Chinese Video Urges War With U.S.

 

State-controlled media urges fight ’til end,’ calls for sanctions on U.S. companies

China’s Communist Party-controlled media stepped up a war of words with the United States recently urging an escalation of the ongoing trade dispute into a full-scale conflict.

“China must be prepared to fight a protracted war,” states a four-minute, anti-American video posted five days ago on a Chinese video-sharing service.

“Trump’s ‘outrageous and selfish’ strategy might work for smaller countries, but it will never work for China,” the video warns. “To quote a well-written article in the Global Times: If the Americans want to fight, we will fight them until the end! And we will fight until the Pacific Ocean splits into two!” Global Times is the Communist Party of China’s nationalistic and anti-U.S. news outlet.

Medvedev turns against the dollar – Rosbalt

 

Russian Prime Minister Dmitry Medvedev explained the determination of the Russian authorities to minimize the use of the US dollar in foreign trade due to the consequences of the aggressive and “stupid” economic policy of the United States. He said this today, speaking at the Gaidar Forum in Moscow.

The prime minister recalled that the Russian authorities are striving to expand “the use of the ruble and other currencies in foreign trade agreements”, in addition, in recent months have “seriously reduced” the investments in US Treasury bonds (Treasury bonds U.S).

Foreigners Dump US Treasury Bonds in Record Amounts

 

For the 2nd straight month in April, foreigners were net sellers of notes and bonds. The total was $4.8b, about the same as the net sales in March. The complexion of the activity was very bifurcated however as central banks sold a total of $48.3b, more than offsetting private foreign buying of $44.6b (International agencies make up the difference).

The Chinese ARE Dumping our Treasury Bonds

We warned about this in our Pentagon research back in late 2008 and early 2009 but there were plenty of skeptics. We emphasized the risk in the 2012 NY Times bestseller, Secret Weapon. In Chapter 9, we made a strong case that China could dump their Treasury bond holdings and work fervently to establish the Yuan as a reserve currency alternative to the American dollar. We pointed out how multiple Chinese sources were planning for this and labeled it “financial warfare.” We made it clear that this would prove deflationary for China but said “If China can tolerate such deflation and if it can transition effectively, it will be sitting in the shade.”

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While we knew then that the time had not yet arrived for China to make her move, we also knew it was just a matter of time. Starting in 2011, we began to address the risk of financial warfare in this Blog. Just look back at this February 2011 post where we argued that China had a long-term view and a five-year plan:

The Chinese Take a Long Term View; Evaluating Their 5YP

Will China Dumping US Bonds Undermine Global Finance?

China, Russia and Brazil have recently been selling US Treasuries, hedging their fiscal risks and stirring volatility on Wall Street, potentially signaling a more significant slowdown in the global economy coming up.

Kristian Rouz — Several emerging markets, including China, Brazil, Russia and Taiwan, previously among the biggest buyers of US governmental bonds, have recently been selling them at the fastest pace since 1978. US bonds, commonly referred to as ‘Treasury notes’ or ‘Treasuries’ are, however, widely regarded as being among the most ‘safe haven’ assets in the financial world, meaning the emerging markets must have serious reason to cash those out for the more volatile money liquidity.

Forget Stocks, This is the REAL Crisis That’s Coming

The 2008 crash was a warm up.

Many investors think that we could never have a crash again. The 2008 melt-down was a one in 100 years episode, they think.

They are wrong.

Uncle Sam’s $8 Trillion Annual Debt Churn: Why Washington Is Pertrified Of Honest Interest Rates

I know that headline sounds completely outrageous.  But it is actually true.  The U.S. government is borrowing about 8 trillion dollars a year, and you are about to see the hard numbers that prove this.  When discussing the national debt, most people tend to only focus on the amount that it increases each 12 months.  And as I wrote about recently, the U.S. national debt has increased by more than a trillion dollars in fiscal year 2014.

But that does not count the huge amounts of U.S. Treasury securities that the federal government must redeem each year.  When these debt instruments hit their maturity date, the U.S. government must pay them off.  This is done by borrowing more money to pay off the previous debts.  In fiscal year 2013, redemptions of U.S. Treasury securities totaled $7,546,726,000,000 and new debt totaling $8,323,949,000,000 was issued.  The final numbers for fiscal year 2014 are likely to be significantly higher than that.

So why does so much government debt come due each year?

Saudi Arabia chases closer ties with China amid US tension

CNBC is doing their best to downplay and whitewash the threat, however, from the daily headlines one can easily see China along with other nations are undermining the USA’s stability. They’re working on dethroning the Dollar, creating an alternative to the American-led internet, cyber hacking critical infrastructure/financial systems/military networks and so on. America is under full assault and it’s not difficult to see for those who would rather follow the news and not the Kardashians.

Saudi Arabia was already disappointed by the Obama administration’s decision to side with Russia and opt against military strikes on Syria, effectively ending Saudi hopes that the U.S. would turn the tide against the Iran-allied government of Bashar Assad in Damascus.

“The Syrian issue was the straw that broke the camel’s back. The kingdom is concerned that any victory for Assad would boost Iran’s regional influence,” Naser Al-Tamimi, author of “China-Saudi Arabia Relations, 1990-2012: Marriage of Convenience or Strategic Alliance?” explained to CNBC.