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?
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.