(snip)"from Financial Sense:
This fall, providence is bringing yet another dish of trouble to an already over laden table—China may actually prove good on its threat to dump $1.33 trillion of US Treasuries and start the long awaited flight from the US dollar.
China’s threat to sell its US Treasuries—if actually carried out—will be triggered by the US Congress. This fall, the US Congress will vote on a bill that would impose a 20 % across-the-board tariff on all Chinese goods imported into the US. The supporters of the bill describe its passage as “veto-proof”—that they now possess enough votes to override a presidential veto.
This possibility calls again into question the very efficacy of democracy, to wit the belief that the collective will of the people is preferable to the capricious stupidity of a king or queen or any other selected or self-appointed tyrant, or indeed, virtually any government official.
China is watching us very closely. If Congress imposes barriers to Chinese imports, they will and must retaliate. And we are well within their grip. Japan doesn't want this to happen now because I believe Dr. Zhou made it pretty clear to Mr. Fukui that if the US goes after China alone, Japan will be financially sunk by China. So the Japanese are probably applying quiet diplomacy to this delicate matter. The US, of course, should have never ever, EVER fallen for the 'free trade' wench who knew she was simply transfering industry in order to make greater profits for the top holders of US wealth who wanted to 'grow' faster than the rate of inflation, kill the unions and evade environmental and OSHA regulations while exploiting labor and nature to make themselves filthy rich.
Way back when they hatched this 'free trade' garbage, they assured us all, prices would be cheap and thus, our paychecks would go further and our jobs here would improve because only the most dirty and tedious jobs would be outsourced. Ross Perot ran for President by running against free trade. He coined the 'Giant sucking sound' as jobs vanish phrase and he was spot-on. Yes, the giant sucking sound has vacuumed up and taken out the vast majority of our industrial base. I warned the government back in the late 1980's and I supported Perot's run because of this, thinking that we can outsource to everywhere is very foolish since we can't dominate all the places taking up our industries.
Indeed, specifically with China, I said, 'China is an empire, a potential world power, they have nuclear bombs and missiles and a huge army. Any factories we ship there will be under the total control of the Chinese government and we won't be able to intimidate them or force them to do our bidding. This is a ONE WAY STREET.' Of course, no one listened to me. When Clinton signed yet more 'free trade' pacts, I threw up my hands in despair. The unions that trusted him were stabbed in the back and unions continued their long march into the night of servitude."(snip)
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