Donald Trump has gained a lot of airtime recently talking about how China has been ripping off the United States over the previous decades, artificially devaluing the yuan and protecting China’s own companies at the expense of ours, stealing our technology, and attacking our infrastructure via cyber intrusion. All of that gives one the sneaking suspicion that China is preparing for something, something bad, something devastating for the United States and our children’s future. Chinese actions in the South China Sea adds to this perception, this gut feeling. Why would the communists be building military bases out of nothing so far from home? There really is only one conclusion. Although the China apologists want to dismiss this narrative, taunting its proponents about their tinfoil hats, that uneasy feeling remains vibrant, just the same.
The View From Hubbert’s Peak
In 1971, the American President put an end to a 2,500 year trend; the Wall Street Journal called it “Nixon’s Worst Weekend.” Considering the old boy had some really bad ones, this must have been something special. In August of that year (on Friday the 13th) it was decided that the U.S. would no longer pay out gold for its paper dollars. OPEC Ministers took note, and in September they met, deciding it would be necessary to collect more paper dollars, if possible, since gold was no longer on offer and oil was the only asset they had to sell.
The Wizard of Oz
The ultimate irony for this generation of investors is that, despite the occasional obligatory chant about ‘free markets’ and the wonders of capitalism, most of the day is spent obsessing about what the world’s most important central planner will do next. By Supreme Central Planner, I mean, the Fed. Continue reading
Complaints nuke deal must demand Tehran change conduct ignore long history of arms control accords with Cold War enemy
WASHINGTON (AP) — Critics of the Iran nuclear deal claim it is flawed, among many reasons, because it does not demand that Tehran also change its behavior at home and abroad. That complaint ignores the United States’ long history of striking arms control agreements with the Soviet Union, a far more dangerous enemy.
Dating as far back as the Limited Test Ban Treaty in 1963 — less than a year after the Cuban missile crisis — US administrations engaged the Soviet Union in agreements to limit nuclear threats while not linking deals to abhorrent Soviet human rights abuses and the active arming and funding of leftist, anti-American revolutionary movements around the world. Continue reading
In 1971, the US abruptly went off the gold standard, and in making the public announcement, US President Richard Nixon looked into the television camera and said, “We’re all Keynesians now.”
I was a young man at the time and had previously bought gold, albeit on a very small scale, but I recall looking into the face of this delusional man and thinking, “This is not good.”
However, the world at large apparently agreed with Mister Nixon, and within a few years, the other countries also went off the gold standard, which meant that, from that point on, no currency was backed by anything other than a promise.
Party Time Continue reading
Just like the Russians today, China has its own separate plans. Yet, it is with One Clenched Fist by a Sino-Soviet alliance that will strike America after it is lulled into a false sense of security by consuming endless New Lies for Old after many decades. The tragedy in all of this is when America finally wakes up, it’s too late. However, from time to time you do find pockets of information such as this by a writer who may ‘get it’.
For more information on shashou jian, or “Assassin’s Mace”, here are some aged yet very relevant articles covering the threat from China:
In 1995, Michael Pillsbury, an expert on China who has worked with every US president since Nixon and has, he writes, “arguably had more access to China’s military and intelligence establishment than any other Westerner,” was reading an article written by “three of China’s preeminent military experts” about “new technologies that would contribute to the defeat of the United States.”
It was in this article that Pillsbury first saw the term “Assassin’s Mace,” which refers to a weapon from Chinese folklore that guarantees a small combatant victory over a larger, more powerful opponent.
The article described goals including “electromagnetic combat superiority” that would allow for “naval victory,” and “tactical laser weapons” that would “be used first in anti-missile defense systems.” They also discussed jamming and destroying radar and various communications systems, and the use of computer viruses. Continue reading
In all actuality, it’s out of the Soviet playbook still in effect today. This can be read about in Anatoliy Golitsyn‘s books New Lies for Old and The Perestroika Deception. It’s also somewhat good news to know that America is including in the next budget funding for 100 new long range bombers, however, we should believe it when we see it and it may be too little, too late.
Beijing Plots to Surpass U.S. in Coming Decades
China launched a secret 100-year modernization program that deceived successive U.S. administrations into unknowingly promoting Beijing’s strategy of replacing the U.S.-led world order with a Chinese communist-dominated economic and political system, according to a new book by a longtime Pentagon China specialist.
For more than four decades, Chinese leaders lulled presidents, cabinet secretaries, and other government analysts and policymakers into falsely assessing China as a benign power deserving of U.S. support, says Michael Pillsbury, the Mandarin-speaking analyst who has worked on China policy and intelligence issues for every U.S. administration since Richard Nixon.
The secret strategy, based on ancient Chinese statecraft, produced a large-scale transfer of cash, technology, and expertise that bolstered military and Communist Party “superhawks” in China who are now taking steps to catch up to and ultimately surpass the United States, Pillsbury concludes in a book published this week.
The Chinese strategic deception program was launched by Mao Zedong in 1955 and put forth the widespread misbelief that China is a poor, backward, inward-looking country. “And therefore the United States has to help them, and give away things to them, to make sure they stay friendly,” Pillsbury said in an interview. “This is totally wrong.” Continue reading
The recent accumulation of gold by Russia’s central bank has sparked a discussion on whether gold standard would be an appropriate monetary policy measure for the struggling economy.
MOSCOW, December 4 (Sputnik) — Russia’s Central bank has demonstrated an increased scale of gold-buying this year, triggering diverse speculations both in the media and the expert community on whether it is a simple measure of supporting the price for the domestically produced metal, or part of a complex strategy in the economic standoff with the developed world. This way or another, there are voices suggesting its high time for Russia to introduce a gold exchange rate for the nation’s currency amid the prolonged ruble’s plunge in order to boost living standards, consumer demand and spur manufacturing sector. Continue reading
LONDON — While the 70th anniversary of D-Day last month received a lot of attention, another event, in July 1944 — the Bretton Woods conference, named for the mountain resort in New Hampshire where it was held — was perhaps even more significant in shaping the modern world. It not only led to the creation of what are now the International Monetary Fund and the World Bank, but it also confirmed the central position of the United States dollar in the international monetary system.
Why does this matter for us now? Just as America displaced Britain as the world’s pre-eminent economic power in the interwar period, so, too, the large debts and fiscal pressures confronting the West, and the rise of China and other economic powers, challenge us to think about the future of finance.
For most of the 19th century the British pound had been the world’s “reserve currency,” the currency in which trade and finance were denominated. “As sound as a pound” became a widely used expression. The pound was pegged to gold at a fixed rate of just under £4 per ounce. Continue reading
Russia threatened to dump its U.S. treasuries if America imposed sanctions regarding Putin’s action in the Crimea.
Zero Hedge argues that Russia has already done so.
But veteran investor Jim Sinclair argues that Russia has a much scarier financial attack which it can use against the U.S. Continue reading
The U.S. Navy will inaugurate the “DDG1000,” a next generation stealth destroyer, which is undetected on radar screens. The destroyer will be deployed next year as one of the three core elements for the U.S. Pacific Command along with the F-35 stealth fighter, and the Missile Defense System. The battleship is expected to play a role to keep at bay China, which seeks to become a military superpower, and monitor North Korea’s nuclear and missile development programs. According to the Associated Press, the destroyer, which has been constructed in secret, is 15,000 ton class in size, rendering it the largest among the destroyers the U.S. Navy possess, and is armed with high-tech weapons systems. Continue reading