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China: Opportunity Or Threat

February 3, 2011 by  

China: Opportunity Or Threat

The recent visit to the United States by Chinese President Hu Jintao got a lot of attention and coverage in international media and the fact that so many important people showed up for this meeting shows how important it was for both sides.

For China, this visit was important not only for political reasons, but also for building its prestige on the global stage. From an economic point of view they are able to act from a position of strength.

Hu said a few days before the visit that, “the Dollar dominated currency system is a product of the past.” He also said that the Chinese yuan is not yet ready to take over as the new world reserve currency. It remains to be seen what “not yet ready” means according to the Chinese definition, but we think China will make a number of very significant changes in coming years that could have a lot of consequences for the West.

The strategy of China for the last 30 years has been to keep its currency artificially low in order to promote exports and the country has been extremely successful in doing so. However, this has resulted in significant imbalances in the world economy that sooner or later need to be reversed. China has been accumulating huge amounts of foreign currency reserves and a lot of it was reinvested to buy U.S. Treasuries, therefore financing “America Inc.” and other countries which are now running large deficits.

Let’s be clear, China has a number of very serious problems, different problems than Europe or the United States, but equally challenging. The growing imbalance between the booming cities and rural areas continues to drive more and more people to the big cities. This growing imbalance is increasing socioeconomic tensions and, coupled with strong inflationary pressure, makes it increasingly difficult for people to make a living, especially in more rural underdeveloped areas.

There is also a large infrastructure and pollution problem in China and these problems need to be solved in coming years. The key advantage that China has is that it is not a democratic system and that the ruling party can make and implement much needed changes quicker than most other countries. That should help China to continue to grow their economy and keep adding jobs for many millions of people.

I think we are at a very important turning point in the history of China. For the past few decades the focus was on producing and exporting goods, and at least in that context, China has been very successful. Going forward, China needs to focus more on securing a stable supply of energy, commodities and technology and therefore its interests are not so heavily biased towards keeping a strong currency anymore.

Imports are growing faster than exports, currently at a rate of about 25 percent, compared to export growth of only about 17 percent. The overall trade surplus of China has fallen about 9 percent from the previous year and about 34 percent from 2009.

There is another factor that needs to be considered. China needs to deal with its inflation problem and we think it will tackle it from two sides. They will continue to hike interest rates further and therefore control domestic growth and prevent the economy from overheating. At the same time, they will change their currency policy by allowing Chinese companies to hold large foreign currency balances abroad and use them for investment purposes. That will help the Chinese central bank because it is no longer forced to buy foreign currency reserves and issue cheap domestic currency, which had in turn caused further inflationary pressure in the past.

I think that this will help the Chinese central bank to bring inflation under control and will probably allow them to keep further interest hikes moderate and diminish the risk of them over-tightening, which should also be positive for Chinese stock prices. So even a small, controlled appreciation of its currency will help them eventually to bring growth and inflation at home under control.

That’s why we think that China will let their currency appreciate. But, as always, they will do it when it serves their purpose, and that might now be sooner rather than later.

At the same time, the effects from such developments would be negative for the West. In a time when Western governments are so dependent on countries like China to buy their debt, we expect the purchase of government paper to decrease in coming years, which will make it a lot harder and more costly for troubled governments to issue debt. This will eventually lead to higher interest rates in the West, and that would come at a time when inflation is already on the rise because of rising commodity and energy prices.

Central banks in the West will probably try to keep short-term rates low for as long as possible in order to stimulate their domestic economies. But the longer-end of the yield curve could experience a significant increase in yields. We feel that adding further exposure to Chinese yuan and possibly other Asian currencies is the right thing to do going forward, and also caution investors to hold bonds with long maturities.

–Daniel Zurbrügg, CFA

Daniel Zurbrügg

is the Managing Partner of Alpine Atlantic Global Asset Management, a Swiss-based independent investment management firm. The firm provides clients with independent investment management, asset protection and family office services and is the issuer of the global investment newsletter Echo From The Alps. With a global network of partners, Alpine Atlantic's aim is to provide clients with true "turnkey" solutions for global investing. Prior to setting up Alpine Atlantic, Daniel held various positions with other banks and financial companies. Daniel is a Chartered Financial Analyst and regular guest speaker at international investment conferences.

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  • s c

    China is not our friend. China was ‘allowed’ to become an economic superpower, and the price was an intentionally-damaged America. That is, factories and jobs were shipped to China (and other countries), and Americans are supposed to think that ‘thinking global’ is our only option.
    The least we could do is to outsource the SOBs who shipped factories and jobs to China (and other countries). Then we would have a chance to put Uncle Scam in his place and get on with the task of creating jobs and saving our economy from our in-house “leaders” (the scum we send to Washington).
    Make no mistake about it, folks, China is not our friend. They will take care of themselves while we stand around and act like the losers we have let ourselves become. We know how to produce. What matters is whether or not we want to be free.
    Do we give a damn? Our “leaders” don’t.

    • Bitter Libertarian

      China may not be our “friend” but they are not the enemy. China was an economy and people ripe for the Globalists to manipulate, just as America was in 1913.

      • Bruce D.

        I agree that China is not our enemy. They are looking out for themselves of course. Politicians in this country have sold us out and continue to do so. 150 million dollars of the Stimulus Package went to create jobs in China. Much of the Stimulus package went expand government. The expansion of government always ends up draining the middle class. I do not think China will allow themselves to be manipulated by those who control the central banks. They may play in the same game or league but it remains to be seen if they will lose as their politicians seem a lot smarter than ours.

        • TIME

          Folks,
          I just came back from China after being there for a week.
          All I can say is WOW, I hardly knew the place. I was there four years ago and in that shorth time it has grown beyond any words I can post. You have to see it to believe it.

          They unlike us have a “thriving Middle class,” one that is growing so fast, its again a case of; I just have no words.

          Hey folks, they want what YOU want, they want STUFF, Cars, Homes, and to dress like Americans. These people are real hard workers and really nice folks too, I am very glad I can now speak Chinese after spending the last three years learning.

          I would say that all of you had better start learning Chinese.
          As thats where the JOBS will be. Oh and by the way the only free market left in the world after we fall, oh and thats going to be very soon.
          So please be sure to thank you’re congress and senate people and don’t forget to thank you’re unions too, as they are all the ones who sold YOU out. Add to the list the following Presidents, Carter, Bush, Clinton, Bush 2, and yes even that special Barry Soetoro.

          • Bruce D.

            Three years ago I went to Hong Kong and China. I also found the Chinese people to very nice.

          • Cawmun Cents

            So I suppose you went righ down into the filthiest shaty town in Shanghai,and ate supper with the real folks right.None of this tourist stuff.When you were down in the hovel with the very poorest of people…did you ask him what his life was like?Did you ask him what working all day for a cup of alligator urine and a bowl of rice is like? No you didnt see that part didja? I didnt think so.

          • Bitter Libertarian

            Isnt it amazing how the people who’s job it is and say they are there for the people have sold the people out! Sold us into a benign form of slavery.

          • Bruce D.

            Cawmun poverty is not the same as in America. In Asia you eat what the Asians eat on the streets. It is tasty and cheap. Many do not speak English but they help you as best they can to use chop sticks and a polite attitude. I am one that does not like to stay in the pristine environments all the time. Poverty there does not equal crime, stupidity, entitlement, or drugs. Most Asians cultures live their life around family and not money. Taking care of their parents and being around their family is very important. Those on welfare in America would be considered rich. You do not sense danger going into poor sections as you would in America. In China I did not see any begging. You do get riped off by taxi drivers so you have to ask prices. The only thing I thought strange is when I walked by a bank looking at the structure with interest an armed guard with a shotgun came out and looked directly at me. Yes many live in poverty but their spirits have not been damaged by government entitlements.

          • Cawmun Cents

            What do you know of poverty Bruce?Do you come from a nation where poverty is rampant?A nation where spiritual poverty is greater than physical poverty?You go and observe,but you do not live there.Have you ever been in prison for political reasons?I doubt it.If you had then you would never speak like this again.Imagine yourself going to the store to buy groceries and when you get there,there are exactly two items…Vodka and Catsup.You have to make everything else by hand.No modern day technological miracles,not even hot and cold running water.You are lucky if you ever make enough money to buy a car.If you move you must have written permission or you will be detained and beaten.You cannot understand this kind of poverty.I do not know of China,but if you go to the part of China where these things happen I am very certain you will find them.But you go to the part where they wear these new ideas on their sleeves and act as if their lives have more meaning.Nothing could be further from the truth and you havent lived it.So I tell you that you are wrong about the Chinese.You are as wrong about them as I am for sharing my troubles here but I thought you’d like to know that the communists are not good for anything.In fact once you get to know them better I suspect you would desire to see them irradicated as I do.

          • http://deleted Claire

            Here I go– When I look back, I think to myself that being “poor” was a good, clean, and simple life. No electricity, no running water, an outhouse, had a garden the size of a basketball court, and canned everything we ate. Went barefoot every summer because I did not get shoes (if I was lucky) until school started. Attended a country school the first 5 years. Raised chickens for eggs and meat, had a few pigs, and a couple of milk cows. Picked wild strawberries, gooseberries, raspberries, and the persimmons were wonderful when ripe. WE had apple, apricot, and peach trees. My Mother made all my clothes, even the underwear that was made from flour sacks. My Mother cooked and baked like crazy. We finally got electricity but still no running water. I was a scrawny little thing, I had to get water from the pump (it is now in my backyard, painted red) and I would have to jump up and pull the handle down. That bucket of water weighed a ton. I would spill half of it on myself before I got back in the house. I remmember my stepfather with our two horses, plowing with an old-fashioned plow. I rode those horses bareback without any reins. Just used a stick and tap them lightly on the left or right side of the head and they would go in that direction. That plow is also in my backyard, painted red with stained wooden handles. My Mother washed with a wringer-type washing machine. We had twin tubs for the rinse water. We hung out clothes even in the winter, they were like boards when we brought them in. Those twin tubs are in my backyard now, painted white and I put flowers in them every spring. I look back, and thank God for the life I had, it was wonderful. Sure we were poor as heck, but my Mother taught my sisters and I to have pride, self-esteem. She was a good teacher.
            Poverty–yes, but in a good way.

          • Bruce D.

            While I have never been to prison I have lived in a poor country by choice but not China. If you have not done so you would not know what it is like. Asians are family oriented. Many do not have a sales tax unless you buy from a corporation. Your house has been in the family for generations so it is paid and there is no property tax. Many times they cook outside and eat rice for breakfast, rice for lunch, and rice for supper. Their soups in the country may come with chicken feet and you may see the children sucking on them long after. There is family love and as long as the family is together they are happy. Most houses are together but each has a field to grow food. In China there are free zones in the cities in which Time has gone which are very prosperous. You should not pretend you know something Common Sense when you don’t. I was giving my opinion based on my experiences and you really have no idea what they are. I do not know how old you are but you should read Claire’s post below as I grew up in the same time period and in the country few had money except for necessities. People on Section8 have more money today than we had when we were growing up but we did not feel entitled and were not looking for a handout so we were never spiritual poor. As a kid 6 and over there was no greater joy than helping your father work. As you got older the work was expected of you. You grew up happy because your family loved you. Your joy did not come from money. Toy guns and things like that you carved out of wood. My mother went to work in a bank as we got older and we felt rich that we could buy hot lunch at school and buy knew shoes to replace the ones with holes in them. I had fun with my friends and that didn’t take any money. We were brought up honest so we never stole so we never went to jail.

          • Bruce D.

            One last thought that people may not realize. Just because a country has a dictator does not mean it is communist. Many people thrive on small businesses for which they pay no income tax or sales tax. The government taxes heavily cars so most have motorcycles. You can see up to 5 people on a 125 cc motorcycle. Three is not uncommon. Kids 10 and over drive motorcycles, rarely with a helmet. Tourist almost always are charged more than the locals and that includes government run museums and such.

          • http://deleted Claire

            BruceD–On Saturday evenings, we would go to town for our groceries and my Mother would buy my sisters and I a box of CrackerJacks if she had the money. We got our toys from CrackerJacks, even though those toys were small, we got a lot of enjoyment from them. We didn’t have many store-bought toys, we had to make them and the important part of this is that we had to USE our brains, our imaginations. I oftimes think that it would not hurt the kids of today to live this kind of life. Less is more.

          • libertytrain

            Claire – I think you are correct – there was a lot of enjoyment found in those silly boxes of Crackerjacks – now it takes a shopping trip to the toy store and the “joy” only lasts a little while. I think perhaps even though our kids are successful, we – many/most of us – neglected to instill the real physical self-reliance on our younger generation and the joy found in simple pleasures. Perhaps because we had so much in material goods, even those on welfare don’t seem to go without much -

          • Bruce D.

            I enjoyed both your posts Claire because I lived it myself. I will always remember this crossbow I made out of all work. I got the idea from a How to make things book. The crossbow in the drawing was made out of different materials. All I had was wood so I made the trigger and release mechanism out of wood. It wasn’t too accurate but I didn’t care all that much if I hit anything. Two miles away there was a summer camp. After the kids went home my friends and I would search for lost arrows that did not hit the target and left for lost in the tall grass. It was okay. No one had money but it didn’t seem to matter.

      • Bob from Calif

        China may not be our enemy right now, but that does not mean that their position could not change overnight if the right conditions are met. Economically they are at war with the U.S.. The only reason they don’t try to dessimate the U.S. economy right now is that they are intertwined with the American dollar and U.S. debt.
        For Years now the Chinese have been planning to take on the U.S. military. They are building their first strike capabilities, because their generals believe that a war with the U.S. is inevitable.
        We need to deal with the Chinese carefully, but also from a position of strength.
        The Chinese people may be the nicest people in the world. That does not change the fact that their government is tyrannical and can not be trusted. Just ask the Chinese Christians that are being jailed and murdered for their beliefs.

        • Bitter Libertarian

          Cutting Defence spending is BS..Cutting our offence spending is 10 years overdue.

    • Norm

      s c
      It is a rare day that I agree with you, but this is it.
      Only I don’t blame the government, I blame the bas**rds who would sell their mother if the price suited them. The greed of the rich and powerful is the driving force that will destroy this country.

      • Bitter Libertarian

        I agree, only I believe its the greed of the rich taking advantage of the sloth & greed of 30% of the people. Our very own citizens are a big part of the problem.

        I personally believe that an elected official should be looked at as hard as the young man interested in my daughter whom I love. he passes that screening…he do the nation just fine.

        • Dan az

          Whether Americans and Westerners in general like it or not, the Chinese have become and will remain the key drivers to many economic and financial market developments, progress, and averted wreckage. The intrepid lapdog US press, loyal to the syndicate, is a critical element to maintain distractions. Of course, China must adapt and react to their own stumbles and accidents, assured since for years they have maintained a tight link in monetary policy. Doing so has linked their asset bubble expansion and bust cycle to the deadly one in the United States, and filled their coffers with US$-denominated toxic debt securities. However, China has three advantages over the US that stand out. They have $2.65 trillion in savings, rainy day money in a war chest. They have a vast industrial base, courtesy of the US, the West, and Japan, which donated the technology for the fabled disastrous low-cost solution. They have an expanding middle class. Neither the US, the UK, nor Western Europe has anything remotely similar to these three benefit allowances. It is slowly becoming clear that the US granted the Most Favored Nation status to China in return for massive gold & silver swaps to the USGovt. The Wall Street fraud kings illicitly sold the leased bullion into the market, to sustain the American fiat paper congame, and thus a betrayal to the Chinese.

      • Cawmun Cents

        Worse than that Norm old boy is that they would sell their mother to a communist.

    • EddieW

      Right on!!! China is not our friend, has never been and will never be! BUT Our stupid government is giving China Foreign Aid!!!! ^ Clinton gave them our only Deep water port in this Country…Long Beach Calif.!! George Washing gave a prophecy, and said he saw chinese overrunning this country…I always thought it impossible, but with this port and the huge base it has, yes, they could easily bring in over a million troops, and strike out from there!!

    • Dick Gazinia

      Nor are companies like WalMart who forced many American companies, like Black & Decker, to move manufacturing to China to meet their price goals. We have cheap consumer goods, but the real price is our neighbors’ jobs, and a middle class that can afford to be consumers.

      If you look a little harder it is still possible to buy American goods. They are generally of better quality and they support our fellow citizens.

    • Mary

      You’re right. The Chinese have a plan which is mature already. Every body with two inches of forehead can get it. On purpose they allowed only one child per couple usually a boy. Now they army is only 400 millions and how many pathetic millions are we?. They have nukes and every thing they need to be the next potency any time they please Courtesy of Bill Clinton. War will be their best way to deal with their over population. If somebody don’t agree do the Math. The Chinese have us by the balls if we still have some in this Police State.

  • Bitter Libertarian

    The Chinese People are no less honorable then American people never forget that. That said…The Chinese Goverment is no more honest then the Criminals running our Goverment. Remove Both Goverments and there would only be a healthy Competition.

    Now the Current mess…The US was Manipulated by the International Bankers starting in 1913…China Started to get Manipulated by the International Bankers about 1998. If you want the International Bankers to succced..FEED INTO the nonsence and hate China. Its exactly what the globalists want, for as long as you point the finger in blame at China or anyone else your not looking at where the real blame lies and thats EXACTLY what the Politicians and Globalists want.
    Look to our own Politicians and our own Political Process and theres YOUR PROBLEM, NOT China.

    • spitfire

      You are correct in what you say, but Americans lack the stamina to do what needs to be done to correct the problem, once and for all.

      • Karolyn

        “correct the problem once and for all” That is a laugh! And how to you propose to do that? You act like it’s just so easy. It wouldn’t matter how many people took to the streets; there are no easy answers. You act like “Yeah, let’s take down the government.” Then what? What a joke!

      • Bruce D.

        Spitfire, it is my own personal opinion that if you see the job situation keep deteriorating or the government attempting to confiscate guns you will see a totally different side of Americans. They have to be pushed past a limit. Government has reached one thresh hole already of American tolerance which started the Tea Party.

    • henry

      I agree, the enemy is us. Some have elected politicians that have raised taxes, created massive restrictive regulations on our manufacturing and energy companies and continue to expand the size of government. Some Americans have been complacent about voting letting others determine our future. That future is NOW. This is what has driven our economy and world status failures. The silent majority better become vocal NOW. Every vote does count.

      • Dan

        I think the real problem is that when most people vote they seem to put their blinders on. No one wants to do the research needed to make an informed decision and our politicians are not going out of their way to inform us about their votes in Congress or the House of representatives. Perhaps we should require voters to take a test on how well they know the people up for election. I think we need to publish voting records on a regular basis and a final sumation before we hold elections.

        • r.p.

          Dan: You are sooo right, along with educating and informing our cicizens we need to start using the impeachment, indictment, and recalling tools that our system has provided for us. If our representatives are less then honorable they should be forced to leave in shame or be inprisoned or executed….Determined by their crime.

          • r.p.

            sorry….citizens!

          • http://randall701jen@charter.net Working Man

            Too late to educate the average American on this matter.
            There is a significant number of citizens who have been
            dumbed down by our pathatic education system that places
            more emphesis on political correctnes and of course,
            global warming. Also, a large number of average Americans
            are distracted from the more important local, national, and
            international matters by a pop culture that places more
            emphesis on the daily actions of A-list Hollywood celeberties,
            mindles reality shows…see Jersey Shore….and being the
            first in your neighborhood to have that shinny new electronic
            gadget/toy. It is time to lock and load, and get ready to
            protect your belongins from the rioting and looting that
            will be happening within the next 3 years.

        • Bitter Libertarian

          When electing officials there needs to be a “none of the above-try again in 90 days” box.

          • bob wire

            that just too cleaver

      • Cawmun Cents

        Experts agree that these folks are pocketing our overflow.Of course they are getting paid to agree…on(you guessed it)our overflow.”You will never get ahead you yankee scum,”…says the tiny Chinese man who urinates down you backs right before handing you the 12 cent umbrella with holes in it.”Ha ha,but you keep me moving up by buying my products you silly American”…and he is right about that.

    • Cawmun Cents

      Well at least to my knowledge there is no organ donor programs in our political prisons….yeah they are less honorable…they are Communists…what about that dont you get?

    • Dan az

      The Beijing leaders are highly motivated to unseat the Anglo bankers from their perched throne, emboldened by vengeance. The betrayal was to the American people also, since waves of jobs went to China from US shores, since the US sold not only its own Fort Knox gold inventory, but Western Europe’s also, then China’s to boot. Those who believe the USGovt has any gold reserves at all should donate their cerebrums to science while still alive, a euthanized suicide. The USGovt in all likelihood is in possession of less than zero gold, owing both Europe and China massive amounts. It is the American ticket to the Third World, paved by lost industry, locked by vast debt, assured by broken economic principles blessed by high priest heresy. The US banking leaders still believe the US can revive itself by the flood of more debt and stronger consumer spending, without a clue of what legitimate income means or where it comes from.

  • http://ankatool.com Tony Karl Jr.

    Man , whats wrong with this country , and the whole world actually . LARGE corporate GREED , and the GOVT. has NO BALLS to do anything about it .Everywhere ,you have these mega stores totally filled with MADE IN CHINA SH-T displacing thousands of Mom and Pop Businesses and American jobs . Im in a family run Business (Machine shop and Plastic injection molding) and times have been really tough for us . For a year and a half now were only working 4 days a week . The majority of the time i quote a job im quoting against CHINA , im wasting my time . Seems the only time i get a job is because i can make it faster . Doesnt the govt. and all its bonehead (paid by u and me ) advisors see anything here related to unemployment . HELLO .Tell me if im wrong .Tony

    • spitfire

      THe answer is like I gave to bitter libertarian above. Nothing will change for the better for the American people, until we say enough and we mean it, and this is how it is going to be, and backed up with a firearm or two. If you think there is a better way, then you are part of the problem.

      • JR

        The globalists own the military and the government. What do you think your firearm or two will do against swat and military hardware?
        Don’t get me wrong, there are some honorable people in the military but they are a minority. The moment we went to a professional military, we went to a mercenary system. This is the system where most are seeing it as a job they get paid to do and they do not care what they do. And don’t count on the support of the masses. They will be told by the media….all media…that there are some domestic terrorist out there with a firearm or two…and that will be enough for them to cheer the globalists and watch your destruction. America is a huge country, far more developed and spread out then during the first revolution, in order to have any uprising, people need to have communications, exposure and transportation….all that is controlled by the globalists.
        The reason the first revolution in this country succeeded was because the “revolutionists” and the government were on a level playing field. Both had the same mode of transportation, same type of weapons, same problems feeding the army, same problems with communication. This is NOT true anymore. In today’s world, the globalists control nearly everything and the “revolutionaries” have a rifle or two. What will it do against rockets fired from several miles away or carpet bombing from 10000 feet up?

        • Cawmun Cents

          There you go folks….doubt.The kind that is used to make you disbelieve in your nation.This guy is an enemy of America.Like I have said before…its going to come down to choosing.You will want to be wishy-washy,oh,this and that,but in the end you will have to choose between molly-coddling jerks like this or exposing them to the public.There will be no grey-area.

      • home boy

        your a moran for thinking guns are the only solution. why aren’t you out shooting government officials now spitfire? when are people going to realize that man does not have the solutions. look at egypt do you want that here?

        • Cawmun Cents

          You,sir are a moron…for not being able to spell moron.Yes by all means we must do this (dip)lomatically.That always leads to success…

          • Vicki

            Our forefathers gave us 4 boxes by which we defend freedom.
            The SoapBox (I.E. what we are doing right here right now.)
            The BallotBox (I.E. Most recently in Nov 2010)
            The JuryBox (www.FIJA.org)
            The AmmoBox

            Each has its place. Use in the order shown. Pray that you never have to open the 4th box.

      • Karolyn

        YOU and people like you are more of the problem than you think!

        • Bruce D.

          Actually I have thought the same thing about you many times Karolyn.

    • Dan

      Those people couldn’t care less about what We The People want. Once they’re in office, they work for themselves and some of their friends. Many have been cought on camara selling their vote to the highest bidder. We’re actually paying them to sc-ue us and they’re getting away with it.

      • Vicki

        John Stossil has a good video on this subject.
        http://www.youtube.com/watch?v=2sSg0xjzIec

        • Dan az

          Before delving deeper into this important thesis topic, a comment is in order regarding President Obama’s State of the Union address and his plan. As forecasted by the Jackass on repeated past occasions, the entirety of the sacrifice to reduce the USGovt budget will come from the domestic, non-defense, non-security side. Aid to businesses and households and dedication to infrastructure will be removed. The higher priority war machine will be preserved. He called it non-security measures, implying the sacred nature of the security of the nation. Ironically, the security of the nation has been put in peril from unspeakable banker fraud, abandonment of industry, and neglect of infrastructure, not to mention the continued ignorance toward capital formation and dutiful embrace of a consumption mindset. The Obama Admin will remain committed to gutting America, undercutting the middle class, and feeding the deterioration of the USEconomy. He will assure a reduced domestic blood supply and food intake. Expect more empty talk of clean energy and jobs. The greatest potential for spending cuts are from the defense budget, for which the USGovt spends more than the rest of the world combined. A vast array of military bases, embassies place on foreign soil, and weapons projects will be preserved. The maintenance of the foreign threat will be steadfastly maintained. The ethics of drone weapons, regeneration of enemies, destabilization of governments, and the absent economic multiplier effect from defense/offense spending will all conspire to weaken the United States in ways that our leaders seem incapable of understanding. They promote the Fascist Business Model, the very same that has contributed to the wreckage of the nation. The victims are economic growth, rule of contract law, sanctity of private property, and truth. The legitimate threat to the nation comes from its internal situation and the impunity of large scale financial crimes. When reference is made to a Sputnik moment for the United States, try not to laugh. A deeply indebted nation with spiraling deficits latched at the hip to a currency besieged by monetary inflation cannot afford any grand initiative, especially when its highest national priority is war. Survival will soon escalate to a higher priority.
          http://www.kitco.com/ind/willie/jan262011.html

    • JOSH

      TONY KARL:
      I agree with you for the most part. We need to keep American jobs here and not lose them overseas.
      To put the blame on, ‘Greedy Corporations’, however, is too convenient and cliche-ish, and it is an oversimplified assessment of the situation. There certainly IS some corporate GREED that exists, and it is quite despicable at times, perhaps even criminal ! The truth of the matter is that there are other factors affecting the loss of American jobs.
      In the last 4 decades (at least), the LABOR UNIONS have gone far beyond what would have previously been considered reasonable demands for working conditions. The original purpose of unions, from the point of view of the worker, was, during the industrial revolution, or soon afterwards, to prevent people from having to work in deplorable conditions; a common example being a worker who might face a 12 hour workday, 6 or 7 days a week, in a hot, unventilated, poorly lit, filthy warehouse, with a 15 minute lunch break, and extremely sparse wages. TODAY, labor unions are FAR BEYOND obtaining acceptable, or even desirable working conditions and are DEMANDING extremely SUPERFLUOUS BENEFITS for their union members . They have come to EXPECT 100% pensions at an early retirement age, ‘oodles’ of paid leave for numerous holidays, sick days, vacation days, maternity days; 100% free health insurance with no co-pay [even DEMANDING free Viagra], free company cars, free health club memberships, free meals, free recreation halls, numerous other ‘benefits’ etc. etc., the list goes on ad nauseum. The total cost to corporations comes to sums of money that DWARF the large bonuses that CEO’S give themselves (remember, there are only a FEW CEO’s). Indeed these ‘benefit packages’ can easily be worth hundreds of thousands of dollars FOR EACH UNION MEMBER. Pensions alone could cost over $100,000 PER YEAR OF RETIREMENT, easily. For some large companies like auto manufacturers, we are talking about giving these packages to perhaps TENS OF THOUSANDS OF WORKERS. This WILL AND HAS put many ‘greedy’ corporations completely out of business, or, just as bad for workers, has effectively driven the ‘greedy’ corporations to seek survival (and that’s what it is !!) with cheaper labor overseas.
      The COST of Union demands are paralyzing enough to companies, but the other factor to consider, is that , by implementing Union demands, NOT ONLY DOES COST PER WORKER, SKY-ROCKET, BUT PRODUCTION PER WORKER, IS SIGNIFICANTLY REDUCED! Employees, in essence, get paid for an awful lot of time that they are simply not producing anything. This magnifies the tremendous strain that today’s Unions put on companies. The Unions have trained their members, however, to view the corporation as a ‘cash cow’ that should be relentlessly milked, holding to an apparently absurd notion that the host company has an inexhaustible amount of resources. In essence, the Unions end up ‘driving the stake into the heart’ of the very entity they depend upon for their daily sustenance.
      Whether, people like it or not, the ONLY way a company can survive in a Capitalistic free-market system, is if it makes some sort of PROFIT. If it can’t then its days are numbered. Unfortunately, this leads some to say, “Well, let’s get rid of our Capitalistic society. Let’s let the GOVERNMENT take over the ‘greedy’ corporations. Well, how does the government ‘buy’ the companies ?? . . . with taxes from your back pocket – or increasing National debt – or both. So now your taxes go way up. How does the government SUSTAIN the companies they acquire, even though they inevitably end up operating them ‘IN THE RED’, sometimes to the tune of BILLIONS of dollars each year (example: AMTRAK) ??
      Answer: with more taxes from your back pocket and MORE NATIONAL DEBT – so now your taxes sky-rocket, AND RISING INFLATION, caused by run-away government spending, makes everything you purchase cost more. Now you have less money and higher prices. GOVERNMENT TAKE-OVER, IS SUCH AN EFFICIENT SOLUTION, ISN’T IT??
      No, the solution LIES IN THE PRIVATE SECTOR and is somewhat of a compromise. Companies need to make PROFIT, CEO’S deserve a REASONABLE bonus, and workers deserve ‘REASONABLE’ wages and working conditions. What is ‘reasonable’ is somewhere where workers can be sufficiently happy, along with CEO’s, AND the company can make a ‘decent’ profit, allowing it to REMAIN in business. CEO’s and stock holders, are often made out to be the villain, even though they are the ones who take all the risk in starting and running a company and they are the true providers of jobs to the vast majority of people in our country.
      Finally, COMPETITION, in the free market, WHEN NOT INTERFERRED WITH BY THE GOVERNMENT, WILL WORK TO KEEP PRICES AND WAGES IN BALANCE. It doesn’t SEEM to work in today’s market, because, right now, in truth, we have extremely REGULATED commerce. We DO NOT have a free market system in place, and HAVE NOT FOR SOME TIME NOW! Let me repeat that: PRESENTLY, IN THE UNITED STATES OF AMERICA, WE DO NOT HAVE A FREE MARKET SYSTEM !!. The all-knowing, all-meddling government (BIG BROTHER) has stuck it’s long nose into nearly every transaction and economic process in our economy, and has TAXED, REGULATED, MONITORED, BADGERED ,AND RESTRICTED private companies into an artificially controlled economy. ‘Cost and demand’ and competition in the market place have been disrupted at every turn. This has been the case FOR DECADES. And the very sad truth, is that many in the government: Representatives and ‘czars’, cabinet members and Presidents alike, have no inkling of how to run a business or meet a payroll, successfully. They often have absolutely NO WORKING EXPERIENCE, to the extent that some have never even RUN SO MUCH AS A LEMONADE STAND ! . . . if they did, THEY WOULD LOSE MONEY !! (and immediately blame it on SOMEONE ELSE). Some have NEVER SPENT A DAY WORKING IN THE PRIVATE SECTOR. THESE are the folks that have been controlling our economy for many decades. And guess what ?? As soon as something goes wrong, instead of REMOVING some of their economy-stifling rules and regulations, they point their fingers at ‘Capitalism’ and yell, “ah HAH !!” Then they, take advantage of the ‘opportunity’ to take over more control of the ‘free’ market.
      Well, sadly enough, it hasn’t been a FREE MARKET in quite some time now.

      • Dan az

        Josh
        What do ya wana bet that every liberal here will not read your post and by the way it was right on!

    • Dick Gazinia

      The film industry used to be very healthy, but our politicians are throwing that away, too. The visual effects industry, only a few years ago was all in the US staffed by talented and dedicated artists. Then we started to train students from other countries (giving them scholarships) so they can go home and under bid us. The computer allows even mediocre talents to turn out reasonably slick work that is acceptable to producers.

      The “tax incentives” are like legal bribes and much of the work now goes to Canada, Australia, England, Bulgaria, Singapore, India, and now China is getting into the act.

      Even George Lucas, who can afford to buy anything he wants, shipped CLONE WARS to Singapore to save 17%. How much more does he need?

      • Vicki

        “How much more does he need?”

        Need is not relevant. It’s his company and his money.

    • Wim Vonk

      You are right on. It is big business that has ruined the Western economies. Middle class is dissappearing fast, there are no jobs for them. No point blaming Obama like so many people do, because this has ben going on for a long time. Obama just does what the big cororations allow him to do. We have all been led a pipe dream.

  • spitfire

    As Americans we need to take to the streets, and head for Washington DC, and take over. Then install a previously assembled government to work for us and by the constitution. THe Democrats and Republicans are playing us back and forth like we are a bunch of fools.

    • JR

      What previously assembled government? I hope you don’t mean cooks such as http://www.republicfortheunitedstates.org/ ? I had a good laugh. If that are our future leaders, no thank you, I stick with the globalists as much as I hate them.

      If so, any discussion with you will be fruitless.

      • Art J

        I say you are the cook…I mean kook!

      • Cawmun Cents

        Yes of course you will traitor.

        • Cawmun Cents

          Incidentallt Art I wasnt referring to you.

    • Karolyn

      OK – You first! As a matter of fact, you can be President!

  • http://naver samurai

    China may or may not be an enemy, but we should watch what they have been doing lately. They have become the world’s #2 economic power, unvieled their new stealth fighter within the last month, have loaned the Obama bin Laden administration trillions of dollars, and have become more religious in the process. Yes, the fastest growing religion in China is Christianity. 100 million officialy and 150 million unofficialy. Just think, we move away from God and look what has happened to us. China moves closer to God and he’s been rewarding them pretty well. Maybe we should get closer to God, then we can be rewarded like China. Just a thought. China also has longer range anti air missiles, a larger naval fleet, and an army 10 times our size. Let’s try not making them an enemy. FOR GOD AND COUNTRY!

    • Cawmun Cents

      Since when is Communism not our enemy?It is the very worst enemy aside form Islam,that America can have.When did you people grow up,in the 80′s?,90′s?Communism is alien to our way of life.If you dont understand that,I suggest that you ask someone who has lived for decades under its system.These people who go to the communist countries and stay in nice hotels drinking wine dont know what communism is about.They have a portal view of what it is like.But no real experience.

      • 45caliber

        I’ve always said that when someone starts talking about how marvelous some Communist country is and how we need to mimic it – we need to send them to live there for at least two years.

        Like all the tourists who say that Cuba is such a great place with such nice hospitals and health care. Not long ago, I read a comment by someone who had relatives there. All they saw was carefully build just for them to see when they visited. It’s totally different if you live there.

        • http://deleted Claire

          I have no use for communist countries, nor many of the others. I will stay here in the good old U.S.A.

      • Cawmun Cents

        Have any of you heard of Nicholae Ceaucescu?He was a leader of Romania,until one Christmas.You should have seen how lavish his palace was.Everything embroidered or made of solid gold.His palace was humongous.But let me tell you this,he was not very good for the Romanian people.His was a dictatorship,much like I imagine is Hosni Mubaraks’.Political dissenters were treated very harshly.They had prisons which were very brutal in nature,up to the point of being difficult to survive. For merely the attempt to swim across the Danube river into what was then Yugoslavia,was considered a crime.Yes…a crime to try to leave the opression,that was of Ceaucescu’s making.It was double harsh to have to do it in the dead of winter,when the river is partialy frozen but the 12.7 mm machineguns are not.To make it across means much bliss,for Yugoslavias prison camps were better living than Romanian public life.To get caught was opression on a scale that Americans cannot easily fathom.They have these judges,dressed much like the same judges you see in court.Except these judges,do not look at you as you file past in a line.They just read your name and pronounce you guilty.You are then herded into a courtyard and stripped naked whereupon you are given a quick washing with a firehose.Then you are marched into the prison.For the first six months,you will spend in a tiny compartment the size of which if you kneel on your haunches,but cannot sit or stand completely,you get the idea of how big this compartment is.You kneel on your haunches naked in this tiny compartment,day and night.Every two weeks they trot you out to wash you again with the firehose,and beat you like a dog.A small hole in the bottom of the compartment is where your bodily refuse goes,and a small slit in the bottonm of the steel door which encloses you in,gives them room to slide a tray of gruel,(contents of which is unknown)to you for your consumption once a day.You spend six months in this tiny compartment(a full 40% of people who go to these prisons did not survive that first six months)and when they bring you out into the general population,you must relearn how to walk upright like a man.30% of people who make it through first six months,never learn how to walk upright again,they walk crouch style,a testament to the mental fortitude of those who learn to walk upright again.The prison has guards but they do not run the prison.The inmates do.But not like here where they must cower to the guards.They have rules which they make up and the guards do not attempt to control them from the other side of the bars.They watch and laugh but do not interfere,even in massive riots.They shoot and kill prisoners and leave them to rot.If you make it through your term as prisoner there,trust me you will die before you go back.If you do not succeed in escaping across the Danube the first time,you will keep trying or die.Simple necessity of survival instinct.That is Communism.That is dictatorship.That is what you may have to choose one day.Betwwen living death and the real McCoy.

      • Vicki

        “Since when is Communism not our enemy?”

        Communism is an economic philosophy. It has no force. Totalitarian governments who wish to force their oligarchy on us are the enemy.

        the problem is not left vs right.
        The problem is not communism vs capitalism
        The problem IS 100% government vs 0% government

        Watch this cool video for an explanation.
        http://www.youtube.com/watch?v=N4r0VUybeXY

        Note that Socialism, an economic philosophy, IS in this graph. All the way to the 100% mark.

        • Cawmun Cents

          Communism is a mentality which only very stupid people ever consider.Why limit yourself?It is idiocy to do this.

    • http://deleted Claire

      China–I keep thinking–”keep our friends close, and our enemies closer.”

      • http://naver samurai

        Good thought Claire. I believe that we should be watching them closely. FOR GOD AND COUNTRY!

        • http://deleted Claire

          samurai–Hey! Where have you been? Hope all is well with you and Sook Young!

          • Dan az

            Ditto!

          • http://naver samurai

            Sorry, but we’ve been busy with my in-law’s comming from Korea. The 3rd – 5th of February is the Lunar New Year and we had to make a lot of food. I didn’t really know much about cooking before, but I know a lot more now. Thanks for asking about us. We don’t get a chance to answer every posting, but we try. Keep up the good fight, fellow patriots! FOR GOD AND COUNTRY!

            P.S. Did you see the new stealth fighter the Chinese have? It could probably give a good fight to any opponent that comes up against it. Have a good weekend!

  • wally carlstrom

    The President Hu Jintao is not the real president of china. He is the puppet for the Military leader in China and we have no idea who he is.

    • JR

      That is true in many countries. But after all is said and done, Hu just as Obama are in the position of the president of the country…that office, that position is what we have to respect…the office of the president…it does not mater if the person is corrupt, or if it is a front for others.

      • http://?? Joe H.

        JR,
        I prefer to go by what Mark Twain said ” respect your country always, respect your government when they EARN it!”

  • bob wire

    Rush was quit taken with his visit.

    • JR

      Rush will say and talk about whatever his handlers want him to say and whatever message they want to get across to the masses. He is the mouthpiece of the globalists. He will tell you tomorrow that the planet is flat..if someone pays him enough. I listen to him…for entertainment purposes” that’s all his comments and diatribes are worth. He is an entertainer, a shock jock…and he will be the first to tell you that. And he is good in what he does, but for heavens sake, if you listen to him always remember….its entertainment…and… ask the question..who is paying him to say what.

      • Carlucci

        I don’t listen to Rush at all. He sold his soul years ago to the power elites. He is just an annoying gas bag who spouts the same drivel day after day to distract the masses. I don’t see how anyone can listen to him.

        • JOSH

          Carlucci, you speak like a communist/revolutionist/conspiracy theorist: “power elites” . . . “distract the masses”.

          And your comments about Rush tell me one thing for sure: you never listen to him !!

        • http://deleted Claire

          Carlucci— We have something in common!! I don’t care for Rush either, I never have.

          • http://deleted Claire

            The grunting, the finger-tapping, the squirming, and ah, ah, eh ,eh,
            Yuck!

          • Carlucci

            Hey Claire, Yes we do have that in common, as well as our love for our precious pups.

            I was watching the weather channel. Looks like Illinois has been hit super hard with all this winter weather. Yikes – I can’t get over the snowfall happening there.

          • libertytrain

            I’m with both of you. Never a fan of Rush, love dogs. Perfect.

          • http://deleted Claire

            Carlucci–Precious dogs is correct! The weather here is really what I call “winter.” At least the last round was snow, and it covered the ice. The office was closed yesterday but I had to go back to work today. Still saw a few wrecks on my way home. People just try to go too fast.
            We really had a blizzard. The dogs loved it. It is very cold so I can’t keep them out very long. Threw a few snowballs but had to get back in the house. Snow gets caught in-between their toes, and freezes.

          • http://deleted Claire

            libertytrain—Hey! I had to laugh at Tim’s pup. He literally drowns in the snow–it covers him up to his back so I can’t keep him out! He will freeze his you-know-whats off. Bob just left to get our supper. We are pigging out tonight on bad food! He went to Steak & Shake. I am getting Chili Mac and onion rings and he is getting a hamburger horseshoe. Yum. Yum. I am really hungry-I’ll snarf my food down in a hurry.

          • libertytrain

            Every once in a while a good batch of junk food is perfect.

      • JOSH

        RUSH may be a SHOCK JOCK, but he achieves it by simply quoting Liberals. What they say is more outlandish than anything you could make up.

        If you want sugar-coated, filtered dribble, listen to the lame-stream media – otherwise known as the US PRAVDA.

        If you want the facts, listen to Rush. And as a bonus he IS entertaining.

        • http://deleted Claire

          I want facts from people that are logical and rational, not radical and screaming.

          • Vicki

            I have listened to Rush off and on since the late 80′s and he doesn’t do much screaming or theatrics.

        • Carlucci

          Josh, I don’t see how my comments reflect that I am a “communist” just because I don’t like to listen to Rush Limbaugh. I get my news from the internet, and the Lew Rockwell newsletter, which is a LIBERTARIAN news source. Libertarian = liberty.

          I don’t care for commentators who brown nose the RINOs (like Rush Limbaugh or most of the people on FOX) or Looney Left (all of the hacks on CNN, MSNBC, and the lame stream media).

          I am as far away from being a “communist” as Ayn Rand. And if you don’t know who Ayn Rand was, you must have gone to school just to eat your lunch. And don’t cheat and look it up on Internet.

          Anyone who has read my posts on this blog understands my comments above. You must be new or dumber than a bag of rocks.

          • http://deleted Claire

            Carlucci– You are not a communist. This is the first thing some people say when they do not agree with you. If anyone calls me a communist, I will just say ” Takes one to know one.”

  • Henry Ledbetter

    The problem with China for the most part is not the people themselves but their leaders, as is the case for most people of the world. “Why do the nations rage and the people imagine a vain thing? The KINGS OF THE EARTH set themselves, and the RULERS TAKE COUNSEL TOGETHER against the LORD, and against His Annointed.” I remember being in the Toyko tower in 1960 in my dress blues and the children swarmed me to get and autograph or have their picture taken with me. I found the people of the Far East very gracious and very kind. The real problem in our world today is the rulers hate God even as they set themselves up as a god. Not all men are corrupted by power but judgeing the condition of our world today; most probably are. AS AMERICANS WE NEED TO CHOOSE OUR LEADERS WISELY. Far to many want the rush of lnoxication,that power brings to them.

  • Henry Ledbetter

    Saumurai AMEN “BLEST IS THE NATION WHOSE GOD IS THE LORD.”

    • home boy

      do you really think that GOD is blessing this nation henry? you really need to think about that statement . with all that goes on in this country if i was god i wouldn’t bless it.

      • Karolyn

        Be grateful for all the blessings we have!

        • Cawmun Cents

          I agree with Karolyn,but be careful,because there are forces out there trying to take them away that have nothing to do with God.

        • http://naver samurai

          I agree with you on this statement Karolyn. We should be thankfull, but we should also ask God to protect our country from these forces that other people on this site talk about. Obama bin Laden getting kicked out of office would be a good blessing indeed. FOR GOD AND COUNTRY!

        • http://deleted Claire

          Karolyn: I have always been grateful for my life and my blessings, however, I want to keep them.

          • http://?? Joe H.

            Claire,
            You said a mouthful, lady!!!

          • bob wire

            That because you see only what you want to see. You hear only what you want to hear.

          • http://naver samurai

            Thank you Bob for describing the average lib. They only see and hear what Obama bin Laden want them to. FOR GOD AND COUNTRY!

    • http://naver samurai

      Thank you Henry! FOR GOD AND COUNTRY!

  • Eric Bischoff

    More important than armies or number of weapons are the chess or risk games that they have been playing and quite well I may add. They have been developing a Pan Asian Union with trade agreements and treaties.

    They are spending massively in their infrastructure. Having been there Time can tell you, they are kicking our butts in that area and they are number 1 in alternative energy deployment.

    All of this while we are busy playing soldier, arguing over abortion, a public option for healthcare and climate change. We are asleep at the wheel.

    • Bitter Libertarian

      Asleep at the wheel? LOL America is sitting at the wheel with a big mac & fries with the air-bag deployed in our face.

  • barry

    The answer to name-caller Home Boy’s question may be found in the 27th & 28th chapters of Deuteronomy…

  • 45caliber

    When I was in the Army (65-68) I was told that if you took every person in the US who had ever been in the military or was presently in it, the STANDING Chinese army would outnumber us about 5 to 1.

    So I’ve kept my eye on them since.

    One thing I’ve noted – and others have too. With their forced abortion for couples having more than one child, there is a strong movement of infantcide of girls there. The mother hides that she’s pregnant until the baby is born – if it is a girl, it died so she can try again. There is also a large number of abortions due to the fact that the baby isn’t a boy.

    So boys outnumber the girls – which means that a large number of them can’t get married. (And don’t talk percentages. 1% of the population of China is a huge number!) So they BUY their wives from SE Asia or they go without.

    As someone pointed out years ago, there can be a surplus of women – if they simply invade someone and kill all the men.

    China worries me for several reasons. I think the present policy of giving them all our technology is a BIG mistake.

    • Bitter Libertarian

      Both parties are responsible for the sale of technology..If Americans continue to delude themselves with a 2 party system then they deserve what they get.

      • 45caliber

        I’m not saying it is one party or the other. ACtually, I believe it is the CEO’s who can only see the possibility of more profits if they build their plants (with the new tech) in China and are allowed to do that by our government.

        • http://deleted Claire

          45caliber: And I agree with your comments too.

      • http://deleted Claire

        Bitter Libertarian: I agree with you.

      • Dan az

        The most important factor to bear upon the financial markets globally in the last several months, the greatest change agent, in my view, is the creation of the Dollar Swap Windows by China. They are being erected in Europe. Their focus is on the PIGS nation sovereign debt. The debt of Greece, then Portugal, finally Spain very recently, and later inexorably Italy have found and will find a major buyer in China. They will buy PIGS debt at discount. They will win favor across the continent. They will gain advantages not well publicly mentioned. They will cut off geopolitical opposition in extremely subtle manner. They will open up the pathways for greater technology transfer. They will offer a semblance of stability to the currency markets in turmoil. They will spread their global presence, if not dominance. They will work some backdoor deals with motives to secure large volumes of gold bullion at discount. They will solicit more cooperation from previously devoted Anglo tools like the Intl Monetary Fund, and perhaps turn the IMF itself into a Chinese agent. They will possibly pave the way to a mild colonization movement, perhaps having already chosen Southern Spain over Southern California. The Mexican Civil War might have frightened them off any plan to send a million Chinese to North America, equal in intensity to the realization of rising hostility and trade war with the USGovt. Somehow friction with Basque Separatists and detente with Andora versus Spain seems tame compared to roving gangs of Mexican drug lord lieutenants ready to dole out violence on US soil, whose battle lines are drawn by tribal history far more than the US press reports. The systemic failure of Mexico was forecasted in the Hat Trick Letter in the summer 2007, with timing expected for some climax events and recognition in mid-2010, a correct forecast. The USGovt has gone from assisting China in economic and industrial development to blaming them for the depleted US condition. The bigger problem is obviously the deeply entrenched domestic devotion to asset bubbles and colossal bank fraud, run in parallel with the absurd destructive consumption mindset.

    • http://?? Joe H.

      45caliber,
      They tried to fight us in Korea and in VietNam and found out we weren’t the pushover they thought we were!! Seems I remember a hill in Korea where the Chicoms had a platoon outnumbered by more than 5 to one and that platoon kicked their assets!!

  • LiarsMustBeDefeated

    Try real hard to remember the saying about absolute power and what it does. Try real hard to think of the consequences and what is starting to unfold. I just got up to speed on a few facts and figures. Here is my significant and disturbing question for you to mull over. Can China feed itself? Think about it.

    • http://?? Joe H.

      LMBD,
      Power corrupts and absolute power corrupts absolutly!

  • http://com i41

    Who is the smucks who keep buying the pedophile goat abusers’ crude oil, instead of using our own crude. Between Onumnutts, the Soros Socialist Democrapa, EPA, and every airy fairy envior loon are the problem creators. The same lame brained smucks wrote the banking reform bill and the Onumnutts Nocare bill, with its mountain of more regulations, that don’t have anything to do with healthcare. We should be selling our full tank farms of crude and open up all the capped wells, when crude is climbing in prices. We should be selling it to China and get out from under their thumbs. I notice people bitch about China, but our State Dept couldn’t sell a candy bar to hungry fat slub, with out losing money. The pipeline the EPA and Onumnutts stopped it from being put in from Baker MT to the gulf, to sell crude oil on the open market was stopped in Sept 2010. Which has been ready to go for over 2 1/2 years. Using natural flow by gravity of 10 million gallons durning a 24 hour period, at $90 a barrel, is $900 million a day for 30 days equals $27 trillion a month,times 12 months is 324 trillion. Where are the f–king Onumnutts and the Soros Socialist envior pukes heads at. This is oil coming out of one oil feild, the Williston-Baaken Basin that just keeps growing in ever larger areas.

  • bob wire

    test? ~ I’m not posting? ~ this has happened once before !

    Have I limited out?

    “absolute power corrupts absolutely “? is that what to were looking for?

  • http://com i41

    Liarsmustbedefeated, between dip s–t democraps paying land owners to do nothing for 3 decades costing taxpayers several billion dollars. China can not feed itself, just as our 30 million acres of farm ground isn’t producing food. We cann’t feed our selfs.Guess who is buying up all the commodities using an elit hedge fund, George Soros. Who pays and bank rolls all dumbocraps and their puke party, George Soros. Of course all the progressive socialist pervert loving democrats, think we need to keep our land as a park and everyone can live on wild hickory nuts.The greatest Democrat President eever was OLd Hichory Andrew Jackson, got USA out odf debt by selling off government land, his party didn’t like him. If he was alive now, reservations would be sold and put on tax rolls, same goes for all other worthless parks. All able bodied people would work or starve. Hopefully common sense real democrats will start the new OLD Hickory party, I sure would join. The Soros Socialist party lizards are just EU pusified idoits.

    • http://personallibertydigest gunner689

      Soros really needs to meet Mr. Nozler.

  • annette hall

    I believe if we don’t pay them the 2 trillion dollars we owe them we are going to have trouble. The only way this country is going to survive is to cure the national debt we owe to China and other countries because right now we owe 14.08 trillion dollars until we pay these countries anyone could call this loan in and destroy the USA. Get real China is a huge threat….

  • annette hall

    Wake up America we have an liability in America that we could turn into an asset. The illegal population could work to our benefit. Citizenship is worth a lot these days in this country. Making them pay to become a citizen and I’m talking 25 to 50 a week for each illegal working in the USA. And could promote jobs in our country because if they know they can stay they will spend buying houses, cars, furniture and etc. The only thing they have spent money on so far is used cars and the sales are better than new vehicles. Its either that or Americans need to come together and pass the plate to get this country out of debt. China, Japan, and any country outside sees us as a weak country financially and if we don’t fix this it could cause us trouble…. Why do you think the world trade center was hit to cripple this country thats why. Write your senators make your senators get this debt under control. I have already wrote the President and my senator. Demand Action we need to make sure this country doesn’t collapse.

    • Pat R

      The reason for 911 was to cover up the theft of tons of Gold from under the Twin Towers by the Bushes and Clintons and others. Money that belonged to China to start with!

      • http://personallibertydigest gunner689

        And I thought it was the Martians, silly me.

      • http://naver samurai

        Tell that to the families of the victims that died on 9/11, moron! Or better yet, run it by Osama bin Laden and see if he likes it. Where in the h*** do you damn libs come up with these things. Cite your source and show where this gold was stored or buried. FOR GOD AND COUNTRY!

  • http://com i41

    Onumnutts and the Soros Socialists will probably give Chine some oil feilds , since now China ownes the largest uranium mine in the world, which is out in Wyoming. Don’t think Onumnutts will not do it, his job czar took over 135 billion of stimulus taxpayers money for jobs in China. Damn that was a brillant move, why it wasn’t spent in the USA it could have had a multiplying effect, even if it was for windmill gen sets. But the puke Onumnutt defenders and soros socialists think it just a great thing. annette hall Idon’t know what state you are in, but ask your elected beltway clown what the problem is, and do they understand when you are controlled by dictator things can get messy.

    • Dan az

      The funny thing about the wind mills is that they also sell them out the back door for just pennys on the dollars.For instance a bergy will sell for about 2500 and out the back door for 800 as many as you want.Now that germany is going to start tooling them up for their cars ect. it will be interesting to see if there quality gets any better.

  • http://personallibertydigest gunner689

    Over 100 yrs. ago Rudyard Kipling said that every Chinaman should be killed. He had lived in China for over 10 yrs. and stated that during that time he could count the idle Chinamen, he saw idle, on one hand. He said they were like ants; always busy, always with a pupose. He said that if they ever modernized they would take over the world. Well guess what’s happened down at the ant hill ?

    Damn Nixon for opening trade with them and damn Clinton for selling them our nuclear, communications, and missle guidence systems. God help us if we ever get into a shooting war with them. Every dollar spent on their goods helps buy the bullets that may kill our children. Remember that the next time you go shopping at WalMart.

  • Dan az

    Germany is grateful that a new benefactor has come to Southern Europe. No longer does the German Govt feel burdened by the welfare enforced by the European Union dictum. The Germans are exhausted from $300 billion in annual welfare support of a deadbeat set of children in Portugal, Italy, Greece, and Spain. Over the last ten years, the drain of German wealth has been $3 trillion in total. A German banker has kept me up to date on the details. He frequently mentions that it is not a matter of willingness for the Germans to continue to support the broken nations of Southern Europe, complete with their grand deficits and inefficient economies, and greatly different work ethic, and their preference for song and dance and wine. The Germans are NOT CAPABLE of the continued drain of $300 billion per year, since the cost has turned into a nightmare burden.

    In return for the outsized Chinese relief of PIGS debt, the Germans have offered key exports in technology. The main items are machine tools, telecommunications, construction equipment, and cars. Germany is the technology leader in Europe, with no close second competitor. France is a distant second. The German Economy is not a war economy, as they possess world class technology for domestic purposes. In the early part of the last 2000 decade, the technology transfer was significant from Japan to China. It enabled a great leap for Chinese industry. In many instances, the installed Japanese technology, like with machine tools and sophisticated manufacturing floor control systems, the Chinese leapfrogged the US easily. Enter the current phase, where the Germans are working with the Chinese in major deals. My view is that the Eastern Alliance, whose participants are Germany, Russia, China, and the Persian Gulf states, has many components not easily seen. They are working on the New Nordic Euro currency, complete with a gold component, in order to establish a replacement for global banking and commerce. It could become a new global reserve currency, all in time. Expect the alliance to include commitments for vast Russian resources, vast German technology, vast Chinese bank reserves, and guarantees of vast Arab oil supply. The Dollar Swap Window is an important component to the advancement of the Eastern Alliance, in which the US and UK are not players. They are shut out.

  • Dan az

    Word is gradually leaking out that the Chinese have a powerful ulterior motive to purchase EuroBonds, not so much out of altruism, not even so much out of global expansion of influence. THE CHINESE WISH TO CONVERT DISCOUNTED EUROBONDS TO SECURE HUGE VOLUMES OF EUROPEAN GOLD. The Beijing leaders must for instance have a plan to convert a fixed percentage of EuroBonds to gold bullion, even a cut deal with European leaders and bankers, arranged carefully in advance. They wish to replace the gold bullion possibly swindled by the USGovt. Any USGovt gold leases to European nations from past years might be repaid directly to the Chinese, to close out the lease contracts. The acquisition will NOT be front page news, will NOT be discussed by European leaders, and will NOT be publicly debated. The choice for PIGS nations has been and will continue to be default on sovereign debt or to cut deals with China that buy time. Since Germany has let it be known that their credit line is cut off, China has filled the void. But Beijing leaders are crafty. They have very likely secured deals whereby the IMF harlot will facilitate huge gold bullion sales to China with the EuroBond securities. The IMF has run past cover in lease close-outs from the USGovt, complete with grand deceptions. The key to unmask the lease close-out deals is that the IMF never identified buyers. There were none often. A sale without a buyer is an end to a short trade after the passage of years in time. Without some promised conversion to gold, China would not have cut the deals. It is the quiet underpin. The common denominator in the great majority of Chinese deals forged worldwide in the last decade is the secured supply line of hard assets, like commodities. They also have a preference for port facilities. Energy supplies, mineral wealth, and foodstuffs are the main objective of the numerous Chinese trade deals, which increasingly involve establishment of currency swap facilities and conversion systems. See Brazil and Russia, which do not bother to use the USDollar in trade settlement. In the future, look for commodity deals that supply China with fresh water.

    Expect this trend to increase to the point that eventually the Chinese Yuan (renminbi) is a global currency with full convertibility. Later, it might serve as global reserve currency. What gives it the edge in such a role is its rise, compared to the USDollar’s decline. The next decade will see the Redback (Yuan) more and the Greenback (US$) less in banks worldwide, and in trade settlement. The extreme wild card in the entire equation is eventually colonization by the Chinese elite. If they aid in government debt purchase, then hold title to property, while providing supply lines to a wide range of consumer products (someday cars too), what would prevent them from sending 100 thousand people per year to occupy abandoned homes and empty apartment buildings held under proper title? Nothing!

  • Dan az

    Im sorry for the long cut and paste but it is important to know what is going on behind the curtain.If I had left a link then allot of you probably would not have read it.

  • Ted Zedek

    To The Editor,

    More than anything else, China’s spectacular growth and development can be traced directly to its
    vast pool of slave labor made available to U.S. corporatists who had no qualms of shipping millions
    of American jobs there no matter what damage it might do to this nation and its people. It’s ironic
    that this Communist nation, this People’s Republic of China, has been transformed into a global
    powerhouse thanks to the greed of American capitalists.

    Ted Zedek
    Thousand Oaks, CA

  • RADICAL CONSERVATIST

    COMMUNISM HAS ALWAYS BEEN OUR ENEMY!!!

  • http://Persoanllibertydigest Jim

    China is a threat, anyone who can’t see it is blind, or is in China’s pocket — Esp since our politicians, and country are so indebted to them. We are own worst enemy — We are the biggest threat to ourselves — The 565 people ( Congress) working with-in the belt way make me worry more than the Chinese

  • http://charden@neo.rr.com Charles

    Pat R,
    Are you just plain stupid or do you read to many Marvel comic books?

  • Stuart Ashley

    WOW Folks!;
    One Chinese politician visits the United States, and it unleashes an avalanche of comments. Too bad all the verbage adds nothing to our GDP! We wouldn’t be so sensitive, I think, if we were doing well as a country and as an economy. It is silly to think that Chinese people shouldn’t want to better themselves, that China (the country) shouldn’t want to become a dominant power, that China shouldn’t want to invest in the Western Hemisphere. After all, hasn’t the USA felt (known even) it has the right to do all these things vis a vis other countries? We should be putting more effort into increasing our manufacturing, our competitiveness, our economy; and less effort into trying to hold other countries back. For one very practical reason, it won’t work. We understood “balance of power” when it referred to the Soviet Union. The concept is not untrue, or meaningless, just because the USSR is gone. Quit complaining and start competing, or learning Chinese won’t be optional!
    Cheers! Stu.

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