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U.S. Has Plundered World Wealth With Dollar: China
by moonwolf | October 30, 2008 at 11:13 am
545 views | 48 Recommendations | 23 comments
The move to end the dominance of the US dollar as the default currency for global trade is picking up steam. One of China's most respected government newspapers has accused the USA of using the greenback to loot the wealth of the global community, and though the article is not a reflection of official Chinese government policy it signals a growing consensus in the world's richest and fastest growing economies that the USA can no longer be allowed to continue its unwarranted domination of the global economy.
The global economic meltdown brought on by irresponsible US policies and towering debt, the lack of regulation, dollar domination and corporate greed is the watershed which will see the virtually bankrupt USA take a lesser position in the the new global pecking order, as Washington will be forced to make concessions to its angry creditors just to continue to borrow to stay afloat with its unproductive economy, wars and crippling debt.
Watch for some major surprises and demands being made by emerging global economic powerhouses like Russia, China and India at the upcoming global conference on the economy to be held in Washington following the US Presidential election. The USA will not be allowed to dictate policy and conditions at this conference which will see a shift in global economic power away from the failed US economy and the model on which it was built.
The United States has plundered global wealth by exploiting the dollar's dominance, and the world urgently needs other currencies to take its place, a leading Chinese state newspaper said on Friday.
The front-page commentary in the overseas edition of the People's Daily said that Asian and European countries should banish the U.S. dollar from their direct trade relations for a start, relying only on their own currencies.
A meeting between Asian and European leaders, starting on Friday in Beijing, presented the perfect opportunity to begin building a new international financial order, the newspaper said.
The People's Daily is the official newspaper of China's ruling Communist Party. The Chinese-language overseas edition is a small circulation offshoot of the main paper.
Its pronouncements do not necessarily directly voice leadership views. But the commentary, as well as recent comments, amount to a growing chorus of Chinese disdain for Washington's economic policies and global financial dominance in the wake of the credit crisis.
"The grim reality has led people, amidst the panic, to realize that the United States has used the U.S. dollar's hegemony to plunder the world's wealth," said the commentator, Shi Jianxun, a professor at Shanghai's Tongji University.
October 30, 2008 at 11:13 am by moonwolf, 545 views, 23 comments
Most RecentMost Recommended Comments (23)
at 11:42 on October 30th, 2008
moonwolf, I like this story. It's good stuff.
The repercussions of this will be great when the currency shifts to something like the Euro or another currency. I say when and not if simply because no country or currency rules in perpetuity. My only question is will/has the government made a plan B to deal with the results. My guess is that in typical denial of reality they will/have not.
Thanks for sharing this, Wolf.
at 12:05 on October 30th, 2008
You can say what you like, but most do not realize that the Federal Reserve was founded by and owned by an international group of banks and financiers. so whoever is playing with the US dollar in international markets is the international bankers and financiers.
at 12:14 on October 30th, 2008
moonwolf, some call this the end of the "Bretton Woods II Regime".
It contains the following:
At least this sounds familiar, doesn´t it?
at 12:23 on October 30th, 2008
Thanks Daniel,
It does and I love the reference to Bretton Woods. I think China and other countries know that the US is an empty balloon and are ready to change their relationship to the status quo. If China floats the Yuan it will be very interesting indeed.
at 12:15 on October 30th, 2008
moonwolf, I like this story. It's good stuff.
at 15:55 on October 30th, 2008
moonwolf, I like this story. It's good stuff.
at 17:19 on October 30th, 2008
moonwolf, I like this story. It's good stuff.
at 18:19 on October 30th, 2008
moonwolf, I like this story. It's good stuff.
at 18:23 on October 30th, 2008
moonwolf, I like this story. It's good stuff.
at 18:41 on October 30th, 2008
moonwolf, I like this story. It's good stuff. Yeah I believe the communist Chinese. They have such a strong, non materialistic society with such a strong, moral and religious fiber as the basis for their government.
at 09:07 on October 31st, 2008
Panzer,
Actually they copied the US model and just did it better. China ten years ago was a lot like the USA was in the eighteen hundreds before the people demanded and fought to the death against corporate power for better working conditions, labor regulations and living wages. You should read about the history of the struggle the starving masses of slave labor workers in the USA went through to give you what you have today. It was as bad if not worse than China, and the struggle went on for generations.
I guess ultimately the Chinese saw America's weakness and they figured if you can't lick 'em, join 'em, with the final intention of exploiting US corporate greed and beating the USA at its own game, and it has worked splendidly. You know the old Chinese proverb, "Keep your friends close and your enemies closer". That's one of the main reasons why the US economy is in the toilet. US corporate greed took most of the high paying jobs offshore to China, thus the burgeoning trade deficits, massive borrowing from China creating unsustainable structural deficits, and the precipitous drop in real income and living standards for US workers.
You guys did it to yourselves and the Chinese were more than happy to help you do it. They now have the USA by the 'short curlies' and you and your leaders helped them do it!
at 19:16 on October 31st, 2008
Nonesense.
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outsider (not verified)at 19:37 on October 31st, 2008
agreed, i don't remember reading of any totalitarian socialist republic in what became the united states - Chinese "capitalism" has nothing to do with free enterprise... more like the repression of the masses to create cheap products for the party elite, it's worst possible combination of capitalism and the communist "ideal"
at 18:58 on October 30th, 2008
moonwolf, I like this story. It's good stuff. Much like China flooding world markets with slave labor made goods, with foodstuffs and toys toxic enough to kill us. Now I wonder which is of the two evils?
at 02:43 on October 31st, 2008
at 07:54 on October 31st, 2008
djermano,
I agree with much of your comment here with exception of your opinion of Russia's power. Oil, gas, water, lumber and massive amounts of minerals and other necessities will accelerate Russia's climb up the ladder. They took a bad hit at the end of the cold war but are rallying and reformatting as we speak. Labor is a necessary component but without the materials there is nothing to make. Ultimately the countries with the materials win this competition. They end up with a lower population, better environment and living conditions, more technological advancement and a higher standard of living than the over crowded countries.
at 16:46 on October 31st, 2008
To each his own my friend, but from the sounds of it Djermano, it sounds like you have a pretty sweet deal!. I envy you, though you must like in a nicer part of the country.
at 07:28 on October 31st, 2008
Panzer, Barry, and Djermano,
I'm not cheering for China here. Just giving my opinion on what has occurred and what's coming down the pipe. I might be totally wrong too! (:D)
No one believes the Chinese government are a bunch of angels, though they have raised 600 million of their citizens from abject poverty in the last 15 years, a record untouched by any other country, ever. Did they cut corners to do it? You bet. Who's laissez-faire economic model did they apply? The USA's, and with a ferocity that would have made Milton Friedman proud, and the average US competitive worker run for cover as he would not have been able to compete in a truly ferocious dog eat dog labor market like China's.
One point I must make about the litany of poisonous and dangerous products from China, and the slave labor conditions of its work force to which you speak. Most of these products were made by US and other foreign companies who off-shored their operations from the USA to get access to unlimited ultra-cheap labor, no expensive bothersome environmental standards, and the ability to set up totally unsafe and unregulated manufacturing facilities. They knew exactly what they were doing and the dangers, but instead of setting high standards and building modern safe factories they went with the lowest cost they could and didn't give a damn what the consequences to kids in the USA were as long as profits to their share-holders increased. The heart of uncontrolled capitalism!
If you think the consequences are rough on the pampered citizens of the USA and Canada, how do you think this whole arrangement worked out for the Chinese workers and those drowning in the stew of toxics spewing into the air and water from the factories owned by predatory American companies?
How many of you complained about any of that as long as you could buy stuff at Walmart for what we all knew were ridiculously low prices made by slave labor over there? Hmmmm? I didn't hear a word from any of you until the reality of what those US companies were passing off on us became obvious. Then the pious indignation pours out!
at 07:29 on October 31st, 2008
Thanks all for the flags!
at 16:48 on October 31st, 2008
Good comments all Moon
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djermanoat 19:26 on October 31st, 2008
Yeah thanks Moon good comment...and you too Barry. I would have to disagree with you Moon on the Russian climb. Because they are reformed capitalist in a sense that have taken on the moderate conservative lapel. Don't forget they are a colder climate and that does not spell good news for them. Never mind their ideas to use all that wealth in mining and increasing global warming. They would suffer as much as the rest of the world....in said future plans to exploit the planet. They will have the brakes on more than the US has done. Because they support the Conservative Agenda more than the excessive.
They have support with China.....but remember the climate factor....in getting labor..Not many like the cold..
I think the US will fair well with the new President Obama...and hopefully his support for Energy Independence in the World by developing Geo-Main Grid Energy. China will be less supportive of Russian fuel because their climate and environment are key considerations. They are more environmentally concious than Americans really. I live in the Green City of China...and they take environmental issues seriously to include the closure of many Sugarcane Manufacturing Companies in the Province. And when the word gets out that the dirty environments decrease home values....we will see a big change in the northern cities in Beijing....as they convert from Oil to Geo-Energy...and run cars on electric...for clean air...and wholesome living. Watch and see....I faith in common sense and awareness...which I spread everywhere I can.
Rev. Jermano
at 19:58 on October 31st, 2008
I'm encouraged if what you say is true. In my time in China I found quite the opposite of what you describe. I spent a short time in the coal-heated valleys near Shanghai and Nan-Jing and found the people we were working with to be uninterested in anything but the bottom line when it came to architecture and construction. Over the course of two years our clients repeatedly rejected any proposal that could have lessened the environmental impact of the work in favour of saving money. Ideas like density control, geo-thermal energy, insulation improvements and passive approaches were quickly discarded while extra costs for marketing centers and ornament were often adopted. China could have a huge impact on the global situation. I'm sceptical though, based on my experience and knowledge of the manufacturing practices that are the norm in the Pearl River Delta.
Um... that said, I think the story mis-represents some of the basic advantages an intentionally (artificially) weakened currency and a totalitarian state - there is a certain capitalist leg up to that set up in a global economy.
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djermanoat 01:29 on November 1st, 2008
Although I did not write the article I have been living in China now for 7 years. But I do not live in North China. You have to remember when foreigners are dealing with the Chinese they suspect your profit motives as reliable as the sun rises. In all reality the ideas were not rejected but the profit motive was.. Here in China they have adopted ethanol production in the province I live in...after my revelations that the west does use it...and they also use geothermal heat pump climate control in the new buildings they raise. I personally know a school that uses Geothermal Circulation. When they learn the ideas they incorporate them into their system. They don't like being the clients but the purveyors. China can do it better at less expense..because they own the resources. In other words they don't exploit Gods gifts. The West will take owership of an Oil well God created and jack the price up for everyone except themselves is case in point that private ownership of land is nonsense. Land is and belongs to everyone assured by the State.
Rev. Jermano