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 Lila Rajiva on 10/23/10 02:02 PM
Posted on 23rd October 2010 by JimQ in Economy |Politics |Social Issues
Sorry folks. I'm boycotting my own site until it works. I won't be posting anything until I know I'm on a server that functions. I'm too tired to deal with this s--t. If I can't get it to work, I'll shut it down and just move over to Seeking Alpha where I already have a blog that I know works.
Click to view link
Reply from The Daily Bell
And you left a note as well on his site ...
Lila Rajiva writes to Jim Q ...
Sorry to hear of your problems. I thought you'd be interested to know I recently made my blog private, because of stalking and cyberthreats not to mention the IP issues.
Bloggers seem to be under attack in various ways.
BTW, thanks again for the very nice review of 'Mobs, Messiahs and Markets.
Posted by Summoning on 10/23/10 01:33 PM
could you please commnet on this article
Click to view link
Reply from The Daily Bell
Link doesn't work ...
Posted by John Danforth on 10/23/10 01:33 PM
Perhaps the reason not many aggregators picked up the story is because nobody expected anything any different.
Who would believe that a country would cede its sovereignty (control over their currency) to a committee without a very credible physical threat to enforce the demand?
If the shoe goes on the other foot, what would be the odds of the U.S. pledging to stop devaluing its currency if the G20 demanded it? In fact, why doesn't the G20 demand exactly that?
Further, the whole stance of the U.S. seems schizophrenic, or perhaps just formulated for public consumption. The U.S. needs China to keep funding its outrageous debt. If China stopped buying U.S. debt, the U.S. would presumably get what it wants, a worthless dollar compared to China's currency. It's obvious the U.S. administration doesn't want that. It doesn't add up. It's just posturing for the home folks.
Posted by Davidus Romanus on 10/23/10 12:32 PM
While I think your article is spot on as far as China (and others) not dancing to the Wesern PE tune, don't think that escalation of the war is not possible because of a nuclear holocaust. With few exceptions, people who enter into a war think they can control the situation and are proven wrong.
Posted by BigAl on 10/23/10 12:25 PM
Thanks DB for the "headsup alert". Now let's Focus and Fix It!
Posted by Myron Martin on 10/23/10 12:08 PM
The Chinese are a very ancient and intelligent people. The smartest move they have made in their economic war with the western powers is to not only accumulate gold and other strategic commodities, but also officially encourage their people to BUY precious metals.
In contrast to Western powers politicians who are primarily focussed on re-election to maintain their elite and powerful well paying positions, with all the GRAFT that goes with it, the chinese are thinking DECADES ahead strategically, and are likely to defeat the west without a shot being fired. While it is difficult to envision the YUAN as replacing the U.S. dollar as a world currency, it did after all replace the British Pound which was equally unthinkable a century or so ago, my point being that stranger things have happened and the Chinese are taking the necessary steps to accomplish a distant goal.
They may just outsmart the western controlled IMF and get there first, or at the least offer SYRONG resistance to an IMF based world currency which may be the next move of the elite to attain FULL control of the world, or at least take a step forward towards there goal of a one world government.
YES a one world government WILL COME (see Rev. 5.10 and Click to view linkap 18 show that this entire economic system hatched in Babylon will finally be destroyed and a JUST government restored when man finally comes to realize that he is incapable of governing himself outside of the Creator's laws, one of them being having "just weights and measures" and gold and silver being the only REAL MONEY that will prevent cheating and manipulation in any form.
Posted by Sovereignjim on 10/23/10 11:49 AM
"Roosevelt and Woodrow Wilson were pawns in a larger elite conspiracy to" get the U. S. into the war against Germany.
Posted by Patrick McDonald Formerly Of Her Majesty's Commonwealth Australian Army Cadets on 10/23/10 11:39 AM
Some of us are better off than 90% of the worlds population. Still; we must keep out sights on conservation and plan for longivity. A gentleman, a company, a country may turn the currency play into their own favor. It is an exciting world. Spintronics and nanotechnology will revolutionize the world. The G20 desire China to unpeg the Yuan from the USD. Trade is a two way street. China may find the lower Euro will induce China to consume European goods and European services. Unlock trade barriers and a world wide depression can be prevented. When global trade fails; the vultures are always there for the feast. The worlds fate may be precast in the stars. Deux ex machina. The G20 is persuading the yuan to be realistically revalued to unlock the gears to enhance global trade.
Posted by Ingo Bischoff on 10/23/10 11:28 AM
Indeed, China unlike Japan and Germany, stands firm against the Anglo-American axis in their demand for increasing the value of Yuan/Renmimbi. China "owes" nothing to the Western central banking elites, and it sees no reason to "forgive" debts to these elites. This will be the clear message at the G20.
Since 1934, the FED central bank USD/FRN currency has been backed by the productivity of the American taxpayer in the manufacturing sector. While technological progress has greatly improved productivity in American manufacturing, a huge portion of this manufacturing sector was transferred to China.
In pegging the Yuan/Renmimbi to the USD/FRN, the value of the USD/FRN is now largely backed by the Chinese manufacturing sector.
The question discussed at the upcoming G20 is, who will direct monetary policy of the U.S.? Is it the FED or the PRC?
The big question, however is not what the central bank elites decide. The big question is what the American people will decide on November 2nd.
If they decide to largely vote conservative, it will be a great set back for the Anglo-American banking elites. It will also be a huge set back for the PRC.
No longer can the world monetary system be fixed by tinkering with it around the edges. An IMF "bancor" is a pipe dream. It will never happen.
The USD/FRN is still valuable as a reserve currency. It is ubiquitous. A bancor controlled by the IMF would require Chinese cooperation which is lacking in regard to a revaluation of the Yuan. Why would the Chinese agree to have the IMF force an upward valuation upon them? China controls the U.S. FED. Unless of course, the November election will have the American people tell the U.S. FED "where to come off".
If that happens, the Western monetary elites and the octogenerics in the PRC will find themselves in a completely new ball game.
Posted by Patrick McDonald Formerly Of Her Majesty's Commonwealth Australian Army Cadets on 10/23/10 10:58 AM
De Ja Vu 1970's; Commodites up $USD$ down.
The bill for war is at a high cost;just as it had been for the Kings of Europe. Bonds are sold to guarantee a currency flow to provide guns and butter for zhe krieg effort. Countries are pitted against one another. War will bleed a country while other countries free from the high cost of defense and free from the high cost of war will prosper. Money money is printed to run a country when the cost of commodities become less within the industrial and consumer's reach. Hi Oil = Lo USD.
Money is power. It moves mountains;but the currency must be strong enough to move the mountain to buy a tomatoe and a barrel of beans. Countries would view the yanu value to pop up higher on the exchange rate as a trade advantage for themselves. China has a trade surplus and is no longer a simple paper tiger trapped by an iron curtain isolatioism. They are a major global compeitior and partner in trade. Currencies are used as kind of like a trade protectionism for trade advantage.
When a currency is cheaper than a competitors currency; the cycle of trade will flow back in favor of the country with more goods and services of lower cost. Agentina Brazil found once found themselves trapped in debt and on the verge of bond default. To free themselves from the shackles of a dieing currency and trade disadvantage; Brazil and Argentina reset their currency and started over again. Smart people brought renewed currencies knowing the currency would go from bottom to up.
Georgie Sorros noticed the pound was losing ground. He shorted the British pound and cashed in on his wisdom and practical experience. "Break The Bank of England." Opportunity knocked and Geroge answered the door. Subsequently; our Hungarian genius was summoned to tea and have a chat with HRH Queen Elizabeth II.
George Soros is the expert on currency trade. We live and we learn. If one is to succeed in competition; one should mimic the dynamics of George Soros. His intention was profit. His intention was not aimed to destroy a bank; but to rise above and to profit from the demise of a falling currency. Money runs zhe welt. It buys people countries services and goods for a price. Money can bargain the replacemnt of leaders of a country. Money can get rid of people, corporations and countries too.
The security services of countries analyse and provide service to install and uninstall advantages of governments. Multinational and nationalist corporations who have a vested interest in projects ask the government(s) to provide support. Special interests promote their agenda. Special interest lobby communicate so they may do business and attain the competitive edge in the global environment.
Big China is a Giant with a trade surplus with a government favoring the advancement of Big China. A lower yaun to the USD puts Big China in the drivers seat to drive a trade surplus to their own national interest.
When the yaun goes up; countries like India get the advantage of the lower rupee thus making trade with India more attractive. Already the interest rate did rise via governmental controls of Big China. The government plan aimed to cool off the rise in scarcity of home dwellings unavailable to the aspiring workers and noveau riche Chinese.
The mega goliath super power of Big China government understands the usefulness of managing the Yuan. They understand the Central Business District; Decentralization and the need for corradores, good transport, infrastructure, the cost of commodities like wheat rice oil and cement and the need for urban sprawl.
Folks better get with 3000 years of wisdom or we have learned nothing. i wrote this while my x was downgrading me and barking at me...a socio psychological thriller of sorts. i have to give her money because she doesn't understand it. People can make one poor by virtue of their over zealous socialist demands and misuse of funds. Hence the financial clamity in Europe. God Save The Queen. Jai adore adoratti HRH Queen Elizabeth II.
Reply from The Daily Bell
"God Save The Queen." Your point is?
Posted by Bluebird on 10/23/10 10:35 AM
I am sorry. I am not good at links. It was on Fox. It was an article saying we would happily go out and pay more now for China's imports because it will fix our unemployment. (?) I am not sure how that is suppose to work. I was hoping someone could enlighten me.
I went out the other day to get my son a new alarm clock. I had a choice of about 6. (Guess where they were all made?)I bought one for about $12.00, brought it home and tried to set it. It skips every other hour! A real time saver and now I am suppose to be happy to pay double for such things because it will fix our unemployment.
And exactly what do we have to export now? Oh, I know. Our "save the planet" products. Won't someone buy them, please?
Posted by J.D.Beck on 10/23/10 10:02 AM
The quest for Money Power's monopoly didn't start and will not end with the Anglo-American elite. The AA Elite are merely the current host and now that it is in terminal condition after being bled dry, the parasitic Money Power will simply jump to a new host. China seems to be that Host...
Absolutely correct....yet it is the duty of every decent person to seek out the truth... In my humble view....as stated in previous posts...beware China will flex its muscle...and who knows...perhaps the devil we know will be replaced by a worse devil...
The human race has portrait the best and the worst in its action ... I like to believe , ever so slowly , the good site will eventually win out...but then there are days when foulness reaches a point where it almost seems impossible to ever see sunlight again.
The Chinese secret society seems a fact...in my travels to the far east...mention of it was made many a times...by people who should know.
Reply from The Daily Bell
The exercise of money power in China, such as it is, has nothing to do with the money power of the West in our view.
Posted by DL on 10/23/10 09:53 AM
Valhalla, Mr. Beale
There is no democracy from the movie the Network.
I can see the Elite standing at the G20 meeting and I think about this clip from the network.
Click to view link
Just maybe the Elitists world is falling apart as the Mayan calendar just on time predicted. 11-02-10
Posted by Bluebird on 10/23/10 09:23 AM
Interesting, DB. Apparently the way to lift the US up by the boot straps is by knocking down China via our imported products (which by the way, none of us appreciate). Seems now we are to tighten our belts even tighter as the wonder cure for our woes "fixes it all". We are suppose to quit looking at Big Gov., Big Banks, and Big Fed to where the real problems lie. Of course,there is some truth in this import/export problem, but far from a cure. And it did not come about by accident.
Click to view link
Reply from The Daily Bell
Link doesn't work.
Posted by Adam on 10/23/10 09:23 AM
Seems like a fantasist to me, but may offer some interesting perspectives...
Click to view link: "Chinese Secret Society Challenges Illuminati."
'RENSE: So is this suggesting some kind of cooperation between the Chinese secret society and the Japanese government, which wants liberation from the yoke of the Rothschilds?
FULFORD: Absolutely! Absolutely. They are cooperating. They are going to be given an ultimatum soon. We're just waiting for all our ducks to be in a row.
FULFORD: That's right. That's part of why they killed my great grandfather " he was going to finance Tesla. So they turned it into a century of horror. They need war and they need fear to control people.
If things get too peaceful, then they cannot keep things under control.
What has happened " and this is important, this is the big rift, the [Rothschild] Global Warming / [Rockefeller] War on Terror thing.
The radical faction, who wants to go ahead with Armageddon, are the War on Terror people. They're all a lie, basically. Another faction [is saying], "Okay, look. The plan to create a world government, with Jerusalem as its capital, is just not going to work right now. It's much easier to make the EU a central world government."
The thing you must understand about communism, the EU and even capitalism, as it is now practiced in the United States " they are all forms of disguising true central control. In other words, it's all different forms of Babylonian tyranny.
RENSE: They seem to be playing to that script.
FULFORD: And you must not be fooled, because this has nothing to do with anything spiritual or otherworldly. This is right here on this earth.
And the cults these people represent, they have been known by folklore over the years. You have to start with Nimrod, the Babylonian tyrant. Then Hammurabi.
Hammurabi is known to the Jews as Abraham " a Babylonian tyrant. A slave driver. These people have had a secret sect of slave drivers that is almost six thousand years old.
They have very, very sophisticated methods. They use secrecy, murder, bribery and ridicule as their main weapons. They have had a very good run, but this is checkmate for them, as far as I am concerned.
They are not going to get away with this. They'd better realize it. It's game up. They've been exposed. People know about them. They are onto their game. And it's not going to work.
All you've got to do is target the Eye. Hollywood " the people in Hollywood have been trying to warn the Americans for years! If you look at Tolkien's movie, you have this Eye on the top of a mountain. Destroy the Eye and save the world.'
Click to view link
Wikipedia: Benjamin Fulford
'Benjamin Fulford (born 1961) is a journalist of Canadian descent living in Japan. He has given a number of interviews to investigative journalists, and therein claimed amongst others that:
A Chinese secret society with a membership of 6 million (intellectuals like professors in various fields, scientists, politicians, etc.), this includes 1.8 million gangsters, and 100,000 professional assassins has issued an ultimatum to the Illuminati, warning them that if they persist with their plan to depopulate the earth, they will be killed. The society has created an alliance joining China, Russia, India, South America, ASEAN, the free Muslim nations and Africa that is united in stopping the Illuminati.'
Click to view link
Reply from The Daily Bell
The people in Hollywood have been trying to WARN the West about the Illuminati? .... And somehow Mr. Fulford, a former reporter for Forbes is the one unique, indispensable person, the hinge between Japan and the West. One man. Fulford. Hm-mm ...
Posted by Ken Green on 10/23/10 09:17 AM
What a GREAT article! Hope springs eternal.
Posted by Dan on 10/23/10 09:00 AM
Some 25 years ago, as a young man working in his father's business, I had a conversation at lunch with a very successful businessman from Vicenza, Italy, who was engaged in doing business all over the world. I had come to know this man fairly well, and because he was about twice my age at the time, I welcomed his opinions and comments about many things due to his life experiences.
I will never forget his answer to me when I questioned him about the upcoming US presidential election. I asked him if he had a preference as to who would be elected....
His answer...."I don't involve myself in politics. All these people are nothing but "GANGSTERS".
I remained silent after he said that...as I was at once stunned by what he said, and to an extent, resentful that he made such a remark. That should have been my cue to reflect more seriously on his comment. I did not.
Twenty five years later I now FULLY understand what he told me was in fact the truth.
We live in a world of GLOBAL "UNTOUCHABLES". You can call them the NWO, BANKSTERS, ELITISTS, BILDERBERGERS, WORLD LEADERS, etc.
I'll just call them what they are .... GLOBAL GANGSTERS.
Will there ever be a GLOBAL ELLIOTT NESS ?
Posted by Mpresley on 10/23/10 08:41 AM
You need an edit feature, DB, since what I meant to write was "even if one does NOT especially agree..."
Posted by Mpresley on 10/23/10 08:39 AM
Chinese leaders will always do whatever it takes (when they think they can) towards the maintenance of the CCP, along with the ethnic/cultural homogeneity of the nation and Han majority. The Chinese leadership is nationalistic and "China first." It is difficult not to admire their traditionalist thinking, even if one does especially agree with the form it has taken.
Posted by David Redick on 10/23/10 08:37 AM
Fiat money and various controls don't work. The gov'ts ALWAYS abuse fiat money by excess creation of it and now it has caught up with them. Using gold as money ends the 'exchange rate' issues and prevents excess monetary inflation. APPRECIATION of gold's purchaing power handles the 'there is not enough gold' complaint; as in Econ 101, demand for a scarce resource results in increase in its value (notice I'm not using the word 'price'). Money will be measured as WEIGHT of gold, no 'names' such as 'dollar' are needed! It's all in my book 'Monetary Revolution-USA' on Click to view link (Oct-2010, 3rd edition due Oct 31), or at Parts 1 and 2 in the left margin of my site Click to view link