Major U.S. $ Crisis Looming

[Laura]

http://www.safehaven.com/article-6441.htm

by Julian D. W. Phillips
4th December 2006

We are approaching rapidly a series of currency crises of a greater
magnitude than ever seen before in history. Whilst the U.S.$ will be the
prime recipient of these, many currencies trying to protect their
international competitiveness or their own stability will be dragged
into the crisis that will affect to a greater or lesser extent the bulk
of currencies across the world. There will be few currencies and
consequently their economies that will escape the ripple effects of the
dramatic changes in exchange rates. Why will this happen? To understand
this a look at the history of the 4 over the last 50 years becomes
pertinent. We take a brief look at the monetary system and its recent
past to see how the toppling from financial power and its extent is
likely and the full extent of that power.

With its dominant influence over the I.M.F., where its voting power of
over 16% placed it in complete control of any vote [because a basic
requirement of the I.M.F. is that for any issue to be passed, it must
have the support of 85% or more of its members votes. This left the
U.S.A. in control of not just of the most important of the globe's
financial institutions but of the global monetary system. Through the $
being the currency in which oil was priced, it reinforced this strength
and dominated global trade through oil. The tribute [tax] it then drew
from the world through the printing of the $ for international trade,
was the equivalent of the tribute Britain drew in the days of its global
empire. The expansion of the Trade deficit is serving the same function,
which explains why little is being done to correct that imbalance. With
recipients of the $ content to reinvest their surplus $' back into U.S.
Treasuries and bonds, the States is receiving cheap financing of its
economy. So all looks fine as the U.S.A. draws off the benefits of its
pivotal position.

The only action being taken to adjust this at present is a trip [which
we believe will be a failure before it begins] by the Chairman of the
Federal Reserve Ben Benanke and the Treasury Secretary Paulson to China.
Ostensibly this is to persuade the Chinese to revalue their currency.
The Chinese authorities have responded to this request many times
already and forcefully, so why the trip? Is it a posturing that it is
the Chinese that is at fault or what? Needless to say any responses from
the trip will do little to strengthen the $. This trip does little to
address the growing problem of the falling $ in the foreign exchanges,
the ultimate measure of the true value of the $.

But the process of Asia's enormous growth is that it is moving toward
being the most important economy in the world alongside India and other
emerging economies. As such it will move to take the reins of global
financial power.

The tipping of that power towards the East has to precipitate the end of
the reign of the U.S.$ as the key global currency. The Chinese Yuan is
by no means ready to take those reins, nor we suspect, is the €.
Nevertheless, the $ is on the decline long-term due to this shift in
power. Even if this concentrated power is re-distributed to several
other currencies, the decline of the $ will continue and with a growing ace.

As we have often said in these columns, we do not expect the $ to
decline down a gentle slope, but to move along a plateau, before
dropping down a cliff to the next level at which it will plateau before
the next fall. Steadily we will see the pressures from excess U.S. $'
bring not only a value decline but also a heavy loss of confidence in
the $ from outside the U.S. of A.

 

[Laura]

http://news.yahoo.com/s/ft/20061204/bs_ft/fto120420061642266991

Asian central banks accept falling US Dollar
Asian central banks learn to live with dollar fall

Dave Chiang
06 Dec 06

Asian central banks appear divided on how to respond to the falling US
dollar. Several countries, including Thailand,

South Korea and Singapore, appear to have intervened to curb its decline
against their currencies, while heavyweights Japan and China are taking
a more benign approach.

"There is a degree of acceptance in Asia about the downward drift of the
dollar as long as other currencies outside the region rise in value
against it as well," said Adrian Foster, foreign exchange strategist at
Dresdner Kleinwort in Singapore.

Some countries are more worried than others. South Korean financial
officials are concerned about the rapid rise of the won, which on Monday
hit a nine-year high against the dollar.

The Korean currency has been among the fastest rising in the world,
appreciating by nearly 10 per cent against the greenback this year,
which has affected profits at South Korean exporters such as Samsung
Electronics and Hyundai Motor.

Traders say the Bank of Korea appeared to have intervened heavily last
month to try to stem its ascent.

Thailand fears that its export competitiveness will be harmed by a rise
of the baht, which has appreciated by 15 per cent against the dollar
this year.

The central bank has turned to administrative measures to ease upward
pressure on the baht. In an attempt to deter short-term speculation on
the currency, the Bank of Thailand on Monday announced that
non-residents holding Thai treasury bills, government or central bank
bonds without underlying businesses in the country must retain them for
at least three months before selling them on.

Bigger economies appear better able to withstand the effects of a
falling dollar. Japan, whose currency is considered undervalued against
the dollar and euro, has not shown undue alarm at the strengthening of
the yen against the dollar in the past few weeks.

Officials have suggested that they see no reason for the yen to weaken
further given the health of the economy. Yen weakness has been blamed
partly on the carry trade, in which investors borrow cheaply in yen to
invest in higher-yielding assets, including US-denominated ones, abroad.

China has been in effect supporting the dollar for a number of years due
to its purchases of US Treasuries and other financial instruments, which
make up an estimated 70 per cent of its $1,000bn foreign exchange reserves.

There has been no hint that the State Administration of Foreign Exchange
(SAFE), which manages the money, has been buying dollars to support it
or ease its decline.

But China's reserve holdings do give it an incentive to support a strong
dollar. SAFE has became concerned about the negative impact on the
dollar of suggestions that Beijing had been diversifying into other
currencies.

One challenge facing Asian central bankers, however, are signs of
inflation that could force them to raise interest rates and the value of
their currencies as a result.

Mr Foster said: "The central banks must balance the need to keep
inflation under control without causing their currencies to appreciate
sharply."

Reporting by John Burton in Singapore, Anna Fifield in Seoul, Amy Kazmin
in Bangkok, Richard McGregor in Beijing and David Pilling in Tokyo

 

[Laura]

http://www.ft.com/cms/s/286ac57c-82e9-11db-a38a-0000779e2340.html

Europe will not escape the impact of dollar depreciation
by Wolfgang Munchau
3 Dec 06

Judging by the latest economic data, the world confronts the risk of a
US recession next year, brought on by a collapse in house prices. A
recession would almost certainly lead to a fall in the US current
account deficit, and possibly a further significant decline in the
dollar's real exchange rate. Only a fool would dare forecast the
dollar's exchange rate next year, or the precise mechanism through which
global imbalances will eventually adjust. But there is a distinct
possibility that the much predicted adjustment may be about to happen.

So what then? Among the wide range of views on this subject, two are
particularly popular, one pessimistic, one optimistic - and both wrong.
The pessimistic view is that a sharp and sudden adjustment in the US
current deficit would hit the eurozone harder than other regions. Since
many Asian and Latin American currencies are pegged to the dollar, the
brunt of adjustment would fall on the euro, leading to a sudden collapse
of European exports to the US. The optimistic view, often heard inside
the eurozone itself, is that the trade exposure to the US is relatively
small - eurozone exports to the US make up only about 4 per cent of
gross domestic product. This suggests the eurozone would get off lightly.

Both views are wrong. The first misjudges the adjustment dynamics, and
the second focuses too much on trade as a transmission channel for a
global adjustment shock. Trade is still an important channel for Asia,
but much less so for Europe, where financial transmission channels play
a more important role. A big effort to disentangle these channels was
recently undertaken by two academics, Philip Lane from Trinity College
in Dublin and Gian Maria Milesi-Ferretti from the International Monetary
Fund*. They looked at three scenarios: a soft landing scenario, a
disruptive scenario and one in which the world's policymakers would do
all the right things at the right time - the triumph-of-hope-over-experience
scenario. Scenarios one and three are both benign and improbable.
It is scenario two we should worry about.

On their calculations, a sudden adjustment in the US current account,
accompanied by an unexpected 20 per cent dollar depreciation, would lead
to a deterioration in the net asset position of European countries by
1.5-3 per cent of GDP, partially offset by gains by banks with short
dollar positions. The countries worst affected would be the Netherlands,
Denmark, Sweden, Norway, the UK and Switzerland. Interestingly none of
these countries, save for the Netherlands, is a eurozone member.

The effects of a sudden adjustment shock are not only significant, but
also extremely uneven. A sharp fall in the dollar would probably end the
eurozone's current mini-boom. It would most certainly hit Asia. The idea
that the Asian consumer would miraculously come to the rescue of the
world economy is wishful thinking. A sudden adjustment of global
imbalances is a serious asymmetric shock for the world economy. But it
is far from clear that the eurozone is more exposed than others.

On the contrary, it appears that eurozone membership may protect some
countries from the worst. It is conceivable that global investors may
pull out of non-eurozone countries with high current account deficits.
We witnessed a taste of sudden risk-aversion in Turkey and Hungary
earlier this year.

So what should policymakers do? Two years ago in the last period of
dollar weakness, central bank intervention put a floor under the dollar.
But the US economy was strong and interest rates were rising. Now the
economy is weakening, along with the interest rate outlook.

What about structural reforms? Even if well implemented, they take time
to work through. The best policy response to a global adjustment shock
has to be a relaxation in monetary policy and a co-ordinated fiscal
stimulus. I am not at all sure this will happen, given the past record.
If I am concerned about the eurozone, it is not so much about the event
itself but how we react to it.

*Europe and Global Imbalances, draft paper, September 2006

 

[OPINMYND81]

Found this just now, don't know if it's necessarily related, but it's worth looking into nonetheless.

link = http://worldreports(dot)org/news/36_high-level_criminals

I've been hearing about this Wanta 4.5 trillion dollar thing for awhile now, particularly from Disinfo Artists Greg Szymanski's site. I don't really follow it since I'm rather weak when it comes to international finance but I can't help but feel that this is all related and is part of that Great Economic Collapse that we keep hearing about that's supposed to happen before another World War. I doubt that this is just limited to a bunch of criminals and high profile politicians turning a blind eye, following the money should reveal a lot at this stage of the game.

SR. LOSES TRILLIONS IN NAKED SHORT MELTDOWN
HIGH-LEVEL CRIMINALS CREATE IMMINENT CATASTROPHE
Thursday 7 December 2006 14:39

TRILLIONS LOST IN ARTIFICIAL NAKED SHORT AGAINST USD

SCAMSTERS LOSE THEIR SHIRTS TRYING TO AVOID PAYING WANTA

By Christopher Story FRSA, Editor and Publisher, International Currency Review, World Reports Limited, London and New York: www.worldreports.org. Press the ARCHIVE Button on the Home Page for Wanta Crisis reports since June 2006.

PRELIMINARY NOTE:
Our 3rd December posting was severely truncated at about 11.00pm UK time on 5th December
by NSA/CIA/Department of Homeland Security. The text of the 'diary' section from November 20th onwards was removed. The Editor restored the text in the middle of the night, and then added appropriately critical comments. Please revisit the posting dated 3rd December as it is directly relevant to what follows. In addition to interfering with our posting dated 3rd December, the above parties REMOVED the entire text of our posting dated 2nd September 2006 entitled: 'NEW: HUGE GLOBAL BENEFITS OF THE WANTA PLAN'.

This posting contained predictions of the 'win-win' benefits of the Wanta Plan, as well as a summary of the extremely adverse consequences if it were not to be implemented (because of the corrupt operations described in successive postings on this website).

THE REASON THAT OUR ECONOMIC ANALYSIS DATED 2ND SEPTEMBER - WHICH WAS APPENDED TO THE POSTING OF 3RD DECEMBER - WAS DELETED, WAS BECAUSE ITS PREDICTIONS HAVE TURNED OUT TO BE ACCURATE. They describe exactly what is happening RIGHT NOW. The Editor has restored both postings, but we urge you to review the 2nd September posting again because a number of appropriately barbed comments have been added there as well.

IN READING WHAT FOLLOWS, NOTE THE FOLLOWING EQUATION:

1. Without the Iraq War, which started as a bank raid, there is no way they can continue hiding the illegal money.

2. Without the $4.5 trillion payment to Ambassador Leo Wanta/his Virginia-based AmeriTrust Groupe, Inc. [see coordinates at foot of article], there is no way they can make use of the illegal monies they have 'earned'.


WHY SR WAS SEEN WEEPING ON TV: HE'D JUST LOST TRILLIONS:
HIS EMPIRE HAD JUST BEEN DESTROYED BY A NAKED SHORT OP.
We are now in a position to provide the international financial community with a summary of some of the key developments in the dollar crisis, which are not being report in the 'mainstream' media. The crisis, which is now almost certain to become the biggest financial catastrophe in human history, has arisen specifically and solely because the criminal operatives holding past and present high office in the United States thought they could continue their off-balance sheet fiat money scamming operations as though it is 'Business as Usual', and avoid remitting Ambassador Leo Wanta and his Virginia-based AmeriTrust Groupe, Inc., the $4.5 trillion tagged and earmarked in their names, and illegally retained at Goldman Sachs.

Apart from the $1.0 trillion worth of US currency held by the Chinese in their foreign exchange reserves, and lesser amounts held as official reserves with other key central banks, the Ambassador's $4.5 trillion are the 'only' hard dollars cash available. Because of the impact of our last report [3rd December 2006], and in the context of the horrifying developments reported below, and other horrendous developments not reported here, the Chinese cannot even change these dollars into other convertible currencies on the scale that they need to do, if they are not to lose almost the entire value of them, when the US dollar collapses, as is about to happen.

WHAT THESE RECKLESS CRIMINALS HAVE ACTUALLY BEEN DOING
Here is what has taken place in recent days. Using the money stolen via the deceitful, fraudulent Treasury 'data burst' of 17th November 2006 as explained in our posting on this website on 3rd December [see ARCHIVE], plus funds that the official US criminal operatives have been siphoning offshore through their fraudulent trading operations, the criminal operatives (who are named below) ALSO borrowed against CREDIT DERIVATIVE INSTRUMENTS, creating a pool of funds with which to buy US dollars and sell the EU Collective Currency, with a view to taking the profits (usually ranging between 10% and 15%) between the values.

The resulting profit pool was being run by Deutsche Bank in Berlin, Geneva and Frankfurt and was being used to drive down the overall valuations of UBS, Credit Suisse and key French banks - the objective being to create such profound economic and financial problems for these banks that their valuations would be reduced to such a marked extent that Deutsche Bank, in particular, could then buy them up cheaply.

This confirms our own suspicions, which have become clearer in recent months, that the Swiss institutions, have understood the geopolitical objectives of Deutsche Bank, which is allegedly the primary institution used by Deutsche Verteidigungs Dienst (DVD), Dachau, in craven pursuit of its Nazi Continuum global hegemony strategy. The Pan-German Nazis appear to have become rather disillusioned with the Swiss instinct for eternal independence, and the Swiss institutions have become aware of long-range German strategic intentions with respect to Switzerland's prized and ancient political independence.

ARTIFICIAL NAKED SHORT POSITION AGAINST THE U.S. DOLLAR
A very senior European banker, well known to Ambassador Wanta and to Michael C. Cottrell, the Treasurer of AmeriTrust Groupe, Inc, strenuously warned the criminal operatives concerned (see below) not to create AN ARTIFICIAL NAKED SHORT AGAINST THE US DOLLAR by using borrowed money for the purpose - i.e., naked gambling the integrity of the dollar: but these madmen went ahead with this scheme anyway. The European banks, being no fools, figured out what they were up to; and when Ambassador Wanta was again NOT PAID the $4.5 trillion on 20th November 2006, the European banks took immediate action to dump their dollars on a large scale.

When a gambler undertakes a NAKED SHORT, he loses BOTH the money contributed for the gamble AND the money borrowed as well. In other words, a NAKED SHORT gambler LOSES TWICE HIS MONEY, or far more than that, depending on whatever leveraging input he was using.

And that is what happened, following dissemination worldwide of our posting dated 3rd December 2006. So when George Herbert Walker Bush Sr. was televised weeping at a podium in Florida, guess why he was weeping?

BECAUSE HE HAD JUST LOST A GOODLY PROPORTION OF THE FIAT 370 TRILLION DOLLARS THAT HE HAD PREVIOUSLY CONTROLLED, DUE TO THE MINDLESS, RECKLESS NAKED SHORT TRANSACTION.

OFFICIAL U.S. CRIMINAL OPERATIVES WITH RED FACES
The perpetrators (culprits) who perpetrated this historically unprecedented coup AND LOST THEIR SHIRTS, leaving the wretched United States and the whole world vulnerable to an imminent meltdown, include the following conspirators:

- President George W. Bush Jr.
- Former President H. W. Bush Sr.
- Former President W J Clinton.
- Senator Hillary Clinton
- John Negroponte, Director of National Intelligence
- General Michael Heyden, Director of Central Intelligence
- Secretary of the Treasury Hank ('Conflict-of-Interest') Paulson
- Federal Reserve Board Chairman Dr Ben S. Bernanke, and key Board Members
- Wachovia Bank/First Union Bank, New York
- Bank of America, Los Angeles
- HSBC, United Kingdom
- The Bank of England
- Deutsche Bank, Frankfurt, Berlin and Geneva.

The conspirators got caught in mid-play, and lost their shirts and trillions upon trillions of dollars, as a direct consequence of our authorised posting dated 3rd December 2006 [see ARCHIVE]. Their NAKED SHORT transaction failed.

WACHOVIA, B of A NOW SAID TO BE TECHNICALLY BANKRUPT
While former President George H. W. Bush Sr. wept for himself and on behalf of the DVD, of which he is allegedly the head, before the television cameras, one of the key investigators working with the Ambassador brought in the CIA (under USA Patriot Act etc legislation) to undertake certain measures to stave off the bankruptcy of Wachovia Bank and Bank of America (which is in fact the CIA's main banking arm).

At midnight European time on 5th-6th December, the Bank of Spain and Santander Bank agreed to get their representatives together in Geneva, with representatives of the Federal Reserve and, it is believed, the Treasury. The purpose of the gathering was to be to 'work out' means of enabling the Federal Reserve, the Treasury and key US institutions to 'stay solvent'.

On 6th December, the Boards of Directors of Wachovia Bank and Bank of America met to plan a merger, but essentially only agreed to agree to come to a decision. They may have no time even to prepare the relevant documents before their respective roofs fall in. Tiles were already crashing to the ground all day on the 6th.

OFF-BALANCE SHEET FUNDS MATERIALISE AT SANTANDER BANK
Meanwhile, ALL OF A SUDDEN, funds appeared from OFF THE BOOKS (please make a note of this, in view of what follows) at Santander Bank, which were available to collateralise a transaction through Union Bank of Switzerland and Credit Suisse ostensibly to facilitate payment of the $4.5 trillion to Ambassador Leo Wanta, via a syndication of large banks consisting of Bank of America, Wachovia Bank and J. P. Morgan, to be arranged by Banco de Espana (Central Bank of Spain). This crazy bank syndication is being put together 'as we speak'.

According to European bankers who are in a position to gauge the situation accurately, the reverberations of the NAKED SHORT catastrophe will hit the United States this Friday, 8th December 2006.

The syndication arrangement is being put together in extremis and under duress by the conspirators, in order to save their backsides and all other parts of their anatomies. They choose to overlook the fact that the Ambassador/AmeriTrust Groupe, Inc, are the only parties on the stage owning legitimate money. All other parties are dealing in illegitimate fiat 'funny' money which is derivatives-based, collateralised, and hypothecated out to infinity.

DERIVATIVES OVERHANG ESTIMATED AT $1,140 TRILLION
While it is complacently alleged by some that the volume of derivatives contracts outstanding is worth anything from $370 trillion (the volume putatively owned before the NAKED SHORT fiasco by George Bush Sr. (DVD)), and other estimates put the derivatives overhang at around $770 trillion, the actual volume of the overhang is estimated by the Ambassador and Mr Cottrell as being of the order of $1,140 trillion.

However since these transactions are untaxed and handled off-balance sheet, there is no way to prove the aggregate amount outstanding. The entire derivatives 'Ponzi Game' pyramid is now at risk, and in any case, only those in at the base of the pyramid have a melting icicle's chance in hell of ever getting paid.

And hell is where we are all now headed, thanks to the rampant, uncontrolled criminality of the perpetrators listed above, their criminalised intermediary associates, and the corrupt banks which thought the music would never stop.

WHAT IS WRONG WITH THIS DEAL?
IT'S A TRAP AND ANOTHER SCAM, NATURLICH: SO IT AIN'T GONNA GO NO PLACE
Let us briefly review what is 'wrong' with the 'deal' that the perpetrators intend to 'impose' upon the Ambassador as a 'fait accompli':

- NUMBER ONE: This is a scam built to implode BECAUSE IT STARTS OFF WITH OFF-BALANCE SHEET FUNDS AND VIOLATES 'SOURCES OF FUNDS', SO THAT IT WILL BE STOPPED AT THE FIRST TRANCHE.
The 'source of funds' is illegitimate.

- NUMBER TWO: When the first tranche is duly stopped, the criminal operatives will say: 'OH, GEE, WE PAID YOU. WHAT A PITY YOU DON'T HAVE ANY MONEY'. That is the intention, and the purpose of this posting is to make it quite clear to the international financial community that the Ambassador and Michael C. Cottrell, M.S., will have NOTHING TO DO WITH THIS DESPERATE SCAM WHATSOEVER. If asked, Mr Cottrell will advise the conspirators where to put it.

- NUMBER THREE: The transaction is not intended to be paid into the Leo Wanta/AmeriTrust Groupe, Inc.'s securities account with Morgan Stanley, New York, but rather to the custody of a bank: and neither of the Principals will deal with defrauding bankers. The history of their recent behaviour speaks for itself.

By way of an interjection here, on 1st December 2006, President George W. Bush Jr. demanded that certain foreign Ambassadors to the United States be recalled to their home capitals. The foreign powers concerned responded, in unison, that they would not adhere to this demand. In other words, the President was given a 'flea in his ear'.

The Ambassadors that George Bush II wanted out of the way were - SURPRISE, SURPRISE, SURPRISE - the Ambassadors who have been talking to Leo Wanta.

CHINESE STAND TO LOSE VALUE OF THEIR REAL $1.0 TRILLION
Having been notified of this latest Bush II Administration payment scam, AmeriTrust Groupe, Inc, has asked to speak directly to the relevant Chinese official parties. The Chinese now face the severe risk that the value of their $1.0 trillion, which they cannot dump anywhere in any quantity, will be reduced to a paltry amount in the near future, as a direct consequence of this rolling criminal financial crisis. Mr Paulson, who has signature authority over the REAL HARD CASH $4.5 TRILLION THAT IS OWNED, TAGGED AND EARMARKED FOR Ambassador Leo Emil Wanta and his AmeriTrust Groupe, Inc, is continuing, like an automaton, to drive the dollar downwards, hoping to stitch up some kind of deal next week in Beijing. The Ambassador and his Treasurer, Michael C. Cottrell, M.S., await the Chinese parties' response. If they are to hang on to the value of their $1.0 trillion, they will need to avoid the familiar temptation to countenance any delay. Otherwise they, like the rest of us, will be crucified.

The approach to the Chinese parties was made on 4th December, when AmeriTrust Groupe, Inc. submitted a formal request for assistance to the People's Republic of China, in the mutual interest, so as to ensure that both the United States and China do not suffer the same fate in the immediate future. The formal request contains the following statement, which the Editor of International Currency Review is authorised to cite verbatim:

'Our efforts since June 2006 to secure this economic receipt via the Department of the US Treasury have proven to have been futile'.

SCAMS AIMED AT NON-PERFORMANCE OF WANTA SETTLEMENT -
SO THAT GOLDMAN SACHS (ISRAEL) KEEPS THE $4.5 TRILLION
This latest scam, together will all the earlier scams, and the naked short operation, are and have been associated with the perpetrators' continuing intention not to pay the Ambassador the $4.5 trillion formally agreed on 12th December 2005, and signed off by President Bush Jr. himself, by
the US Treasury Secretary du jour, by the Federal Reserve Chairman du jour, by Supreme Court Justices, and by leading US legislators. The signatures of all these people have turned out to be WORTHLESS AND FRAUDULENT, as all are in breach of the formal agreement in question.

By reneging on their formal, signed undertakings, these officials and legislators have jointly and severally destroyed the 'Full Faith and Credit of the United States'. No-one can trust anything that US Treasury Secretary Paulson says or does any more, not least since he presides over the most outrageous and culpable conflict of interest in world financial history.

As the former CEO of Goldman Sachs, he holds signatory power over the Ambassador's tagged
and earmarked $4.5 trillion, and has chosen to enable his former institution to hold on to the money. This is a criminal act, and implies that the State of Israel, along with Germany (because of the reckless agenda of DVD, Dachau), are the United States' real, unrecognised enemies. Perhaps this crisis will force Americans to understand this reality at last, and to take the necessary steps to bring the de facto enmity of these two powers to a peremptory end.

The Editor, of International Currency Review, who has always been favourably disposed towards Israel, points out that if the American people get to understand the above reality, there will be a violent anti-Jewish backlash - something that Goldman Sachs appears to have overlooked in its greed to hold on to the Ambassador's real $4.5 trillion.

PREVARICATION BY CHINA, OR FAILURE BY PAULSON
TO ORDER THE $4.5 TRILLION TO BE CREDITED TO WANTA, WILL BE FATAL
Most informed observers 'on the inside track', tell us that if, for instance, the Chinese stall in their response to the Ambassador until next week - or Paulson does not release the $4.5 trillion which he and Goldman Sachs have effectively stolen, by next week - there will be an almighty Day of Reckoning beginning on the foreign exchange markets, triggering the dreaded global derivatives overhang implosion, and rocking stock markets all around the world. It is never possible to be
sure when such developments happen, but what is usually the case is that one or a combination
of events triggers a systemic cascading effect, which is what is now expected.

The fact that the 'mainstream' media are not covering this millennial crisis is not interesting. Whether financial journalists other than poor Bill Plante, of CBS News (see 3rd December posting) are being intimidated by the Bush Administration's thugs, is not known. What the events since June 2006 demonstrate in our context is that the 'mainstream' media is completely irrelevant. It has missed the boat and, like the rest of us, will be left to pick up the pieces.

Its editors will want to know why this crisis has been ignored by their brainwashed writers, and will get no coherent answers.

BANKERS FLY TO CORRUPT SPANISH LAST CHANCE SALOON
It is understood that representatives from Wachovia Bank, Bank of America and JP Morgan Chase, are flying urgently to Spain, to stitch this latest scam together with the Bank of Spain and Santander Bank. This posting puts all parties on notice that the scam will not 'fly' and that the Ambassador and his Treasurer will not be parties to it. It cannot be imposed upon them without their consent, and this consent is withheld.

SUBSIDIARY AND PARALLEL POINTS OF RELEVANCE:
- US intelligence operatives admitted on 6th December that the National Security Agency (NSA) has been systematically attacking and shutting down the computers of Ambassador Leo Wanta and Michael C. Cottrell, M.S.. In fact the Editor is aware that the NSA has been attacking Mr Cottrell's computers non-stop since April, this year, if not much earlier. The way this is done, and the use of NSA computer-targeting ops to steal business, are described in the recently published double issue of International Currency Review, which has exposed a great deal of the illegal activity which is now on its last legs. It's too bad these criminals didn't clean up their act sooner.


- Our posting dated 3rd December, which stated the facts then known accurately,
is directly responsible for triggering these latest ramifications. It must therefore be sharply pointed out that the chaos which is now ensuing or imminent is directly and exclusively the consequence of criminal financial operations conducted inter alia by the perpetrators named above. We are merely observers and reporters.

- Tony Blair, the British Prime Minister, is visiting Washington 'as we speak'. He
is reported to be aware of the situation, but is not equipped to have a clue what to
do about it. The Chancellor of the Exchequer's staff failed to communicate with the Editor of this service last week, as reported in our posting dated 3rd December. This was a grave error on their part.

- US television viewers were denied, on 5th-6th December, grim scenes that were broadcast on Britain's ITN Seven O'clock News on 5th December. Specifically, Jon Snow, the anchor, appeared in Baghdad, where he was televised under the 'crossed swords monument', among a very large column of stationery US military vehicles. American troops were pictured lolling against their vehicles, chewing gum and picking at their teeth with toothpicks. Jon Snow explained that the column could not risk travelling along the airport road in the daytime, and so was sitting there immobilised until very late at night, when travelling to the airport would be safer.

- If this is the situation now, in two weeks' time, the armoured vehicles and troops will ironically be stuck, immobilised beneath Saddam's 'crossed swords monument', where of course they are a sitting target. It follows that the various documents being generated in Washington to yank the President off the hook on which he has impaled himself, and to salvage this catastrophic situation, are a complete waste of time.

- The catastrophic failure of American power in Iraq coincides with the catastrophic failure of the Bush II Administration to order payment of Leo Wanta's REAL HARD CASH $4.5 trillion , which will be used to provide the basis for a REFUNDING of the United States' financially decadent (because debt-funded) economy. The awful combination of these two extreme crises, and their coincidence, spells the end of US military power and threatens to inflict a massive and very rapid decline in the standard of living of most Americans - which could have revolutionary consequences.

- The attack on Iraq was a bank raid. Among its key objectives were (a) to seize control of the Central Bank of Iraq and to seize its gold. We were informed two years or so ago that about 100 special operatives involved in this operation were killed when they were deliberately left 'in harm's way' by the US military; but we now understand that this figure was much higher. These people were sacrificed so that they would not survive to report what happened. Knowledge of this assault, giga-theft and atrocity exists because the events were recorded by several Iraqi sources. The second objective (b) was to obtain control over Saddam Hussein's 'personal' bank, Rafidain Bank, so that the General Management could be changed and then instructed to grant access to what we were told amounted to $17 trillion of assets, but which we now understand is a far higher figure. These assets are reported to be held at the London branch, and may have been frozen or stolen by the British authorities, who appear to be heavily involved in these scams.

- The Rest of the World, led by China, will go down the toilet with the United States as a direct consequence of these criminals' behaviour. The EU Collective Currency will be unable to handle the pressure, and will itself implode, after an appreciation against the degraded US dollar which will blow the European Union Collective apart.


Ambassador Leo Emil Wanta: Diplomatic Passport Numbers 04362 & 12535 a.k.a. Frank B. Ingram [FBI] (Sector V) SA32NV; and a.k.a. Rick Reynolds, SA233MS. AmeriTrust Groupe, Inc: Federal EIN Number 20-3866855; Virginia State Corporation Identification Number: 0617454-4; Virginia State Department of Taxation Identification Number: 30203866855F001.

 

[Laura]

http://altnews.com.au/nuke/article.php?sid=6639


China's Deliberate Economic Attack On America

Due to popular demand we are re-broadcasting the Investment Alert regarding China's attack on the American Economy. This may be an opportunity that you do not want to miss.
Please read below.

Addison Wiggin The Daily Reckoning

Daniel Denning, who predicted the massive profit explosion in the 2003-2004 gold market, begs you to heed this urgent message:

Protect Your Money and Pile up as Much as 794% Profits During... China's Deliberate ECONOMIC ATTACK ON AMERICA!

Beijing just unleashed a deadly three-prong attack that will levy a FINANCIAL FIRESTORM on the American economy. Before it's over, many billions of dollars will vanish into thin air! But these two simple investments can protect you. In fact, not only will they "China-proof" your portfolio... they can give you super- safe-haven profits as high as 794%..

WATCH OUT! China's "UNRESTRICTED" ATTACK on the American Economy Has Already Begun...

Find out about these two simple investments to completely "China-Proof" your wealth AND to rake in safe-haven profits that could go as high as 794%...

Dear Friend,

I hope you're ready. Because whether you realize it or not, Beijing's military government has just declared a hidden WAR on the American way of life!

Yep, that's right. Over the next five minutes, you'll read about something so shocking, The Vancouver Sun calls it, "The big sword overhanging the U.S. economy." The Irish Independent says it could "rip the heart out of manufacturing growth in Europe and America." And the New York Times says this savage cycle of financial malice could actually destroy "the very stability of the global economy."

"The Chinese make the televisions. The Americans watch them."
Popular Chinese saying

I'm talking, of course, about China's jaw-dropping economic growth over the last several years running. History has never seen a country grow this fast. I'm sure you already know there will be consequences.

Big ones.

Even the Asia Times is predicting a crisis "more devastating to the U.S. economy than any nuclear strike." But what I doubt you know -- yet -- is just how deep and deliberate this financial havoc will be.

Over the next five minutes, you'll see how this threat from the East was actually designed to DESTROY the U.S. economic advantage. Intentionally. What follows is an imminent DISASTER for the bond market... DEVASTATION for the already-weak U.S. dollar... and absolute ANNIHLATION of most of the popular stocks on Wall Street! If you're not careful, you stand to lose everything. Watch as it happens. Interest rates are virtually guaranteed to skyrocket... America's real estate bubble will POP like a balloon at a porcupine party... and the voracious financial backdraft that follows will literally suck the life out of America's so-called "recovery"...

I don't paint a pretty picture. But that's only the bad news. The good news is you can protect yourself! Two Powerful Moves That Can Protect Your Money

I'm about to show you a powerful strategy that cannot only protect you... but it can make you an incredible 794% profit. It's easy to do.

Of course nothing is a sure thing but this is pretty close. Just talk to any broker. Or log onto your favorite trading website on the Internet. This strategy I'll reveal only takes about five minutes to execute. And you can get started with very little capital.

Because part of the strategy is a leveraged investment, you only risk what you put in. But you stand to make many, many times that in financial "safe-haven" profits. This strategy I'll reveal starts with two simple investment opportunities. Do just one, and I predict you'll make as much as 350% to 400% Do the other, and you stand to make up to an additional eight times your money. And combined, the whole package gives you a fortress in which you can safely park some of your wealth.

Because I know already what this strategy is, I also know it's something you won't find anywhere else on the market today. And I'll reveal it to you in just a second. But first... How to Survive the Most Serious Financial Threat Since 1929 What follows is not a trend you can shrug off. It's not a "recoverable blip" in the market. Washington has no control over this. New York and Chicago brokers have no control over this. And Europe has no control over this either.

"Many economists believe that the Chinese currency is undervalued by as much as 40%, giving the country an unfair advantage in being able to underprice competitors in international markets."
The Washington Times ,Dec. 10, 2003

Which is why what I'm about to describe will turn out to be the most dramatic and serious financial threat America has faced since 1929! I'm so worried about it, I've put together a FREE resource for investors.

I will e-mail it to you, no charge. It's called " Total Profit Protection From the Coming China Crisis!" And again, it's FREE. You'll find out exactly how - step by step - you can pile up as much as 794% gains while you fortify your wealth against the winds of crisis ahead. I've promised you that much already. But then I'll also e-mail you three more FREE reports that show you...

� How to make up to 455% on a buy-and-hold mutual fund!

� A dozen ways to make Asia gains without buying Chinese stocks!

� How to lock in up to 953% profits on the next leg of the gold-market boom!

� And how to sock away as much as 10 times your money on what I firmly predict will be a breathtaking 20-year boom in commodities!

It's all FREE, as part of the STRATEGIC PROFITS PROTECTION LIBRARY I've put together just for you. But I'm getting ahead of myself. First, let's dig into the sordid details of the crisis ahead...

"Beijing's Secret War on America" How China Expects To Win "The first rule of unrestricted warfare is that there are no rules, with nothing forbidden."
- Col. Qiao Liang & Col. Wang Xiangsui China's People's Liberation Army, and co-authors of Unrestricted Warfare

Has there ever been a rising power, in the pages of history, that has picked up economic momentum... packed on military might... and then decided not to flex it's muscles?

The answer, as you well know, is that there hasn't. Power is power. The nations that have it chomp at the bit to use it. Which is exactly what China is doing now. But you don't have to take my word for it. Roger W. Robinson Jr -- head of the U.S.-China Economic and Security Review Commission -- gave this testimony to the U.S. House of Representatives back in October 2003. He laid out the Chinese blueprint for undermining the U.S. economy:

* First, they devalue their currency by as much as 40%

* Then they issue tariffs on foreign goods

* They cut foreign firms off from local marketing channels

* They chaperone and handpick partners for international joint ventures

* They give preferential loans to their own factories from state banks

* Chinese companies get privileged listing on the Chinese stock market

* Chinese companies get special tax breaks not available to foreigners

This assault on the American economy is already well under way. Whether they'll succeed or not we don't yet know. But for a long time to come, you'll need to protect yourself and your money. But you can also profit -- by as much as 794% or more. Click the "Subscribe Now" button below to send for your FREE set of the STRATEGIC PROFITS PROTECTION LIBRARY.

Look, by now you might be wondering if I've got some sort of personal vendetta against China. No! That's not the case at all. I've got nothing against China or the Chinese. In fact, I'm making plans right now to go there and all around the rest of Asia do research on the massive investment opportunities already under way. China has an unbelievable history. They have lots of culture. Three thousand years ago, they were building palaces... while my ancestors were making mud patties on the English moors. So no, I'm under no delusions about the greatness China is capable of. But that doesn't change the rest of the facts I'm about to show you. When I show them to you, I'm confident you'll come to the same conclusions I have. You'll see instantly that what's quietly unraveling the fabric of the American economy... the exploding deficits, the massive trade gap, the joblessness, and even some secret aspects of the war on terrorism... is not only no accident, but it can all be traced back to, shockingly enough, Beijing. Here's the "real" truth: Without a doubt, China's military government has actually masterminded adeliberate assault on the American way of life.

I'm going to show you how they've done it. It's a war. Not with tanks or missiles. Not with jets, bullets, or guns. Or hand grenades. The "combatants" in this battle wear business suits. They hit you with handshakes, contracts, and smiles. But don't be fooled. This is war without rules. In the words of one of their own military officers, "nothing is forbidden."

Without drawing a drop of blood, Beijing fully expects to win... and here's how they plan to do it: Guerilla Economics! Step back for a second. And remember... When we talk about modern China, we're not talking about a democracy. We're talking about a military dictatorship.

Even now, in 2004. This is the way they do business. I'm calling it "guerilla economics." The goal is to destroy the competition. And at the same time... create a guaranteed money-making environment for China's own entrepreneurs.

Is it working.

For China, absolutely... Ding Lei is 32 years old. He's also the richest man in China. His NetEase.com outfit didn't crank out a nickel of profit until 2003. But his stock is up 50-fold thanks to ecstatic American investors, and Ding is now personally worth $900 million! Chen Tianqiao is just 30. In 1999, he ran a cartoon Web site. Now he runs Shanda Networking, an online gaming business out of Shanghai. New York venture capitalists helped him get started. Now he's personally worth $480 million. Larry Rong's dad is Rong Yiren, founder of CITIC. CITIC is the biggest company in China and a magnet for U.S. investment dollars. Larry is personally worth $850 million. His family is worth closer to $2 billion.

The military government of China has their hands deep in the pie too.

Take China's biggest TV and cell phone maker, TCL Corp. It's state owned. Last year they exported 3.83 million TVs. They expect to ship 5 million more!

"All Beijing has to do is to mention the possibility of a sell order going down the wires. It would devastate the U.S. economy more than any nuclear strike."
Asia Times, Jan. 23, 2004

The top 100 richest people in China now have an average wealth of $230 million. Another 10,000 or so more Chinese are worth at least $10 million so far. And that's up from zero millionaires in China as recently as 1979.

Of course, most of the companies listed on the Shanghai exchange are still state-owned. The top 14 Chinese car-makers are state owned -- with bloated bureaucratic budgets. But that doesn't matter -- in 2003, U.S. investors poured millions and millions of dollars into China Brilliance Automotive shares -- and it's stock shot up 232%!

For all appearances, it looks like China has cracked the code of Western capitalism. Three years ago, for instance, China didn't manufacture a single laptop. NOW they make 40% of all laptops sold worldwide! They're also ranked as the world's biggest maker of computer hardware... consumer electronics... even steel (remember when that used to be Pittsburgh?).

China cranks out 38% of the world's cell phones. And half of the world's shoes. Plus most of the wooden furniture, video games, and televisions in the United States. But guess what happens when you take a look at the other side of the coin...

Is This the End of the American Miracle? We're feeling the China boom right here at home, too. But somehow it's not the same...

Here in the United States, American Metal Ware had made nearly 2.5 million pots in their Wisconsin factory... before they had to shut it down.

Chinese manufactures stole the design and cranked out copies at half the price.

To compete, Metal Ware had to move over to China.

Levi's were the all-American brand. They once had 63 U.S. plants. They just closed the last two and fired all the workers. Levi's will be made in China now.

Walt Disney was an all-American success story. But Disney's "Winnie the Pooh" dolls are made not here, but in the same place as Dr. Scholl's sandals and Foster Grant Sunglasses -- China.

How about Wilson tennis balls or Black & Decker drills? Silk flowers, sneakers, wood furniture, and hand-held "Game Boy" video games? All sold here, but all manufactured in... China.

A mind-blowing 80% of all the toys, bikes, and Christmas tree ornaments sold in the Unites States came from China. Along with 90% of the sporting goods and 95% of the shoes. Motorola spent over $1 billion moving operations from the US to China.

Thousands lost their jobs -- replaced by 10,000 Chinese workers in four new plants on the coast of the Yellow Sea. Look, there's nothing wrong with making money. And you can't fault anybody for just doing business and looking out for their own best interests. But at what cost? And whose expense?

A New Hampshire radio show made a public dare: "Take $400 an hour at Wal-Mart. Buy as many 'Made In America' goods as you can." Two listeners took the challenge. An hour later, they hit the checkout line with a basketful of 40 items. Guess how many actually were made in America? Just 10. It's no wonder. Sam Walton, Wal-Mart's founder, wrote an autobiography called "Made In America." But today, Wal-Mart alone imports a mind-blowing $12 billion of goods from China every year... That's more than China's trade with either Russia or the United Kingdom!

How did this happen? Beijing's Ugly SECRET #1: "Crush the Competition With Slave Labor!" Chinese workers average 61 yuan an hour. US factory workers average $16 an hour. In other words, US workers make more in two weeks than most Chinese laborers make in a whole year! Nobody outside of China can compete with that. "We are beholden to the Chinese by our Treasuries. That worries me."

Carla Hills, Former U.S. trade representative China gets an endless supply of labor for just pennies. And there's a waiting list nearly 200 million people long to take over those jobs when the current workers drop from exhaustion (they work 12 hour days, 7 days a week). Moral or not, Beijing's slave-labor strategy does exactly what they hoped it would... It's sucked the life out of America's more costly industrial complex! Just check out the numbers: Over 450 U.S. companies are based in China. That's more than 10 times the number of U.S. companies there in 1990.

They've got combined annual sales of $23 billion. And more than 250,000 employees. In fact, U.S. investment in China is now a record $33 billion a year!

Meanwhile...

Nearly 2,250 American manufacturing jobs here in the Unites States have disappeared... every single day!

That's a not something new... it's been the trend day in and day out, over and over again... for 40 months straight!

What are the Chinese up to? They learned this trick from the Americans. Especially mega-rich superstars like Andrew Carnegie, John Rockefeller, and J. Pierpont Morgan. It's the genius strategy of any savvy monopoly maker: First, move in and CRUSH the competition with cutthroat pricing. Then... take away his business and leave him high and dry!

Thanks to slave labor, Chinese companies can crush U.S. competition with lots of cheap goods that USED to be made right here in America. In exchange, they not only get our purchases... they get our companies, when they're forced to pack up and move over to China so they can take advantage of the same cheap labor strategy. What's more, China also gets to send a whole new kind of export to America... Chinese STOCKS! And in return for that, they get billions more in investment capital. Straight from the trading accounts of private U.S. investors. Imagine. We're literally paying Beijing to "rip the heart" out of the U.S. heartland!

But it gets even better. Because that's only the FIRST dirty strategy engineered and overseen by Beijing. Here's the second... Beijing's Dirty SECRET #2:"Bait the Trap With Treasury Notes!" Another fallout from Beijing's supercheap labor strategy is America's massive trade deficit with China. It just keeps exploding.

As you can see in this chart, it's already passed a gap of over $120 billion. That means we actually BUY $120 billion more in goods from China than we manage to SELL to them. A household can't get rich... or stay rich... if it spends more than it takes in. Neither can a nation. Yet, no matter what we try to do to stop the gap from growing... weaken our dollars, create trade tariffs, perfect production and slash costs... America just can't keep up.

The trade deficit is now exploding $1.5 billion per day. Putting that in perspective... that means we spend an additional $1 million on Chinese products... every single passing minute! But that's not the worst part. Guess what China is doing with all that money?

First, the money we send China gets reinvested in the PLA, China's massive military. (New reports say China has just built low-profile military bases on several disputed reefs in the Philippines!).

Second, it goes back into funding more huge Chinese factories. With 200 million Chinese looking for jobs, China needs to build places for them to work! It also needs to buy HUGE stockpiles of raw resources to keep the factories running. Third, and most dangerous of all, the Chinese government uses a lot of their extra exporting income... to pile up an absolutely SICK number of U.S. Treasury bonds! That's right. China spends nearly $7.8 million an hour... or $187 million a day... snapping up US Treasuries and dollars.

The movers and shakers in China now hold the U.S. hostage to over $120 billion in Treasuries!

Now ask yourself: If it's obvious that U.S. interest rates have nowhere to go but up... if it's obvious the U.S. dollar has nowhere to go but down... and if it's obvious that Washington right now is literally spending America into oblivion...

Why would the Chinese government sock so much faith in U.S. treasuries?

Simple. It's not a vote in America's future at all. Instead, it's Beijing's way of backing America into a corner!

Think about it. The Feb. 5, 2004 Wall Street Journal has already reported that other Asian countries -- who altogether with China and Japan included -- hold an eye-popping $1.9 TRILLIONin U.S. foreign reserves -- are starting to dump U.S. debt. Korea and Thailand dumping is one thing. But when a massive holder like China stops buying U.S. debt and starts dumping, it's a much, MUCH bigger deal.

Pressure on U.S. bond yields will skyrocket. Other foreign investors will run from dollar-priced securities in a panic. Long interest-rates will jump. And U.S. consumers, businesses, and investors will get crushed in the jaws of a very powerful "Treasury Trap"!

It won't take more than a whisper - "sell." And that's your signal. I promised earlier to show you how to protect yourself from exactly this kind of disaster. And that's precisely what you'll discover in your FREE e-mail report "Total Profit Protection From the Coming China Crisis! " But before we dig into all that, let me share with you just one more piece of this sinister puzzle...

Beijing's Dangerous Strategy #3:"Lock the U.S. Dollar in a Death Struggle" To finance all its foreign debt, the United States has to spend a breathtaking $55 million per hour... or $1.3 billion per day... just to keep enough liquidity in the system to cover overseas interest-payment obligations.

Washington treats the Federal Reserve like a money machine: Walk up, punch the buttons on the printing press, and out comes the cash! Why? Because the more dollars there are, the less they're worth. And the less they're worth, the easier it is to cover those interest obligations without wincing. "America's growing reliance on high quality, low-price Chinese imports eventually might undermine the U.S. defense industrial base." US-China Security Review Commission Report

Trouble is, no government -- not even one as large as America's -- can keep up with that kind of program. Especially when you're overextended on your own personal spending budget by nearly half a trillion (with a "t") dollars! So just by holding U.S. Treasures, Beijing already has us trapped. But they haven't stopped there. China has ALSO hoarded piles and piles of ever-cheaper U.S .dollars. They've now got more than $310 billion in U.S .dollar reserves! Again, you have to ask: If U.S. dollars are backed by an overextended federal government... and if other major governments worldwide are already talking about switching reserves to gold and euros... if America's money isn't worth the paper it's printed on...

Why would China want to keep so much of their newfound wealth in the U.S. dollar, a currency that's already down more than 50% since October 2000? Again, it's simple. Since 1995, the Chinese currency -- the yuan -- has been pegged to the dollar at the weak exchange rate of 8.28 to the dollar. No matter how low the dollar goes, the yuan goes with it. So no matter how low the dollar goes... it's virtually impossible to close any currency-related trading gap we've got with China! It's like seeing how long two enemies can hold their breath under water. Whoever can withstand having a dirt-cheap currency the longest wins. But so far, judging just by the trading deficit, it looks like China is winning. And the U.S. is running out of options.

Could a stronger dollar shake loose the yuan's death grip? Not at all. This is how the sinister yuan strategy works. If the dollar rises, the yuan rises in lock step. If the dollar drops, so does the yuan. China's trading advantage never disappears... but we risk popping our own real estate bubble, slashing trade with Europe, and knocking the legs out from under stocks and bonds.

Meanwhile, China still has $310 billion in dollar reserves... which it can trade for euros or gold at any time... and use to throw the dollar into a final death spiral. When Beijing starts dumping, what follows could be worse for dollars than anything since Nixon broke with Bretton Woods in the 1970s.

Your FREE copy of "Total Profit Protection From the Coming China Crisis!" will also show you to protect yourself against this inevitable dollar collapse... with a strategies that can turnsevery $1,000 invested into as much as $78,400 or more. But first... Still wondering how or why all of this could have been a planned economic attack... rather than just an accident of free-market capitalism? Still think all this is a coincidence?

That's ok. But before you make up your mind to the contrary, you'd better read this... click here to continue . http://www.agora-inc.com/reports/DRI/china324/

 

[Laura]

http://www.isecureonline.com/Reports/DRI/china324/

Chinese Military Reports, 'America Is the Enemy!'

If you still think I'm just speculating... that this couldn't possibly be planned... maybe you haven't heard yet about a hugely popular book that's still making the rounds... first in Beijing... and now at the White House, the Pentagon, and CIA headquarters.

The book is called 'Unrestricted Warfare.' It's written by Colonels Qiao Liang and Wang Xiangsui, two high-ranking officials in the People's Liberation Army of China (PLA).

America, says the book, is China's most likely enemy for at least the next two decades, if not for the whole 21st century. The battle, they say, will be fought everywhere.

Drug smuggling... attacks on America's computer networks... media manipulation... intellectual piracy... exploiting loopholes in international law... and one of the post powerful weapons of all, attacking America's financial base.

Here's a direct quote from page 51 of the book:

'Financial war is a form of nonmilitary warfare which is just as terribly destructive as a bloody war, but in which no blood is actually shed... When people revise the history books... the section on financial warfare will command the reader's utmost attention.'

Beijing takes this book seriously. So does Washington.

The book also recommends Chinese companies infiltrate the U.S. stock market.

Imagine if the U.S. government started building companies just to drain income from Dow and Nasdaq investors. Imagine the U.S. Army taking over Motorola or QUALCOM so they could suck technology secrets out of other nations. Maybe it wouldn't happen here.

But it's business as usual in Beijing. With companies like PetroChina, the huge state-owned Chinese oil company. Or Hutchison-Whampoa, the state-owned Chinese contruction conglomerate. Or COSCO, China's state-owned shipping giant.

The list goes on. As recently as 1999, the U.S. Congress named over 3,000 front companies for the Chinese army operating inside the United States!

Like I said...

Washington's got no grip on this. Neither does Wall Street. But you can do PLENTY to protect yourself. And make a handsome profit besides...


____________________________________

Then, it goes into the sales pitch about the book or whatever.

Interesting nonetheless.

 

[OPINMYND81]

Interesting stuff about the China angle. Then again there's a veritable market on the "China's the enemy and is trying to destroy America" schtick. You got hundreds of websites dedicated to the topic, I'm sure Newsmax.com has a whole library of books on it.

That isn't to say China isn't hostile or planning to wage war with the US. Obviously that is the case, but at this point it seems to be just using their strengths against America's weaknesses (e.g. sunburn cruise missiles, lasers blinding satellites, economic warfare, etc.). Keep in mind the US has been messing with China for a very long time and is now literally surrounding it with military bases.

This does smell like propaganda, as in, we'll have someone else to blame when the economy crashes and people need a scapegoat, why not China with all their outsourced American jobs? Great way to kick off that war they've been talking about for the past decade.

This isn't new, the site that I got the above article from also pitches the "commies never went away but are still in power in Russia and trying to destroy America" schtick. The accuse "Leninist Doctrine" of being responsible for the drug epidemic in the US and the perestroika thing was a ruse to deceive the west.

While it's not outside the realm of possibility it is still darn annoying that you got people still willing to blame everyone else, especially their enemies, for America's problems. As if the US doesn't bear a great share of blame for the world drug problem or the world financial/economic crisis. No it's ALL the "commie's" fault. Geez, get real.

An interesting thing did happen when I tried to put in that above link into firefox and forgot to replace the (dot) with a "." it sent me to this page - http://www(dot)rense.com/general72/vlob.htm

Rather bizarre if you ask me.

 

[Ryan]

http://news.yahoo.com/s/ft/20061204/bs_ft/fto120420061642266991

Asian central banks accept falling US Dollar
Asian central banks learn to live with dollar fall [...]

One challenge facing Asian central bankers, however, are signs of
inflation that could force them to raise interest rates and the value of
their currencies as a result.

Mr Foster said: "The central banks must balance the need to keep
inflation under control without causing their currencies to appreciate
sharply."

Bill Buckler at The Privateer reports on Asia's response:

But now, on December 7 to be exact, Masahiru Kawai, a senior official at the Asian Development Bank, has called on the east Asian nations to make sure that their currencies rose in unison against the US Dollar and did not "gyrate". Accepting the inevitable continuing fall of the US Dollar, Mr Kawai said this: "It's very important for the East Asian currencies to appreciate collectively against the US Dollar."

Mr Kawai went on to say that the consensus amongst economists was that the US current account deficit could only be trimmed substantially if the US Dollar declined by an average of 30 to 40 percent when weighted by the portion of US trade conducted with each country. "East Asian economies can cope with a significant appreciation vis a vis the United States", concluded Mr Kawai, "if it's managed in an appropriate way." (Emphasis by The Privateer)

Damage control for consumption by the Asian domestic markets? Or yet another indicator that the Asian economies are no longer going to come to the rescue of the USD?

 

[Rich]

Bill Buckler at The Privateer reports on Asia's response:

The Privateer wrote:

But now, on December 7 to be exact, Masahiru Kawai, a senior official at the Asian Development Bank, has called on the east Asian nations to make sure that their currencies rose in unison against the US Dollar and did not "gyrate". Accepting the inevitable continuing fall of the US Dollar, Mr Kawai said this: "It's very important for the East Asian currencies to appreciate collectively against the US Dollar."

The best opportunity for the East Asian leaders to discuss and cement a coherent strategy to this crisis would have been the ASEAN summit due to be held on dec 11-13th in the Phillipines. It is peculiar that there are three reasons given as to why it was cancelled. typhoon, terrorist threat political unrest.....to have all three of these cited as an explanation seems very fishy to me.

On Friday, the Philippines hastily postponed an annual summit of 16 Asian leaders until January, citing concerns the typhoon could wreak havoc at the venue on the central island of Cebu.

Presidents and prime ministers from 16 countries were due to start arriving on Cebu and nearby Mactan Island on Saturday for the annual Association of Southeast Asian Nations (ASEAN) meeting and an East Asia summit on December 11-13.

While Philippine officials insisted the surprise move was unrelated to warnings from the US, British and Australian governments that terrorists were planning to bomb the gathering, security officials told Reuters fears of political unrest in Manila had influenced the government's surprise decision.

http://www.iol.co.za/index.php?set_id=1&click_id=126&art_id=qw1165786204525B214

ASEAN was established on August 8, 1967, with the signing of the ASEAN Declaration, also known as the Bangkok Declaration, by foreign ministers of Indonesia, Malaysia, the Philippines, Singapore and Thailand.

It was later expanded to include Brunei, Vietnam, Laos, Myanmarand Cambodia. Papua New Guinea became its observer in 1995.

ASEAN has 10 dialogue partners -- Australia, Canada, China, the European Union, India, Japan, Russia, New Zealand, South Korea andthe United States.

http://english.peopledaily.com.cn/200306/15/eng20030615_118282.shtml

The cancelation has since made it difficult for the same leaders to meet up in january:

The Indonesian government has not agreed with the new summit dates of the Association of Southeast Asian Nations (ASEAN) set by host Philippines .

 

[John Chang]

Regarding China - I'm not predjudicial, but I am postjudicial, ruthlessly postjudicial. From what I've seen, after interacting with a broad cross-section of chinese people, they are generally out to screw the world. Not all of course, but odds are good, if one is making you a deal, s/he's getting the better end of it. I don't think they necessarily have to be our enemy, but they certainly ain't our friends.

As far as the $ goes? I dunno. Support level is at 80, and if it breaks that, "Katie, bar the door", as an old futures day-trader I once knew used to say. If it doesn't I guess things could keep corkscrewing along for a few more years.

Eh, it's all paper, you can't take it too seriously. The game will keep going until it doesn't, I guess, and when it stops, nothing, and I mean nothing will get it going again.

 

[Nienna]

Was it Nostradamus who said at the end of one of his Quantras, "And the yellow man shall rule the world"? I remember hearing this somewhere several different times. And I always thought of it as they will defeat us in war (and who is to say that this won't happen).

But in retrospect, economics is what really does control the world. And after reading this thread, I am starting to see this in a whole new light. Maybe this is how they intend to "rule the world". Nothing seems to suprise me anymore.

 

[PopHistorian]

Lynne wrote: << economics is what really does control the world. And after reading this thread, I am starting to see this in a whole new light. Maybe this is how they intend to "rule the world" >>

Well, it's how the US rules the world -- oh, and with 725 military bases in 130 countries. The neocons promote the protection racket and overt military action (physical bullying and brutality) as a "preventive" -- a means of frightening nations into submission, but the spectacle of it is, in part, causing the US downfall. China probably won't make the same mistake unless truly provoked militarily, OSIT.

 

[Vulcan59]

I wasn't sure where to put this but it seem appropriate under this threads heading. On my search for understanding and knowledge I stumble on to this website where the author Douglas V. Gnazzo spells out clearly how the US constitution was surreptitiously tweaked with regards to money. Which eventually led us to the current mess the US and the world are in right now. Seems like it has been the plans for a one world currency from the very beginning and as the author states "hidden hands" are guiding those plans. The author's articles very much reads like Douglas Reeds, CoZ. I started reading his archives section "Silver is Money" series and boy, what a treasure trove of information.