Geithner Wants Americans To Pay More At The Store

Posted by Jason | Posted in Economics, Foreign Policy | Posted on 07-10-2010

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Timothy is apparently asking China to make it even harder on Americans. He’s calling on China to increase the value of the Yaun, which would make Chinese products more expensive for Americans. Doesn’t he realize this is what has helped Americans live the standard of living they currently do. With the Fed destroying the value of the dollar, if China increases the value of their currency, working class and poor Americans will be in for a shock when they hit the local Walmart.

WASHINGTON—The U.S. and China stepped up their confrontation over the valuation of Beijing’s currency, prompted by fears that competing foreign-exchange policies could hamper the global economic recovery.

First, let’s quit worrying about the so called global recovery and instead worry about what’s right for the American public. If China wants to devalue their currency, it only helps Americans. Who is Geithner really worrying about?

In a surprisingly blunt speech, U.S. Treasury Secretary Timothy Geithner took China to task for maintaining what the U.S. considers a deliberately undervalued exchange rate aimed at helping China’s export industries.

By undervaluing their exchange, Americans can get products for less than they would otherwise. With the savings, Americans can acquire even more products that they would have otherwise been unable to afford had China not undervalued their exchange rate. If anyone should be complaining about this, it should be the Chinese workers as their buying power is being eaten away.

“When large economies with undervalued exchange rates act to keep the currency from appreciating, that encourages other countries to do the same,” said Mr. Geithner, using language that referred directly to China, in an address at the Brookings Institution, a Washington think tank. “This sets off a dangerous dynamic” as nations compete to keep their currencies undervalued.

It encourages other countries to do the same because their leaders are as intelligent as a bunch of monkeys. It sounds more like the old monkey see monkey do than it sounds like intelligent economic policy. Geithner is basically saying “Look China is taxing their citizens wealth away with inflation. We better do the same thing.” Of course, the Fed does plenty of this already.

In Brussels, before Mr. Geithner spoke, Chinese Premier Wen Jiabao asked European Union business and political leaders to tone down their attacks on Beijing. “If the yuan is not stable, it will bring disaster to China and the world,” he said. “If we increase the yuan by 20% or 40%, as some people are calling for, many of our factories will shut down and society will be in turmoil.”

What this basically means is if China did as the other idiotic leaders called on them to do, prices of Chinese goods would go up by 20% to 40%. How’s that inflation sound to you? Because Americans would buy less of their goods, Chinese workers would also be harmed with layoffs.

The broadsides came as leaders prepare to gather in Washington for meetings at the International Monetary Fund, followed by two sessions of the Group of 20 industrialized and developing nations. The increasingly exasperated rhetoric suggests participants are losing patience with a multilateral approach to currency issues.

Indeed, Mr. Geithner warned China that the U.S. support for a bigger role for Beijing in the IMF depends on Beijing showing “more progress” in pursuing “market-oriented exchange-rate policies.” Fred Bergsten, director of the Peterson Institute for International Economics said that U.S. was saying to Beijing, “We’ll only support your game if you play by the rules.”

Geithner playing the ugly American. Go figure. Unfortunately, China holds all the cards and they know it. Wait it gets better.

To the U.S., China is pursuing a mercantilist strategy that favors its industries at the expense of competitors in the U.S., Europe and Asia. China sees itself as pursuing its national interest and a strategy that has turned the country from an impoverished also-ran into a powerhouse.

You got that. China is mercantilist, but the US is what? We put tariffs on steel why? We put tariffs on sugar why? We subsidize our farmers why? You get the point.

Mr. Geithner hasn’t named a target for Chinese currency appreciation that the U.S. would find satisfactory. But he has often spoken favorably of the 20% rise in the yuan from 2006 to 2008.

Now could you imagine having a 20% rise in the dollar? Aren’t we always told deflation is so horrible. A little inflation is good, but you never want deflation. Well what the hell do they think a 20% rise in the yaun valuation will bring for the Chinese?

No worries though. Geithner has a solution. Cartels.

In his speech, Mr. Geithner suggested countries with undervalued currencies could cooperate on kind of joint currency appreciation. In that way, China need not worry that Asian competitors such as Malaysia and Vietnam will gain an edge if the yuan rises in value.

U.S., China Deepen Spat Over Yuan – WSJ.com.

I thought Cartels were bad. Oh, I forgot. Many things that are bad for individuals and private business are righteous when the government does them.

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China’s Bubble – This could get ugly real fast

Posted by Jason | Posted in Economics | Posted on 27-04-2010

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Keep an eye on this. Because China, like the US, doesn’t have a free market when it comes to interest rates, there is a good chance they will pop their real estate bubble, and when they do, it’s going to set off round two of the global financial crisis. Of course, that will set off the Fed to print even more money, which will fuel inflation even more.

Should I go buy my wheel barrow now?

Asian stock markets traded mostly lower Tuesday, with markets in China and Hong Kong weighed by fears Beijing may introduce further tightening measures aimed at curbing the property sector.

via China Down on Tightening Fears – WSJ.com.

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Blowback In The Making

Posted by Jason | Posted in Foreign Policy | Posted on 25-02-2010

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The Wall Street Journal had an article this morning about the US trying to remain “neutral” by selling weapons to both India and Pakistan. Did we claim to be neutral by selling weapons to both sides in WWII? Seems to me selling weapons to both sides will eventually have both sides blaming you in the event of a war.

The Obama administration is sharply expanding American weapons transfers to both India and Pakistan, longtime rivals about to sit down for peace talks Thursday.

Ah, our Nobel Peace prize winner. I’m so proud he won that with all his hard work promoting peace….well except for the dropping bombs in Yemen and Pakistan where we haven’t declared war. Oh, and instigating tensions with both Japan and China…..oh, and ratcheting up the war talk with Iran… oh, and now selling weapons of mass destruction to Pakistan and India.

The U.S. has sought to remain neutral in the thorny relationship between the nuclear-armed neighbors. But Washington hasn’t been shy about pursuing weapons deals in the region, which officials say will lead to closer ties with each country while creating new opportunities for American defense firms.

I am sure glad we have a government more concerned with “creating new opportunities for American defense firms” than with the long term peace with both nations, in other words by really remaining neutral. I have no problem with private businesses selling them weapons, but the problem comes in when our government is used as their sales force.

The U.S. has made billions of dollars in weapons deals with India, which is in the midst of a five-year, $50 billion push to modernize its military.

At the same time, American military aid to Pakistan stands to nearly double next year, allowing Islamabad to acquire more U.S.-made helicopters, night-vision goggles and other military equipment. The aid has made it easier for Pakistan to ramp up its fight against militants on the Afghan border, as the U.S. tries to convince Islamabad that its biggest security threat is within the country, not in India.

During a late January trip to Islamabad, Defense Secretary Robert Gates said the U.S. would for the first time give Pakistan a dozen surveillance drones, a longstanding Pakistani request.

OK kids, this is where you have to really read between the lines. Apparently, the Wall Street Journal doesn’t know what “aid” means. What this should have said is the US government is stealing the wealth of it’s own citizens at gun point. Then they are taking that money to give to defense contractors, who then give their products to Pakistan. Then Pakistan will use those products to kill their own people.

So, riddle me this Batman. If you are a Pakistani, and your family members get killed by a drone or some other weapon that was bought and paid for by the US government, ultimately the US tax payer, who are you going to blame? While it might be the Pakistan government that carried out the killing, who is their supplier? This is major blowback in the making.

Also, do you think for a second that the Pakistan government is ever going to say, “Hey, we don’t need your money anymore America. We killed all the terrorists. Thank you.”? No, we are paying them to wage war on terrorism. Their incentive is to never have that war end, for when it does, their hand out ends.

Washington’s relationships with the two nations are very different. India, which is wealthier and larger than its neighbor, pays for weapons purchases with its own funds. Pakistan, by contrast, uses American grants to fund most of its arms purchases. A new U.S. counterinsurgency assistance fund for Pakistan is slated to increase from $700 million in fiscal year 2010 to $1.2 billion in fiscal year 2011.

“We do straight commercial deals with India, while Pakistan effectively uses the money we give them to buy our equipment,” said a U.S. official who works with the two countries. “But we think that’s ultimately in our national interest because it makes the Pakistanis more capable of dealing with their homegrown terrorists.”

Ring-a-ling, ring-a-ling, ring-a-ling. The bells are going off. This came pretty close to the truth. “Pakistan effectively uses the money we give them (that we stole from our citizens) to buy our equipment (to give to our buddies in the defense industry).”

The country is preparing its military to deal with multiple potential threats, including conflict with Pakistan. Tensions have recently flared between India and China over territorial claims along their border. China defeated India in a short war in 1962.

OK, here’s another fight we are picking with China.

“For 2010 and 2011, India could well be the most important market in the world for defense contractors looking to make foreign military sales,” said Tom Captain, the vice chairman of Deloitte LLP’s aerospace and defense practice.

Russia has been India’s main source of military hardware for decades, supplying about 70% of equipment now in use. Moscow is working to keep that position, with talks ongoing to sell India 29 MiG-29K carrier-borne jet fighters, according to an Indian Defense Ministry spokesman.

The Obama administration is trying to persuade New Delhi to buy American jet fighters instead, a shift White House officials say would lead to closer military and political relations between India and the U.S. It would also be a bonanza for U.S. defense contractors, and has dispatched senior officials such as Mr. Gates to New Delhi to deliver the message that Washington hopes India will choose American defense firms for major purchases in the years ahead.

Still in the pipeline is India’s planned $10 billion purchase of 126 multirole combat aircraft for its air force. U.S. firms Boeing and Lockheed Martin Corp. are vying with Russia and European companies for that deal, which would be a near-record foreign sale for the firms. An agreement last summer allowing the U.S. to monitor the end-use of arms it sells to India is expected to facilitate such deals.

“That’s the biggest deal in the world right now,” said Mr. Captain. “If it goes to an American firm, that would be the final nail in the coffin in terms of India shifting its allegiance from Russia to the U.S.”

Picking another fight with Russia. Is it any wonder why so many people in the world hate our Government? We are trying to be strategic by sticking our finger in the eye of Russia, China, Japan, India and Pakistan, and this is just one article. Do some research on South America, but hey, I’m sure glad Obama won that peace prize.

via U.S. Sells Arms to South Asian Rivals – WSJ.com.

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Obama the statesman or the great instigator?

Posted by Jason | Posted in Foreign Policy | Posted on 18-02-2010

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It seems the Obama administration is either purposefully trying to start an economic world war or he’s just an idiot. Flip a coin, because which one it is won’t make a dimes worth of difference. According to a post from lewrockwell.com, Obama is using the Toyota recall as a weapon against Japan.

The Obama administration, according to WMR’s Asian sources, is waging an economic warfare campaign, coupled with industrial sabotage, against Japan through a pre-planned operation directed against the Japanese automobile manufacturer, Toyota.

WMR has learned that the Obama administration authorized the anti-Toyota campaign as a warning shot to Japan over its reformist government’s insistence that the U.S. pull its military troops out of Okinawa. WMR has learned that Obama and his chief of staff, Rahm Emanuel, have decided to turn the screws on Japan, not only for auto market leverage, but also to punish Japan over the insistence by Prime Minister Yukio Hatoyama and the newly-elected anti-U.S. military mayor of Nago on Okinawa to move the U.S. military off of Okinawa.

Transportation Secretary Ray LaHood, a former congressman from Peoria, Illinois, and who is owned and operated by Peoria-based Caterpillar, whose major competitor is Japan’s Kubota Tractor Corporation, kicked off the anti-Toyota campaign when he stated that all Toyoya owners should stop driving their vehicles and return them to the dealership for a fix. LaHood was referring to a problem with some uncontrolled acceleration problems with some Toyota vehicles. However, LaHood painted a wide brush in his comments about Toyotas when the problem, which resulted in a voluntary recall of millions of Toyota vehicles, including the popular Camry and Corolla, by the Japanese auto giant, affected only a small fraction of Toyota vehicles. LaHood has also threatened Toyota with unspecified civil penalties.

Asian intelligence agencies have discovered that LaHood was implementing a White House operation to grab a major portion of Toyota’s market share and hand it over the General Motors and Ford. The Obama administration, through its bailout of GM, has become a virtual auto company and, therefore, is playing economic hardball with Japan. Ford also benefited from the Obama administration’s stimulus package. The chief architects of the anti-Toyota campaign, according to our sources, are Treasury Secretary Tim Geithner and White House Chief of Staff Emanuel.

By increasing GM’s viability at the expense of Toyota, Geithner sees a potential windfall when the federal government sells its share of GM stock to the public. The corporate media have played along with the Obama administration’s anti-Toyota and anti-Japan operation by hyping the safety issues with Toyota’s vehicles, especially the popular Prius hybrid vehicle. The Obama administration has decided on economic warfare against Toyota to restore GM as the world’s number one auto manufacturer, a position enjoyed by GM until 2007 when Toyota overtook it in sales.

via Obama Waging Economic Warfare on Several Fronts, Including Japan.

I’m so glad Obama is so good at the foreign policy stuff. I mean there has been so many great foreign policy achievements since he came into office. He got our troops our of Iraq as promised. What? He didn’t? OK, well at least we are not acting like a belligerent nation dropping bombs all over the middle east. Are serious? He’s had more drone attacks in one year than Bush did in eight? Yeah, but he sat down with Iranians and work out a peaceful solution to the tensions between our countries. What do you mean Hillary just turned up the heat saying Iran is a dictatorship?

Eh boy.

You mean with all the chills that went up people’s legs, Obama pretty much sucks at foreign policy? Now he is going to start an economic war with our biggest debt holders?

Under Obama we just sold weapons to Taiwan, which angered China. Obama and Hillary both keep sticking their fingers in the eye of the Chinese government about their censorship of the internet. Obama also imposed tariffs on steel and on tires from China.

China already dumped some of our debt, which made Japan our biggest debt holder. Just one of those countries dumping our debt could collapse our economy. What happens if they both do it?

Now we are instigating a fight with Japan using Toyota, because we don’t want to remove our base from Okinawa. I thought we weren’t an empire. Surely, if we weren’t an empire, we’d have no reason to use coercion against the Japanese. If they want us out, we should leave. Better yet, we should not even have waited to be asked. Considering our finances, we should have closed that base long ago.

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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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Russia responds to U.S. missile plans for Poland

Posted by Jason | Posted in Foreign Policy | Posted on 22-01-2010

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I’ve tried staying away from foreign policy, because I’m a recovering neo-con. I must ask though, what are we trying to accomplish by agitating Russia? Didn’t the cold war end 20 years ago? Then why are we still fighting it? Who is benefiting from it continuing? (I have some ideas, but I’ll save that for a conspiracy blog)

Russia will strengthen its Baltic fleet in response to U.S. plans to deploy Patriot missiles in Poland, Russian state news agency RIA reported on Thursday, citing an unnamed senior navy official.

“The surface, underwater and aviation elements of the Baltic Fleet will be strengthened,” RIA quoted the unidentified Russian navy official as saying.

The United States is dispatching the missiles to Poland after dropping an earlier plan to deploy interceptor missiles in the NATO nation as part of an anti-missile system in Europe.

“In connection with the plans to install the Patriots on Polish territory in the next 5 to 7 years, there may be significant changes in the approach to define the tasks and the military potential of the Baltic Fleet,” RIA quoted the same source as saying.

Moscow has expressed concern about what it calls U.S. military encroachment and threatened to respond to any change in the current military balance on its western borders with NATO nations.

President Dmitry Medvedev had previously warned Moscow would station Iskander missiles in Kaliningrad if Washington went ahead with its original anti-missile plan. U.S. President Barack Obama‘s decision to revise it pleased the Kremlin.

But the plan to install Patriot missiles has resurrected longstanding Russian suspicions about the motive for the strengthened NATO presence near its borders, said Alexei Fenenko of the Institute of International Security Studies in Moscow.

“Russia was very concerned about the anti-missile system being installed in Poland and the Czech Republic and didn’t understand the need for it in these locations, if it was intended against Iran,” he said.

“If it’s not against Iran, then who is it against? The new missiles will be now be close to the territory of both Kaliningrad and Belarus” (a Russian military ally that borders Poland), he said.

via Russia responds to U.S. missile plans for Poland – Yahoo! News.

How long do we think we can keep this up? Reagan’s strategy was to bankrupt the Soviet Union, and he was successful. Instead of being humble and trying to build a long lasting relationship with Russia, we have constantly slapped them in the face. This is the latest example. Unfortunately, because we decided after the Cold War was over that we needed to be an empire, we are now moving towards bankruptcy ourselves.

We can no longer be the protectorate of all the world. Most of the world does not even have to spend their own money to protect themselves, because they let us be the useful tools to do it. We are not only doing this in Eastern Europe with Russia. We do it to China with the Koreas, Taiwan and Japan. We do it in South America with Columbia. Look at this map of our military footprint. How long can a country that is aging, becoming less free and less capitalistic sustain such an empire?

While I would love to believe that our intentions are good and we only want to promote freedom around the world, I cannot see how building up militarily in every corner of the earth does that. It isn’t the threat of military force that drives people to want freedom. It is in the human spirit to want freedom, and it was the American example of liberty that inspired much of the world.

I am not arguing that we should weaken ourselves as a nation. We should have a ferocious homeland defense. Our second amendment rights should be reaffirmed as unquestionable by any legislation whether domestic or foreign. A heavily armed citizenry would dissuade any tyranical government from becoming our oppressors, including our own.

History is full of dead empires who thought they could control the world beyond their borders. George Washington warned us not to fall for it. In his fairwell address he said:

“If we remain one people under an efficient government. the period is not far off when we may defy material injury from external annoyance; when we may take such an attitude as will cause the neutrality we may at any time resolve upon to be scrupulously respected; when belligerent nations, under the impossibility of making acquisitions upon us, will not lightly hazard the giving us provocation; when we may choose peace or war, as our interest, guided by justice, shall counsel.

Why forego the advantages of so peculiar a situation? Why quit our own to stand upon foreign ground? Why, by interweaving our destiny with that of any part of Europe, entangle our peace and prosperity in the toils of European ambition, rivalship, interest, humor or caprice?

as we are now at liberty to do it; for let me not be understood as capable of patronizing infidelity to existing engagements. I hold the maxim no less applicable to public than to private affairs, that honesty is always the best policy. I repeat it, therefore, let those engagements be observed in their genuine sense. But, in my opinion, it is unnecessary and would be unwise to extend them.

Taking care always to keep ourselves by suitable establishments on a respectable defensive posture, we may safely trust to temporary alliances for extraordinary emergencies.

Harmony, liberal intercourse with all nations, are recommended by policy, humanity, and interest. But even our commercial policy should hold an equal and impartial hand; neither seeking nor granting exclusive favors or preferences; consulting the natural course of things; diffusing and diversifying by gentle means the streams of commerce, but forcing nothing; establishing (with powers so disposed, in order to give trade a stable course, to define the rights of our merchants, and to enable the government to support them) conventional rules of intercourse, the best that present circumstances and mutual opinion will permit, but temporary, and liable to be from time to time abandoned or varied, as experience and circumstances shall dictate; constantly keeping in view that it is folly in one nation to look for disinterested favors from another; that it must pay with a portion of its independence for whatever it may accept under that character; that, by such acceptance, it may place itself in the condition of having given equivalents for nominal favors, and yet of being reproached with ingratitude for not giving more. There can be no greater error than to expect or calculate upon real favors from nation to nation. It is an illusion, which experience must cure, which a just pride ought to discard.

In offering to you, my countrymen, these counsels of an old and affectionate friend, I dare not hope they will make the strong and lasting impression I could wish; that they will control the usual current of the passions, or prevent our nation from running the course which has hitherto marked the destiny of nations. But, if I may even flatter myself that they may be productive of some partial benefit, some occasional good; that they may now and then recur to moderate the fury of party spirit, to warn against the mischiefs of foreign intrigue, to guard against the impostures of pretended patriotism; this hope will be a full recompense for the solicitude for your welfare, by which they have been dictated.

George Washington was right too when he said “I dare not hope they will make the strong and lasting impression I could wish..“. We long ago forgot his warnings. Maybe it’s about time we take up these “counsels of an old and affectionate friend”.

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US Trade War Ramping Up

Posted by Jason | Posted in Economics | Posted on 30-12-2009

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This is why government should not be involved in markets. In order to cater to their union backers, the government is launching a trade war. Don’t these idiots know that is a big reason for the Great Depression? Oh yeah, I forgot unemployment doesn’t effect elected officials. What do they care?

We were just mentioning how screwed the West will be if in fact the world goes go into “trade war” mode.

Well, here we are. The US International Trade Commission has just sided with US steelmakers in favoring duties on Chinese imports. Their bulletin is here.

via And Just Like That, The US Amps Up The Trade War Against China.

Trade wars are liking pointing a gun at each other’s head and both deciding to pull at the same time. It only harms both sides.

Also, it’s basically a subsidy from the general population to the protected group. Ultimately, the public will have to pay more for products made with steel, so that steel workers can keep their jobs. The result is less prosperity for the rest of us. In addition, there will end up being another group harmed when China decides to retaliate against some other industry.

Oh yeah, and say bye to the little guy. Only the big businesses can afford the increase in material costs. I have a friend who made mattresses. He was able to compete with the big boys, because he got a lot of his materials from China and was able to keep margins low. Then some lobby group got to the government and had them raise prices on something to do with springs. The cost drove his prices up to where he could no longer compete with the big boys. Less than a year later, he was out of business. Now, while the group that was protected may have keep jobs, he lost his business, and his employees lost their jobs. Also, the market no longer has the low cost mattresses he was able to deliver.

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Breaking News! – Clinton: U.S. Ready to Join Climate-Aid Fund

Posted by Jason | Posted in Global Warming | Posted on 17-12-2009

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This is breaking news on the Wall Street Journal. Hillary Clinton pledges $100 billion per year out of American tax payers’ pockets to hand over to the Mugabes of the world via the “Climate-Aid Fund”.

U.S. Secretary of State Hillary Clinton has announced that the U.S. is prepared to join other rich countries in raising $100 billion in yearly climate financing for poor countries by 2020.

The announcement could give a boost to deadlocked climate talks which have faltered over disputes between rich and poor countries over emissions cuts and climate financing.

Mrs. Clinton said the financing is contingent on world leaders reaching a broader climate pact at the U.N. talks in Copenhagen.

She said the deal must include all major economies, meaningful actions to cut greenhouse gas emissions and a system to ensure all parties’ actions are transparent.

Mrs. Clinton says “$100 billion is a lot. It can have tangible effects.”

via Clinton: U.S. Ready to Join Climate-Aid Fund – WSJ.com.

So, let’s get this straight so I can get back to reading how to survive the coming collapse. We are already borrowing over $1 trillion a year. On top of that, we are going to borrow another $100 billion for this climate change scam. We are going to ask China to lend us money to hand it over to Mugabe. In other words, we are slaves to Mugabe. We are pledging our future and our children’s future labor to give $100 billion now and every year in the future to the Mugabes of the world. Did any of these political pigs want to ask us if we wanted to be enslaved so they could feel good about themselves?

Next time Obama goes back over to China to tell them how bad their leaders are and how they aren’t free, can he take the gun away from our heads first? Without the government gun to our heads, Americans would never fork over $100 billion to hand to tin pot despots.  I believe there was once a revolution over taxation without representation. Maybe it’s time for another one.

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You come talkin that trash, we’ll pull ya card

Posted by Jason | Posted in Foreign Policy, Global Warming | Posted on 07-12-2009

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Tony Blankley in his op-ed this weekend explained the vulnerability we have that is growing substantially under Obama.

It is vital to understand that a weak dollar driven by excessive public debt directly threatens not only our prosperity but also our sovereign ability to protect our liberty in this heartless world. There is no better evidence than an event 53 years ago: the Suez Canal crisis.

When Egypt nationalized the British- and French-owned Suez Canal, Britain took offense and organized its retaking. But U.S. President Dwight Eisenhower disapproved of the effort. Unfortunately for Britain, it relied on America for financial help.

Britain could not maintain its currency, the pound sterling, at the pound’s needed reserve currency value of $2.80 without America’s help. Also, Britain needed petroleum, which was being cut off by the Suez crisis.

The “genial” Eisenhower had had enough. He instructed his Treasury secretary to sell off the pound, break the British currency and economy and refuse to sell Britain any American oil until Britain gave up its military action.

And so effectively ended the British empire, not at the hands of an enemy but by the ungentle touch of its closest ally.

Now the stately Financial Times is suggesting that the United States may be imminently vulnerable to a not-so-friendly China playing Ike’s role of spoiler of American sovereignty to our role as the dear old broke Britain of 1956.

We basically have become China’s lapdog with all our debt that is being held by them. While our leaders like to act tough for the mainstream media in our country when it comes to China, the truth is China could tell the President right now what to do. They could blackmail our President with the threat of dumping the dollar and causing catastrophe for our economy. Every time the President goes to China it reminds me of the old EZ-E lyric, “you come talkin that trash, we’ll pull ya card”.

That is why the United States should not accept the shrewd but not yet inevitable prognosis of the Financial Times. In the next few years, we must start radically cutting our spending until our fiscal condition supports a strong dollar and low taxes.

Wonder if he was laughing as he wrote this? I’m sure he knows this will never happen with Obama and Democrats in charge. I don’t think it would happen with Republicans in charge, at least the ones that were in charge before this current Bolshevik revolution. We need people like Ron Paul, who understand economics, in order to ever make progress on this.

It is an open political question whether the majority of Americans love our country enough to make the painful sacrifice (vast reductions in entitlement benefits) necessary to guarantee our sovereign and prosperous future.

Are we Americans still brave enough to remain free? My guess is that neither the two major political parties nor the majority of the public loves America enough to campaign and vote on the hard, bitter truth about our condition.

via The price we pay for debt – Pittsburgh Tribune-Review.

Unfortunately, I think Tony knows the answer. America has become a country of people standing in the government breadline waiting for their handout. While there is a huge group of Americans that want to remain free and want to work hard to take care of themselves, there is just as big of a group who wants the rest of us to pay for them. Then their is the largest group. They are those who feel that if something doesn’t effect them then they don’t care. Who cares if the government is taking freedom from my neighbor, just as long as they don’t take mine. This is what the politicians count on. This is why they say things like “95% of Americans will get a tax break under my plan”. So most of that 95% doesn’t care that the government pillages the other 5%.

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Wake up and quit selling your children into slavery!

Posted by Jason | Posted in Economics, Government | Posted on 23-10-2009

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For some reason, Americans have been sold on what I’ll now term “the free ride theory”, in which we think we can live our collective lives like we’ve lived our lives over the past decade by racking up our collective debt for today’s keep up with the Jones. Under the Bush administration we racked up debt for a prescription drug program, pork projects and wars. Not to be shown up, Obama has increased our yearly deficits four fold. Is there any end in sight?

No, of course not.

Why stop spending when you can buy votes with so called free goodies. We need to nationalize health care, because we don’t want to pay Wal-Mart for our $4 prescriptions. We need to bail out banks, because supposedly we’ll all lose our jobs if we don’t. We have to take over GM, so that a company, which none of us wants their products, can stay in business. We have to bribe granny with a $250 check, because we don’t want to lose her vote. We have to spend billions to create so called “Green Jobs” because there is no market for them. We’re talking about bailing out newspapers; although most of us get news on the internet. We pay farmers to destroy crops, because we think prices need to be high enough for them to keep producing. With all this frivilous spending, how do you think it is going to be paid for? It is going to be paid by the enslavement of your children, my children and our grandchildren.

This is not just colorful language. It is grounded in the reality we will soon bare witness to.

What is debt? Debt is you promising tomorrows labor for today’s expenditures. When you buy that new car with a loan, you are saying I am going to work X number of hours in the future to get you the money for this plus interest, so that you can give me the car now. If you don’t work those hours, you don’t make the money. If you don’t make the money and pay them, they take the car back. Personal debt is bad enough, but at least you are only enslaving yourself.

What is the most dispicable aspect of what we (yes that includes me) are doing is we are not just enslaving ourselves. We are not saying, I will pay for this. We are building up so much debt that my two year old daughter, my nine year old son, your children, our children’s children and who knows how many generations to come will be enslaved. We are not pledging our future labor for today’s useless expenditures. We are pledging ours and future generations. We aren’t even giving them the chance to say NO. We are saying, “Sorry future Americans, but we want ‘free health car’. We don’t want any job losses (they haven’t stopped have they). We want bridges to nowhere. We want research how to manage the smell of manure! And we want you to pay for it.”

Now, economists would argue that deficits cancel themselves out. They explain this by saying that while we borrow the money, the future generation will hold the Treasury Bonds (an asset) and receive the interest plus principle of those bonds. This basically negates the theory that debt robs one generation by the previous. While this may be true, I emailed the economist that had this in his book. I asked “that may be true if all the debt was held by Americans, but what if China is holding a large portion of that debt. Would that not mean, that A) China is holding the Treasury bond as an asset, and B) won’t they be receiving the interest.?” He responded Yes, that is correct. The book would only apply if future generations means all people regardless of borders. So, not only are we enslaving our future generations, we are enslaving them to China, Japan and other nations. We are saying we want all this stuff, and we are willing to make the next generation work for it in order to transfer the value of their production out of the country. Does this sound like a recipe for a brighter future for our children? While our children are working, the rewards of their work is not bettering their lives. It’s being transferred out to better the lives of foreign nations.

Does this sound like it’s just theory? As of right this  second (it goes up constantly), each citizen owes $343,785. If you have a family of four as I do, multiply that by four, and you get your household debt. Just this week, Moody’s rating agency said the US is a few years away from losing our AAA credit rating. This has never happened. It would be catastrophic to our country and economy. It would mean higher interest on the debt, which would mean even more future labor pledged to today’s expenses.

What does it say that our Secretary of State is begging China to buy more of our debt? We are begging our children’s masters to enslave them. How moral are we?

The financial crisis, we are still in the midst of, undoubtedly woke a lot of people up to the evils of excessive debt. Unfortunately, it has not awoken our politicians. While many families have cut back spending to bring their lives under control, they have at the same time asked the government to continue and even ramp up the very actions that caused them harm in the first place.

While this post is a little depressing, hopefully it will serve as a call to action. A call to stop asking for free handouts from the government that your children will be enslaved for. Stop electing politicians who promise the world and buy votes with pork. Vote for politicians who are going to address the debt problem and speak the truth. With every government policy you hear about ask “How is that going to lower the debt?” Lastly, realize that nothing from the government is free. Everything you ask for from the government comes at the lost liberty of you and your children.

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