Friday, March 13, 2009

China is the new IMF: US faces austerity plan

My headline says it all. This is the fact that is overlooked by all the MSM articles regarding China's warning about US economic policy. The power shift from the US to China that I have described in previous articles is in full swing. The catalysts are the global financial crisis and the US bailout of Wall Street initiated by the unscrupulous traitors "Hank" Paulson and Ben Shalom Bernanke.

China is the new IMF

What do I mean by that? Well it's pretty simple if you think about it. The IMF is bankrupt. It's running out of money. Rumors are that it's had to resort to selling it's gold. None of the usual supporter nations are in a position to lend it more money. China has refused to offer the IMF funding. Why should it? That money is then controlled by US and European interests.

Now when countries are in trouble they come to China. China has replaced the IMF as the source of emergency loans to troubled economies. China has been able to dictate terms on long term deals for oil in countries like Venezuela, Brazil and Russia. Yes, even Russia.

And though no one in the US government or press wants to admit it, China is also dictating terms to the US. The Fannie Mae and Freddie Mac bailouts were done principally to protect China's investments in those two US institutions. And it is the US taxpayer that is stuck with the bill. That bill will be paid in terms of higher taxes and inflation caused by a devalued dollar.

Austerity plan

An austerity plan is the kind of conditions that the IMF habitually places on third world countries in exchange for its economic support. Part of this consists of privatization of state held assets. The US dominated multinational companies then sweep in and acquire strategic resources at bargain prices. What follows is widespread economic hardship for the common person, while a small local oligarchy that cooperates with the foreign multinationals reap the benefits.

This is also known as shock therapy. This the standard prescription recommended by the Chicago school of economics headed by the now deceased Milton Friedman (may he rot in hell). Its also referred to by the euphemistically as neoliberalism. It's neither new nor is it liberal. It is just good old fashioned colonialism dressed up in free market rhetoric.

Meet the new boss, same as the old boss

And now it seems it's China's turn to take a crack at playing the part of the global bully. But first it must push out of its way the current reigning economic bully which is the US. But here's where it gets interesting. Who's behind the economic might of China? Well its the same multinationals that have been backing the US in the latter half of the 20th century. Only now they have found a new home in China.

How do you think China rose so quickly into such a dominant economic force in the last twenty or so years? I'll tell you. There has been an enormous transfer of capital from the US to China. I'm not talking about the imbalance of trade. I'm talking about the capital that was needed to create the factories that abound in China. To create all that infrastructure required a tremendous amount of external capital. China did not have oil reserves like Saudi Arabia to bring in all those dollars. But it did possess an almost unlimited supply of another natural resource - cheap labor. Cheap in this case is a gross understatement.

China's labor force from a historic perspective most closely resembles slave labor. But this isn't your great-grandfather's slave labor. This is a new kind of captive work force. It's neither peasant, nor slave, nor indentured servant. It's closer to the working masses that the original industrial revolution exploited in its factories in England. And the irony is that these were the same masses that inspired Karl Marx to publish the Communist Manifesto in 1848.

China which is totally controlled by the "communist" party has now recreated the oppressive working conditions of the very masses that communism was supposed to liberate. In fact the Chinese Communist Party is nothing more than a gang of thugs. They are a criminal network which has acquired complete control over the most populous nation in the world. No wonder that the Dalai Lama describes life in modern day Tibet as "hell on earth".

The rulers of China have recently stated unequivocally that there will be no democracy in Red China. That's funny because as I recall the whole justification for allowing China to participate in the global capitalist society was to liberalize the government and its institutions. Seems that didn't work out so well.

The whole treatise of the sino-philes was that given access to western markets and an increased standard of living, the Chinese would naturally evolve towards a more open and liberal society. Wrong! But I can't help thinking in my conspiratorial brain that this comes as no real surprise to the International Elite that hatched this plan and sold it to the rest of us. Sorry Jim Rogers, but its time to admit that this was a bad idea from the start.

Why was China allowed to join the WTO in 2001 despite its human rights record, never mind the fact that its economy was anything but a free market? It was clearly not up to western standards yet it was allowed to join while Russia was kept out. The reason, dear friends, is that China is a dream come true for the neo-Fascist Capitalist Elite. It's a place where fortunes are made every day. So what if you have to bribe a few communist officials? At the wages they are paying, the profit margins are enormous. And the brutally repressive nature of the government means that the workers won't be complaining if they know what's good for them.

Kabuki time

So now its kabuki time for the Elite. Who knew that China would turn around and threaten the United States? Who knew? Who? Well I guess the very people that planned this and have benefited the most from this betrayal of the American people. That would be the Elite also known as the International Bankers.

Ever notice how many US banks own major interests in Chinese financial institutions? The most recent one I stumbled on was the Bank of New York (BoNY) which is buying a 49% stake in the Chinese brokerage firm Western Securities Co. This just happened in February 2009 according to the article I have linked to. The article doesn't say how much money BoNY is investing, but I do know that BoNY received $3 billion in bailout money from the TARP. So is the US taxpayer now funding US banks to go out and invest in China?

It's funny how this is never brought up as the US banks whither and die. Or is it that they have already transfered their good assets to the safety of China while holding on to their toxic assets in their US subsidiaries. Is that what they mean by the "good bank"-"bad bank" solution? The bad bank in the US gets to hold on to all the toxic assets and gets bailed out by the US taxpayer while the good bank in China gets to hold on to all the cash and profitable assets.

And how is China possibly capable of threatening the US with crashing its currency when most of China's assets are in US dollars. If the dollar fails, then the biggest loser is China. If the US economy fails and the US consumer can't buy foreign made goods, then the biggest loser is China. It seems to me that we have China over a barrel and not the other way around. But this is not the story that the Elite want to present to the US public in their kabuki style drama. They want the US public to believe that the US is being forced to surrender to China.

But China is no threat to the US. The US could easily destroy China many times over. The Chinese don't even have a blue water navy - that means a navy that is capable of projecting power in international waters. There navy is a coastal navy confined to their local territorial waters. They don't have a single aircraft carrier. Economic threats need to be backed up by military threats to have any credibility. The US has 90 military bases in Japan and I don't know how many in South Korea, and then there's Taiwan which the US backs militarily. If China wants to rumble then bring it on!

But of course the Elite do not hold allegiance to any flag. They have only allegiance to themselves and their money and power. They want us to believe that China has missile capability on a par with the US by destroying a satellite. They want us to believe that China has a credible navy by sending them on a pirate hunting mission off the coast of Somalia. They want us to believe that the Chinese economy is on a par with the US when really it is a third world nation just barely keeping its neck above water economically.

Why? Because they want us to be afraid. And by instilling fear in the American people they can manipulate us and convince us to give up our rights and freedoms. Because those rights and freedoms which our forefathers fought for are the only thing keeping them from establishing total control over the planets resources. They seek nothing less than absolute power.

I know, I know. There I go spouting off conspiracy theories again. Sorry, but this current financial crisis makes no sense to me unless I call into question the prevailing wisdom spouted by the MSM and do some independent thinking. All the explanations offered by the MSM make no sense at all. The timing of the bubble bursting, just at the end of the Bush administration, was just a little bit too convenient - don't you think? Couldn't they have managed to keep Bear Stearns and Lehman Brothers on life support for just a few months longer until a new administration was in place? But that wouldn't have had quite the same shock effect as the current crisis. N'est-ce pas?

P.S. Perhaps in another post I'll get into how the WTO is fast becoming the global government that so many conspiracists have warned about. Forget about the UN, it's the WTO that has the power to enforce detrimental policies on the nations of the world. And it is the ordinary citizens that pay the price by losing their jobs or watching their standard of living slowly erode. The New World Order (NWO) begins with the World Trade Organization (WTO).

P.P.S. The same Bank of New York that I mention above has been "hired by the government to monitor all banks that pocketed public cash - including itself." Clearly BoNY is one to look out for. I'll have to do more research on this one, but it looks like this may be another corporation like Goldman Sachs that is a key to understanding how the Elite have engineered this crisis and profit from it. BTW, the full name of BoNY is Bank of New York Mellon but I just love the BoNY acronym.

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