Financial warfare

[C-Hopkins]

Read this:

Report - China To Dump
One Trillion In US Reserves
Chinese tell visiting Bush administration officials they will not sit back
and lose their shirts as U.S. Dollar collapses; they are getting out fast and large.
HalTurnerShow.com
12-15-6


BEIJING -- Sources with a U.S. Delegation in Beijing have told The Hal Turner Show the Chinese government has informed visiting Bush Administration officials they intend to dump One TRILLION U.S. Dollars from China's Currency Reserves and convert those funds into Euros, gold and silver!

China was allegedly asked to withhold the announcement until Bullion Markets closed for the weekend to prevent an instant spike in gold and silver prices. This delay will give the world the weekend to consider appropriate actions rather than have a knee-jerk reaction which could see the U.S. Dollar totally collapse in value Monday.

According to this Senior source, China told the U.S. delegation they no longer have faith in U.S. Currency for several reasons:

1) The Federal Reserve Bank ceased publishing "M3" data in March, making it nearly impossible for anyone to know how much cash is being printed. China said this act made it impossible to tell how much a Dollar is worth.

2) The U.S. Dollar has lost upwards of thirty percent (30%) of its value against other foreign currencies in the recent past, meaning China has lost almost $300 Billion simply by holding U.S. Dollars in its reserves.

3) The U.S. has no plans whatsoever to reduce deficit spending or ability pay down any of its existing debt without printing money to pay it off.

For these reasons China has decided to implement an aggressive sell-off of U.S. Dollars before the rest of the world does so. China reportedly told the US delegation; "we are the largest holder of U.S. Currency and if the rest of the world unloads theirs before we unload ours, we will lose our shirts."

Early this week, in an unusual move, the Bush administration sent virtually the entire economic "A-team" to visit China for a "strategic economic dialogue" in Beijing Dec. 14 and 15.

Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke lead the delegation, along with five other cabinet-level officials, including Secretary of Commerce Carlos Gutierrez. Also in the delegation is Labor Secretary Elaine Chao, Health and Human Services Secretary Mike Leavitt, Energy Secretary Sam Bodman, and U.S. Trade Representative Susan Schwab.

The Bush administration wanted to get China's cooperation in preventing a dollar collapse. The Hal Turner Show has been told the effort failed.

According to the source, Fed Chairman Bernanke left the meeting "pale and in a cold sweat" as the implications of China's decision seemed to sink in.

The implications are enormous: The U.S. Dollar is likely to collapse in value against all other major currencies as early as Monday, December 18.

This would cause a worldwide sell-off of dollars, create almost immediate "hyper-inflation" in the US and also impact world markets at a level "worse than the Great Depression of 1929."

Arabs to the rescue?

In a strange twist of fate, Arabs and OPEC may come to the rescue of the U.S.!

Senior officials in OPEC made clear that they too would be severely harmed if the U.S. Dollar collapsed, and hinted they "would not be inclined to sell oil to any particular nation that intentionally caused such a collapse."

This was a thinly veiled threat to China, which depends heavily on OPEC oil for its rapidly developing energy needs.

The OPEC officials even went so far as to say "Since China lacks the ability to project their military power, OPEC nations need not worry about any Chinese military response to an oil cut-off."

Such brutally candid remarks will not sit well with China; and signal ominous things for the U.S. .

Arabs and OPEC will want something in return for saving the U.S. from economic collapse and it is already widely speculated what they want will be a complete change in U.S. backing of Israel in the Middle East.

If such demands are made by the oil-rich Arabs, the U.S. would be left with little choice but to virtually abandon the jewish state to preserve itself.


UPDATE - 10:18 PM 12-14-6
The Washington Post confirms. . . .
'US, China Clash On Currency'


UPDATE - 12:07 AM EST
Saturday, December 16, 2006:

Additional sources, one in the U.S. Commerce Department and another in the US Treasury have confirmed the initial report above and referred me to another, Third, source in the Pentagon.

Both the Commerce and Treasury Sources report that while China will not be able to simply trade their Dollars for other paper currencies, they will spend their U.S. Cash on commodities such as gold, silver and Rhodoium as well as military hardware; ships and planes, placing large orders and paying for those orders with the one point one trillion in cash dollars they possess.

Extreme Military Concern

In speaking with the contact at the Pentagon, I am able to now report the Pentagon views this currency-killing as a cunning military aspect to Chinese plans:

The Pentagon says that while China has a 2 Million man army, they lack the logistics and heavy lift capability to move that army and supply it. They can, however, get that military to South Korea and to Japan.

The Chinese see that the U.S. Military is over-stretched and almost exhausted by its globe trotting Commander-In-Chief. They feel that by intentionally destabilizing the dollar, the U.S. economy will fail, putting tens of millions of Americans on the unemployment line and putting unbearable pressure on the US Government.

Then, with the U.S. economy in shambles and its manufacturing base eroded by a steady stream of manufacturing plants moving out of the US., the American government will be too occupied with troubles at home to do much internationally. America will be in no position to challenge China, allowing the Chinese to act militarily elsewhere in the world;

Further, if the U.S. attempted to intervene against any Chinese military action, the only plant in the world which can manufacture the specialized gyros needed for U.S. Cruise Missile guidance systems, is now located in. . . . .China.

China could prevent that plant from shipping to the U.S., and once our arsenal of cruise missiles was depleted, it would take a long time to re-tool a plant to make more gyros and resupply cruise missiles for battle. The Chinese feel they could accomplish certain military goals before the U.S. could re-tool.

They are also confident the U.S. will never "go nuclear" as long as the U.S. itself is not attacked.

The Pentagon source went so far as to say "Even if China was to lose the entire one trillion in cash to a collapse of the Dollar as a currency, they will have succeeded in taking the U.S. off the world stage as any type of effective military or economic power -- without firing a shot!" A 'classic' Sun Tzu paradigm of victory - the art of fighting, without fighting.

The crippling of the US is a highly desirable military benefit for China at a relatively cheap price since it will leave their human capital and infrastructure assets in place; assets they know they would lose if a hot war erupted with the US.

http://www.rense.com/general74/report.htm

[Teazer]

Or an alternative version of the news which sounds more like the Chinese government:

<<The Chinese government has begun a concerted campaign of economic threats against the United States, hinting that it may liquidate its vast holding of US treasuries if Washington imposes trade sanctions to force a yuan revaluation....
He Fan, an official at the Chinese Academy of Social Sciences, went even further today, letting it be known that Beijing had the power to set off a dollar collapse if it choose to do so.

"China has accumulated a large sum of US dollars. Such a big sum, of which a considerable portion is in US treasury bonds, contributes a great deal to maintaining the position of the dollar as a reserve currency. Russia, Switzerland, and several other countries have reduced the their dollar holdings.

"China is unlikely to follow suit as long as the yuan's exchange rate is stable against the dollar. The Chinese central bank will be forced to sell dollars once the yuan appreciated dramatically, which might lead to a mass depreciation of the dollar," he told China Daily.>>
http://www.telegraph.co.uk/finance/markets/2813630/China-threatens-'nuclear-option'-of-dollar-sales.html

[TaoJoannes]

1) The Federal Reserve Bank ceased publishing "M3" data in March, making it nearly impossible for anyone to know how much cash is being printed. China said this act made it impossible to tell how much a Dollar is worth.

That would be March of 2006.

3) The U.S. has no plans whatsoever to reduce deficit spending or ability pay down any of its existing debt without printing money to pay it off.

That doesn't work, for obvious reasons.

[Chris Fleming]

What, did the U.S. really think China is going to buy another trillion or two in bonds to keep the dollar afloat and the American consumer lifestyle going just for old times sake?

[Inner_man]

No surprises its been on the cards for quite some time.

I was recently working in Africa and made the stupid mistake of taking several US$k and no one wanted it. I couldnt buy a bloody thing. Everyone wherever I went all said the same damed thing "dont you have EUROs????"

I wont make that mistake again.

[DeusTrismegistus]

Another mistake in the article. If the US dollar is devalued more that helps manufacturers located in the US who export by making our expenses cheaper to the rest of the world.

[Darth Rock&Roll]

The matter of fact is that Bush and his Cronies have raped the treasury and now the world is gonna make you taxpayers liable for their theivery. The trickle down is that the rest of the world that ties to the US dollar is also gonna get raped and the inevitable will happen and that is the US dollar will no longer be the standard and it will be the Euro weighed against precious metals and actual commodities.

The switch to the Euro is arguably one of the top reasons for Gulf War 2 as this was Saddam's intention which in turn would've left the US highly vulnerable economically and in regards to energy policies and would have left no form of recourse over total russian control of energy in the eastern hemisphere.

Russia, once again, is the enemy and this is all an elaborate proxy war both financially and actually.

[C-Hopkins]

Well, I have to agree with Sadaam Hussein on this one. I'm about to transfer my money into Euros as well.


We have witnessed a fire sale indeed. I agree Darth. will it be a sell off and re-build (ie: the rich empty out all the wealth the US built it up during the Clinton administration, then build back up again only to raise it later) or will we sink into depression. Nobody knows yet.

I'm now a proponent of the Amero and North American Union.

That won't be popular, but in all honesty, if that's what keeps us from utter chaos in this country and protection for it's people, hey it's all good to me.

Then again, I'm also a proponent of a one world governement (not he Conspiracy theory version) as it would create less inter country conflict, and eventually lead to good things if done right.


I would love to see a Eutopian model.

Do away with currency all together and other that personal posessions, just everyone put in requests for what they need- within limits of course. This would stabalize alot.

Company 1 needs XYZ from company 2. they request it and get it. Company 3 needs xyz from whoever and does the same. If everyone does this, things will work out. Nothing is without problems though.

Either that, or a creditS system (not credit) ie: I work, I get x ammnt of credits which can be spent or saved, without assigning a fluctuating "monetary" value. One value world wide that is allways stable and set in stone.

[Teazer]

I love the rense.com disclaimer at the bottom of that article:
<<We have great trust and respect for the American people, and our worldwide audience, and believe them to be fully-capable of making their own decisions and discerning their own realities.....
Rense.com cannot edit, control, review for truth or accuracy, or screen for defamation or obscenity any content provided to the Website by a third party through postings, uploaded files, or any other form of communication>>
http://www.rense.com/disclaimer.htm

[Steve James]

Rense.com cannot edit, control, review for truth or accuracy, or screen for defamation or obscenity any content provided to the Website by a third party through postings, uploaded files, or any other form of communication

Of course it "could" review for truth or accuracy, just as any news service can. If it's not a news service, or doesn't claim that standard, then why listen to anything posted on the site? Essentially, their disclaimer is saying "We just publish. It's up to you to figure out whether it's true or accurate."

[C-Hopkins]

I posted this as a potential variable. It is based upon an actual News story apparently. I'll look for another link later.

[Bär]

If we do Decide to go to an "amero" could we at least call it something better than that? That word is as ugly as the word "blog", which is pretty much the ugliest word in the English language. Even "felch" is prettier.

[qiphlow]

you've just named the thing, mark.
felch it is!

"how much for that tv?"
"900 felches, sir."

[Walter Joyce]

I posted this as a potential variable. It is based upon an actual News story apparently. I'll look for another link later.

Sure it's an article on the topic, but as was pointed out, its 2 years old!

And I'd also have to agree that it was posturing on the part of the Chinese, as was also pointed out.

With so much real and somewhat objective information available on the web, why not look for those websites?

Do you have a weird website compass or something?


Try the Economist, or the WSJ, or the NYT, or NPR.org, or the BBC, or US NEWS and World Report, or Mother Jones, or any of a number of recognized news sources, try to understand the biases that are there, read across ideologies, find the common truths and formulate your opinion, don't just rely on fringe websites.

Dude, you got me worried about you sometimes, channel that intelligence you possess through other lenses.

I'm not asking you to agree with me, just don't swallow the koolade.

[C-Hopkins]

I posted this as a potential variable. It is based upon an actual News story apparently. I'll look for another link later.

Sure it's an article on the topic, but as was pointed out, its 2 years old!

And I'd also have to agree that it was posturing on the part of the Chinese, as was also pointed out.

With so much real and somewhat objective information available on the web, why not look for those websites?

Do you have a weird website compass or something?


Try the Economist, or the WSJ, or the NYT, or NPR.org, or the BBC, or US NEWS and World Report, or Mother Jones, or any of a number of recognized news sources, try to understand the biases that are there, read across ideologies, find the common truths and formulate your opinion, don't just rely on fringe websites.

Dude, you got me worried about you sometimes, channel that intelligence you possess through other lenses.

I'm not asking you to agree with me, just don't swallow the koolade.

You know what Walt, think what you want.