Dangerous Milestone: China Is Even With Japan, We Owe Them A Trillion Dollars, Too!
By Elaine Meinel Supkis
As headlined above, our debts to Japan are now equalled by China and this happened very swifty! More: China moves into more African nations and gets a firm grip on Cuba. Our foreign policy is in tatters, our empire in tatters, we are beggars at Asia's gates and Asia is growing rapidly, far faster than predicted.
China's foreign currency reserves have risen to $818.9 billion, up 34 percent from the same period one year ago, state media reported Monday.OK. Who is winning this game of International Go? The USA or China? Know any Mandarin? If you are young, consider taking classes in this very important language because those who can understand what the bosses are saying will prosper.
At this growth rate, China's reserves could reach $1 trillion this year, surpassing Japan's as the world's biggest.
The central bank said reserves rose by $208.9 billion from 2004, newspapers reported.
Analysts estimate that three-quarters of China's reserves are held in U.S. Treasury bonds.
Japan's benchmark stock index fell Monday morning, ending a three-day tech rally that lifted the index more than 2 percent. The dollar slipped against the yen.Ah, I was right. The Nikkei goes down when the value of the dollar drops. The Japanese try and try to soak up all the American red ink but they can't and the value of the yen slips the leash and rises vis a vis the dollar. Meanwhile, the Chinese aggressively buy American debts and keep the yuan even lower than the yen, they saw how, raising the value of their currency, was punished by Bush so they are continuing with the original plan first cooked up way back in 1987, to suck in American red ink and keep the yuan pegged to the dollar at a rate they want so they can remove all industrial processes from America or better yet, own the means of production here as well as the debts.
The benchmark Nikkei 225 index dropped 148.89 points, or 0.90 percent, to end the morning session at 16,306.06 points.
Voila. You win, we lose the Great Game of International Go.
In a worst-case scenario, foreigners who finance the U.S. budget and trade deficits would sour on U.S. investments and unload their holdings. The prices of U.S. stocks and bonds could plunge. Interest rates, including those for mortgages, could soar. A financial crisis could confront the country.This is why we are losing. Reading these fools makes for bitter laughter. It isn't merely how deep in debt nor what percentage of business it is, the problem is, we are very indebted to two extremely dangerous entities: Japan, a terrible former foe who still smarts from the defeat of WWII and who intends to be top dog and China, an open foe who claims they want peace but also wants a good piece of the pie and who is a very bitter foe of Japan who invaded China in WWII!
Economists are troubled by the prospects of budget deficits as far as the eye can see and want to see them trimmed. But the size of the current budget deficits, while unwelcome, do not signal that a crisis is imminent, they said.
An important barometer is the size of the federal debt — now about $8 trillion — relative to the overall economy, as measured by gross domestic product. Under that measure, this debt accounts for around 63.2 percent of GDP, Bethune said.
"Generally speaking, when it is over 75 percent of GDP, then the yellow flag goes out. I would say 95 percent of GDP and over is definitely a red flag," Bethune said.
I see nasty storm clouds here. Going into debt to two very angry, possibly violent entities who both want to see us under their heels is beyond stupid, it is called TREASON.
China continues the relentless game of Go. True, they have peasant uprisings, the most recent just yesterday, the peasants are on the warpath, but don't let that fool us into thinking their external initiatives aren't flowing ahead full steam at our expense. From Xinhuanet:
China became Cuba's second-largest trading partner after Venezuela in 2005. Chinese exports to Cuba grew 95 per cent in the first 10 months of 2005 to over US$500 million, while imports rose 17 per cent to US$200 million, according to Yang Shidi, China's commercial counsellor in Havana.Our stupid blockade isn't exactly a blockbuster. It is now officially a bust. Soon, Cuba will be thriving for it is a great base for Chinese operations! A huge stone in their favor. We could have reapproached Cuba when Russia fell but just like we drove Putin into Hu and Wen's arms, so we drove Castro there, too. As well as Venezuela and Iran!
China's moves to secure crude oil supplies in Africa for its growing economy do not threaten U.S. energy needs, a senior U.S. State Department official said Friday, the Reuters reported.Kow tow, senior US Condi Department of Incompetency. Seriously, despite her sharp, expensive high heeled boots and her shop until she drops dressing, this vastly incompetent woman will go down in diplomatic history as the anti-Kissinger of all time. Far from plotting and scheming like Bismark or Metternicht, this woman will be seen as everyone's fool, the bimbo of byzantine negotiations.
The United States and China are both looking to Africa to help diversify their oil supplies.
China's foreign minister, Li Zhaoxing, is visiting six African nations to increase China's diplomatic and economic presence in the region.
China's top offshore oil producer agreed recently to pay $2.3 billion for a stake in a Nigerian oil and gas field, its largest-ever overseas acquisition.
More vehicles were sold in China last year than in Japan, making China the world's second-largest auto market after the United States with almost 6 million units sold, the People's Daily said Friday.China intends to displace us on every level, this is quite natural. Healthy, even. For them, anyway.
Why we are assisting them by refusing to fund our own government is another story. The only explanation I can come up with is, our rulers are stupid traitors and should be arrested and I include the owners of the Wall Street Journal. The Chinese auto market is huge and without rebates, special loans and leases! Ours limps along, driving our entire coutnry into debt, just one more debt item amoungst many.
And a note here: Starting this month, all minimum credit cards payments are DOUBLING. So if you pay $1000 a month, it will be $2,000 a month! I don't see this game lasting much longer. What will we do when 40% of America has to now tighten their belts another ten notches on top of high fuel bills? Gads.
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