CHINESE AGENCY DOWNGRADES US CREDIT RATING
Last Thusday in my News and Views from the Nefarium, I pointed out how the uncompromising ideologues on the right and left were, through their brinksmanship, flirting with defaults. And by flirting with defaults, they were endangering the international credit of the nation. Now, I'm all for getting rid of the central banking nightmare and its chokehold on the human spirit and human creativity. I'm all for auditing the Fed and going all the back to its founding, its shareholders. I'm all for prosecuting any corporation or individual involved in its shady financial dealings, or any public figure for any public statements that could be considered treasonous under the doctrine of mens rea.
But in the meantime, until and if the world and this country ever transitions to a system without private monopoly banking - and trust me, that's a huge transition, but one that, I think, is under way in spite of the best conspiratorial efforts of international bankers - in the meantime, if there were to be a default, it would be absolutely ruinous to the American people, and that would spread like shockwaves to the other peoples of the world. For this reason I find the actions of Republithug and Dummycrook leaders during the recent government shut down to be inexplicable, irrational, and utterly self-serving. The rhetoric was over the top, on both sides. Political and cultural discourse utterly broke down.
And the world was watching. And, following the old adage "never let a good crisis go to waste to advance your own agenda", China, as I pointed out, was watching. The Chinese, as one of the largest holders of the debt and treasuries that sustains all those wonderful entitlement programs - the IV drip of addiction to government that has been wired into almost every vein of our society - have had enough, and clearly served notice that the era of economic American unipolarism is over:
World chastises U.S. as debt ceiling looms
And this is not just talk. China has, in recent months: (1) entered currency swaps with the entire Eurozone utterly bypassing the US dollar, (2) signed a similar agreement with the United Kingdom, (3) been buying gold at record rates, (4) ran a hard-hitting article in Xinhua News Agency calling the Washington leadership irresponsible (while, notably, saying little about America as such, in other words, the target of the remarks was directed more at the political and financial elite of the country), (5) warned that if the US did default on its debt, it would stop buying US debt altogether, and now, finally (6), there's this:
Chinese Agency Downgrades US Credit Rating
Note: this story ran in a French website, so the world is definitely watching.
There is one final point to make: the Chinese are clearly upset. One can't really blame them. But the world is watching their moves, and, as outlined above, Europe would not be entering into these agreements if they were not seeing the same thing. In other words, the day of the decline of the dollar is inevitable. Adjustments - they are telling Washington, the Dummycrooks and Republithugs in the Congress and executive branch - can be either smooth, or bumpy. We are watching a world financial system under tremendous stress and in great transition, like it or not, and China is serving notice that it intends to be a part of that transition.
Unfortunately, in the hysterical and, to be honest, brutal remarks coming out of the mouths of both political parties' leaders, they weren't listening to the world. But the world has been watching, and listening, to Washington, very carefully and closely.
And they're not liking what they see, or hear.
See you on the flip side.
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Telling It Like It IS
The REAL Economic Story
http://michael-hudson.com/
Oct 20, 2013
[listen/click – environmentalist episode #67}
go 2 minute 22 seconds in
Yet, the Chinese continue to finance the US debt. I suspect this is just posturing by the Chinese for some concession from the anglosphere. I smell a dollar rally in the making. By this time next year the government shut down and the global protestations over the US’s financial irresponsibility will be long forgotten. The dollar will still be on its perch, the stock market will be soaring, and ultimate fighting will introduce steel weapons into the combat ring along with a new category of combatants who will be given the opportunity to participate in a more amped up version of bloody combat in order to achieve debt relief.
Opponents of Obammacare will be placated when the government will announce that all and any plastic surgery will be covered under obammacare (and thereby the long awaited means to embed the citizenry with microchips will be achieved as the chips will be secretly put in the fake plastic body parts). But above all this, the world populous will be completely fixated on the newest distraction to sweep America– the rampant spread of twerking. It will have become such a rage that suburban housewives will be taking twerking classes and political candidates on the left will be twerking publicly on the campaign trail in the hopes of winning the youth and hipster vote. On the conservative right, politicians will be calling for a national ban on twerking and a heated debate will ensue in the congress and the media which will even eclipse the recent fiscal crisis. The twerking issue will be more divisive than abortion, fiscal responsibility, gay marriage, racial crimes, and even slavery. Twerking may very well prove to be the issue which leads the US to civil war. Towns will be divided, families will be divided, states will be divided. Some will view twerking as a beastly dance and others as a cute and an inalienable right. The contentious debate will spill over into the Universities as African Studies professors will proudly proclaim that twerking was brought to the United States by African slaves who first learned twerking in the jungles of Africa as a means to harvest high hanging fruits. Attempts to abolish twerking will be viewed as racism. Jewish Studies professors, on the other hand, will claim that twerking is an ancient hebrew practice invented by jewish harlots who used it to seduce Persian and Babylonian royalty. It later was revived by holocaust survivors in the United States who used it as a form of therapy to help them overcome their grief.
And somewhere among all these newest distractions, a general, or a lieutenant, or a corporal, or a former pro wrestler or body builder will be plotting with his gaggle of advisors how best to place themselves at the head of the American Empire and restore it to its former glory.
And last but not least, our Breakaway Civilization will be busy as well. For far, far away, in the furthest reaches of our infinitely vast Universe, a planet of sad, anxious clowns wait desperately for their first shipment of helium from a planet called Earth in the Milky Way galaxy in exchange for the useless yellow metal which is so plentiful on their Clown planet. For far too long they have had very little to be happy about as their supply of helium has dwindled to nothing and all their balloons lay deflated along with the joy of the entire race of clown aliens. With amusement they ponder how anyone could crave this shiny but useless yellow metal and give it more value than the balloon filling and joy giving helium which is so cherished on their planet.
it really is that pathetic Frankie, well said.
The Chinese are far from the biggest holders of US federal debt, so no the Chinese are not financing much US debt, some yes.
It’s the Fed that’s the biggest holder of US debt, so that means something else is going on.
Then it’s Social Security administration.
Next the Chinese.
nah its the Chinese, the biggest key was the gold in Manchuria, and the puppet emperor,….and the chosen ones in ..England, America, Russia, China, Germany, South Africa,…..and the massive human sacrifice…aka WW2.
well done, very well done…..awesome actually, the good guys all gone .but then again they were gods, and gods being gods, dont give 2 shits about about fruit pickers..
oh…so you can undrestand e con om ics….head on down to your local store to see where the crap is made.
all the bs theories, of e con om ics, are just that …absolute b s…..slaves making crap that free people buy that enslave them self…….old formula of an ancient time, when savage hybrids destroyed the sons of gods.
which of course the chosen ones reject, by there own admission….old or new testament, same old story.
j
And where did I say anything about “economics”?
I said it is incorrect to say that the Chinese are the biggest holder of US debt. It is an oft repeated mistake by those who don’t know much or don’t want to ask the meaning where the Fed gets the monies to buy up that debt. Also the fact that the Social Security Administration holds 2 trillion in us debt is a deal Ronny Reagan made in the 1980s, it used to be in dollars, not dollar bonds.
You bring up something that’s already known about, so why bother.
Of course: it’s easier to make monies speculating in finance than make goods or services. And it’s even easier if there’s not protection for US markets. We have Ronny Reagan and Bill Clinton to thank for a lot of that. And still the US Fed is the biggest holder of US treasuries.
Then China is getting too expensive say for Levis to make jeans. So in fact you’re wrong about where a lot of things are made particularly apparel. And working in a Chinese factory is likely better on average than working a Pakistani, Bangladeshi, or Burmese factory.
So propose a system where it’s all unnecessary. I can easily think of one, first and easiest is significant regulation of the “securities” industry. Second demand that Walmart be a responsible buyer of apparel, often, not always, the laws are already in place in say Pakistan.
Don’t see you even mooting a solution.
Some one else not particularly familiar with teachings of Jesus.
money is a deck of cards ready to fall….the only wealth creation is manufacturing.
as for the teachings of jesus, that is a very old story, that has been retold and retold, and that is kill the prophet and free the murderer. something a certain tribe rejected….by there own admission.
I am just telling you the truth…..those that lead into slavery follow.
anytme you want to discuss the NT as well as there origins, the first 5 books of the bible. for starters, Oak Island, Puma Punku, Easter Island, Table mountain south africa, Tahiti, the Forbidden city…..for starters….any time, any time at all.
god is light.
j-
Well lets use that light to make energy we can use as humanity.
No, manufacturing often produces useless junk that is unsellable or out dated in a week. So that’s not the only wealth. Clear information begins to address this mess.
Sag the presumptuous,
Nobody here stated that the Chinese are the biggest holders of US debt. In fact, in my forthcoming book “Talking Points For An American Demagogue” I write that the largest holder of US debt are the Fed banksters. I also suggest to any budding demagogue that the easiest solution to this debt burden is to kill the Fed banksters and seize all their assets across the globe.
FC–
Don’t presume I can’t read the first sentence you posted above:
“Yet, the Chinese continue to finance the US debt.” That means to your mind the Chinese are THE major source of financing for US debt.
Or if the Chinese aren’t the major source then any other party holding US debt has just as much a claim to being the major source of finance for US debt. So if the Chinese aren’t the most significant holders of US debt start with the party/ies that is/are.
So still wrong. Whatever you wrote in some book you’ve only now gotten around to quoting.
Sagyaj,
“Yet, the Chinese continue to finance the US debt.” That means to your mind the Chinese are THE major source of financing for US debt.”
your usual talmudic sophistry.
and please desist from using my name in your silly youtube videos:
http://www.youtube.com/watch?v=dY96oP5A9eI
although, I suppose I should be flattered that you have become so frustrated you have resorted to naming your video game villains after me.
Frankie….”your usual talmudic sophistry”.
he does tend to rely on the illusions of sophism..
FC-
There’s something like 16T in US treasury debt, the Chinese central banks holds about 1.6T of that debt.
You more than implied that the Chinese are the main backers/holders of US debt. You remain wrong.
Why would I watch a Utube link, it’s not going to make your original point correct. Nor have I ever posted anything there.
Start over and write what you meant.
Back in 2008, i used to be one of those people who believed China was under the control of the U.S. government, as result the country was heading toward economic collapse.
A view partly influenced by controversial economist Larry Hsien Ping Lang who even claimed “today’s Greece is China’s tomorrow”. Even nationalist writer like Song Xiaojun, co-author of “Unhappy China” and a former senior officer of the PLA, the guy who “warns Australia to Choose “Godfather”, too has often expressed “why are we giving the Americans our money so they can install military bases all around us?”
Though coming from different background one thing they have in common is they are “puzzled” why the Chinese government is buying all the U.S. debt. As far as Lang is concerned its “over half of the profit from a IPHONE4 made in China goes to America while the Chinese manufacturers get only 6%, so why are the Chinese people paying for America’s “bailout failure?”
Who gives them the right to buy those U.S. debt using ‘people’s money’ earned by hard working, why is a ‘poor country’ lending money to a rich country?
U.S. debt is just a form of financial asset. Its neither government finance nor “people’s money” per se, what it really is is trade surplus.
The problem is one has to have dollars to buy oil as all modern industrialised economies depend on it.
http://www.feasta.org/documents/papers/oil1.htm
the problem is the dollar is not American currency per se, its a monetized debt system AKA Federal Reserve notes, enforced upon the people of the world with deceptions, wars and weather weapons.
funny thing Henry, I was at the zoo and noticed all the aryan men had asian girlfriends……..perhaps that credit is being spent wisely.
thinking long term is one of the elites specialties.
A friend and I were e-chatting about the weird episode of the Congress stenographer going “trance-like” and off the rails (although the discrepancies of what she said and when were quickly pointed out by sharp-eyed you-tubers)…
It occurred to us that perhaps a message was being sent to Congress: “We can put a Manchurian Candidate anywhere YOU are. Security is no issue. And be certain, we COULD have got a weapon in, too. Just follow the script we gave you (maybe two scripts), or next time she won’t be just ranting off at the mouth.”
Just a thought….but maybe it is a sign of how so many of just don’t believe ANY of the spin anymore. There’s just TOO much of it…
Of course, in our above imagined scenario, just WHO would be putting that covert pressure on Congress is anyone’s guess. But clearly SOMEONE benefitted from this recent theatre of the absurd…CUI BONO?????
Oh, and did I mention that the vid of Stenographer clearly shows a very “handler looking type man” talking to her (saying trigger phrase for her programming), then nodding to her, at which point she then stood up, went ramrod stiif, then stonefaced and zombie-like, and proceeded calmly to her station and began her rant….
He, meanwhile, turned away, made a cellphone call, wasn’t the LEAST bit interested when she started ranting at the podium, as if he expected it.
I guess the question is, is he a collaborator? Or her handler?
Enquiring minds want to KNOW!!!!!
The right wing is well on it’s way to turning the USA into their idea of paradise a banana republic. By the way Mr .Farrell a read a article today on http://nexusilluminati.blogspot.com by Alexander Light on free energy inventor by the name of Bob Boyce who has been cancered and is terminally ill what is a Veri Chip because that seem to be what was used to cause the cancer.
” For this reason I find the actions of Republithug and Dummycrook leaders during the recent government shut down to be inexplicable, irrational, and utterly self-serving. The rhetoric was over the top, on both sides. Political and cultural discourse utterly broke down.”
For years now I have considered ALL behavior of the US guvmint to be absolutely insane. But since the leaders obviously are not insane, the only other option that I see is that it is ALL scripted. Everything the Congress and White House does is nothing but theater. Gee, I wonder who’s writing the script?
What is really going on is impossible to tell in this scenario. Who knows?
If you consider all of the US government’s actions “insane” why are you using the government invented internet?
The problem with your statement: The term “all”.
I think GWBush evinces some evidence of insanity. Cheney too. And those are recent “leaders” of guvmint.
Aa to scripted? Possible, but it seems to be a script which ignores the obvious possibilities of opens systems.
Max Keiser Report 512 addresses these issues and articles.
He is looking at bitcoin as the “cashless” new world currency. At least, it’s his preference & obviuos solution.
The capacity to generate clean and mostly laborfree energy seems a lot more valuable than some silly internet invented monopoly like bitcoin.
Same is true of producing clean potable water, lessening weather extremes, vastly increasing the health of agriculture–all really really valuable and more than kind of universal to mankind’s needs on this planet or other planets.
With you on that Sagnacity.
And with Lincoln/Elm on labor as well.
Max Keiser & I are not always on the same page/ i.e, – gold.
Although bitcoin(decentralized) seems to be giving the banking establishment a headache, which the financial cops can’t cure; I have some reservations about it. Still, bitcoin looks pretty good. Your solution is, of course, the better one.
Maybe both?
Business Insider Oct 21, 2013
“Bitcoin has gone on an insane surge.”
(news article)
RB–
It’s not like representations of money are going to disappear, so it could be bitcoin, but like much of “finance” bitcoin is about speculation not production.
Sagnacity
The problem is the privatization of money. Public Banking works. The “privatization” has corrupted money to its roots. micaelhudso.com addresses this and even predicted, many yeays ago, that the IMF will eventually issue a globalized private SDR(Special Drawing Rights) electronic curreny under control of a tiny few.
It’s Centralized.
Bitcoin is Decentalized.
(Ideally, it would as you imagine it.)
http://michael-hudson.com/
Extra Economist
Oct 20, 2013
Hard to take statements like this seriously: “I pointed out how the uncompromising ideologues on the right and left were, through their brinksmanship…”.
So big false equivalency here. Looks like FoxCnn converage. ObamaCare is a a compromise. Obama’s very weak regulation of Wall Street is a compromise. Try not to quote inside the DC beltway conventional wisdom as anywhere near verified. In fact much of what Obama has done since he took office in 2009 is compromise with reactionary conservatives.
Only Sarah Palin-Glenn Beck types think US dollar should always be strong and then even stronger.
Next: We’ve all read this before: “The USA has nothing more to make. The USA has nothing more to trade with the world.” Never works out that way. And China still doesn’t have rice, wheat, and potable water.
Then: The mass release of overunity gear sure would do all sorts of things to all sorts of nations’ economies. (Not simply the US or China.)
Before space was and continues to be set up as collateral, so was the USA.
And what does a holder of notes do? Collects.
To quote you Doc: ” – can be either smooth, or bumpy.”
It is to be the latter…because it is too late.
Question is: What goes bump in the night?