Wednesday, August 08, 2007

China Will Kick Our Butt

China holds an estimated $900 Billion in US bonds and has foreign reserves of $1.33 Trillion and seems to be saying it is ready to use it to wreck the US economy if it pursues sanctions to force revaluation of the yuan. Apparently if you cede control of your economy to foreigners there is every chance they'll use it. This is according to The Telegraph UK .

Hillary Clinton, who has called for restrictive legislation to prevent America being "held hostage to economic decicions being made in Beijing, Shanghai, or Tokyo," may have finally gotten something right. The big question is whether it is a bit too late since China has the economic power to force a recession and hammer the US housing market.

Alleged currency manipulation by China has prompted a group of Senators, backed by the Senate Finance Committee, to call for trade sanctions. US Treasury Secretary, Henry Paulson has said such action would undermine US authority and "could trigger a global cycle of protectionist legislation". Hmmm.

The answers to who is right and what their actual agenda is could probably be found by following the money. You sure can bet that it isn't trailing off to the manufacturing workers, maybe BushCo has someone else in mind.

4 comments:

Steve Culley said...

Since Oregon's land use laws only stop the locally born from owning productive farm land, (blocks too large to afford) and not foreigners I suspect it won't be long before China is in the Oregon realestate business. Could drive up the cost of housing.
Lou Dobbs, as usual, has been way ahead of the curve on the China threat. Now that it's getting hard to ignore a lot of Canidates are for a "get tough on China" policy.
China plans on manufacturing cars in Mexico and shipping them here, duty free, thanks to NAFTA. There goes another American industry, the one that during WW2 shifted to making airplanes and tanks.
There were delays on getting uparmored vehicles to Iraq, supply problems they say. Any bets that the death of American steel, thanks to China, had anything to do with it?

KISS said...

One world order seems to have a definite Chinese flavor, if you will. The world bank and Foreign trade agency has set us up good to fall. Clinton set us up and Bush is knocking us out.So who ya gonna vote for? More Clinton or Obama? Both have the same rhetoric and will beholding to the Chinese...anyone remember Billy's buddy Johnnie whats-his-name, you know the bag man from China? Harry once said you put 'em in brown bag and shake 'em up and no matter which one you pull out they're all the same.

Steve Culley said...

Not going to get any help from the democrats or republicans. I think
Kiss,
we have to choose between globalist and Americans. The republicans are hurting for alinging themselves with GWB right now but I predict before 2008 you are going to see a lot of democrats reading the tea leaves on trade and immigration. Can't wait to see Hillary and Obama down on the border saying they were always for border security.

Steve Culley said...

Today, Lou Dobbs reports that China has threatened to dump 1.3 trillion U.S. dollars and 403 billion in U.S. treasuries if we push for fair evaluation of the Yuan. Our globalist friends have gotten us int a black mail situation. Time to buy gold?