From behind the Great Firewalll.... “The mandarins of Peking know that there is a growing likelihood – make that a near-certainty – that any money they now lend to the United States will never be repaid. In the commercial world, when it becomes clear that a debtor may never be able to repay, the creditor demands a debenture by way of fixed and floating charge over the entire assets and undertaking of the debtor. Has Obama granted to China a debenture over the assets and undertaking of the United States?” The Chinese central bank already is taking action, forming bilateral currency swap arrangements with other trade partners, drastically reducing the number of dollars that will be used in global commerce. Russia also has been reducing its reserve holdings of dollars for some time and is publicly advocating, along with China, international control of the dollar’s value or that some international monetary unit be devised to replace the dollar. Total net American liabilities to the rest of the world now stand at more than $80 trillion. At the same time, the Net International Investment Position (NIIP) now stands at negative $2 trillion. WND has reported that China now owns significant public infrastructure in the contiguous United States and has requested public land and “special economic zones” free from U.S. labor controls as collateral on future loans. Gao Xiqing, head of the largest Chinese public owner of U.S. debt, had this to say in the wake of the 2008 financial collapse, echoing Monckton’s sentiments: “I have great admiration for the American people. Creative, hard-working, trusting, and freedom-loving. But you have to have someone tell you the truth. And then, start realizing it. And if you do it, just like what you did in the Second World War, then you’ll be great again. … But many people are betting on the other side.” Gao, president of China Investment Corp., recently told Atlantic Monthly: “Think about the way we’ve been living the past 30 years. Thirty years ago, the leverage of the investment banks was 4-to-1. …Today, it’s 30-to-1. …This is a change of fundamental thinking. People, especially Americans, started believing that they can live on other people’s money. … First, other people’s money in your own country. And then the savings rate comes down, and you start living on other people’s money from outside. …Okay, we’d love to support you guys – if it’s sustainable. But if it’s not, why should we be doing this?” Monckton ultimately believes that whatever the fate of the U.S. dollar, and whatever solution America adopts, the real problem is not economic or political but moral. “The crisis of the West is not primarily a financial crisis, or a crisis of democracy, though these crises are real and existential. It is, above all, a crisis of morality.”
Posted on: Sun, 29 Sep 2013 08:38:23 +0000
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