News & Analysis
The Day the Earth Shook; China Dictates to G20
China against current account limits: G20 source ... China has made clear it will not agree to a G20 communique that explicitly binds countries to limits on current account balances or any other form of rules on currency policy, a G20 source told Reuters on Friday. Finance officials from the Group of 20 leading nations started two days of meetings on Friday. A statement is expected on Saturday. The proposal to set a target of 4 percent of gross domestic product for current account surpluses and deficits came from the United States and appeared aimed at China's trade surplus. G20 nations should refrain from currency policies aimed at gaining a competitive edge, U.S. Treasury Secretary Timothy Geithner (left) said in a letter to G20 finance chiefs. "China has clearly said that it will not accept a communique that spells out any target on the current account or for that matter any kind of FX norm," the source, who has direct knowledge of the deliberations, said. – Reuters
Dominant Social Theme: Please avert your gaze. Move along. We will try again in November.
Free-Market Analysis: On Friday, if this quiet Reuters report is to be believed, a 100-year-old Anglo-American conspiracy to create one-world government may have begun to seriously founder. Yes, that is perhaps a bold statement (for those who believe in an elite-conspiracy in the first place) but it is one we will try to explain further in this article. Sub dominant social theme: We are having many meetings here at the G20 because discussions lead to success.
Every since we figured out what was really going on the in world (in our humble view anyway) we have been amazed at how our perspective (and that held by those with similar perceptions) diverges from mainstream promotional wisdom. Of course we are used to this. Try walking around in the early 1990s (in America) explaining to friends and neighbors that Roosevelt and Woodrow Wilson were pawns in a larger elite conspiracy to socialize America and generally weaken the West. The chances for misunderstandings were large – and they certainly occurred, even with one's parents and relatives.
How things have changed. Conspiratorial history is ubiquitous on the Internet. Many informed people accept the reality of an active and malevolent Anglo-American power elite that has been pursuing a form of one-world government for at least a century, powering its fear-based promotions with money-from-nothing printed by a worldwide central banking system. But it must be admitted that no matter how much truth-telling there is on the Internet, many people still get their news via mainstream sources, and often this news and information, while correct, lacks a frame of reference. This Reuters story, excerpted above, is a good example.
The Reuters story reports what is going on in Korea. But when we checked yesterday on Google, the story had only been picked up by about 50 news aggregators, which is a tiny amount. Generally, the push-back from the Chinese was not much reported. But again we would argue this little news blurb is of immense importance. It may be in fact the most important story of the past 100 years. Of course, it may not be, either. That's how elite meme-watching works. One needs to make observations and then watch how they play out. Those who wish to track it will want to note the formal G20 communique on Saturday and then the results of the early November G20 meeting as well.
What the elite is looking for seems to be a definitive agreement among the G20 that there will not be a currency war and that therefore all countries will abide by certain economic parameters. These parameters are being suggested, in particular by the US and the Obama administration. From our point of view, even the phrase "currency war" suggests an elite, fear-based promotion.
The point of the promotion is probably threefold. First, it is intended to absolve the Western power elite of any responsibility for the inevitable worsening economic environment of West. Second, it is a polarizing phrase and is intended to isolate certain international players (anyone who doesn't go along with US suggestions as regards the G20) as "bad guys." Thirdly, and most obviously, it is intended to put pressure on nations that don't cooperate, by positioning them as responsible for further global economic unraveling.
This would all have worked very well back in, say, the Depression. In fact, the US Smoot-Hawley trade tariff was supposed to have aggravated what was a downturn and turned into a depression. This is complete and utter nonsense of course. While government regulation can and does make things work, the grinding, of subterranean, economic tectonic plates are inevitably powered by the raw energy of central-bank monetary policy.
The Anglo-American power elite is desperately cranking out money. Is the elite in the middle of ruining the dollar to make way for something else – a new global currency (one run by the IMF)? Or is the elite frightened by the potential for deep and pervasive civil unrest in the West and will do almost anything (short of providing individual citizens with "money" via the mails) to get fiat dollars circulating again?
Perhaps it is a combination of both. Unlike many others within the alternative media, we do not believe that the elite actively seeks to create conditions to impose martial law (though that may be the end result of its deranged policy making). Imposing martial law is always an act of desperation by any leadership. It flies in the face, too, of the elite's overwhelming emphasis on fear-based dominant social themes that have been intended to concentrate wealth while accumulating power for extra-curricular, globalist entities such as the IMF, UN, WHO, etc. The idea was to boil the frog slowly. But what is going on today is more like a bonfire. On every level it makes little sense.
Not only does it not make sense, but the kind of money printing being conducted in America is not stimulating the ruined economy there, but is merely spilling over into the stock market and generally devaluing the dollar significantly. As a result, many nations have started buying dollars to ensure that the dollar does not drop too far and too fast. They have also been lowering interest rates and printing more money in self defense. Additionally, countries like China have been stockpiling savings. China and its citizens "save" a huge amount (relatively speaking) of the gross national product. Of course such savings, often controlled by the state, are not perhaps so valuable as they seem. But certainly, strictly from a monetary standpoint, China is a much better position than the Western countries, paper currency or no.
It seems undeniable that countries like Brazil, China and India are now pursuing their own monetary policies extant of the Anglo-American axis. In the 20th century, countries that did this sort of thing were attacked by the CIA and their leaders were overthrown and the nations were brought back into line, often with brutal results. But the 21st century is not the 20th. The Anglo-American machinery of intimidation has given way to a softer game. The idea, over and over again, is to create unstoppable coalitions of hundreds of nation states to push through various agendas of the powers-that-be. But soft power is not in fact working as well as hard power. We saw this in the foundering of the green-agenda in Copenhagen. Now we are seeing it in Korea.
What can the Western power elite do? Wars have tended to be fought in similar situations in the past. But the war on terror is a most unsatisfactory war and any inevitable escalation threatens a nuclear holocaust. There are many international, industrial powers now, and though the Western elite may have bet that they could still be controlled, this may be an increasingly sour wager.
We see from this little Reuters story that China has apparently thrown down the gauntlet – an action that has been building for decades. Because we are professional, compulsive, meme watchers, we noticed it. We will continue to follow it in order to figure out (looking from the outside in) whether or not the Western elite will be successful in imposing its view of the world on the rest of the G20. It seems to us right now that this is a fading hope. And what will the West do then?
Conclusion: World domination was once so near that it might have seemed all the Anglo-American elite had to do was reach out to grab it. But now it has seemingly gone a glimmering and the ramifications, in our view, may be tremendous: a total reshaping of the world's economy – and one that is not for the first time in a century (or more) controlled by Western elites. This is what the Reuters' story indicates to us.
Of course, we could be wrong. Today, a G20 communique could indicate a variety of hard caps have been accepted by the rest of world, dictated by the Anglo-American elite. Today, the axis could somehow salvage control. Or perhaps in November. Maybe then, at least, it will not seem so clear cut as it does right now. We will keep watching, dear reader. You will, too.
Posted by Gundee on 10/29/10 06:35 PM
You are not wrong. What happened to news coverage of Brazil's boycott of the meetings in Korea ... I have not seen hide nor hair of the issue since one small news-leak a couple of weeks ago. There is strong multilateral support for China's viewpoint but "discussions lead to success" (not to mention the one-on-one strong-arm bullying that accompanies the discussion!)
Reply from The Daily Bell
Thanks. Isn't the problem that it is hard to bully the BRICs right now? If it were easy to do, it would have been done by now in our estimation.
Posted by 4irw4y on 10/26/10 11:49 AM
I wonder why they don't redirect from amanfromMars' blog to the Eisenhower' spech in a link pointed, but from DB it works... ... . .
Posted by 4irw4y on 10/26/10 11:34 AM
DB "the Rothschilds "Zionists" seems somehow to minimize what's going on" re 4irw4y 25 12:07 PM --
Oh. It's interesting what Wikileaks offers for the Russian/Chinese blogosphere.
As reported, some Americans helped Assange to get some allegedly exciting stuff about US' beloved enemies. If this would be nearly the present nonsense published about Iraqi military privatisation.
Good enough to impress a bored civvy dames, with its data castrated up to its very head.
Nothing personal, Julian. A good contract with tomorrow military is a luck... _perhaps_. I mean, this time, no empty spaces, please.
Posted by AmanfromMars on 10/26/10 02:27 AM
"I agree with the DB, this is really big news. China, far from being classified as junior player in the game, just happens to be holding all the Aces at the poker table of world trade." ..... Posted by Grekko on 10/23/2010 5:40:12 AM
And in the Great Intelligence Game over the Global Information Grid are they also immaculately supplied with winning hands, Grekko, as this tale tells [a longish tale which is nevertheless well worth reading to get a "feeling" for what the future brings]? .......
Click to view link
And/or are you being also selectively informed with disinformation to feed a phantom supply chain which needs flash cash/QE funds to survive with any influence on power and control, in a world/places/spaces where Knowledge is King .... and Queen and Knave and Ace and Unbeatable and Overwhelming?
It is certainly an attractive and lucrative area of play, which if you enter without the right stuff and a constructive and instructive mindset, will strip you bare and leave you exposed to XSSXXXXcitement and Astute Binary Code Delivery of sub prime forces for defending and bankrupting the homeland, for the strength of a competitive and foreign external threat is invariably also remotely aided and fuelled and exponentially enhanced by inherent internal weaknesses .....
"A great deal of money is at stake. Cyber security is a major growth industry, and warnings from Clarke, McConnell, and others have helped to create what has become a military-cyber complex. The federal government currently spends between six and seven billion dollars annually for unclassified cyber-security work, and, it is estimated, an equal amount on the classified portion. In July, the Washington Post published a critical assessment of the unchecked growth of government intelligence agencies and private contractors. Benjamin Powell, who served as general counsel for three directors of the Office of National Intelligence, was quoted as saying of the cyber-security sector, "Sometimes there was an unfortunate attitude of bring your knives, your guns, your fists, and be fully prepared to defend your turf. . . . Because it's funded, it's hot and it's sexy." "
The real truth though may be even more startling, with no inherent internal weakness in an adversary/competitor being necessarily required for a SMARTer Operating System to virtually take over from a discredited and corrupt warrior machine/military industrial complex which can only survive with the spreading of destruction and chaos. And that is one real dumb mother of a virtually stupid Program Driver.
And it is not as if one and nations were not warned of the honey trap, ages ago and on January 17, 1961 ...... "A vital element in keeping the peace is our military establishment. Our arms must be mighty, ready for instant action, so that no potential aggressor may be tempted to risk his own destruction.
Our military organization today bears little relation to that known by any of my predecessors in peacetime, or indeed by the fighting men of World War II or Korea.
Until the latest of our world conflicts, the United States had no armaments industry. American makers of plowshares could, with time and as required, make swords as well. But now we can no longer risk emergency improvisation of national defense; we have been compelled to create a permanent armaments industry of vast proportions. Added to this, three and a half million men and women are directly engaged in the defense establishment. We annually spend on military security more than the net income of all United States corporations.
This conjunction of an immense military establishment and a large arms industry is new in the American experience. The total influence -- economic, political, even spiritual -- is felt in every city, every State house, every office of the Federal government. We recognize the imperative need for this development. Yet we must not fail to comprehend its grave implications. Our toil, resources and livelihood are all involved; so is the very structure of our society.
In the councils of government, we must guard against the acquisition of unwarranted influence, whether sought or unsought, by the militaryindustrial complex. The potential for the disastrous rise of misplaced power exists and will persist.
We must never let the weight of this combination endanger our liberties or democratic processes. We should take nothing for granted. Only an alert and knowledgeable citizenry can compel the proper meshing of the huge industrial and military machinery of defense with our peaceful methods and goals, so that security and liberty may prosper together.
Akin to, and largely responsible for the sweeping changes in our industrial-military posture, has been the technological revolution during recent decades.
In this revolution, research has become central; it also becomes more formalized, complex, and costly. A steadily increasing share is conducted for, by, or at the direction of, the Federal government.
Today, the solitary inventor, tinkering in his shop, has been overshadowed by task forces of scientists in laboratories and testing fields. In the same fashion, the free university, historically the fountainhead of free ideas and scientific discovery, has experienced a revolution in the conduct of research. Partly because of the huge costs involved, a government contract becomes virtually a substitute for intellectual curiosity. For every old blackboard there are now hundreds of new electronic computers.
The prospect of domination of the nation's scholars by Federal employment, project allocations, and the power of money is ever present .... and is gravely to be regarded. "
Click to view link~hst306/documents/indust.html
Posted by William J. Schenker on 10/25/10 08:25 PM
Well, back in my student days in Switzerland, in the early 1950s, I remember the terrible smell of 'Appa-zella Kose' --- but this report of the G20 in Canton Appenzell re the rotting Yankee dollar smells a lot worse :=).
Posted by Victor Barney on 10/25/10 04:03 PM
The Day the Earth Shook; China Dictates to G20
China, as well as, Israel's forbidden foreigner of Revelation may be involved, but it will be Israel's Savior shaking the earth, not so much China or the forbidden foreigner put over Israel(Deut. 17:15)! Watch!
Posted by 4irw4y on 10/25/10 12:07 PM
@ CompassionateFascist --
"Putin defeats the Zionist-globalist oligarchs' attempt to seize the Russian economy during privatization" --
Got a link?
Reply from The Daily Bell
Yes, we noticed this statement to. There is some truth to it. But to call, say, the Rothschilds "Zionists" seems somehow to minimize what's going on.
Posted by John Edwards on 10/25/10 01:05 AM
@ Al Kyder.
"Perth can always dig it's way out of trouble with china." Al Kyder 10/24/2010.
Can it, Al Kyder ? If you are not directly or indirectly employed in the mining/resource sector of the economy in Western Australia, you need to be a Public Servant pandering to the whims of the mining/resource sector. Outside of those two options.....
Unluckily for the good ship Western Australia, and it's Black Swan Premier C. Barnett as Captain, we the citizens, are being sailed up a creek, without a paddle, owned and run by huge International Corporations controlled by faceless proxies, dummy front complex financial instruments, Sovereign Wealth funds. The way these corporations tend/want/need/conspire to operate is in monopoly.
All the competition is left for us outside their systems. They monopolize the government through lobbying, (which in this state is done in secrecy) causing vital services for the general population to be left underfunded and therefore reduced, so these corporations can get a 'leg up' for their spends on infrastructure. They suck the skilled labour out of the cities and towns only to dump it all back between contracts and work shifts, destroying the local cottage industry.
Talk about distorting the economy. It's a bloody travesty the way this state has rolled over financially and discarded it's own citizens for a get rich quick philosophy to government and life. Privatizing essential services that will NEVER make a profit and then let the new owners crucify the workers financially AND gut the service of it's delivery component. This ISOLATED economy is being hollowed out and once the minerals/gas are gone we will be bereft of having a viable economy to pick up where they left off.
Of course, the dog-whistle political excuse is we can always deal with it later, and that is enough to placate the people here. That is the way it is.
Just on a side note but to explicitly state, I personally don't buy into the race card. I don't think the Chinese people (generally) are (anymore) motivated by injustices from the past from other countries. Like myself, they are not looking for racial stereotypes to justify bigotry. I think, like me, they are much more interested in scrutinizing the actions of their own leaders that enabled such past injustices to have occurred.
Posted by CompassionateFascist on 10/25/10 12:33 AM
The real Turning Point: Putin defeats the Zionist-globalist oligarchs' attempt to seize the Russian economy during privatization.
Posted by AmanfromMars on 10/24/10 11:26 PM
And this is also a rapidly growing and constantly evolving stealthy tool for those who know how to use it and IT. Enjoined with more traditional forces and levers, does it extraordinarily render to Caesar what will be Caesar's ......
Here are two short videos which tell it like it is, although methinks it is even worse than the picture painted ..... and a smart and getting smarter population is a very dangerous "thing" for those who abuse nations for their own selfish ends ......
Click to view link
Hell, in CyberSpace, with a few Conficker and Stuxnet type programs, you can crash bad and mad systems and radically, remotely control the emerging stronger and novel alternative. Which is why you get to hear and see of these sorts of crash measures against a competition/adversary from an area of unknown power and overwhelming control .......
Click to view link ....
but a Virtual HyperRadioProActive Attack Environment such as are Internets and Global Information/Intelligence Grids are not Defense Friendly, for what would you be attacking and destroying to defend yourself in a field which doesn't actually physically exist, except the hearts and minds and structures of those who abuse Intelligence.
Seems like that is the industry/head game to be in, Bro. .....
How are tricks with you.
Reply from the Daily Bell: [re Posted by Mike on 10/24/2010 4:04:04 PM] ..... "Blowback." Should that not be payback, DB, as blowback normally implies something random and unplanned and accidental and incidental, and one can hardly expect anyone to believe that?
No matter though, for words are so easily used as a cover for cloaking and plausibly denying irregular and unconventional actions. And when so many cannot read are they easily forced to follow the narratives which media presents.
Posted by Mike on 10/24/10 04:04 PM
Why then has there been a concerted effort " starting with Kissinger under Nixon " by the AA elite to promote China to its current position? All along they have twisted arms to pass Trade bills (GATT I, Gatt II) that have favored China while simultaneously shackling our domestic producers with ever higher taxes and ever more complex regulations.
If this same country and its elite are now dictating the terms why did the AA elite do this? What do they have to gain? Has their arrogance and pride blinded them? Do they really believe they can control the whole game ? These are not rhetorical questions. I am truly perplexed.
Reply from The Daily Bell
Posted by Joelg on 10/24/10 12:28 PM
China as SCAPEGOAT, villain, or pariah make perfect sense. A diversion. Finger-pointing to shift attention away from FED and profligate U.S. government policies that are spending, taxing and regulating this nation deeper into stagnation and poverty.
I was particularly struck by Bluebird's comment about the alarm clock: "I went out the other day to get my son a new alarm clock...and now I am suppose to be happy to pay double for such things because it will fix our unemployment."
Think ahead a few years in time. If (or when?) Congress shoves through a VAT tax under the guise of economic rescue to go with Obamacare, then Bluebirds' alarm clock eventually quadruples in price. CHINA as SCAPEGOAT forced to raise its prices will make heavily taxed U.S. VAT goods seem more equal in price. Kind of a reverse competitive free market governmental solution, forcing Chinese goods to higher prices to make over-taxed, over-regulated, over-priced domestic products appear artificially competitive.
Enough to make government bureaucrats worldwide rub together their hands and salivate in anticipation. A tidy cycle of creating evermore intractable problems creates a "need" for more regulatory solutions. This means a bigger government regulatory structure, with even more highly paid government workers feeding off the decaying economic carcass. Might this be part of the end-game of CHINA BASHING and VAT?
Posted by Al Kyder on 10/24/10 12:07 PM
Thanks for that heads up, Also Translation "China welcomed the World Trade Organization's (WTO) ruling that United States imposition of anti-dumping and countervailing duties on four types of Chinese imports was inconsistent with WTO regulations, the Ministry of Commerce (MOC) said Saturday.
ASIA PACIFIC TIME, In a report released Friday, the WTO's dispute settlement body found that the U.S. department of Commerce had acted inconsistently with WTO rules on five elements of the case, The U.S. should conduct trade remedy investigations strictly in accordance with the WTO regulations, an unnamed official from the MOC's Department of Treaty and Law said"
Posted by AmanfromMars on 10/24/10 11:29 AM
"There is a solution-source which is gradual, and much safer than mutilating or frogs. Pure coding to run a sandwich-bag sized flowchart. So easy an eight-year-old could get it.
Is inVEnTable yes aMfm? Uni-XXSSXXXXually potentiated! " .... Posted by Pete 8 on 10/23/2010 9:20:57 PM
Yes, quite so, Pete 8. With the world wholly dependent upon binary and virtual machines, a few lines of exquisite code here and there will nobble and destroy any corrupt and perverted SCADA System, and as most Systems are so administered, are most systems easy targets for milking and bilking, and it is a very lucrative business being able to provide protection to a glaring hole/vulnerability which you would control/open and close.
Posted by NolaM on 10/24/10 06:45 AM
Reply from The Daily Bell
Posted by Al Kyder on 10/24/10 05:09 AM
@ John Edwards
Perth can always dig its way out of trouble with China. Just another deep hole, load it on a boat and send it off. Cant do that with paper money. The reason why the Commonwealth ie. Oz Canada and even South Africa are doing so well is the work of the 48 group club. Gough Whitlam also, is still highly respect and talked about in China.
China now almost owns Rio Tinto, and Oz Minerals ltd, but unlike the Japanese in the 1980's who invested in real estate, "Who cares, they cant take it home with them" China can take home the produce from all those holes in the ground.
Just some food for thought fellow countryman !
Posted by Wayne on 10/24/10 04:51 AM
True that the Anglo-American is the current elite, or the "known" base of the elite.
We know that Rome was the base for many centuries
So the real question is will they have to retreat, or will they successfully hold on to this base of operations.
They have too much to lose to allow a total war, as they would have few safe places to shift operations to.
Perhaps we will see some real freedom for a few generations now
It's long overdue.
Posted by Laughing Bear on 10/24/10 03:00 AM
"G20 nations should refrain from currency policies aimed at gaining a competitive edge, U.S. Treasury Secretary Timothy Geithner (left) said in a letter to G20 finance chiefs."
Abdicating the coining of money and regulation of weights and measures, via no-bid contract, illuminates the US congress as the responsible party for its current disastrous economic policy and suffocation of the markets. A prostitute must keep their side of the bargain and China has paid for the US government's and the FED's profligacy IN ADVANCE. This isn't a currency war, these are the wages of sin. In an economic sense, you cannot plant wheat and grow corn. I cannot decide whether Geithner's statement is ignorance, pretense or another con-- kind of like a "strong dollar."
Posted by Joanna on 10/24/10 02:36 AM
Just thinking a bit and wonder what you think about different countries reviving (EU) their own "old" currency within their country (tribe) to be used for domestic spending and the good ole government (who must of course be in charge of something....) be in charge of only the currency dealing with international enterprise. That would keep them out of our hair and give them jobs for the useful idiots who run Washington. All international debt would then be equal in terms of currency so we wouldn't be able to monetize our debt by devaluing the dollar down to zero. The Chinese might become our best friends.
Posted by Milton on 10/24/10 01:48 AM
You should have Andrew Gavin Marshall as a guest. I tried to post an excerpt from his book here but it was decided it was too long. It is however a must read. It is titled Global Depression to Global Governance and is an excellent discussion of the Political Elite and their plans.