Posted on 02/18/2009 2:09:34 PM PST by Ernest_at_the_Beach
Treasuries Post Weekly Loss as Auctions Highlight Supply Issue
They have their eye on California as a pleasant place to relocate their surplus population once they foreclose on us.
They could do better buying Mexico.
this bubble is popping soon.
Don't know, it was excerpted to me.
We are going to experience the American version of the cultural revolution. Consider stocking up on non-perishable food and clean water.
Becuase the problem is a cash-flow problem. As long as the money was going around, it could keep happening. Now, one hiccough, and the system falters, stumbles, and ....?
One thing is certain, a lot of dollars are being pumped in one end of the pipeline, and they do not seem to be coming out anywhere. Someone is jamming the pipes or playing with the valves and is going to profit hugely from it.
Walden Bello | February 9, 2009
Editor: John Feffer
As goods pile up in wharves from Bangkok to Shanghai, and workers are laid off in record numbers, people in East Asia are beginning to realize they aren't only experiencing an economic downturn but living through the end of an era.
[snip]
Even though China appeared to be a new driver of export-led growth, some analysts still considered the notion of Asia "decoupling" from the U.S. locomotive to be a pipe dream. For instance, research by economists C.P. Chandrasekhar and Jayati Ghosh, underlined that China was indeed importing intermediate goods and parts from Japan, Korea, and ASEAN, but only to put them together mainly for export as finished goods to the United States and Europe, not for its domestic market. Thus, "if demand for Chinese exports from the United States and the EU slow down, as will be likely with a U.S. recession," they asserted, "this will not only affect Chinese manufacturing production, but also Chinese demand for imports from these Asian developing countries."
[snip]
Being the largest holder of U.S. Treasury securities, China had reason to be concerned about that possible depreciationHeh... thanks Ernest. Still no explanation on how the gov't can borrow money to bail out banks. ;'D
Let us know when China gets its inflation rate down to single figures before we put too much credit in its economic prescriptions.
It is worried about dollar depreciation because it becomes less competitive with US exports when that happens.
If you think this is the result of Free trade you are sadly mistaken. If you think tariffs are the answer to such problems you probably believe taxing can cause prosperity.
Free trade is only important to those who want the consumer to achieve his maximum benifit for his money.
China profitted from US labor becoming too expensive to compete in many areas and because it industries do not have to face the stringent environmental standards US industry does.
The Cloward/Piven Strategy Of Economic Recovery
***********************EXCERPT******************************
February, 7, 2009 — nicedeb
Yes, of course that’s what we’re witnessing right now. I’ve been convinced that the Dems were engaged in something of this nature for some time, now. Only a few months ago did I learn that there was actually a name for this strategy.
Nancy Coppock of The American Thinker shines a light on what we’re dealing with.
Because these programs are financed with deficit spending, the effect of the Cloward/Piven Strategy becomes doubly destructive. Talk about a perfect storm! The Democrat stimulus plan is a mechanism whose goal is the destruction of the traditional American way of life. It is bitter irony that the American taxpayer will actually fund the destruction of his own ability to live according to the values of our Founding Documents. It is not alarmist to identify this situation as a coup d’etat.
I couldn’t have put it better myself.
Hat tip: Ace
Great additional facts Blam. That is what I echoed in essence. China is very dependent upon the world’s needs for their products.
I will wade through the Obama’s Cloward-Piven Strategy posting as I am off work today, and have some time on my hands.
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