China Challenges US Global Financial Leadership

China Challenges US Global Financial Leadership

apnews.myway.com

SHANGHAI (Associate Press) - The only major economy still growing at a fast clip, China is being unusually forthright in challenging the U.S.-led global order ahead of an April 2 summit on the financial crisis.

In his second rebuke of U.S. leadership this past week, the central bank governor, Zhou Xiaochuan, said China's rapid response to the downturn - including a 4 trillion yuan ($586 billion) stimulus package - proved the superiority of its authoritarian, one-party political system.

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Related News Links:
www.newsvine.com
finance.yahoo.com
www.chinadaily.com.cn
au.us.biz.yahoo.com

Related AboveTopSecret.com Discussion Threads:
Blackwater
Bailout of U.S. Financial System
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U.S. Tresury Securities

[edit on 28-3-2009 by SpartanKingLeonidas]

I see where China is basically calling into question our stability as a nation, as a potential political threat through painting America as ready to collapse financially, which to me is an indicator of potential war looming on the horizon with China and the United States, since our nations global stability is brought into question. What most people do not understand is that the Iraq War is more than likely a staging ground towards leaping into China after taking control of Iran through our military presence, so China rattling their saber is a pretense towards war.

For any history buffs as well as people with political knowledge, the quickest way to get a failing economy back on its feet is through war. This is how F.D.R. did it in WWII, and President Barack Obama is following in a lot of his footsteps which I will post to later on after people begin replying to this thread. I included the Blackwarer, Bailout, Federal Reserve, and U.S. Treasury Securities towards further posts in reference to the war aspect.

apnews.myway.com
(visit the link for the full news article)

If china provided proper infrastructure and care to all its people, I'm confident their economy wouldn't even break even. The big illusion that china is modern is a fairy tale. Hundreds of millions live lives that we in the west would describe as peasants.

And one day those hundreds of millions will get angry and have something to say about it i'm sure.

China is probably under a greater stress than even the U.S. because they are heavily reliant on exports...Japanese exports dropped by 50%...so China's has to have dropped even more than that, as they don't really make anything worth having. China will probably be crushed by the weight of it's own oppressive government...so let them moan about the U.S., it's just a distraction from their own domestic and economic woes. Negative growth in China wouldn't at all shock me.

What a lot of people are not seeing here is as I referenced in the prior post is that Iraq is a staging ground towards leaping into China. Most likely this will be enacted through the use of private military contractor organization, or also know as mercenaries, or the formerly called Blackwater which now has the name of Xe, which sure sounds Asian in context. If you go to Blackwater's Website you will notice a few things have changed recently, the most glaring would be that they have dropped the bear paw which was their symbol for the cartoonish American Bald Eagle, our national bird, as well it says in bold lettering U.S. Training Center, and finally their brand name all the way at the bottom, "An Xe Company", almost hidden from view altogether.

While the debacle in Iraq over Blackwater killing 17 civilians may have been a despicable incident back in 2004, Eric Prince took it and spun it around towards taking his very public organization out of the limelight, by shunning both the corporately dirty name and stepping down himself to be a consultant for the company, in a move toward potentially utilizing the Art of War, a strategic move where he is symbolically cloaking his actions via dumping the brand name and shifting tactics behind the scenes. Yes, I realize this may sound like speculation to some here on ATS, but I have studied Asian military strategy as well as the history of war, and even the Art of War all of my life.

As I mentioned in the first post of this thread, the quickest way to pick up a failing economy is for war to happen. President Barack Obama is following in F.D.R.'s footsteps in a lot of ways, and China calling into question our finances as nation is saber rattling, whereas President Obama is re-enacting organizations like the Civilian Conservation Corps which F.D.R. used to organize large groups of men start in 1933 with small numbers and ending in 1942 with over 3 million men being paid and America was already in full scale war. You can see here on the White House Website where Obama makes reference to the C.C.C. historically.

All of this comes down to China calling America out and what I've expressed here is the behind the scenes activity which is being played through moving pieces on the chessboard through political moves.

reply to post by SpartanKingLeonidas


The US can barely even hold Afghanistan and Iraq, what makes you think they'd have a snowball's chance in hell of defeating China and all its allies - Russia, Iran etc?

reply to post by SpartanKingLeonidas


China isnt going to war with the USA. That is probably the most rediculous statement I have ever heard. First, they could never win. They have anywhere between 200-500 nukes. We have 6,000. That alone would deter them from going to war. Not to mention all the war ships the USA has near china. How about the USA armys.. They are posted all over the world. When you also add the close to a trillion dollars the USAs owes them, the fact that the USA is also their number 1 importer of their goods, not to mention all the private investments in US business and citizens that populate the US colleges.... You get my point. It's never going to happen. Now maybe the USA would invade China, but you will never see it the other way around. Edit to add:

Just reread you OP. I dont think the USA is getting ready to invade china either. It is a no win situation for everyone.


[edit on 28-3-2009 by tide88]

Originally posted by MajorDisaster
reply to post by SpartanKingLeonidas

 

The US can barely even hold Afghanistan and Iraq, what makes you think they'd have a snowball's chance in hell of defeating China and all its allies - Russia, Iran etc?

I am not saying they could defeat china, but you are comparing apples to oranges. They would be two totally different kinds of wars.

So because of their ($586 billion) stimulus package they're superior?
Because of their one child policy , they're gonna have major demographic [macro economic]problems in the future. They haven't experience major economic setbacks since the early 90's but if they do [and they will] domestic political tensions will rise and unlike a democracy a one party system will have more difficulty responsing to these unrest in the longer term. Hundreds of millions "peasants" don't have the advantage of the capitalistic economic system and the CP will fall someday..mark my words..
On the other hand i am not surprised with their challenge, it's developing rather quickly but now is the time..

reply to post by tide88


Take your 6,000 nukes and go play with yourselves on another planet.
Real leaders fight wars on the battlefield leading the charge into hand to hand combat, not press a button and hope for the best.

China is right , USA is doomed and about to collapse ....

dollar must be dumped and yuan must replace it

proved the superiority of its authoritarian, one-party political system.

still proven better than the two party , corporate agenda american plutocracy dictatorship democracy

Originally posted by MajorDisaster
reply to post by SpartanKingLeonidas

 

The US can barely even hold Afghanistan and Iraq, what makes you think they'd have a snowball's chance in hell of defeating China and all its allies - Russia, Iran etc?

This is where allies comes into play, as well as the afore mentioned push towards war, it stimulates the economy to have war, not that I am advocating war in the least. If China continues its saber rattling, it will push Obama to begin making statements about all these changes he pranced around with on stage before getting elected.

Ok a few things in this thread.

What most people do not understand is that the Iraq War is more than likely a staging ground towards leaping into China after taking control of Iran through our military presence, so China rattling their saber is a pretense towards war.

Yes, but I also think that Iraq was a failed experiment that lead to the war in Afghanistan. I think they meant to keep Iraq under total military control to start major operations out of the Middle East. The disbanding of the Iraq army led that that downfall with thousands joining the insurgency.

Afghanistan is now a much better staging point for it's proximinity to all important countries the US wants cooperating, and Israel.

They have anywhere between 200-500 nukes. We have 6,000. That alone would deter them from going to war. Not to mention all the war ships the USA has near china.

Nukes are pointless will most likely never ever be used by any major world power. They are completely senseless and in today's world are simply a symbol of power. As far as the war ships, the Navy wouln't be a very usefull too in that war since China would most likely draw in their enemies into the mainlands and mountains. Terrain they know and know well.

China is right , USA is doomed and about to collapse ....

Your right, USA is doomed.

dollar must be dumped and yuan must replace it

You're wrong the system needs to be replaced world wide, not just with another countrie's form of debt for money and money for debt pyramid scheme.

Really China is simply testing the waters. It has a real desire to be #1 and have it's influence shown accross the world. China will not openly attack any nation ont his side of the world, it's simply counter productive.

A trade war however, would bring the US to it's knees.

~Keeper




[edit on 3/28/2009 by tothetenthpower]

China is holding the bag of our Fiat money. They are very concerned that we will repay that debt with devalued dollars. That would crush them financially. Imagine if you worked for 10 years and were paid with IOUs and then when you went to cash in those IOUs the value of them was cut by 80%.
It would be like you worked for 10 years for 2 years wages paid very late.

That is the situation China finds itself in right now. Why would they not call us on our obvious cheating them out of their money and their work product?


[edit on 3/28/2009 by UFOTECH]

This is one joke of an idea. The only way China can keep internal demand running is by purchasing 13,000 Jaguars for their self-entitled party officials.

economictimes.indiatimes.com...

America is still by far the best country in terms of credit rating on the planet. I don't see any other alternative in the near future. Sure, we have a massive debt, but our legal and contractual systems are far superior to those of all other countries'. The Euro can't compete because of internal difficulties in terms of a deficiency in perceived political solidarity. No one shows up to Russian debt offerings anymore. Brazil is in the exact same boat. They're much too corrupt. People are still unsure about China. The only reason the Chinese government showed any degree of political clout in producing that stimulus package is because their general population has no way of questioning it. I'm sure people were just as angry in China as we were here. Lastly, India is facing massive market entry barriers with all its labor laws and weak Parliamentary government.

[edit on 28-3-2009 by cognoscente]

The particular point I was trying to make with my commentary to the original post and news story, is that China is in the act of saber rattling, this is in effect, like a bully on the playground, calling someone a chicken.

The next step is to begin making demands, which equivolates the daring stage, one person escalates it, keeps escalating it, and soon enough, someone is double-dog dared into sticking their tongue on a ice cold flag pole.

Politically speaking, of course. Using metaphors there for education as well as silly references that will explain the process using humor.

Originally posted by TheKingsVillian
reply to post by tide88

 

Take your 6,000 nukes and go play with yourselves on another planet.
Real leaders fight wars on the battlefield leading the charge into hand to hand combat, not press a button and hope for the best.

That is a stupid statement. I am not bragging. I was simply stating that because of this there is no way there would be an invasion of the USA. In a hand to hand combat the USA would win hands down. They are battle ready and experienced.

Here's a video on Youtube from Bloomberg where China and yuan is addressed. They don't actually mention China until about 2 minutes and 18 seconds into the video, so please be patient.

www.economist.com...

[Zhou] suggests that the international financial system, which is based on a single currency (he does not actually cite the dollar), has two main flaws. First, the reserve-currency status of the dollar helped to create global imbalances. Surplus countries have little choice but to place most of their spare funds in the reserve currency since it is used to settle trade and has the most liquid bond market. But this allowed America’s borrowing binge and housing bubble to persist for longer than it otherwise would have. Second, the country that issues the reserve currency faces a trade-off between domestic and international stability. Massive money-printing by the Fed to support the economy makes sense from a national perspective, but it may harm the dollar’s value.

We won't do it because we don't need to. This plan is only viable for the U.S. if its productivity falls below that of the rest of the world's, which doesn't seem like it's going to happen in the near future. Being the sole authority in issuing the global reserve currency definitely has its advantages.

I don't necessarily agree with Zhou's second point here. The trade-off between domestic and international stability only happens when the economy of the issuing currency declines. If it's not in decline, then being able to issue the global currency reserve is appropriate. In the case of a strong economic climate, the international community has no qualms buying your currency. It's better for everyone.

[edit on 28-3-2009 by cognoscente]

reply to post by SpartanKingLeonidas


Excatly man. Has anyone noticed recent military ops that the chinese are making or the increase in presence in certain areas. The problem is is that everyone in the west doesn't think that China can maintain and it will fall in on itself...hello china ain't going to collapse. Communism and their authoritative gov't just makes it official to the west.

These guys have had the same mindset of tha jump, its all about china! Even when they do things that are grimey, they look at everyone else and say whats up because we are doing the same things. Its quite funny, i love it cuz they are so hard.

Of course they will have to loosen up on on some personal liberties, but thats up to the Chinese and not us, we are Americans so of course we see things differently.

What we REALLY have to worry about is a China and Japan alliance. Good thing for us they don't like each other. That would be fubar...