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:
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:
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.