Tag Archives: China

China is killing the dollar, by Alasdair Macleod

If a country is clearly bent on depreciating its own currency, why hold either the currency or assets denominated in that currency. From Alasdair Macleod at goldmoney.com:

In the wake of the Fed’s promise of 23 March to print money without limit in order to rescue the covid-stricken US economy, China changed its policy of importing industrial materials to a more aggressive stance. In examining the rationale behind this move, this article concludes that while there are sound geopolitical reasons behind it the monetary effect will be to drive down the dollar’s purchasing power, and that this is already happening. More recently, a veiled threat has emerged that China could dump all her US Treasury and agency bonds if the relationship with America deteriorates further. This appears to be a cover for China to reduce her dollar exposure more aggressively. The consequences are a primal threat to the Fed’s policy of escalating monetary policy while maintaining the dollar’s status in the foreign exchanges.

Introduction

On 3 September, China’s state-owned Global Times, which acts as the government’s mouthpiece, ran a front-page article warning that

“China will gradually decrease its holdings of US debt to about $800billion under normal circumstances. But of course, China might sell all of its US bonds in an extreme case, like a military conflict,” Xi Junyang, a professor at the Shanghai University of Finance and Economics told the Global Times on Thursday”[i].

Do not be misled by the attribution to a seemingly independent Chinese professor: it would not have been the frontpage article unless it was sanctioned by the Chinese government. While China has already taken the top off its US Treasury holdings, the announcement (for that is what it amounts to) that China is prepared to escalate the financial war against America is very serious. The message should be clear: China is prepared to collapse the US Treasury market. In the past, apologists for the US Government have said that China has no one to buy its entire holding. The most recent suggestion is that China’s Treasury holdings will be put in trust for covid victims — a suggestion if enacted would undermine foreign trust in the dollar and could bring its reserve role to a swift conclusion.[ii] For the moment these are peacetime musings. At a time of financial war, if China put her entire holding on the market Treasury yields would be driven up dramatically, unless someone like the Fed steps in to buy the lot.

If that happened China would then have almost a trillion dollars to sell, driving the dollar down against whatever the Chinese buy. And don’t think for a moment that if China was to dump its holding of US Treasuries other foreign holders would stand idly by. This action would probably end the dollar’s role as the world’s reserve currency with serious consequences for the US and global economies.

There is another possibility: China intends to sell all her US Treasuries anyway and is making American monetary policy her cover for doing so. It is this possibility we will now explore.

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The Devil and Karl Marx, by Walter E. Williams

Today’s socialists feed on the fantasy that somehow their socialism will turn out differently than the genocidal socialism of the past. From Walter E. Williams at lewrockwell.com:

Paul Kengor is a professor of political science at Grove City College in Grove City, Pennsylvania. He has just published “The Devil and Karl Marx,” a careful look at the diabolical side of Karl Marx. The book has come out during an important time in our history since so many Americans, particularly our youth, have fallen for the seductive siren song of socialism taught to them by the academic elite.

“The Black Book of Communism,” edited by Stephane Courtois details the Marxist-Leninist death toll in the 20th century. Here is the breakdown: USSR, 20 million deaths; China, 65 million; Vietnam, 1 million; North Korea and Cambodia, 2 million each; Eastern Europe, 1 million; and about 3.5 million in Latin America, Africa and Afghanistan. These figures understate those detailed by Professor R.J. Rummel in “Death by Government.” He finds that from 1917 until its collapse, the Soviet Union murdered or caused the death of 61 million people, mostly its own citizens. From 1949 to 1976, Communist China’s Mao Zedong regime was responsible for the death of as many as 78 million of its own citizens.

The world’s intellectual elite readily focus on Adolph Hitler’s murderous atrocities but ignore those of the world’s socialists. Mao Zedong has been long admired by academics and leftists across our country. They often marched around singing his praises and waving his little red book, “Quotations from Chairman Mao Tse-tung.” President Barack Obama’s communications director, Anita Dunn, in her June 2009 commencement address to St. Andrews Episcopal High School at Washington National Cathedral, said Mao was one of her heroes.

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‘Rogue’ Chinese Virologist Joins Twitter, Publishes “Smoking Gun” Evidence COVID-19 Created In Lab, by Tyler Durden

For anyone who wants to deep dive into the possibility that the Covid-19 virus was man-made in China, this long and detailed article is a great reference. From Tyler Durden at zerohedge.com:

On Saturday we reported that Dr. Li-Meng Yan – a Chinese virologist (MD, PhD) who fled the country, leaving her job at a prestigious Hong Kong university – appeared last week on British television where she claimed SARS-CoV-2, the virus which causes COVID-19, was created by Chinese scientists in a lab.

On Sunday, Li-Meng joined Twitterand on Monday, just hours ago, she tweeted a link to a paper she co-authored with three other Chinese scientists titled:

Unusual Features of the SARS-CoV-2 Genome Suggesting Sophisticated Laboratory Modification Rather Than Natural Evolution and Delineation of Its Probable Synthetic Route

She also posted a link to her credentials on ResearchGate, revealing her (prior?) affiliation with The University of Hong Kong and 13 publications which have been cited 557 times.

Cutting to the chase:

“The evidence shows that SARS-CoV-2 should be a laboratory product created by using bat coronaviruses ZC45 and/or ZXC21 as a template and/or backbone. Building upon the evidence, we further postulate a synthetic route for SARS-CoV-2, demonstrating that the laboratory-creation of this coronavirus is convenient and can be accomplished in approximately six months.

Here is the extended punchline:

The receptor-binding motif of SARS-CoV-2 Spike cannot be born from nature and should have been created through genetic engineering.

The Spike proteins decorate the exterior of the coronavirus particles. They play an important role in infection as they mediate the interaction with host cell receptors and thereby help determine the host range and tissue tropism of the virus. The Spike protein is split into two halves (Figure 3). The front or N-terminal half is named S1, which is fully responsible for binding the host receptor. In both SARS-CoV and SARS-CoV-2 infections, the host cell receptor is hACE2. Within S1, a segment of around 70 amino acids makes direct contacts with hACE2 and is correspondingly named the receptor-binding motif (RBM) (Figure 3C). In SARS-CoV and SARS-CoV-2, the RBM fully determines the interaction with hACE2. The C-terminal half of the Spike protein is named S2. The main function of S2 includes maintaining trimer formation and, upon successive protease cleavages at the S1/S2 junction and a downstream S2’ position, mediating membrane fusion to enable cellular entry of the virus.

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Chinese Government Combines ‘Track and Trace’ Corona System With Social Credit Score, by Paul Joseph Watson

The Chinese government has been a trailblazer in ways to deprive their citizens of the last vestige of their freedoms. Now its combining Covid-19 totalitarianism with social credit score totalitarianism. This is what the new world order potentates have in mind. From Paul Joseph Watson at summitnews.com:

China News Service/Getty Images

The Communist government of China has combined its coronavirus ‘track and trace’ system with the country’s notorious social credit score.

As the Epoch Times’ Joshua Philipp explains, fears that the new COVID surveillance system would be used for “totalitarian social monitoring” are being realized in China.

“The local government of China’s Jiangsu province has launched a new social control system that combines the CCP’s health code program with the regime’s social credit system to create what they’re calling a civilization code,” Philipp reported.

The new system ranks each citizen via a “civilization score” and then places them in a category which determines whether they get priority access to services or are punished and restricted.

The new system represents an expansion of the social credit score and is being initially rolled out in the city of Suzhou and will apply to everyone over the age of 18.

Last year, we also highlighted how Chinese citizens would need to pass a facial recognition test to access the Internet in another expansion of the social credit score system.

In August 2019, the Communist state bragged about how it had prevented 2.5 million “discredited entities” from purchasing plane tickets and 90,000 people from buying high speed train tickets in the month of July alone.

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Economic War With China Is The Final Step Before The “Great Reset”, by Brandon Smith

Can a trade, currency, and debt eruption with China lead to the new world order? From Brandon Smith at alt-market.com:

This article was written by Brandon Smith and originally published at Birch Gold Group

With the pandemic dominating the news cycle, the general public has been completely distracted from a much more important crisis; namely, the economic crisis. To be sure, economic decay is not as swift or exciting, but I doubt that’s why the mainstream media mostly ignores the issue. From my experience, the media tends to omit coverage of the things they don’t want the population to notice or think about.

Right now, the only word spoken on the economy is “recovery”. Of course, if you’ve been reading my recent articles, you know that the recovery narrative is nonsense. With the small business sector on the verge of collapse, the U.S. economy has no means to recover unless we see a sudden resurgence in industrial production and domestic factories built, and with corporate debt at historic highs, there’s simply no money for that right now. Good luck trying to bankroll a manufacturing renaissance in the middle of a stagflationary environment.

That’s not to say that the rest of the world is much better off, but the U.S. suffers from the added weight of its past financial and monetary “success”. Let me explain…

Recent generations have grown up conditioned to believe that, through the power of central bank fiat currency, all problems can be solved. There has even been a concerted effort within the media to support this lie. Remember when propaganda rags like The Atlantic claimed that central bankers like Ben Bernanke were “the real heroes” saving the economy?

That’s the narrative young adults and investors today have grown up with. Now, whether they believe it is another matter, but as we can see in the world of Robinhood stock trading, there has been little concern for the concept of “bubble markets”. These kids think that the party is eternal because they are backstopped by the Fed, and there’s a lot of shoe-shine boys in the media telling them they are right. However, what they are not being told is that we are in the middle of a collapse dynamic, and the structures they view as reliable are now crumbling.

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Where Will All These War Games Lead? by Patrick J. Buchanan

Sometimes pretends wars become real ones. From Patrick J. Buchanan at buchanan.org:

In northeast Syria last week, a U.S. military vehicle collided with a Russian armored vehicle, injuring four American soldiers.

Both the Americans and Russians blame each other for failing to follow established rules of the road. Had an American been killed, we could have had a crisis on our hands.

Query: With the ISIS caliphate dead and buried, why are 500 U.S. troops still in Syria a year after Donald Trump said we would be pulling them out? What are they doing there to justify risking a clash with Russian troops who are in Syria as the invited allies of the Damascus regime of Bashar Assad, whether we approve of his regime or not?

Nor was this the only U.S.-Russian faceoff last week.

Over the Black Sea, two Russian military jets swept past the nose of an American B-52, one of the bombers on which the airborne leg of our strategic deterrent depends. The Russian Su-27s flew so close to the B-52 that their afterburners shook the eight-engine bomber.

What was a nuclear-capable B-52 doing over the Black Sea, which is to Russia what the Caribbean and Gulf of Mexico are to us?

That B-52 overflight of the Black Sea was part of an exercise in which six U.S. B-52s overflew all 30 NATO nations in one day — from the U.S. and Canada to Spain and the Balkans and to the eastern Baltic Sea — in a military exercise to test Russian air defenses.

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It’s Time for a Geopolitical Reset, by José Niño

The US government, by trying to stop the evolution of a more multipolar world order, may actually be hastening that evolution. From José Niño at mises.org:

Foreign policy seems to have been placed on the back burner in the Trump era. Domestic issues, generic outrage politics, and the present covid-19 pandemic have sucked the oxygen out of American political discourse.

The fact that the media opts to cover more sensationalist material does not make foreign policy a trivial matter. If anything, the lack of foreign policy coverage reveals the dilapidated state of contemporary political debate. When the Fourth Estate does bother to broach foreign policy it does so for the most hysterical reasons.

The ongoing Russian hysteria is the embodiment of the media’s infantile coverage of foreign policy. Although the Cold War has been over for decades, pundits on both the left and right remain convinced that Russia—a country of nearly 145 million and with an economic output smaller than Canada’s—is hell-bent on reenacting its past Cold War aspirations.

Iran has always been on neoconservatives’ minds as well. Suffering from the trauma of the 1979 Iranian hostage crisis, neoconservatives and their establishment liberal counterparts have spent decades slapping on sanctions and trying to push for regime change in Iran. Earlier this year, the neoconservative bloodthirst was partially quenched after the US government assassinated Major General Qasem Soleimani at the Baghdad Airport. In a surprising display of restraint, the Trump administration has not escalated any further in Iran and potentially thrust America into another disastrous intervention. Had Marco Rubio or Jeb Bush been at the helm, God knows where the US would find itself.

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Globalism is a Western Idea. The Rest of the World Killed It, by Daniel Greenfield

Implementing the globalist vision is even more difficult than herding cats. From Daniel Greenfield at danielgreenfield.org:

When globalism’s obituary is finally written, and the mourners file past in their crisp suits and pantsuits, the cause of death will almost certainly read, the People’s Republic of China.

China is the most obvious offender. Even before the Wuhan Virus cut off countries from each other, the Communist oligarchy had abused the world economy with massive digital theft, even more massive counterfeiting, product dumping, and every possible form of economic warfare.

That’s why any halfway serious adult on the other side supports Trump’s fight against China.

Last year, even George Soros, the uber-globalist, called Trump’s trade war with China his greatest achievement. This year, during the coronavirus crisis, Soros came out against working with the People’s Republic of China against the virus.

The source of Soros’ opposition is the fear he expressed at Davos that the PRC’s social credit system could “sound the death knell of open societies”. By open societies, he meant globalism.

Unlike many, Soros isn’t worried about the loss of personal freedom, but the endurance of the nation state. China, like Russia, has shown that a nation-state with mass propaganda, a censored internet, a powerful secret police, and all the digital toys on sale in stores can survive the pressures of modernity that are fracturing the nations and peoples of the Western world.

But all of that depends on the PRC’s ability to generate wealth and raise living standards.

China is engaging in massive economic warfare, not just for the obvious reasons, but so that the Communist Party can maintain its grip on power by delivering the same lifestyle of digital toys enjoyed by Westerners to the PRC’s middle class and rather more lavish lifestyles for the rich.

What Soros was also implicitly admitting was that globalism faces its biggest threat, not from Western revivals of nationalism, but from non-Western nations that never stopped being nationalistic. Globalism is a Western idea that Non-Western nations never bought into.

The Trump Administration’s Economic War on the World: Hitting Adversaries, Punishing Innocents, Angering Allies, by Doug Bandow

The Chinese government is going in for the US government’s game of madcap sanctioning, and the US government is mortally offended. From Doug Bandow at antiwar.com:

As if viewing gambling at Rick’s Café Americain in Casablanca, Washington policymakers are shocked, shocked to discover that China, too, can apply economic pressure. Complained the Heritage Foundation’s James Carafano: “the Chinese Communist government slapped sanctions on members of Congress as well as a U.S. ambassador. This action is intended to send the world a message: Fear us.”

Of course, the penalties Carafano complained of were retaliation for Washington’s imposition of similar sanctions on Chinese officials over the crackdown in Hong Kong. The bilateral pissing match will have no impact on Beijing’s policies.

Carafano is not the first person to complain about China’s economic sanctions. Mathew Ha of the Foundation for the Defense of Democracies was upset by South Korea’s refusal to follow Washington’s criticism of the People’s Republic of China, which he blamed on fear of PRC economic retaliation. Washington Examiner columnist Tom Rogan voiced similar irritation with Beijing’s threatened economic retaliation after Canberra moved to counteract increased Chinese repression in Hong Kong.

Imagine. China is acting like … the US!

It’s almost charming to see such anger over Beijing’s behavior when America continues to be the global leader in using its economic power to penalize governments which refuse to heed its commands. In January the president said he would punish Iraq if it acted like a sovereign state and insisted on the withdrawal of American troops.

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Towards a US-China War? The Creation of a Global Totalitarian System, A “One World Government”? by F. William Engdahl

Is a China-US war being arranged to further the designs of globalists for one world government? From F. William Engdahl at globalresearch.ca:

If we step back from the details of daily headlines around the world and try to make sense of larger patterns, the dominant dynamic defining world geopolitics in the past three years or more is the appearance of a genuine irregular conflict between the two most formidable powers on the planet—The Peoples’ Republic of China and the United States of America. Increasingly it’s beginning to look as if some very dark global networks are orchestrating what looks to be an updated rerun of their 1939-1945 World War. Only this time the stakes are total, and aim at creation a universal global totalitarian system, what David Rockefeller once called a “one world government.” The powers that be periodically use war to gain major policy shifts.

On behalf of the Powers That Be (PTB), World War II was orchestrated by the circles of the City of London and of Wall Street to maneuver two great obstacles—Russia and Germany—to wage a war to the death against each other, in order that those Anglo-Saxon PTB could reorganize the world geopolitical chess board to their advantage. It largely succeeded, but for the small detail that after 1945, Wall Street and the Rockefeller brothers were determined that England play the junior partner to Washington. London and Washington then entered the period of their global domination known as the Cold War.

That Anglo-American global condominium ended, by design, in 1989 with the collapse of the Berlin Wall and the disintegration of the Soviet Union by 1991.

Around this time, with the onset of the Bill Clinton presidency in 1992, the next phase– financial and industrial globalization– was inaugurated. With that, began the hollowing out of the industrial base of not only the United States, but also of Germany and the EU. The cheap labor outsourcing enabled by the new WTO drove wages down and destroyed one industry after the next in the industrial West after the 1990s. It was a necessary step on the path to what G.H.W. Bush in 1990 called the New World Order. The next step would be destruction of national sovereignty everywhere. Here the USA was the major obstacle.

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