rushing to try and head off the looming debt crisis and another recession. It is because they know that America’s ability to come to the rescue with another massive enfusion of printed money is now at an end.
Foreigners cut Treasury stakes; rates could rise
Foreign demand for short-term Treasurys tumbles, led by China; chance of higher rates looms
WASHINGTON (AP) — A record drop in foreign holdings of U.S. Treasury bills in December sent a reminder that the government might have to pay higher interest rates on its debt to continue to attract investors.
China reduced its stake and lost the position it’s held for more than a year as the largest foreign holder of Treasury debt. Japan retook the top spot as it boosted its Treasury holdings.
The Treasury Department said foreign holdings of U.S. Treasury bills fell by a record $53 billion in December. That topped the previous record drop of $44.5 billion in April 2009. Source: Yahoo News
China PLA officers urge economic punch against U.S.
BEIJING (Reuters) – Senior Chinese military officers have proposed that their country boost defense spending, adjust PLA deployments, and possibly sell some U.S. bonds to punish Washington for its latest round of arms sales to Taiwan.
The calls for broad retaliation over the planned U.S. weapons sales to the disputed island came from officers at China’s National Defence University and Academy of Military Sciences, interviewed by Outlook Weekly, a Chinese-language magazine published by the official Xinhua news agency.
The interviews with Major Generals Zhu Chenghu and Luo Yuan and Senior Colonel Ke Chunqiao appeared in the issue published on Monday.
The People’s Liberation Army (PLA) plays no role in setting policy for China’s foreign exchange holdings. Officials in charge of that area have given no sign of any moves to sell U.S. Treasury bonds over the weapons sales, a move that could alarm markets and damage the value of China’s own holdings. Source: Reuters news
Greece going under was bad and can be compared to a mom and pop operation closing 3 stores. US going under is like Wal Mart, Mcdonalds, KFC, and Coca Cola all closing at the same time. To give you another idea, oil for instance is bought in dollars, so if US fails at one debt repayment the dollar falls dramatically and you can bet the black gold will skyrocket to over 200$ a barrel. Then add in the panic from stock markets around the world all selling. Then from the huge sell off companies are forced to scale back due to falling stock prices inturn jobs loss. Basically the US is the first domino as Greece is close to being the last domino. If the US falls theres no one in front of them. Food for thought!
- Residential Housing 67 Percent Fall; Chinese buyingWhen Hong Kong was returned to China by the British, millionaires escaped and heavily invested in real estate in Australia and that was the beginning of the bubble in prices...
- Insider Selling To Buying Ratio Approaches Five Digits, Hits Record 8,280x In Week Ending November 19“Once again, for the very cheap seats, the re-recession predicted by the ECRI, has materialized (at least according to Ben the Bernank) and is being resolved with $900 billion in...
- History Repeating Itself: It's The 1930s AgainIs the 6-month Stock Market Rally About to End? By Bob Chapman What is going to happen next is that the 6-month stock rally is about to end. It took...
- Japanese super earthquakes to cause worldwide interest rate spikes“This super destructive Japan earthquake is going to cause American interest rates to jump a percent or two or three — possibly more. Indeed, the Japanese are the number one...
- The Nine Chinese Men Who Control the Fate of AmericaHow do these nine politicians keep the exchange rate low? They buy U.S. dollars. Importantly, these nine men don’t just sit on stacks of dollar bills… They invest those dollars...
- Good for Stocks, Better for Gold: Bernanke’s “Stuck at Zero”Yahoo Tech Ticker – Feb 12, 2010 12:50pm EST by Peter Gorenstein Once again, Beijing’s efforts to cool their red hot economy are causing a sell-off on Wall Street. For...
This entry was posted on Wednesday, February 17th, 2010 at 9:50 pm and is filed under Eurasia. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.