October 20, 2023
China Cutting Financial Ties to America
Timothy Birdnow
China has long tied it's economy with that of the United States. It was a smart policy, buying up American debt; it meant the U.S. was unlikely to go to war with China, or take actions that would hurt the Chinese economy as we owed them so much money.
But now....
https://finance.yahoo.com/news/china-sells-most-us-securities-011321224.html
The Chinese are selling off their American securities and other assets. Now why do you suppose that is?
It suggests that a.we are no longer a sound investment and b. they want to be free to go to war with the U.S.
After World War II the French came up with a bold concept. Having been attacked by Germany three times since 1870 the French wanted to make it impossible for the Germans ever to attack them again. They had one recourse; tie themselves together with Germany in a sort of economic marriage, with little daylight between them. To do this they made a series of steps, forming the European coal and steel organization, then the Common Maket, and culminating in the European Union.
This worked, establishing an ubergovernment for Europe. The Ruling Class in the West have sought to do likewise.
They built up China through very favorable trade policies and offshoring industries. And as China grew so too did her anschluss with Western economies, particularly the U.S. The thought was this would weld the world together and make us all rich and moderately socialist and happy.
It never worked that way because China was only using the West. They had no interest in joining the plantation commonwealth.
China gamed the system. But now it's time to assert themselves. Instead of being tethered to the sinking ship America they want out, to avoid drowning like rats along with the Americans.
And they want to be free to use their power as they wish and not fear economic disaster.
So get used to it; they will sever themselves even more in the next few years.
FTA:
China has long tied it's economy with that of the United States. It was a smart policy, buying up American debt; it meant the U.S. was unlikely to go to war with China, or take actions that would hurt the Chinese economy as we owed them so much money.
But now....
https://finance.yahoo.com/news/china-sells-most-us-securities-011321224.html
The Chinese are selling off their American securities and other assets. Now why do you suppose that is?
It suggests that a.we are no longer a sound investment and b. they want to be free to go to war with the U.S.
After World War II the French came up with a bold concept. Having been attacked by Germany three times since 1870 the French wanted to make it impossible for the Germans ever to attack them again. They had one recourse; tie themselves together with Germany in a sort of economic marriage, with little daylight between them. To do this they made a series of steps, forming the European coal and steel organization, then the Common Maket, and culminating in the European Union.
This worked, establishing an ubergovernment for Europe. The Ruling Class in the West have sought to do likewise.
They built up China through very favorable trade policies and offshoring industries. And as China grew so too did her anschluss with Western economies, particularly the U.S. The thought was this would weld the world together and make us all rich and moderately socialist and happy.
It never worked that way because China was only using the West. They had no interest in joining the plantation commonwealth.
China gamed the system. But now it's time to assert themselves. Instead of being tethered to the sinking ship America they want out, to avoid drowning like rats along with the Americans.
And they want to be free to use their power as they wish and not fear economic disaster.
So get used to it; they will sever themselves even more in the next few years.
FTA:
- The bulk of the $21.2 billion of sales were in Treasuries and US
equities, with funds in the Asian nation also cutting holdings of
agency debt, according to data from the US Department of the Treasury
released on Wednesday. In August, the onshore yuan tumbled to its
lowest against the dollar since November, prompting Beijing to tell
state-owned banks to step up intervention in the currency market.
Posted by: Timothy Birdnow at
01:12 PM
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