12 August 2010

China's Cunning Plan to Destroy the US Dollar

This economic paper might have been funny if it had appeared in The Onion, or on Fox News, and not in a serious journal of economic thought.

This rather clever argument proposes that China is 'destroying the dollar' because they are jealous and hate the US for its happiness and freedom. It is not completely new, but I have not seen it in print. Someone that I know who sometimes spreads spin and stories which they get from highly placed contacts in the banking cartel told me about this diabolical plot about five months ago as I recall.

There reminds me of a long standing corporate tactic that says if you have been doing something underhanded to someone and the shit is about to hit the fan, accuse them of doing the same thing to you first. This was standard management procedure at the multinational where I worked for many years, as it tottered towards its eventual self-destruction.

The theory promoted by this paper is funny because I did not know that Ben Bernanke is Chinese, or that the Federal Reserve is a Chinese state agency. Are the Chinese the cabal of international bankers we hear so much about? How cleverly they disguise themselves.

But it would not surprise me if a portion of the Congress is in on China's payroll. They will take money from anybody and everybody. And after all, the Chinese military were campaign contributors to Bill Clinton (remember that scandal the Clintons tried to pin on Al Gore?) just about the time he opened up trade with them despite their recent 40% currency devaluation and continuing currency peg. And China owns Wal-Mart, and Goldman Sachs, Citi, and JP Morgan there rube, don't ya know. And W doubled down on the deal and went along with this commie plot. Maybe Putin hypnotized him while the Chimp was staring into his soul.

I would file this one under "prospective scapegoats to blame when the dollar currency crisis hits" and everyone in charge denies they could have foreseen it coming. After all, the dollar is as a god, all powerful and immortal.

So this must be an economic sneak attack, a conspiracy of crafty foreign devils. Therefore it's time for a pre-emptive strike on (Venezuela/Iran/some weaker country that has something we want preferably oil). After all, the mighty dollar could NEVER fail because of pernicious abuse by a banking cartel conceived in Georgia and ratified in 1913 by a Congress anxious to go on its Christmas vacation.

Here is another clever plan for the people of the US to consider, when the puffed up dollar finally hits the wall and the Congress and Banksters deny all involvement and responsibility.

* admit that one cannot control one's compulsion for debt and fraud and rule by crooks and idiots;
* recognize a greater power that can give strength and guidance, that most definitely does not work for Goldman Sachs;
* examine past errors with the help of a sponsor (the Constitution and probably the IMF);
* make amends for these errors by cleaning up your corrupt financial system and jailing the white collar criminals involved;
* learn to live a new life by honoring a code of behavior (the Constitution), a hard currency, and give up the idea of empire;
* help others that suffer, as a benevolent US did many years ago before it was hijacked by a group of irresponsible sociopaths.
The dollar has been in the process of self-destruction since that clever Chinese agent Richard Nixon defaulted on the US gold obligations in 1971.

And of course that Sino-Soviet agent Ronald Reagan who convinced the nation that 'deficits don't matter' if it involved tax cuts for the wealthy. And the coup de grâce has been delivered by Wall Street and their crony capitalists in the government as collateral damage in the reckless promotion of self interest, corruption and fraud.

The sad truth, America, is that you were sold out by your own people for their own personal gain. And the crony capitalists and oligarchs are still leading you around by the nose, and telling you what to think, which is whatever is good for them. And this goes double for the UK.

Economic Policy Journal
Is China Executing a Cunning Sun Tzu Strategy to Destroy the Dollar and Cause an Upward Price Explosion in Gold?
By Elizabeth Brinsden
August 12, 2010

Could China be coveting the role of the next economic superpower, thereby supplanting the USA? If so, is China planning to do this by design or is it simply awaiting this result by default as a result of the total collapse of the American economic system?

Whether we like it or not, China has already become the 800 lb Gorilla in the dining room, economically speaking. We ignore this fact at our peril. Thus it may be advisable to reorientate our thinking from that of the rationalist, pragmatic thought processes which arose out of the Enlightenment and complement our thinking with something more akin to that of the Chinese.

In order to accomplish this, it is constructive to take a closer look at the ancient Chinese philosopher, Master Sun Tzu. In an earlier article , based on a book by Harro von Senger on this theme[1], I have attempted to do this in connection with the Special Drawing Rights[2], as advocated by the Chinese earlier this year. However, I will now examine this idea in the context of the the Chinese possession of US Bonds, a subject not only of relevance to these two countries, but also for the stability of the entire international economic system.

At a superficial level, it may appear to the onlooker that China has been sucked into a giant malinvestment by purchasing these bonds, but a closer look at Master Sun’s stratagems may reveal a well conceived and even cunning plan...

Read the rest of this paper here.