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China’s Economic War With the U.S.

August 20, 2011

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Unless you have been living under a rock, you probably have noticed an alarming number of products on store shelves that are made in China.  Even the largest retailer in the world is now commonly called China-Mart.  The trend is alarming because if The transfer of America’s wealth to China is by design. During the 1992 Rio Earth Summit that brought forth the Agenda 21 plan for global collectivism, acting United Nations Deputy Director General Maurice Strong stated in his opening speech, “Isn’t the only hope for the planet that the industrialized civilizations collapse?  Isn’t it our responsibility to bring that about?” Despite the Chicken Little fear-mongering, based on years of fraudulent science, the intention of the globalists is clear.the communist Chinese are manufacturing so many of our goods, Americans obviously are not.  Stories are coming in from all across the country of plants being shuttered and workers laid off as a result of companies outsourcing their production to China.  Even high-tech jobs, once thought safe because of technical complexity, are being moved to China.  Engines, plastics, tools, flat panel TV screens, I Pads, cell phones, computers, semiconductors and just about every item that can be produced in China is being made there.  Companies that don’t outsource their manufacturing to the communist state have difficulty competing with firms that do.  Cheap labor in China equates to cheap prices for those products.  Since most products that are made in America can’t compete on price, many US companies are forced to contract out manufacturing or face bankruptcy.

Dell plant in Winston-Salem         

A Financial Times reporter interviewed a Chinese girl named Loli Ping who was making $264 a month for the last three years, producing goods headed for the US.  She bunks with 7 other girls in her dorm room.  Foxconn City in Shenzhen Province is the largest producer of electronics in the world and employs 3-400,000 workers that live and work in under a 1 square mile area. Most of these young workers make under $300 a month.  Combining twelve-hour shifts with dehumanizing, oppressive conditions, it’s no wonder many at Foxconn have been successful at attempting suicide.

We have faced competitive nations before like Japan, Hong Kong or Korea, but our business relationship with authoritarian Red China is an existential threat to American prosperity as we have known it.  I view the issue as economic siege warfare using  a strategy of attrition.  What I especially find troubling is that we are not defending ourselves!  Let’s observe a major weapon in this war – currency manipulation.

Have you noticed when the value of the dollar drops, it takes more dollars to buy foreign imports?  Conversely, when the value of the dollar goes up, relative to another currency, the dollar price of the foreign item is cheaper.  It is common knowledge that China manipulates the value of its currency, the yuan, in order to keep the exchange rate significantly lower than the US dollar.  This creates an unfair trade advantage because the strong dollar, compared to the yuan, makes the cost of Chinese goods and labor much cheaper.  If the currencies were allowed to trade on the open market or “float” the value of the yuan would probably rise 40% to a point of equilibrium. This would reduce the competitive price advantage of Chinese goods and labor because it would take more dollars to buy the same item or unit of labor from China.

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How does China manipulate its currency?  It buys US dollars to drive up the price.  In a recent Reuters article, Fred Bergsten, President of the Peterson Institute for International Economics claimed China has been heavily intervening in the currency markets for the last 5 years.  He states they have been buying a billion dollars every day to keep the value of the dollar strong and the yuan weak.  Some free trade advocates advise no action on our part, but any casual observer will conclude that this is not free trade.  China’s manipulation of the yuan’s value is nothing less than the state subsidizing exports.  By this policy, not only does China raid our industrial base, they reap huge technological advancements from us.

Another way they manipulate currency values is by buying Treasury securities.  If we rein in our debt, we could preclude them from buying our government securities, so by extension, our runaway spending creates a condition they can and do exploit.  China still has a terrible reputation for civil liberties and human rights.  I can go on about the atrocities for which the Communist party is responsible, but I’ll stick to the topic.  President Carter restored Most Favored Nation status to China in 1980, after Nixon’s efforts to re-establish normal relations.  MFN status has been renewed ever since, even after the Tiananmen Square massacre in 1989 – a testament to the bogus nature of our two-party system.  MFN status allows normal trade with limited duties on imports.  Most Favored Nation status is also linked with the World Trade Organization, an offshoot of the United Nations, and the UN is part of the framework of the New World Order (socialist global government).  It is clear, considering its massive currency manipulation and human rights abuses, China’s MFN status should be revoked.  Better yet, the US should also pull out of the WTO and UN altogether.

Our government and the Federal Reserve System is also using the US – China industrial transfer as a means to hide inflation.  As you know, the Fed has created many trillions of dollars that have been used to make whole the very bankers (foreign and domestic) that created the current economic disaster.  Usually this amount of freshly printed cash results in  terrible inflation, and we are experiencing the manifestation of higher prices.  As more goods are produced in China,  these new products register as a drop in prices, countering real price hikes in the normal economy.  Eventually, when there are few jobs left to outsource, prices will rise more rapidly.

The Solution

The solution for our hemorrhaging of jobs to China is to use an economic tourniquet, and that uncomfortable device will probably take the form of increased tariffs on Chinese imports.  I believe this is what the founding fathers envisioned for such cases.  China’s unfair trade practices must be met with a corresponding action or we will continue to lose the trade war.  Politicians have proposed bills and pontificated on the subject, but most of it was just theater.  Tim Geithner threatened action, but there was none.  You must call your lawmakers and pressure them to act, for the establishment wants further bleeding of our industries to China, despite the rhetoric.  They do the will of international bankers and special interests and have learned to be convincing at feigning patriotism.  Most political operators are adept at vociferously supporting an issue, only to kill it behind closed doors.

Geo-strategists pushing for global government favor redistribution of wealth from the developed nations to others like China.  They envision global production of goods and services to be divided by regions according to the elites’ top-down design.  There are many serious drawbacks to socialist methods as history has demonstrated.  One  problem is that each individual has a different skill-set that makes them best suited for a particular industry group. For example, I am amazed at the mechanical ability of some men that allows them to do incredible things with machinery.  Others have innate skills in mathematics and still others are strong with precision work.  There are also those who are suited for physical labor.  The global technocrats are creating, in the US, a system of paper pushers, police, government inspectors and workers of the state with limited need for actual producers.  However, not everyone is suited to push papers, cook french fries or pester people with fines and regulations all day.  Most citizens are well qualified to build, produce, manufacture, repair or plant something.  We are losing these types of jobs at an alarming rate!

Even the Bible encourages us in Ephesians 4:28 to “labor, working with your hands the thing which is good.”  Instead, social planners are re-constructing an artificial economy with fewer producers and greater dependence on the government.  Dealing with China, however necessary, will not be a panacea.  In addition, we must take a chainsaw to taxes and the government.  Eliminating Marxist based income taxes, along with the previously mentioned reforms will restore an organic, market based economy, complete with a strong manufacturing sector. American made goods will be much more competitively priced throughout the world, powering a new era of growth for the country.  We should not buy into the concept of a post-industrialized America; it’s a lie!

Oil billionaire and Marxist Maurice Strong

The transfer of America’s wealth to China is by design. During the 1992 Rio Earth Summit that brought forth the Agenda 21 plan for global collectivism, acting United Nations Deputy Director General Maurice Strong stated in his opening speech, “Isn’t the only hope for the planet that the industrialized civilizations collapse?  Isn’t it our responsibility to bring that about?” Despite the Chicken Little fear-mongering, based on years of fraudulent science, the intention of the globalists is clear.

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