China detach its currency from the dollar

Previously we discovered our president’s Tribal name, Walking Eagle (WE); now our attention turns to GOP insistence that China detach its currency from the dollar – the ultimate “want-a-be-poor” achievement.

Keeping the exchange rate fixed required China to buy dollars – thus far over $715 billion (Japan holds over $800 billion). They invested that money in U.S. bonds – helping to keep U.S. interest rates low. By contrast, all American foreign currency reserves total less than $80 Billion.

Asian holdings constitute half the National Debt – and are rapidly growing. WE raised questions as to the stability of our monetary and economic system – WE’s forecast of economic collapse is credible.

Having forced China to float the yuan – with Congress seeking 30% appreciation – WE has exposed his desire to raise interest rates on his ever increasing deficits. As with any astute “capitalist”, China abhors low single digit interest rates – it is therefore seeking to use our currency to buy our assets.

Down in Atlanta, WE, disguised as a leader – but holding his mother’s hand – affirms Social Security Trust Treasury Bonds are “Worthless IOU’s”. Mommy affirms, “They will get no Social Security.”

Meanwhile, back in China, seeing Washington will renege on “full faith and trust” obligations, moves to protect its holdings by exchanging those Bonds for Oil interests and other tangible assets.

The first salvo was the recent Chinese (CNOOC) bid for California oil company UNOCAL. New to the acquisition game, Chinese negotiators actually believed GOP “free market rhetoric” – they made a good, all cash offer, foolishly expecting it to be accepted – political intervention blocked the deal.

CNOOC considered raising its offer, then withdrew in face of a fierce political backlash over a Beijing government-controlled company attempting to buy American oil assets. However, Asians have proved to be quick studies. WE woke the sleeping dragon, and taught it to hunt – unfortunately, its prey is US.

The Chinese now see that policies of free markets are no different than the policies of totalitarian states – you need to own the politicians. They’ll be back. When they come, they’ll have lobbyists, pac’s and contributions. In the mean time, they will turn to buying third world which both we, and they, need.

While its shares are traded on the Honk Kong market, CNOOC is state controlled; it therefore enjoys the mixed blessing of being subject to fears of bidding wars and the assumption of excessive debt, while also having access to foreign reserves that are ten times American levels.

WE’s fiscal, diplomatic and “free market” political policies have put and end to the free ride China has given the American consumer. The world’s most populous nation, with a vibrant growing economy – at WE’s insistence – will no longer be supporting the world’s biggest and most arrogant consumer. It is clear, they will either be buying it, or putting it out of business.

If the Chinese cannot participate our economy, they will use their reserves to compete against it.

WE’s personal “want-a-be-poor” mentality and policies have become national policy. WE in Texas could afford to mess up; A WE mess up in Washington – nations vanish, people die and cultures rebel.