Like Eazy-E, China’s about to pull our card

Posted by Jason | Posted in Economics, Foreign Policy | Posted on 10-02-2010

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Back in December I posted an article from Tony Blankley, where he talks about how Eisenhower sunk the British Empire by trashing the pound. You can view it here. In it I said Obama going to China talking tough about their government reminded me of the old Eazy-E lyric, “you come talkin that trash, we’ll pull ya card”. Well, last night, I saw this post on the EconomicPolicyJournal. Sounds like that card may get pulled.

Senior Chinese military officers have proposed that their country boost defense spending, adjust People’s Liberation Army deployments, and possibly sell some U.S. bonds to punish Washington for its latest round of arms sales to Taiwan, reports Reuters.

Interviews with Major Generals Zhu Chenghu and Luo Yuan and Senior Colonel Ke Chunqiao appeared in Outlook Weekly, a Chinese-language magazine, published on Monday.

“Our retaliation should not be restricted to merely military matters, and we should adopt a strategic package of counter-punches covering politics, military affairs, diplomacy and economics to treat both the symptoms and root cause of this disease,” said Luo Yuan, a researcher at the Academy of Military Sciences.

“Just like two people rowing a boat, if the United States first throws the strokes into chaos, then so must we.”

Luo said Beijing could “attack by oblique means and stealthy feints” to make its point in Washington.

“For example, we could sanction them using economic means, such as dumping some U.S. government bonds,” Luo said

via EconomicPolicyJournal.com: Chinese Military Waving the Dump U.S. Bonds Threat..

Then, as I was creating this post, I stumbled across this Business Insider post.

It appears that this time China’s posturing is for real.

Following up on our earlier post that Chinese military officials want to “punish” America by selling Treasuries, Asia Times Online is reporting that an explicit directive by the Chinese government has notified reserve managers to sell all risky US assets, including asset backed and corporates, and just hold on to explicitly guaranteed Treasuries and Agency debt.

via The Dumping Begins: Chinese Reserve Managers Notified That Any Non-USG Guaranteed Securities Must Be Divested.

Still counting on that Obama recovery? No matter which party you are in, you can thank your leaders for sinking this ship. If this is just posturing, it should be a blaring warning. China could sink us any time. It’s time people wake up and quit letting the two parties distract us by pointing fingers at each other.

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Comments (2)

Even if it’s posturing, China is sending a very clear message to Washington: We own you; do what we tell you or else.

When you owe someone else money, you are not free, you are their slave

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Unfortunately, our government has convinced everyone that government debt is different, that it defies all the logic we use for your personal finances.

Meanwhile, they funnel most of the money to their buddies on Wall Street, and we’re left with the tab. By tab I mean we’ll be the slaves.

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