~ USA: OWNED By Communist China ~

You're doin' a heckuva job Bush - and your few remaining
apologists aren't much better.


http://counterpunch.org/roberts08082007.html

In the Hole to China
By PAUL CRAIG ROBERTS

"Early this morning China let the idiots in Washington, and on Wall
Street, know that it has them by the short hairs. Two senior spokesmen
for the Chinese government observed that China’s considerable holdings
of US dollars and Treasury bonds “contributes a great deal to
maintaining the position of the dollar as a reserve currency.”

Should the US proceed with sanctions intended to cause the Chinese
currency to appreciate, “the Chinese central bank will be forced to sell
dollars, which might lead to a mass depreciation of the dollar.”

If Western financial markets are sufficiently intelligent to comprehend
the message, US interest rates will rise regardless of any further
action by China. At this point, China does not need to sell a single
bond. In an instant, China has made it clear that US interest rates
depend on China, not on the Federal Reserve.

The precarious position of the US dollar as reserve currency has been
thoroughly ignored and denied. The delusion that the US is “the world’s
sole superpower,” whose currency is desirable regardless of its excess
supply, reflects American hubris, not reality. This hubris is so extreme
that only 6 weeks ago McKinsey Global Institute published a study that
concluded that even a doubling of the US current account deficit to $1.6
trillion would pose no problem.

Strategic thinkers, if any remain who have not been purged by neocons,
will quickly conclude that China’s power over the value of the dollar
and US interest rates also gives China power over US foreign policy. The
US was able to attack Afghanistan and Iraq only because China provided
the largest part of the financing for Bush’s wars.

If China ceased to buy US Treasuries, Bush’s wars would end. The
savings rate of US consumers is essentially zero, and several million
are afflicted with mortgages that they cannot afford. With Bush’s budget
in deficit and with no room in the US consumer’s budget for a tax
increase, Bush’s wars can only be financed by foreigners.

No country on earth, except for Israel, supports the Bush regimes’
desire to attack Iran. It is China’s decision whether it calls in the US
ambassador, and delivers the message that there will be no attack on
Iran or further war unless the US is prepared to buy back $900 billion
in US Treasury bonds and other dollar assets.

The US, of course, has no foreign reserves with which to make the
purchase. The impact of such a large sale on US interest rates would
wreck the US economy and effectively end Bush’s war-making capability.
Moreover, other governments would likely follow the Chinese lead, as the
main support for the US dollar has been China’s willingness to
accumulate them. If the largest holder dumped the dollar, other
countries would dump dollars, too.

The value and purchasing power of the US dollar would fall. When
hard-pressed Americans went to Wal-Mart to make their purchases, the new
prices would make them think they had wandered into Nieman Marcus.
Americans would not be able to maintain their current living standard.

Simultaneously, Americans would be hit either with tax increases in
order to close a budget deficit that foreigners will no longer finance
or with large cuts in income security programs. The only other source of
budgetary finance would be for the government to print money to pay its
bills. In this event, Americans would experience inflation in addition
to higher prices from dollar devaluation.

This is a grim outlook. We got in this position because our leaders are
ignorant fools. So are our economists, many of whom are paid shills for
some interest group. So are our corporate leaders whose greed gave China
power over the US by offshoring the US production of goods and services
to China. It was the corporate fat cats who turned US Gross Domestic
Product into Chinese imports, and it was the “free trade, free market
economists” who egged it on.

How did a people as stupid as Americans get so full of hubris?"

Paul Craig Roberts was Assistant Secretary of the Treasury in the Reagan
administration. He was Associate Editor of the Wall Street Journal
editorial page and Contributing Editor of National Review. He is
coauthor of The Tyranny of Good Intentions.



--

http://911research.wtc7.net
http://stj911.org
http://stopthelie.com/1-hour_guide_to_911.html
http://www.911truth.org



Here's what happens to steel framed buildings exposed
to raging infernos for hours on end.

http://davesweb.cnchost.com/nwsltr69c.html

On 9-11-01, WTC7, a 47 story steel framed building, which
had only small, random fires, dropped in perfect symmetry
at near free fall speed as in a perfectly executed controlled
demolition.

http://911research.wtc7.net/talks/wtc/videos.html
http://wtc7.net/articles/FEMA/WTC_ch5.htm


Ever wonder who benefits from the 300 MILLION
U.S. taxpayer dollars spent each DAY in Iraq?
http://www.commondreams.org/views04/0223-08.htm
http://www.corpwatch.org/article.php?list=type&type=21

"They are waging a campaign of murder and destruction. And
there is no limit to the innocent lives they are willing to
take... men with blind hatred and armed with lethal weapons
who are capable of any atrocity... they respect no laws of
warfare or morality."
-bu$h describing his own illegal invasion of Iraq.
http://www.robert-fisk.com/iraqwarvictims_mar2003.htm

http://www.commondreams.org/
http://www.truthout.org/
http://www.prohibitioncosts.org/
http://thirdworldtraveler.com/
http://counterpunch.org/
http://responsiblewealth.org/

"Our lives begin to end the day we become silent about things
that matter." -- Martin Luther King Jr.

"To announce that there must be no criticism of the President,
or that we are to stand by the President, right or wrong, is
not only unpatriotic and servile, but is morally treasonable
to the American public."
-- Theodore Roosevelt (1918)

Don't let bu$h do to the United States what his very close
friend and top campaign contributor, Ken Lay, did to Enron...