Posts Tagged ‘we hate you guys’

America Cut Off Like Spoiled Brat: China Planning To Massively Divest Itself Of U.S. Debt

May 7, 2011

Imagine you’re a rich kid, a spoiled brat.  All your life, you’ve lived on daddy’s money.  But you’ve finally taken that one giant step too far and daddy has pulled the money plug on you.

What would you do?

You’d better figure it out quick.  Because it’s just about to happen to you and to everybody else. 

Because China is beyond fed up with Obama’s hopey-changey:

China Proposes To Cut Two Thirds Of Its $3 Trillion In USD Holdings
Submitted by Tyler Durden on 04/24/2011

All those who were hoping global stock markets would surge tomorrow based on a ridiculous rumor that China would revalue the CNY by 10% will have to wait. Instead, China has decided to serve the world another surprise. Following last week’s announcement by PBoC Governor Zhou (Where’s Waldo) Xiaochuan that the country’s excessive stockpile of USD reserves has to be urgently diversified, today we get a sense of just how big the upcoming Chinese defection from the “buy US debt” Nash equilibrium will be. Not surprisingly, China appears to be getting ready to cut its USD reserves by roughly the amount of dollars that was recently printed by the Fed, or $2 trilion or so. And to think that this comes just as news that the Japanese pension fund will soon be dumping who knows what. So, once again, how about that “end of QE” again?

From Xinhua:

 
 

China’s foreign exchange reserves increased by 197.4 billion U.S. dollars in the first three months of this year to 3.04 trillion U.S. dollars by the end of March.

Xia Bin, a member of the monetary policy committee of the central bank, said on Tuesday that 1 trillion U.S. dollars would be sufficient. He added that China should invest its foreign exchange reserves more strategically, using them to acquire resources and technology needed for the real economy.

And as if the public sector making it all too clear what is about to happen was not enough, here is the private one as well:

 
 

China should reduce its excessive foreign exchange reserves and further diversify its holdings, Tang Shuangning, chairman of China Everbright Group, said on Saturday.

The amount of foreign exchange reserves should be restricted to between 800 billion to 1.3 trillion U.S. dollars, Tang told a forum in Beijing, saying that the current reserve amount is too high.

Tang’s remarks echoed the stance of Zhou Xiaochuan, governor of China’s central bank, who said on Monday that China’s foreign exchange reserves “exceed our reasonable requirement” and that the government should upgrade and diversify its foreign exchange management using the excessive reserves.

Tang also said that China should further diversify its foreign exchange holdings. He suggested five channels for using the reserves, including replenishing state-owned capital in key sectors and enterprises, purchasing strategic resources, expanding overseas investment, issuing foreign bonds and improving national welfare in areas like education and health.

However, these strategies can only treat the symptoms but not the root cause, he said, noting that the key is to reform the mechanism of how the reserves are generated and managed.

The last sentence says it all. While China is certainly tired of recycling US Dollars, it still has no viable alternative, especially as long as its own currency is relegated to the C-grade of not even SDR-backing currencies. But that will all change very soon. Once the push for broad Chinese currency acceptance is in play, the CNY and the USD will be unpegged, promptly followed by China dumping the bulk of its USD exposure, and also sending the world a message that US debt is no longer a viable investment opportunity. In fact, we are confident that the reval is a likely a key preceding step to any strategic decision vis-a-vis US FX exposure (read bond purchasing/selling intentions). As such, all those Americans pushing China to revalue, may want to consider that such an action could well guarantee hyperinflation, once the Fed is stuck as being the only buyer of US debt.

It’s not like the Chinese didn’t try to warn us:

The Chinese government contacted our tax-cheating Treasury Secretary Timothy Geithner and said:

“We want some kind of a guarantee that your money is going to be worth something if you keep spending so much over there and devalue not only your currency but the currencies throughout the world… We hate you guys.  Once you start issuing $1 trillion, $2 trillion, or more dollars, we know the dollar is going to depreciate.”

But of course, that is precisely what Obama did: issue $1 trillion, then $2 trillion, then so on and so forth, in new spending.  And now our dollar is tanking into poo-poo land.

Obama Enraging Enemies And Alienating Allies

May 27, 2009

Remember how the left kept screeching that Bush had alienated our allies and enraged our enemies? Remember how they said that Barack Obama would make the world love us again? Well, the Democrats get to wear their soiled underwear over their own heads, now. Because now we get to see on a nearly daily basis just how truly full of pure partisan garbage they have been for years.

N. Korea Says It Conducted 2nd Nuclear Test

SEOUL, South Korea — North Korea announced Monday that it successfully carried out a second underground nuclear test, less than two months after launching a rocket widely believed to be a test of its long-range missile technology.

North Korea, incensed by U.N. Security Council condemnation of its April 5 rocket launch, had warned last month that it would restart it rogue nuclear program, conduct a second atomic test as a follow-up to its first one in 2006, and carry out long-range missile tests.

And North Korea just test-fired a missile. “The Yonhap news agency report Monday comes just hours after the communist nation declared that it successfully conducted a nuclear test.”

And what is North Korea saying today?

N. Korea threatens to attack US, S. Korea warships

SEOUL, South Korea (AP) – North Korea threatened military action Wednesday against U.S. and South Korean warships plying the waters near the Koreas’ disputed maritime border, raising the specter of a naval clash just days after the regime’s underground nuclear test.

Pyongyang, reacting angrily to Seoul’s decision to join an international program to intercept ships suspected of aiding nuclear proliferation, called the move tantamount to a declaration of war.

But, but, but we’ve got OBAMA now. And the world is supposed to be wonderful again. Maybe Kim Jong-Il hasn’t heard that we’ve got Obama now?!?!

Obama did his “no preconditions appeasement offer” to Iran. And Iran responded by testing ballistic missiles in what is widely regarded as an open act of contempt and defiance of the United States.

We learned in March of this year that Iran can make 50 nukes with the material they’ve produced so far.

Iranian forces recently crossed into Iraq to launch attacks on Iraqi Kurds. In open defiance of the United States.

Obama wants to dialogue ad infinitum while “Iran vows to continue [it’s] nuclear program.”

And how is Obama responding to this Iranian resolve? Headline: “U.S. may cede to Iran’s nuclear ambitions.”

Israel – an alienated ally of the United States – is well aware that it has been betrayed by Barack Obama. And when Israel attacks Iran’s nuclear program – and it will – that will be a crisis that Barack Obama will have caused due to his own weakness and lack of resolve.

And the whole planet will erupt into “enraged enemies” and “alienated allies.”

As an additional plus of Obama’s weakness, the net result of an Iranian nuclear program will be that Sunni Muslim countries – who have worried over Shiite Iran’s nuclear ambitions – will develop their own nuclear weapons programs.

I’ve been SAYING that an Obama administration would allow Iran to develop nuclear weapons ALL ALONG. Back in April of last year, in urging support for McCain over either Obama or Clinton, I wrote:

A President John McCain can assure the Iranians, “We attacked Iraq when we believed they represented a threat to us, and we will do the same to you. You seriously might want to rethink your plans.” A President John McCain can say to Sunni Arab states such as Egypt, Saudi Arabia, and Turkey, “We have stood by Iraq even when it was difficult, and we will do the same for you. You don’t need those weapons; the United States will be there for you.”

And Obama, who can’t say ANY of that, is already blinking.

But let’s leave the unpleasant future that will be caused by Barack Obama and continue our present tour of enraged enemies and alienated allies under his current rule.

Russia just warned Ukraine and Georgia (remember Obama’s pathetic and appeasing message to Russia following its invasion of Georgia?) over moving toward the West by joing NATO. They won’t stand for it. And they clearly aren’t even the least bit afraid of any American response.

Russia took Obama’s measure back in August 8, 2008. And they know his response will be to shrink back and conceal himself behind meaningless “citizen of the world”-speak that will enable Russia to do whatever it wants.

CNN reported on April 30th that “Terror attacks have spiked dramatically in Afghanistan and Pakistan.”

And, goodness gracious, Pakistan and its 100 nuclear weapons are in very real danger of falling into the hands of the Taliban. A top adviser to the US Central Command has warned of the very real possibility of Pakistan collapsing within six months.

Well, that aint good. Wasn’t Obama supposed to make all our problems go away as he overcame all of Bush’s evilness with his magnificent wonderfulness?

Obama failed to win any support from European allies in Afghanistan, something he and his liberal allies repeatedly criticized Bush for failing to deliver as they promised that they would. The U.S. in Afghanistan is as much on its own as it ever was under Bush.

And so, while Obama sits atop the throne, the “security situation in Afghanistan is deteriorating” under his rule. The U.N. says “Human rights in Afghanistan are worsening, marked by setbacks for women, attacks on freedoms and seeming impunity for perpetrators.”

Obama has called for the same sort of surge strategy in Afghanistan (see also here) that he himself personally demonized Bush for pursuing in Iraq.

Reporters in Iraq note “a dramatic increase in spectacular attacks against Iraqi civilians and increasing attacks against occupation forces” by al-Qaeda.

We are facing a growing problem with pirates off the coast of Africa. And Obama is facing a particularly significant threat from Sudan and its dictator, Omar al-Bashir.

Clearly, our enemies haven’t become our friends. Not even a little bit. In fact, they are more hostile and more aggressive than ever. Not that the propagandist media that spent years writing about how Bush creating unrest all over the world would ever point that out.

How about our friends and allies? Surely they love us more, now that Obama is president. Surely the days of alienation are over, right? RIGHT?

Not so much.

You remember me telling you that the EU isn’t giving Obama any help in Afghanistan? Well, they’re not giving Obama any help in closing down Gitmo, either. As much as they like to rail against America for the evils of Gitmo, they won’t take their own people back which would enable us to close it down. Just like they wouldn’t under Bush. And the same countries that won’t take their Gitmo detainees are using our other terrorist detention facility in Bagram as their reason.

That’s not very helpful. I feel alienation.

French President Nicolas Sarkozy basically thinks Obama is a turd, calling his policies “‘utterly immature’ and comprised of ‘formulations empty of all content.’” That rather sounds like a heaping dose of alienation talking, to me.

The EU president called Obama’s stimulus spending “the road to hell.” Mirek Topolanek further said that President Barack Obama’s massive stimulus package and banking bailout “will undermine the stability of the global financial market.” The ABC News article already cited reports on “simmering European differences with Washington.”

Doesn’t that kind of sound like “alienation”? Doesn’t it?

Obama had previously ignited fear of a trade war with Europe with his “buy American” policy. The EU trade commissioner warned Obama that Europe would fight back. Obama also ignited the threat of a trade war with our third largest trade partner, Mexico, after he tried to renege on a trade deal in order to reward US unions.

Obama also inspired a great deal of British outrage toward America when he casually snubbed Prime Minister Gordon Brown and insulted our greatest ally.

Obama then proceeded to insult and undermine our relationship with our second greatest ally, Israel, with an inexcusable gesture of cold indifference for a top Israeli general.

Perhaps liberals believe that Obama’s disgrace America tour was a step in the right direction. I think he made a fool out of himself and undermined the prestige and respect of the once-great United States of America.

Russia and China have similarly sounded, well, VERY ALIENATED toward Obama and his policies.

Russia has warned Obama about what they view as his ruinous socialist policies.

Russian Prime Minister Vladamir Putin has said the US should take a lesson from the pages of Russian history and not exercise “excessive intervention in economic activity and blind faith in the state’s omnipotence”.

“In the 20th century, the Soviet Union made the state’s role absolute,” Putin said during a speech at the opening ceremony of the World Economic Forum in Davos, Switzerland. “In the long run, this made the Soviet economy totally uncompetitive. This lesson cost us dearly. I am sure nobody wants to see it repeated.”

Luo Ping, Director-general for the China Banking Regulatory Commission, is on record saying, “We want some kind of a guarantee that your money is going to be worth something if you keep spending so much over there and devalue not only your currency but the currencies throughout the world.” He went on to say, “We hate you guys. Once you start issuing $1 trillion, $2 trillion, or more dollars, we know the dollar is going to depreciate.”

And, yeah. Don’t think I didn’t notice from the above link that the mainstream media truly doesn’t want us to know what China thinks about the ruinous course we are pursuing under Obama.

And all the while, we’re warned that “an economic storm with China is still coming for Obama.” In other words, in terms of alienation with China, you aint seen nothin’ yet.

Pardon me for pointing this out, but I’m just not feeling the love.

The same propaganda machine that undercut and undermined President Bush at every imaginable turn is going well out of its way to avoid reporting on just how much damage Barack Obama has done on the international front. They who routinely blamed Bush for everything won’t blame Obama for anything.

Whether liberals are honest about it or not, Obama has been a gigantic dud in terms of the glorious promise of overcoming all the bitterness in the world that Bush supposedly created. For one thing, Obama hasn’t actually “overcome” anything of the sort; for another, he has created a great deal of international bitterness all by himself.