yellowfish

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The Chinese government has begun a concerted campaign of economic threats against the United States, hinting that it may liquidate its vast holding of US treasuries if Washington imposes trade sanctions to force a yuan revaluation.

Two officials at leading Communist Party bodies have given interviews in recent days warning - for the first time - that Beijing may use its $1.33 trillion (£658bn) of foreign reserves as a political weapon to counter pressure from the US Congress.

Shifts in Chinese policy are often announced through key think tanks and academies.

Described as China's "nuclear option" in the state media, such action could trigger a dollar crash at a time when the US currency is already breaking down through historic support levels.

It would also cause a spike in US bond yields, hammering the US housing market and perhaps tipping the economy into recession. It is estimated that China holds over $900bn in a mix of US bonds.

Xia Bin, finance chief at the Development Research Centre (which has cabinet rank), kicked off what now appears to be government policy with a comment last week that Beijing's foreign reserves should be used as a "bargaining chip" in talks with the US.

"Of course, China doesn't want any undesirable phenomenon in the global financial order," he added.

He Fan, an official at the Chinese Academy of Social Sciences, went even further today, letting it be known that Beijing had the power to set off a dollar collapse if it choose to do so.

"China has accumulated a large sum of US dollars. Such a big sum, of which a considerable portion is in US treasury bonds, contributes a great deal to maintaining the position of the dollar as a reserve currency. Russia, Switzerland, and several other countries have reduced the their dollar holdings.

"China is unlikely to follow suit as long as the yuan's exchange rate is stable against the dollar. The Chinese central bank will be forced to sell dollars once the yuan appreciated dramatically, which might lead to a mass depreciation of the dollar," he told China Daily.

The threats play into the presidential electoral campaign of Hillary Clinton, who has called for restrictive legislation to prevent America being "held hostage to economic decicions being made in Beijing, Shanghai, or Tokyo".

She said foreign control over 44pc of the US national debt had left America acutely vulnerable.

Simon Derrick, a currency strategist at the Bank of New York Mellon, said the comments were a message to the US Senate as Capitol Hill prepares legislation for the Autumn session.

"The words are alarming and unambiguous. This carries a clear political threat and could have very serious consequences at a time when the credit markets are already afraid of contagion from the subprime troubles," he said.

A bill drafted by a group of US senators, and backed by the Senate Finance Committee, calls for trade tariffs against Chinese goods as retaliation for alleged currency manipulation.

The yuan has appreciated 9pc against the dollar over the last two years under a crawling peg but it has failed to halt the rise of China's trade surplus, which reached $26.9bn in June.

Henry Paulson, the US Tresury Secretary, said any such sanctions would undermine American authority and "could trigger a global cycle of protectionist legislation".

Mr Paulson is a China expert from his days as head of Goldman Sachs. He has opted for a softer form of diplomacy, but appeared to win few concession from Beijing on a unscheduled trip to China last week aimed at calming the waters.

so does this make wallmart public enemy no1
but seriously do they realy have the power to send america into 'depression'?

ddoubleez

Yellowfish,

EXCELLENT POST!

Both China AND Saudi Arabia have investments in our markets, not for finical gain, but as a weapon... We froze trades with Saudi Arabia when they reached the 1 trillion dollar mark.......

As far as walmart goes, people have been speaking out and warning us for some time now.... We had no trade until with china, because of the potential threat, UNTIL Bill Clinton gave into pressures by Prescott Bush and George H. W. Bush.... Prescott Bush(the same Bush that was indited for Trading with the Enemy (Hitler) during WWII). Here you can see pictures of Prescott Bush who was the President of the China Chamber of Commerce. http://www.usccc.org/Current/mem-b.htm
A good example of Walmart's interests is: When a North American TV manufacturer sued China for dumping cheep TV's in America to control the price of electronics (china was breaking NAFTA trade agreements and therefore was breaking the law), Walmart not only showed up to support China not North America, they also supplemented China with lawyers and won the suit and then turned around and brought suit against the North American company to bankrupt them as a final fuck you.

I also like to bring up Walmart is opening stores while it sells others that it closes. This does not make sense to people until I explain that Walmat will open FOUR TIMES as many stores as it plans to keep open. This has been exposed by more than one internal memo. They saturate an area until all other competition has gone under then they systematically close 75% of the locations in the area after they 'break' the local economy and drive off computation. This forces people to drive the distance to the remaining walmart location, while keeping the economy down enough that competition will not return.

Chinese work 7 days a week and their employees provide cots and convert desks to beds so their employees can sleep there. They work under posters with slogans that say things like 'Rest only after victory.' They have the fastest growing economy of all time, but a limited supply of gasoline.... Many cities in China have outlawed bikes on the streets, because of how many people drive there now...

http://www.usatoday.com/news/opinio...ham/wick045.htm

If you would like to do somethng about walmart visit WAKE UP WALMART:

http://www.wakeupwalmart.com/

ddoubleez

Since 9/11, it is one of the greatest security threats facing America, a nuclear weapon in the hands of terrorists being shipped on container into an American port. But, instead of doing what is right for America, irresponsible corporations, like Wal-Mart, are actually lobbying against 100% scanning of port containers.
Unfortunately, that’s no joke or exaggeration. Even though one Wal-Mart container enters the United States every 45 seconds, Wal-Mart is pressuring Members of Congress to oppose strengthening our nation’s port security.

In fact, Wal-Mart and its special interest retail lobby group, the Retail Leaders Industry Association (RILA), have lobbied Congress because they seem to believe that America’s security should come second to their profits.

Countless numbers of Wal-Mart containers are entering American ports everyday and we have no idea what’s in them, and it seems that Wal-Mart wants it that way.

And if you really want to grasp how dangerous this is for America, think about it this way:

How safe would you feel if airport security officials only screened 5% of the passengers?

How safe would Members of Congress feel if the Capitol Hill police only screened 10% of the visitors to the Capitol?

Now, think about this, how safe is America if we let 95% of the cargo containers into our ports without first being inspected?

That’s the America Wal-Mart is fighting for – An America where we don’t scan 100% percent of port containers.

But worst of all, even after the U.S. House of Representatives did the right thing and passed the 9/11 bill which strengthens America’s port security by calling for 100% scanning of port containers, some Senators – and you know who you are - are thinking about joining with Wal-Mart and not doing everything we can to protect our nation’s security.

ddoubleez

For those who prefer VDO:

Threat of:



Argument on weather or not we should allow the Chinese government to purchase portions of US companies that produce military satalites:

madeuro

Fuck walmart and fuck the chinese government.

yellowfish

well it seems if USA is eating its own heart out
Good Luck guys
maby you should start veggie gardens soon

but what really bugs me is after 9/11 everyone who didnt support bushes war was called unpatriotic, everyone flew flags etc
you are a very patriotic country
but why can you not see that big corporations are killing you
how do you stop this?