CHINA OFFERS TO HELP TRUMP’S INFRASTRUCTURE DEVELOPMENTJanuary 9, 2017
In our year-end review with Catherine Austin Fitts on her website solari.com's members' area, we discussed many realignments being driven economically, geopolitically, and in part, as a result of the election of Mr. Trump. One of the things I observed was that Mr. Trump has some golden opportunities in the Pacific to "cut some deals" with nations that view the rise of China with a skeptical and cautious eye, nations like Vietnam, or Indonesia. But there have been other moves as well. Recall the recent Japanese offer to become heavily involved, to the tune of billions of dollars, in redeveloping America's crumbling and outmoded infrastructure.
Don't think, though, for a moment that China does not want to seize that opportunity. It does, according to this article shared by Mr. C.S.:
There are two sets of paragraphs in this article that are worth pondering. These from the beginning:
While incoming president Donald Trump accused China of currency manipulation, among others, during the campaign, China is offering the necessary funding and engineering know-how to build bridges of friendship in America as part of its global New Silk Road and Maritime Silk Road economic outreach programs.
Yes, the offer does look like the absence of tit-for-tat counter-sanctions from Putin after Obama’s “kitchen diplomacy,” i.e. stupid kicking out of 35 Russian diplomats.
But fixing America, and make it great again, require Donald Trump to be bold. That’s because the Khazarian Cult doesn’t want to get any American leader to cozy up with Asia, as that would mean peace in the region. Very bad for the arms business.
And this from the end:
Trump wants to spend $1 trillion on infrastructure upgrades in America to rebuild the nation and put people back to work. The problem is how to pay for it and how to do it. China knows how to fund and carry out serious infrastructure building, and deep-pocketed Chinese investors want to invest billions more in America. One way for Trump to realize his plan would be to use Chinese funds and technology. This would help return some of America’s investment in China back to America for the benefit of America, and strengthen the bilateral relationship. Trump’s plan to rebuild America is bold, but it remains to be seen if he will be bold enough to do what is best for America.
If one looks at the current yuan-dollar rates, and the strong dollar itself, this idea may not seem as farfetched as it first sounds, for it affords Mr. Trump an opening to place trade and development in terms of a comprehensive negotiation strategy in the Pacific, inclusive not only of China but other rising Pacific and Asian economies. And for China it may represent an opportunity to lessen the growing tensions between the two powers. If such a thing does emerge in the coming year, then expect Taiwan not only to be a subject of discussion, but perhaps even to be involved. After all, Taiwan is a major banking and financial hub in the Pacific. And letting our high octane speculation run amok for a few more moments, one might even go so far as to say that even American (and hence Japanese) participation in China's Asia Infrastructure Investment Bank might itself be up for reconsideration.
Against this idea, however, is the question of whether or not Mr. Trump needs Chinese money (or expertise) at all. After all, Japan has already stepped up to the plate, and Japan certainly has both the money and expertise, particularly in high speed rail. After all, Japanese bullet trains have been running smoothly for decades, long before the TGV became a reality in France, and America has yet to see any high speed rail of any sort, unless one counts the northeast rail-passenger corridor, and this is not a nation-wide phenomenon as in Japan. Additionally, as Catherine Fitts has observed, Mr. Trump appears to have put together a team to reshore the offshored money in corporate accounts. (In this respect it's also worth recalling an investment move of Mr. Warren Buffet in recent months, buying heavily into railroads... perhaps he knew something long before everyone else.)
All of this, of course, falls again under that rubric of "time will tell", and how Mr. Trump deals with China, and what he says about China, will be a huge clue as to his intentions.
See you on the flip side...