January 20, 2011

This Is World Government

There will be no date, no particular point in history where you can say, “On this date, the New World Order was ushered in.” To a very large extent, we’re already in it. We’ve been in it for a long, long time. What they’re really doing is just building the walls a little bit at a time with the passage of each day, and we’re in it. We will never be able to say, “Gee, it started on this date.” If there was to be a date that historians might want to put on the arrival of this monster, I suppose it would be the date on which all of the nations of the world surrendered control over their money and over their military, because those are the two legs on which national sovereignty stands. If you’ve got a strong military and a strong money system, you’re a sovereign nation. If you don’t have those things, you’re nothing. You’re just a territory that is controlled by someone who does have strong money or a strong military. So we’re very close to the surrender of our money right now. I suppose that would be a date that historians might choose for the crossover point. - G. Edward Griffin, Restore the Republic's Reality Report, May 17, 2009
  • The U.S. is aligned with China (as well as many other nations and the European Union),
  • China is aligned with Russia (and Iran|India|Venezuela|Brazil|North Korea),
  • Russia is aligned with Iran (and China|India|Venezuela|Brazil),
  • Iran is aligned with Turkey (and Syria|Russia|China|India|Venezuela|Brazil|Cuba), and
  • Germany is aligned with France (as well as the United States and other members of the European Union).
    (Read More...)

Meet the New Boss: China Owns the United States

Meet The New Boss: China Owns The United States redflagJanuary 19, 2011

Infowars.com - The flags along Constitution Avenue tell you everything you need to know — America has been sold out and our new Chinese slavemasters are now leading the sheep to slaughter. Even as Barack Obama bows and fawns to President Hu Jintao, the globalists for whom he fronts are sharpening the knives and preparing to unleash the bloodletting as the dying carcass of America is dragged into line to facilitate the global management of the planet.

Not satisfied with a hemorrhaging trade deficit with China that continues to bleed American jobs at a rate of millions, a crumbling manufacturing base being replaced by the endless import of cheap slave goods from the Communist state, and a stunted economy being rapidly outpaced by the Red Dragon, the Obama administration wanted to further drill it in to Americans who the new boss is yesterday, by placing Chinese flags throughout Washington DC before Obama’s fawning meeting with unelected President Hu Jintao.

Everyone is painfully aware of the fact that China now owns the United States economically, with the Chinese central bank being the largest debt holder at approaching $1 trillion dollars. The average American family with two children collectively owes around $12,000 dollars to China. The Communist state’s ownership of long term U.S. Treasury Securities means the United States pays upwards of $100 million dollars a day to China in terms of interest alone.

China’s huge accumulation of US dollars gives it the sway to lead the United States by the nose like a sheep to slaughter, holding in its hands the power to decide the economic destiny of the now collapsing American empire. The culmination of this process moved a step closer this week when Hu Jintao made it clear that China was preparing to sharpen the knife for the bloodletting to begin, by deriding the dollar as a “product of the past” and signaling its replacement with a new global monetary system based around the Chinese yuan.

This transition is only becoming more obvious with the continuing fire sale of crucial infrastructure to the Red Dragon. Alex Jones’ first documentary film America: Destroyed By Design, made in 1997, warned Americans that the sell-out to the Chinese was the first step on the road to the sacking of the American economy and pulling the plug on key US infrastructure in the move towards global management of the planet.

The figures don’t lie — after a 20 year process of gradual sellout overseen by Clinton, Bush and now Obama — China owns America.

However, to have that notion aggressively reinforced by the plethora of Chinese flags that invaded DC this week goes beyond mere pomp and ceremony. This is meant to send a message to Americans that the United States is being hollowed out and swallowed up by the globalists, and that the center of the new world order empire will be transferred to Communist China in a bloodless coup.

And at the center of it all is a fawning, obedient, bowing Barack Obama, who ironically in the same week as Martin Luther King was remembered, played his role diligently as the house slave for his globalist masters, lavishing Jintao with a private dinner in a stunt that the Associated Press admits was designed to “soften the American public’s suspicions about China,” a nation that detains and tortures individuals for exercising their rights to freedom of association, freedom of religion and freedom of expression, while abducting, beating and performing forced abortions on women who refuse to submit to the country’s brutal one child policy.

The sickening worship and fealty displayed towards Jintao and China this week is all about training Americans to recognize who their new slavemasters are — the globalists who have exalted the Communist state as a model country for the new world order — a world in which antiquated ideas about freedom of the individual, prosperity, self-determination, family and happiness will be abolished.

Taiwanese animators got it right with the following cartoon, with depicts Obama’s subservience to America’s new boss, unelected dictator Hu Jintao.





Obama and Hu Vow Cooperation, Strike $45 Billion in Deals

January 18, 2011

Reuters – The United States and China unveiled $45 billion in export deals on Wednesday as Presidents Barack Obama and Hu Jintao sought to paper over deep rifts about trade, currencies and security.

Amid the pomp of a state visit, Obama and Hu vowed to seek common ground as they launched talks aimed at easing the strains of the past year over North Korea, economic imbalances, human rights, Taiwan, Tibet and a host of other issues.

Welcoming Hu to the White House, Obama hailed the event as a chance to demonstrate that the world's two biggest economic powers "have an enormous stake in each other's success."
"Even as our nations compete in some areas, we can cooperate in others," Obama said at the choreographed welcoming ceremony. "Let us seize these possibilities together."
Speaking later to a group of U.S. and Chinese business leaders, Obama pressed for a level playing field with China on trade, while Hu made the same appeal for Chinese companies operating in the United States.

The two countries used the summit to unveil a series of deals, including China's purchase of 200 Boeing aircraft. U.S. officials said the $45 billion in deals would support an estimated 235,000 American jobs.

"ENHANCE MUTUAL TRUST"

Obama wants the visit to help highlight his efforts to boost the struggling U.S. economy and cut unemployment that has been persistently above 9 percent.

Offering another tangible achievement, the United States and China plan to announce a deal to create a jointly financed nuclear security center in China.

But in a major concern for U.S. companies and lawmakers, Beijing has so far resisted demands for faster appreciation of its currency, the yuan, that would possibly help lower China's trade surplus with the United States, which Washington puts at $270 billion.

Gently raising China's human rights record, Obama said:
"History shows that societies are more harmonious, nations are successful and the world is more just when the rights and responsibilities of all nations and all people are upheld, including the universal rights of every human being."
Hu said he had come to "enhance mutual trust" and open a new chapter in relations but signaled he would bristle at any effort to push China on its currency practices, human rights and other disputes that it deems to be domestic matters.
"China and the United States must respect each other's choices in development and each other's choices in development paths and each other's core interests," Hu said.
Hu was greeted with a 21-gun salute, honor guards and the playing of both national anthems in a show meant to convey recognition of China's growing international stature.

What Next If China Sells U.S. Debt?

As Chinese President Hu Jintao arrives in Washington, it's worth asking what U.S. officials' Plan B is if relations take a surprise turn for the worse and Beijing dumps its trillion-dollar holdings of U.S. treasuries.

January 18, 2011

Reuters - When borrowing money it's always good to have a Plan B in case a big creditor pulls the plug. That should be true whether the sum is a few thousand dollars or about a trillion, the size of the United States government's debt to China.

With Chinese President Hu Jintao due to arrive in Washington on Tuesday, it is worth asking about U.S. officials' Plan B just in case one day relations take a surprise turn for the worse and Beijing dumps its holdings of U.S. treasuries.

China is officially the United States' biggest foreign creditor, with roughly $900 billion in Treasury holdings -- or over $1 trillion with Hong Kong's holdings included.

That means it could do severe damage to U.S. debt markets if it suddenly started selling large amounts.

Most experts say if there were signs of this happening, the U.S. government would go for a combination of persuading Americans to buy more U.S. debt, the same way they did in World War II, and finding friendly foreign governments to make additional purchases.

Banks could be called on to increase their holdings of treasuries, and as a last resort, the Federal Reserve could also be called on to fill the gap, though this could risk turning any dollar weakness into a slump.

"The U.S. government should have and maybe still could call on the people of the U.S. to invest in U.S. debt," said David Walker, a former U.S. comptroller general who heads an advocacy group calling on the government to curb the U.S. budget deficit and borrowings.
To be sure, the idea that China would suddenly sell its U.S. debt holdings is almost unimaginable to some.

After all, any weakening in the U.S. debt markets and the resulting global markets turmoil, including likely weakness in the dollar, would bounce back on China and could hurt its economy badly, especially as the United States is such a huge Chinese export market.

It likely would take something like a massive rise in tensions over an issue like Taiwan or oil exploration in disputed areas of the South China Sea, including possible military confrontation between the two nations. Such a confrontation would also make it easier for Washington to appeal to the American public to buy its debt for patriotic reasons.

But Beijing could also justify pulling back sharply from U.S. Treasuries if the dollar were to plunge, perhaps because of Washington's failure to curb its budget deficit and debt.
"I worry that we could be at a tipping point," said Eswar Prasad, a Brookings Institution economist and former International Monetary Fund official with responsibility for China.

"If the Chinese say 'We're not buying any more Treasuries,' this could act as a trigger around which nervous market sentiment coalesces," he said. "People could start wondering how the U.S. is going to finance its deficit."
APPEAL TO OTHER COUNTRIES

In 2009, economist Brad Setser suggested the United States could establish emergency currency swap lines with political allies if a country like China ever abandoned the U.S. debt market.

But the list of countries prepared to step in as buyers when U.S. Treasury officials try to hawk U.S. debt or seek foreign currency loans has probably changed somewhat since Europe became mired in a debt crisis.

Since Setser's proposal appeared in a memo published by the Council on Foreign Relations, Germany has had to throw billions of euros behind other euro zone countries' debt to keep the euro zone intact. With other European countries drawing on swap lines established by the Fed, they are hardly in a position to support the United States.

Japan could step in with some additional purchases, but they may be limited, given it has a massive domestic debt burden and is currently campaigning for more Japanese savers and companies to buy its own debt.

Other countries in the region that already buy large amounts of U.S. Treasuries to try to keep the value of their currencies from climbing, such as Thailand and India, or countries with large sovereign wealth funds, such as Singapore, could also be called on to increase their purchases.

Then there are the oil producers in the Middle East, such as Saudi Arabia and the United Arab Emirates, which have traditionally been seen as American allies. Together, the region's oil producers hold around $210 billion in Treasuries.
"These countries all have a massive amount of dollars invested in Treasuries already," said Eric Stein, vice president and portfolio manager at Eaton Vance in Boston. "It would be hard for them to commit to incrementally increase their holdings."
Nevertheless, analysts think a pledge by several major powers to support U.S. debt prices with scheduled purchasing operations could calm the Treasury market.

The price for the United States could be high, though. One banker who wished to remain anonymous suggested that in an extreme scenario, the United States might even need to peg the dollar to a basket of other currencies to reassure foreign investors that their purchases would not suddenly devalue.

QE-3?

Another quick fix would see the Fed step in -- again.

After all, at $600 billion, the size of the Fed's second quantitative easing program, announced November 3, is larger than the total amount of Treasuries China bought in 2010.

According to Treasury data released on Tuesday, China's gross purchases of long-term Treasuries totaled roughly $260 billion from January to November last year, with China remaining the largest single holder of Treasuries.

But Fed purchases might only work if inflation were still low and the economic recovery sluggish.

Otherwise it might backfire as the perception that the Fed was printing money and devaluing the dollar could cause the currency to take a big hit and bring down other U.S. assets, including treasuries, with it.
"The Fed could try to intervene, but if that led to higher future inflation expectations, it would not hold down rates but rather push them up," said Benn Steil, senior fellow and director of international economics at the Council on Foreign Relations.
Treasury officials already tout the increasing demand for Treasuries from U.S. domestic savers. But Walker, the former comptroller general, sees potential for a more aggressive effort to market Treasuries to Americans that could help shift the government away from dependence on foreign creditors.

In his view, the efforts would have to include an appeal to patriotism and come with a longer-term plan to rein in the budget deficit.
"What we need to do is have a plan that's reasoned, reasonable, can reassure our foreign lenders and also demonstrate to the American people that Washington can get something done," Walker said.
Eaton Vance's Stein said U.S. banks could also be pressured, or even forced, to buy more treasuries as part of their capital cushions.
"It seems maybe on some level unbelievable that that would happen in the U.S.," Stein said. "But other countries even now, if they can't find anyone to take down their paper, will turn to domestic banks."

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