Halloween decorations carry haunting message of forced labor
Rachel Stark, The Oregonian
Julie Keith contacted a human rights organization after finding a plea for help inside a package of Halloween decorations.
The letter came in a box of Halloween decorations purchased at Kmart, but for a year Julie Keith never knew. It gathered dust in her storage, a haunting plea for help hidden among artificial skeletons, tombstones and spider webs.
Keith, a 42-year-old vehicle donation manager at a southeast Portland Goodwill, at one point considered donating the unopened $29.99 Kmart graveyard kit. It was one of those accumulated items you never need and easily forget. But on a Sunday afternoon in October, Keith pulled the orange and black box from storage. She intended to decorate her home in Damascus for her daughter’s fifth birthday, just days before Halloween.
She ripped open the box and threw aside the cellophane.
That’s when Keith found it. Scribbled onto paper and folded into eighths, the letter was tucked between two Styrofoam headstones.
The letter describes conditions at a forced labor camp in China.
“If you occasionally buy this product, please kindly resend this letter to the World Human Right Organization. Thousands people here who are under the persicution of the Chinese Communist Party Government will thank and remember you forever.”
The graveyard kit, the letter read, was made in unit 8, department 2 of the Masanjia Labor Camp in Shenyang, China.
Chinese characters broke up choppy English sentences.
“People who work here have to work 15 hours a day without Saturday, Sunday break and any holidays. Otherwise, they will suffer torturement, beat and rude remark. Nearly no payment (10 yuan/1 month).”
Ten yuan is equivalent to $1.61.
“People who work here, suffer punishment 1-3 years averagely, but without Court Sentence (unlaw punishment). Many of them are Falun Gong practitioners, who are totally innocent people only because they have different believe to CCPG. They often suffer more punishment than others.”
The letter was not signed.
Shocked, Keith sat down as her mind reeled.
Wow, that’s daring, she thought. She imagined the desperation the writer must have felt, the courage he or she must have mustered to slip the letter into that box. If caught, what would happen?
Like a message in a bottle, the letter traveled more than 5,000 miles over the Pacific Ocean. It could not be ignored.
TotallyGhoul.jpg View full size This package contained a letter folded into eighths and tucked between styrofoam headstones.
Unsure of where to start, Keith turned to Facebook.
“I found this in a box of Halloween decorations” she typed beneath a photo of the letter. She wanted to spread the message.
The Facebook post sparked a slew of responses. Her friends had heard of labor camp horrors. But a letter from one of those camps? Never.
“I’m sure that person feared for his/her life to include that letter in the products, but it was a chance they were obviously willing to take,” one friend wrote. “We take our freedom for granted!”
“What’s weird to me is someone is actually thinking about, and praying something comes of this … every day of their life since they sent it out,” another wrote. “Makes me sad this even happens”
Some friends offered help, others asked for updates.
The anonymous letter evoked skepticism, too. Written largely in English scrawl, it was almost too bold of an act to seem plausible. Still, U.S. authorities on China took note.
“We’re in no position to confirm the veracity or origin of this,” said Sophie Richardson, China director at Human Rights Watch. “I think it is fair to say the conditions described in the letter certainly conform to what we know about conditions in re-education through labor camps.”
China’s re-education through labor is a system of punishment that allows for detention without trial. Various reports allege followers of the banned spiritual group, Falun Gong, are sent to the reform camps – claims supported in the letter – but the facts are difficult to confirm.
Masanjia labor camp is located in the industrialized capital of the Liaoning Province in northeast China. A Google search of the camp yields pages of grim results.
“If this thing is the real deal, that’s somebody saying please help me, please know about me, please react,” Richardson said. “That’s our job.”
If truly created in a forced labor camp, the Halloween graveyard kit from Kmart’s “Totally Ghoul” product line could bring a blow to the U.S. chain of discount stores.
Title 19, section 1307 of U.S. Code generally prohibits the importation of all items “mined, produced or manufactured” in any foreign country by convict labor, forced labor and/or indentured labor.
After the Oregonian informed the U.S. Immigration and Customs Enforcement about the letter, ICE’s Homeland Security Investigations began looking into the case, public affairs officer Andrew Munoz confirmed.
Sears Holdings Corporation, which operates Kmart, released a statement on the matter:
“Sears Holdings has a Global Compliance Program which helps to ensure that vendors and factories producing merchandise for our company adhere to specific Program Requirements, and all local laws pertaining to employment standards and workplace practices. Failure to comply with any of the Program Requirements, including the use of forced labor, may result in a loss of business or factory termination. We understand the seriousness of this allegation, and will continue to investigate.”
Daniel Ruiz, section chief of the National Intellectual Property Rights Coordination Center’s commercial fraud unit, said it would be difficult to predict the length of an investigation like this, which would involve American and Chinese authorities. Investigative findings would be released, he said, only if the agency takes action.
Julie Keith now checks the label of everything she buys, down to the Gingerbread house she purchased for the holidays. Her friends, she said, do the same.
“If I really don’t need it, I won’t buy it if it’s made in China,” she said. “This has really made me more aware. I hope it would make a difference.”
In news that will make you want to shut the blinds, go back to bed until next week … there’s disturbing news out of South Korea that since August, officials have found over 17,000 pills filled with human flesh, in particular the placentas and ground up bodies of dead Chinese babies.
Feel free to walk away from your computer and shake your head for the next few minutes. Are you back? Still have faith in humanity? Here we go … as disturbing as the contents of the pills is this detail about how they’re made: “bodies [of Chinese babies] were chopped into small pieces and dried on stoves before being turned into powder.” And now you’ll really want to walk away as we tell you that people were, as the Associated Press’ Hyung-Jin Kim reports, consuming these pills as stamina and enhancement boosters and putting themselves at risk. “It was confirmed those capsules contain materials harmful to the human body, such as super bacteria. We need to take tougher measures to protect public health,” a customs official said in a report by The Korea Times (which was translated and picked up by the BBC).
But back to the babies, this disgusting report might just be official confirmation that this Korean documentary revealing the scary process (it aired last August) is actually true (WARNING: please put your coffee down and finish your breakfast before reading this next part) “Supposedly, the television team paid a lot of money to get some of the pills, and when they tested them, found the pills’ contents were 99.7 percent human, and were also able to discern the babies’ gender from the powder, as well as found hair and nail remnants,” reads Geekosystem’s report on the documentary, which notes that the babies are “mostly” stillbirths and abortions. SOURCE
Thousands of pills filled with powdered human baby flesh discovered by customs officials in South Korea
By Richard Shears and Rob Cooper
Thousands of pills filled with powdered human flesh have been discovered by customs officials in South Korea, it was revealed today.
The capsules are in demand because they are viewed as being a medicinal ‘cure-all’.
The grim trade is being run from China where corrupt medical staff are said to be tipping off medical companies when babies are aborted or delivered still-born.
The tiny corpses are then bought, stored in household refrigerators in homes of those involved in the trade before they are removed and taken to clinics where they are placed in medical drying microwaves.
Dead baby pills: This is ground baby powder which tests discovered is 99.7 per cent human last year. South Korean officials have stopped 17,000 dead baby pills being imported since last August
Once the skin is tinder dry, it is pummelled into powder and then processed into capsules along with herbs to disguise the true ingredients from health investigators and customs officers.
Chinese politician whose wife ‘confessed to killing British businessman’ had ‘plotted three ways to kill police chief to hide murder’
The discoveries since last August has shocked even hardened customs agents who have pledged to strengthen inspections.
Chinese alternative medicines contain traces of endangered species, a study has found.
Many of the remedies are more than 2,000 years old – and claim to be alternative methods for curing disease.
The use of rhino horns in Chinese medicines has been widely criticised.
Despite the claims the ‘cures’ can treat everything from broken bones to headaches, there is limited proof they actually work.
A team of Australian scientists discovered that some of the medicines contained traces of black bears and antelope.
The Murdoch University team used DNA sequencing to work out what the plants and animal ingredients are.
Chinese officials are understood to have been aware of the trade and have tried to stop the capsules being exported but thousands of packets of them have been smuggled through to South Korea.
There is a huge demand for alternative Chinese remedies – which include ground up rhino horns.
The Chinese have historically consumed human placentas to improve blood supply and circulation.
Health authorities in Asia are concerned that if the powdered foetus trade is allowed to continue the capsules will find their way onto the internet and be sold to gullible or sick desperate people in other parts of the world.
The South Korean Customs Service said today that it had heightened its searches of suspicious packages being brought into the country by travellers from China in an attempt to stamp out the sickening trade.
According to customs agents, 35 smuggling attempts have been made since August last year involving more than 17,000 capsules disguised as ‘stamina boosters’.
Hospitals and abortion clinics in China reportedly pass the remains onto drugs companies when a baby is stillborn or aborted, the South Korean SBS documentary team reported last year.
The San Francisco Times reported that tests carried out on the pills confirmed they were made up of 99.7 per cent human remains.
The tests were successfully able to establish the genders of the babies used.
There is a huge demand for the pills which are thought to enhance stamina. Microwave-dried placenta is also sought after for its alleged ‘medicinal’ benefits.
However, in reality the human flesh capsules contain super-bacteria and other harmful ingredients.
More than 17,000 capsules disguised as ‘stamina boosters’ have been intercepted as they were smuggled into South Korea last year (pictured is Seoul airport)
A number of smugglers who have been detained by the South Korean authorities have claimed they did not know what the ingredients were or the manufacturing process behind them.
‘Ethnic Koreans from north-east China who now live in South Korea are those who were mostly intending to use the capsules or share them with other Korean-Chinese’ said a customs official.
‘They are normally brought into South Korea in luggage or posted by international mail.’
Chinese newspapers have identified the north eastern provinces as the source of the human flesh capsules, in particular the Jilin region which is close to North Korea.
There have been disturbing reports that some babies were those who had perished in China’s notorious ‘dying rooms’ where youngsters are deliberately left to die because they were born into families that already had the limit of one child in country areas.
In order to keep its population down, China performs 13 million abortions a year – mainly because mothers sacrifice their newborns to avoid punishment such as severe fines or even a beating by the authorities.
The Chinese authorities have confirmed that 38 per cent of women of child-bearing age have been sterilised – but the babies that are aborted do not go to waste because of the sickening trade in using their corpses for purported medicinal purposes.
Despite their disgust at discovering packets of the so-called rejuvenation pills being brought in from China, South Korean officials have refused to confirm where the babies came from or who made the capsules.
Sources said this was because they were not prepared to create diplomatic friction with Beijing, preferring to leave it to Chinese officials to do something about the horrific trade in powdered babies.
U.S. intelligence agencies monitoring China’s Internet say that from March 14 to Wednesday bloggers circulated alarming reports of tanks entering Beijing and shots being fired in the city as part of what is said to have been a high-level political battle among party leaders – and even a possible military coup.
The Internet discussions included photos posted online of tanks and other military vehicles moving around Beijing.
The reports followed the ouster last week of senior Politburo member and Chongqing Party Secretary Bo Xilai, who was linked to corruption, but who is said to remain close to China’s increasingly nationalistic military.
Chinese microblogging sites Sina Weibo, QQ Weibo, and the bulletin board of the search engine Baidu all reported “abnormalities” in Beijing on the night of March 19.
The comments included rumors of the downfall of the Shanghai leadership faction and a possible “military coup,” along with reports of gunfire on Beijing’s Changan Street. The reports were quickly removed by Chinese censors shortly after postings and could no longer be accessed by Wednesday.
The unusual postings included reports that military vehicles were sent to control Changan Street, along with plainclothes police officers and metal barriers.
Another posting quoted internal sources as saying senior Communist Party leaders are divided over the ouster of Mr. Bo. The divide was said to pit Prime Minister Wen Jiabao and against party security forces and Minister of Public Security Zhou Yongkang.
Late Wednesday, another alarming indicator came when Beijing authorities ordered all levels of public-security and internal-security forces under Mr. Zhou to conduct nationwide study sessions, although Mr. Zhou’s name was not on the order – a sign his future may be in doubt.
Additional references on Chinese social media included vague mention of high-level party political struggles and related police activity in Beijing.
One posting referred to a mysterious atmosphere in Beijing and a reported shooting Tuesday night. The posting was quickly censored by authorities.
PENTAGON CYBERSECURITY LACKING
A defense official told Congress this week that Pentagon security efforts against hackers and other threats remain weak.
Kaigham J. Gabriel, acting director of the Defense Advanced Research Projects Agency, told a Senate hearing Tuesday that the Pentagon is “capability-limited in cyber, both defensively and offensively.”
“We need to change that,” Mr. Gabriel said.
He noted that most details of cybersecurity threats and efforts to counter them can only be disclosed at the “special-access level,” the most secret security classification.
However, in both public and prepared statements to the Senate Armed Services subcommittee on emerging threats, Mr. Gabriel issued unusually blunt criticism of Pentagon cyberwarfare programs, both offensive and defensive.
As for cyberdefenses, Mr. Gabriel revealed that “attackers can penetrate our networks.”
“In just 3 days and at a cost of only $18,000, the Host-Based Security System was penetrated,” he said.
Also, password security remains a “weak link.” For example, in security tests, 53,000 passwords were given to simulated hackers and, within 48 hours, 38,000 passwords were cracked.
Also, the defense supply chain is “at risk,” Mr. Gabriel said.
“More than two-thirds of electronics in U.S. advanced fighter aircraft are fabricated in off-shore foundries,” he said.
Additionally, physical systems can be penetrated easily by hackers. In one case, a smartphone hundreds of miles away took control of a car’s drive system through a security hole in its wireless interface.
“The United States continues to spend on cybersecurity with limited increase in security,” Mr. Gabriel said. “The federal government expended billions of dollars in 2010, but the number of malicious cyberintrusions has increased.”
Mr. Gabriel said the Pentagon has used a layered approach to protecting networks from attack that is not well-suited to dealing with evolving cyberthreats.
“Malicious cyberattacks are not merely an existential threat to [Defense Department] bits and bytes. They are a real threat to physical systems, including military systems, and to U.S. warfighters,” he said. “The United States will not prevail against these threats simply by scaling our current approaches.”
Regarding offensive cyberwarfare operations, Mr. Gabriel said the Pentagon “must have the capability to conduct offensive operations in cyberspace to defend our nation, allies, and interests.”
The Pentagon needs a full range of cybertools for offensive attacks to secure national interests.
“Modern operations will demand the effective use of cyber, kinetic, and combined cyber and kinetic means,” Mr. Gabriel said. He said the shelf life for such weapons may be “days” as defenses are devised or offensive attacks thwarted.
Cyberwarfare tools also can be adapted from intelligence-gathering methods, Mr. Garbriel said.
“Rather, cyber [warfare] options are needed that can be executed at the speed, scale, and pace of our military kinetic options with comparable predicted outcomes,” he said.
In criticism of current U.S. government squabbling over controls and structure, Mr. Gabriel said a better question to be asked once lines of authority are clarified is: “What now?”
“The lack of capability is the overwhelming issue,” Mr. Gabriel said. “Further oversight strategies must be updated and be at pace with the threat.”
SCHWARTZ ON CHINA
Air Force Chief of Staff Gen. Norton Schwartz told the Senate this week that he is most concerned by China’s military integration.
Asked during a Senate Armed Services Committee hearing Tuesday about China’s aircraft carriers, stealth fights and advanced space programs, Gen. Schwartz said he is less worried about hardware than developments in joint-warfighting and electronic advances.
“I would say their areas, in not so much hardware, but in integration of electronic warfare techniques, of cyber capabilities and so on, with more traditional tools of the trade,” Gen. Schwartz said. “They are becoming more sophisticated in this respect, and that is the thing that I am paying the most attention to.”
China is rapidly building up its military forces to be able to conduct high-technology warfare using a combination of advanced conventional weapons and a growing arsenal of nuclear and non-nuclear strategic weapons.
They include new nuclear arms, multiple-warhead missiles, an advanced anti-ship ballistic missiles, anti-satellite weapons and cyber warfare capabilities.
We will do it with or without you, US tells Pakistan
Armageddon (commonly known as the battle against the anti-Christ) according to the Bible, is the site of a battle during the end times, variously interpreted as either a literal or symbolic location. The term is also used in a generic sense to refer to any end-of-the-world scenario.
According to some Muslim and Christian interpretations, the Messiah will return to earth and defeat the Antichrist, Satan the Devil, in the battle of Armageddon. According to the Muslim belief, it would be Imam Mehdi who would precede Prophet Jesus who would fight the one eyed beast called Dajjal (Anti Christ). Then Satan will be put into the “bottomless pit” or abyss for 1,000 years, known as the Millennial Age. After being released from the abyss, Satan will gather Gog and Magog (peoples of two specific nations) from the four corners of the earth. They will encamp surrounding the “holy ones” and the “beloved city” (this refers to Jerusalem). Fire will come down from God, out of heaven and devour Gog and Magog after the Millennium.
According to the Muslim belief, the forces to battle the one eyed beast would rise from the area of Khurasan that comprises of portion of Iran, Pakistan, Afghanistan and part of Central Asia. If the anti-Christ forces have assembled in Afghanistan, it’s not a coincidence but well thought out Zionist strategy to take on Pakistan, the nuclear power of the Muslim world so its free to advance other Muslim territories without any fear.
Most historians and scholars believe that the present stretching of the US and NATO Forces far and beyond their legitimate areas of interests, is a sign of final showdown. The placement of US forces in Afghanistan is seen as the final buildup to attack the Muslim lands. This could well become the graveyard of the US troops from where they may never escape death. Presently, the grouping of pro and anti Christ Forces is seen to be taking place. The US and NATO clearly appear to be on the side of the Anti-Christ and siding with the Zionists the real anti-Christ Forces. Zionists are known to be Satan worshipers in their secret hideouts therefore are working to create a godless world and control the entire resources.
Sensing these developments, Russian Prime Minister Vladimir Putin prior to his departure for China, cautioned his generals to prepare for Armageddon. A similar message was also delivered to the Chinese leadership that has the Chinese Forces also on high alert. Apparently in the same context, Putin has resolved all differences with China to forge a clear unity for times ahead.
Sino-Russian alliance is very timely, seeing the hard threatening statements of Hillary Clinton that she fired at Pakistan from Kabul before flying to Islamabad is very alarming. Pakistan has some hard decisions to make.
Commander William Guy Carr, in his book ‘Pawns In The Game’ probably written in 1948 stated that third revolution and third world war are in the offing for which the grouping is taking place. He also stated categorically that the third world war would be against Islam.
Plans for this “Total Global War” or the war against Islam the Americans are preparing to launch were first revealed to China’s Ministry of State Security (MSS) by a former Blackwater agent Bryan Underwood who has been apprehended by the US authorities for spying.
If one observes the way the US and NATO are waging their wars in Muslim countries proves William Carr to be correct.
Blackwater, the global contractor for CIA is operating in almost all the target countries, arrest of Raymond Davis in Pakistan did expose the US designs; had he been retained and grilled for some indefinite time, much more would have been revealed. Pakistan is infested with Blackwater, they have made inroads in ethnic political parties more so in Karachi, the port city of Pakistan. Balochistan has also become a hotbed where secessionists forces are being patronized by CIA, MI6, Mossad and RAW. As believed now, the US has also launched biological warfare in Pakistan where dengue is killing people on daily basis.
On reading the situation of the coming US plans for Total Global War, Putin spelt out an alliance to integrate the former Soviet Republics into closer cooperation. He scheduled an emergency trip to China to meet with Hu, and ordered the FSB (Russian Agency) to notify China’s MSS of the arrest and detention of their spy Tun Sheniyun who was captured last year for attempting to steal sensitive information on Russia’s most powerful anti-aircraft system.
Today Libya has fallen, how the Libyans would benefit from it only time would tell but one thing is sure that US and her allies have formed a bridgehead in Africa. Further deployment of the US troops in Africa are taking place, its China encirclement there where China has friends in the Muslim countries. Sudan has been split, and Obama plans to occupy some other countries like Uganda, Somalia, Morocco etc. In Africa, says Obama, the “humanitarian mission” is to assist the government of Uganda defeat the Lord’s resistance Army (LRA), which “has murdered, raped and kidnapped tens of thousands of men, women and children in central Africa”. Incidentally, Africa also happens to be the Chinese success story therefore by taking over Africa, China would also be chocked. Libya was one of the major oil suppliers to China now that hangs in air. Gaddafi was trying to dump dollar for gold that instigated the US to attack her through a cleverly manipulated and orchestrated moves.
After having been deceived in Libya where the US assured both Russia and China that it will not attack but did quite contrary to what was promised. Sensing that US plans to attack Syria, Russia and China were quick to veto the American resolution in the security council that infuriated the US Ambassador Susan Rice who left the session in rage.
Dick Cheney pointed out in his 1990s “defence strategy” plan, America simply wishes to rule the world so that’s forging ahead following the Nixonian doctrine, ‘seize the moment.’
Reported by the EU Times, the “New Great Game” moves being planned by the Americans is to strike fear into both Russia and China that includes:
1.) The deliberate implosion of both the US and EU economies in order to destroy the Global Financial System that has been in place since the ending of World War II
2.) The launching of a massive conventional war by the US and EU on the North American, African and Asian Continents to include the Middle East
3.) During this all-out war the deliberate releasing of bio-warfare agents meant to kill off millions, if not billions, of innocent civilians
4.) At the height of this war the US and its allies will sue for peace and call for a new global order to be established in order to prevent the total destruction of our planet.
Confirming the fears, an unidentified source within the US Department of Defense (DOD) warned that the Obama regime was preparing for a massive “tank-on-tank” war and that US military forces are “expecting something conventional, and big, coming down the pipe relatively soon.”
To how close this war may be the FSB in their report states that it will be “much sooner than later” as the Americans have pre-positioned in Iraq nearly 2,000 of their M1 Abrams main battle tanks, have pre-positioned another 2,000 of them in Afghanistan, and between the Middle East and Asia have, likewise, put into these war theaters tens-of-thousands of other typed armored vehicles. This should be a grave cause of concern for Pakistan.
Being at war, the US can also effect “Full Mobilization” of over 1.5 million American reserve forces which can occur at “at a moment’s notice” for which US needs no Congressional approval to expand their areas of operation is also being examined when America is fully poised to advance in Asia and Middle East.
Now that Hillary Clinton is on her Pakistan visit accompanied by the new CIA Chief, David Petraeus, Chairman US Joint Staff, General Martin Dempsey and Marc Grossman. Keeping the armoured buildup in the region and having an Armour Officer as the new Chairman of Joint Staff, could one say it a coincidence or a planned strategy?
Hillary, as expected that I mentioned in my CNBC News analysis on 19th October, has arrived with a tough warning for Pakistan, saying, “We will do it with or without you.” This has certainly placed Pakistan in a very trying situation. Pakistan has other options to join the third force that is in formation led by Russia and China to counter the US moves in the region. If Pakistan, Iran, Syria and other Muslim states including Saudi Arabia join this alliance, that would certainly deter the US and her allies, if not then every Muslim country would fall one after the other without exception and their assets would be frozen.
Important to note about the American plan for global domination through massive warfare is that it is not really a secret, and as (curiously) revealed on the tenth anniversary of the 11 September attacks upon the United States when the US National Security Archive released a memo written by former US Defense Secretary Donald Rumsfeld in September 2001 wherein he warned “If the war does not significantly change the world’s political map, the US will not achieve its aim.”
To what the “aim” of the United States is as their war against the world has now entered its 10th year, the FSB says, is to prevent “at all costs” the implosion of the US Dollar as the main reserve currency of the present global economic system before the West’s envisioned “New World Order” can be established.
The first threat to the Americans “master plan” for global hegemony came in November 2000 when the former Iraqi leader Saddam Hussein quit accepting US Dollars for oil and, instead, stated his country would only accept Euros. In less than 10 months an attack on the US was engineered and used that as an excuse to topple Hussein and reestablish the US Dollar as the world’s main reserve currency.
Interesting to note is the failure of Libya’s former leader Gaddafi’s plan to introduce the gold dinar, a single African currency that would serve as an alternative to the US Dollar and allow African nations to share the wealth, but which like Iraq’s Saddam Hussein “plan” brought a swift and brutal invasion by the Americans and their Western allies to keep it from happening.
The only nation that has successfully abandoned the US Dollar is Iran, who since February 2009 abandoned all American currency opting instead to value their oil and gas in Euros. Iran, however, and unlike oil rich Iraq and Libya, has not been attacked due to the Iranians having acquired from Ukraine between 6-10 nuclear armed X-55 missiles (range of 3,000km [2,000 miles]) in 2005. Although the former Ukraine President Viktor Yushchenko denies that the missiles contain their nuclear tips, a statement disputed by the FSB who states they were armed and “ready to fire.”
As a preemption, to counter the planned American blitzkrieg into Central Asia and Pakistan from Afghanistan, Indian Army Chief General VK Singh warned yesterday that thousands of Chinese military forces have now moved into Pakistan-occupied-Kashmir joining an estimated 11,000 more of them believed to have entered that region in the past year.
Before the US ventures into other Muslim lands, the US would want a submissive or a broken and denuclearized Pakistan. In both the scenarios it would mean Pakistan’s death. In such a scenario, Pakistan maybe compelled to go for non conventional weapons; if such a development takes place, India, Israel and the US installations in the region would not be safe. Can the US risk such a situation would only depend on the arrogance and sanity level of the US leadership.
China does not need Russian arms anymore to attack USA
Russia is losing the Chinese arms market. An official spokesman for Russia’s defense export giant Rosoboronexport, Sergey Kornev, stated at Airshow China 2010 that the amount of orders between Russia and China had dropped because the Chinese market had been saturated with arms. It particularly goes about the aviation technology. Russia, the official stated, has delivered 280 Su fighters to China during the recent years.
The USA has been showing more concerns about China’s growing military threat against such a background. Experts of the US-China Economic and Security Review Commission stated in their report that the USA had lost the military predominance in the region. It was also said that China was already capable of destroying five of six US army bases in the Pacific Ocean.
In the nearest future, China will be able to significantly change the balance of forces in South-East Asia. The increased opportunities of Chinese missile and airborne troops are capable of hampering the operations conducted by US armed forces in the region. As a result, the movement of American troops in the region will be restricted, the experts said in their recent report. Chinese combat vessels have been showing more activity recently in the Yellow, South China and East China seas.
China is particularly concerned about the fact that the USA took the side of Japan in the territorial dispute between Japan and China for Senkaku islands. In addition, the authors of the report admit that the American experts underestimated the speed of modernization and strengthening of the Chinese army. In 2009, they believed that China would have its own fifth-generation jet not earlier than in 2025, but now they say it will happen much earlier – already in 2018.
Alexander Khramchikhin, deputy director of the Institute of Political and Military Analysis believes that China does not choose Russia as its partner on the arms market indeed.
“China is refusing from purchasing Russian arms. China has already bought what it needed, and since Russia has nothing else to offer, it is not going to sign any large deals in the future anymore. Indeed, China’s military power poses a threat for the United States. I would like to repeat it again that from Russia, China purchased only the arms required for a possible armed conflict with the United States. It goes about aviation and navy first and foremost – the country was not interested in tanks or any other weapons of the ground forces.
“China’s conflict with the USA can become real indeed, and the American military have all reasons for concerns. Wars mostly start because of natural resources. China has recently become the world’s largest consumer of oil, and the nation’s needs in fuel will only grow. Consequently, the country’s competition with the United States will be growing stronger too. China has already pushed American and European competitors out from Africa.
“Unlike the USA, China does not pay attention to the organization of political regimes, with which the country cooperates. The Chinese simply bribe political elites of third world countries and use them to obtain control over resources,” the expert said.
Military expert Vladislav Shurygin:
“China has been actively developing its armed forces recently. The final goal of the reform of the Chinese army is the ability to oppose to a powerful and technologically developed state. First and foremost, it goes about the USA. One should not think, however, that the competition between these two countries has reached the point when a war is about to begin. An armed conflict between the two giants is not going to happen at least during the upcoming five or seven years. For the time being, we can only witness the growing opposition in the US-Chinese relations, in the Cold War spirit between the USSR and the West.
“Russia has contributed greatly to the development of the Chinese armed forces. Fifteen years of active military cooperation were extremely important for the two countries. Nowadays, China has to develop its own defense complex, because Russia has nothing else to offer. Therefore, Russia will continue to lose its positions on the international arms market. China is now interested in purchasing arms in small batches to be able to copy the technology for its own industry,” the expert said.
In an international twist in the Dodgers’ ownership saga, Frank McCourt has been offered $1.2 billion to sell the team to a group indirectly financed by the government of China.
The bid is headed by Los Angeles Marathon founder Bill Burke, according to a letter sent to McCourt on Tuesday. The letter was disclosed to The Times by two people familiar with its content but not authorized to discuss it publicly.
The proposed sale price would set a record for a Major League Baseball team. However, the bid was received with skepticism within MLB, where executives wondered whether the proposal might be used by McCourt to stir negotiations with other potential buyers or to persuade a Bankruptcy Court judge to keep McCourt in charge of the team.
“There are questions within the sports industry about whether this is a genuine offer,” said one industry consultant who works extensively with MLB and other professional sports leagues.
The offer was unsolicited, according to a person who had spoken with McCourt’s representatives but was not authorized to discuss the conversation.
It is uncertain whether the embattled Dodgers owner is receptive to the offer. McCourt has said that he had no interest in selling the Dodgers and that he intended to remain the owner after the team emerges from bankruptcy protection.
Steve Sugerman, a spokesman for McCourt, declined to comment on whether McCourt had received the letter and whether he would consider selling the team.
In a brief telephone interview, Burke declined to discuss the bid. “I have no comment at this time,” he said.
Forbes magazine estimates the Dodgers’ worth at $800 million. McCourt bought the Dodgers for $430 million in 2004, and the team and related entities carry debts of “over $550 million,” according to a June 20 letter sent to McCourt from MLB Commissioner Bud Selig.
The bid terms proposed by the Burke group call for an all-cash payment to buy the Dodgers, all real estate related to the team and the team’s media rights, according to the letter. Attorneys for McCourt have said he could try to keep Dodger Stadium and the surrounding parking lots even if he sold the team.
The offer would expire in 21 days, according to the letter, with the goal of closing a deal within 90 days, subject to the approvals of MLB and the Bankruptcy Court.
The letter did not say whether the bid would be subject to the approval of Jamie McCourt, the ex-wife of Frank McCourt, who claims half-ownership of the team. But Jamie McCourt probably would endorse a deal since she had asked the judge overseeing the couple’s divorce to order the Dodgers sold, a request that was then withdrawn in deference to the Bankruptcy Court.
The bid was presented on behalf of the Burke group by Signal Capital Management of New York. The firm has offices in Beijing, according to its website. Shane Rodgers, its chairman and chief executive officer, said in an email that the firm would not comment “on any potential or proposed transactions.”
The letter did not specify who would finance the Burke bid, other than to say the money would come from “certain state-owned investment institutions of the People’s Republic of China” and unidentified American investors. Foreign investment is not necessarily an obstacle to MLB ownership; the Seattle Mariners’ ownership group includes a significant Japanese presence.
McCourt has spoken with at least two other groups about a sale of some portion of the Dodgers and could use the $1.2 billion as a minimum value in those discussions, said a person familiar with them but not authorized to talk about them publicly.
McCourt also could cite the offer in Bankruptcy Court to counter MLB claims he has irreparably mismanaged the team.
It is uncertain whether sale discussions with any group might explain why McCourt’s attorneys have yet to pursue the cable television rights sale that they said would be the key to getting the Dodgers out of Bankruptcy Court.
Bruce Bennett, the Dodgers’ lead bankruptcy attorney, had promised to move forward on the issue at an Aug. 16 court hearing but did not do so. Fox Sports has threatened to sue for damages if the Dodgers void the two years remaining on the current cable contract to pursue a new one.
McCourt has discussed the sale of at least a partial share of the Dodgers with at least two other groups, said a person briefed on the matter but not authorized to comment publicly. It is unlikely Selig would sanction any deal that did not include an exit path for McCourt, but McCourt has signaled his intent to challenge Selig’s authority in court.
The record sale price for a major league franchise is $845 million, set two years ago when the Ricketts family bought the Chicago Cubs from Tribune Co., publisher of The Times.
That deal included the team, Wrigley Field and a 25% stake in a cable sports channel. The Burke group proposes paying almost half again as much for the Dodgers, their stadium and a chance to start a cable sports channel or negotiate a new cable television contact.
Despite the Forbes estimate, the team could be worth from $900 million to $1.1 billion, said Marc Ganis, president of Sportscorp Ltd, a Chicago-based sports industry consulting firm.
But with Fox at risk of losing the Dodgers to rival Time Warner’s fledgling Lakers channel, the bidding on the TV rights could be so robust that the team itself could fetch $1.2 billion or more in “a full-fledged auction” in Bankruptcy Court, said a prominent sports investment banker, who declined to be identified because he could represent potential bidders for the Dodgers.
Burke sold the Los Angeles Marathon in 2004, building the race into one of the largest in the United States but jousting with city officials in various financial skirmishes, including disputes over reimbursement for city services and ownership of the L.A. Marathon name. Burke is the husband of retired Los Angeles County Supervisor Yvonne Brathwaite Burke.
Burke sold the race to Devine Racing. In 2008, Devine sold the marathon to McCourt.
China Wants To Construct A 50 Square Mile Self-Sustaining City South Of Boise, Idaho
Thanks to the trillions of dollars that the Chinese have made flooding our shores with cheap products, China is now in a position of tremendous economic power. So what is China going to do with all of that money? One thing that they have decided to do is to buy up pieces of the United States and set up “special economic zones” inside our country from which they can continue to extend their economic domination. One of these “special economic zones” would be just south of Boise, Idaho and the Idaho government is eager to give it to them. China National Machinery Industry Corporation (Sinomach for short) plans to construct a “technology zone” south of Boise Airport which would ultimately be up to 50 square miles in size. The Chinese Communist Party is the majority owner of Sinomach, so the 10,000 to 30,000 acre “self-sustaining city” that is being planned would essentially belong to the Chinese government. The planned “self-sustaining city” in Idaho would include manufacturing facilities, warehouses, retail centers and large numbers of homes for Chinese workers. Basically it would be a slice of communist China dropped right into the middle of the United States.
According to the Idaho Statesman, the idea would be to build a self-contained city with all services included. It would be modeled after the “special economic zones” that currently exist in China.
Perhaps the most famous of these “special economic zones” is Shenzhen. Back in the 1970s, Shenzhen was just a very small fishing village. Today it is a sprawling metropolis of over 14 million people.
If the Chinese have their way, we will soon be seeing these “special economic zones” pop up all over the United States.
So exactly who is “Sinomach”?
The following description of the company comes directly from the website of Sinomach….
With approval of the State Council, China National Machinery Industry Corporation (SINOMACH) was established in January 1997. SINO-MACH is a large scale, state-owned enterprise group under the supervision of the State Assets Supervision and Administration Commission.
As you can see, Sinomach is basically an arm of the Chinese government.
The borrower is always the servant of the lender, and now China is buying up America.
The reality is that Sinomach is not looking only at Idaho. Sinomach is in discussions to develop “special economic zones” all over the United States.
Sinomach has recently dispatched delegations to Ohio, Michigan and Pennsylvania to explore the possibility of establishing “special economic zones” in those states.
Will such “self-contained communities” soon start appearing from coast to coast?
According to Dr. Jerome Corsi, the U.S. government has already set up 257 “foreign trade zones” across America. These “foreign trade zones” will apparently be given “special U.S. customs treatment” and will be used to promote global free trade….
“The FTZs tend to be located near airports, with easy access into the continental NAFTA and WTO multi-modal transportation systems being created to move free-trade goods cheaply, quickly and efficiently throughout the continent of North America.”
So what do our politicians think about all of this?
Most of them are greatly in favor of it.
“Idaho’s the last state that should say we don’t want to do business with Asia,” Idaho Lt. Gov. Brad Little said last year. “Asia’s where the money is.”
So will all of this “foreign investment” really bring jobs back to the American people?
Perhaps a few, but the truth is that these “special economic zones” that the Chinese are setting up are designed to be self-contained communist Chinese communities. Some Americans will likely be employed in these areas, but not nearly as many as our politicians would have you to believe.
In addition, these “special economic zones” represent a massive national security threat. The communist Chinese could potentially be able to bring in and store massive amounts of military equipment virtually undetected.
In the days of the Cold War, we would have never dreamed of giving the Russians a 50 square mile city in the middle of Idaho.
But today we have become convinced that the communist Chinese want to be our great friends.
The following quote originally appeared in the Idaho Statesman, but has since apparently been taken down….
“The Chinese are looking for a beachhead in the United States,” said Idaho Commerce Secretary Don Dietrich. “Idaho is ready to give them one.”
If relations between the U.S. and China go south someday, we will deeply regret giving China so many open doors.
The truth is that you can never fully trust the communist Chinese. Their top military officers talk about a coming conflict with the United States all the time. China is extremely interested in North America. In fact, the Chinese and the Mexicans have even been holding talks on military cooperation.
But even if you don’t consider the communist Chinese to be a military threat, you should be deeply concerned about the economic implications of what is happening.
Today, tens of millions of Americans are wondering why the economy is so bad.
Well, there are a lot of reasons, but the fact that we have sent China thousands of our factories, millions of our jobs and trillions of dollars of our national wealth is a major contributing factor.
If you do not know the truth about how badly the Chinese economy is wiping the floor with the Americen economy then you need to read this article: “40 Signs The Chinese Economy Is Beating The Living Daylights Out Of The U.S. Economy”.
Beautiful new infrastructure is going up all over China today, and meanwhile many of our once great manufacturing cities are turning into rotted-out war zones.
China would not be what they are today if we had insisted that they abandon the communist system and respect basic human rights before we ever opened up trade with them.
But that did not happen. Instead we enthusiastically welcomed China into the WTO and we let the predatory Chinese system run wild.
In 2010, China had a “current account balance” of over 272 billion dollars, which was the largest in the world.
In 2010, the United States had a “current account balance” of negative 561 billion dollars. According to the CIA world factbook, that put us in last place in the entire world. In fact, our negative current account balance was more than 9 times larger than anyone else in the world. If you go check out this chart it will give you a really good idea of how nightmarish our trade situation has become.
The world is changing and nothing is ever going to be the same again.
Just ask the residents of Boise, Idaho – they are about to have a 50 square mile self-contained communist Chinese city plopped right into their backyard.
The ghost towns of China: Amazing satellite images show cities meant to be home to millions lying deserted
By Daily Mail Reporter
Last updated at 10:53 AM on 18th December 2010
These amazing satellite images show sprawling cities built in remote parts of China that have been left completely abandoned, sometimes years after their construction.
Elaborate public buildings and open spaces are completely unused, with the exception of a few government vehicles near communist authority offices.
Some estimates put the number of empty homes at as many as 64 million, with up to 20 new cities being built every year in the country’s vast swathes of free land.
The photographs have emerged as a Chinese government think tank warns that the country’s real estate bubble is getting worse, with property prices in major cities overvalued by as much as 70 per cent.
Ghost city: Kangbashi was meant to be the urban centre for wealthy coal-mining community Ordos and home to its one million workers, but its roads are eerily empty and the houses stand vacant
The mostly empty city of Bayannao¿er, which boasts a beautiful town hall and World Bank-sponsored water reclamation building
Of the 35 major cities surveyed, property prices in eleven including Beijing and Shanghai were between 30 and 50 per cent above their market value, the China Daily said, citing the Chinese Academy of Social Sciences.
Prices in Fuzhou, capital of the southeastern province of Fujian, had the worst property bubble with average house prices more than 70 per cent higher than their market value, according to the survey conducted in September.
The average price in the 35 cities surveyed was nearly 30 per cent above the market value, the report said.
Property prices have remained stubbornly high despite the government adopting a slew of measures since April including hiking minimum downpayments to at least 30 per cent and ordering banks not to provide loans for third home purchases.
Prices in 70 major cities were up 0.2 per cent in October from the previous month and 8.6 percent higher than a year ago, official data showed.
The increase came after prices gained 0.5 per cent month on month in September, which was the first increase since May.
Property bubble: Zhengzhou New District features vast public buildings that have never been used
Half of Erenhot is empty. The other half is unfinished
Now here’s Kangbashi, a new city with capacity for 300,000 — that houses 30,000
Massive stimulus measures taken since 2008 to fend off the financial crisis injected huge amounts of liquidity in the market and have been blamed for fuelling real estate prices.
‘The government target is not clear and policy is incoherent,’ CASS senior research Ni Pengfei was quoted saying.
According to research carried out by Time magazine, fixed-asset investment in the Asian country accounted for more than 90 per cent of its overall growth – with residential and commercial real estate investment making up nearly a quarter of that.
Regional governments across China have been building massive real estate projects, including Kangbashi in Inner Mongolia and Zhengzhou New District, which have remained empty, because of the high prices and interest in investment.
Kangbashi, which was built in just five years, was meant to be the urban centre for Ordos City – a wealthy coal-mining hub home to 1.5million people.
It was filled with office towers, administrative centres, museums, theatres and sports facilities as well as thousands of homes, but remains virtually deserted.
The ghost city of Dantu has been mostly empty for over a decade
The orange area to the north-east of the Xinyang has yet to be occupied
No cars in the city except for approximately 100 clustered around the government headquarters
Zhengzhou New District residential towers: Soaring property prices in China and high levels of investment has fuelled the construction of up several new cities. Experts fear a subsequent property crash could damage the global economy
Prices have continued to soar, investors have increasingly turned to property speculation fuelling the continued bubble.
The onset of the 2008 global recession was the bursting of the real estate bubble in the U.S. and experts fear a similar situation in China could prove catastrophic for still struggling economies and banking systems.
Beijing has introduced measures to cool ‘ridiculous’ property prices, but the risks of a crash mean the campaign is unlikely to ease up in the next year.
Public discontent has been fuelled by high prices in China’s cities and the measures, introduced in April, have made it more difficult for speculators and developers to hoard land and chase up prices as lending has been restricted.
Wang Shi, chairman of China Vanke – the country’s largest property developer – said: ‘Tightening measures will not loosen next year.
‘If we can control the pace of property price gains within a reasonable range, it’s already an achievement.’
In most neighbourhoods of Dantu, there are no cars, no signs of life
A giant empty hotel sits in the city of Erenhot
This city was built in the middle of a desert: Erenhot, Xilin Gol, Inner Mongolia
Property sales for Vanke already exceeded $15billion so far this year, but Mr Shi has insisted China will not end up in a worse place than Dubai – where a property price bubble imploded during the global financial crisis.
He said: ‘It could be really, really bad without the government stepping in.
‘If the bubble bursts, Japan’s past will be China’s present.’
But short-seller Jim Chanos has issued a more dire warning, and said he expected China’s economy to implode in a real estate bust.
He said the country was ‘on an economic treadmill to hell’ and the country’s bubble was ‘Dubai times 1,000’.
In the 1980s, Tokyo saw a massive rise in property prices and a subsequent crash. The Hong Kong property market experienced a similar phenomenon in the 1990s.
This $19 billion development is packed with blocks of empty houses
This giant new development doesn’t even have a name yet
URUAÇU, Brazil — When the Chinese came looking for more soybeans here last year, they inquired about buying land — lots of it.
Daniel Kfouri for The New York Times
A new railroad line in Uruaçu, Brazil, will carry soybeans to a port for shipping to China. Brazil’s economic links with China have helped it prosper, but Brazil is selling mostly raw materials.
Officials in this farming area would not sell the hundreds of thousands of acres needed. Undeterred, the Chinese pursued a different strategy: providing credit to farmers and potentially tripling the soybeans grown here to feed chickens and hogs back in China.
“They need the soy more than anyone,” said Edimilson Santana, a farmer in the small town of Uruaçu. “This could be a new beginning for farmers here.”
The $7 billion agreement signed last month — to produce six million tons of soybeans a year — is one of several struck in recent weeks as China hurries to shore up its food security and offset its growing reliance on crops from the United States by pursuing vast tracts of Latin America’s agricultural heartland.
Even as Brazil, Argentina and other nations move to impose limits on farmland purchases by foreigners, the Chinese are seeking to more directly control production themselves, taking their nation’s fervor for agricultural self-sufficiency overseas.
“They are moving in,” said Carlo Lovatelli, president of the Brazilian Association of Vegetable Oil Industries. “They are looking for land, looking for reliable partners. But what they would like to do is run the show alone.”
While many welcome the investments, the aggressive push comes as Brazilian officials have begun questioning the “strategic partnership” with China encouraged by former President Luiz Inácio Lula da Silva. The Chinese have become so important to Brazil’s economy that it cannot do without them — and that is precisely what is making Brazil increasingly uneasy.
“One thing the world can be sure of: there is no going back,” Mr. da Silva said while visiting Beijing in 2009.
China has become Brazil’s biggest trading partner, buying ever increasing volumes of soybeans and iron ore, while investing billions in Brazil’s energy sector. The demand has helped fuel an economic boom here that has lifted more than 20 million Brazilians from extreme poverty and brought economic stability to a country accustomed to periodic crises.
Yet some experts say the partnership has devolved into a classic neo-colonial relationship in which China has the upper hand. Nearly 84 percent of Brazil’s exports to China last year were raw materials, up from 68 percent in 2000. But about 98 percent of China’s exports to Brazil are manufactured products — including the latest, low-priced cars for Brazil’s emerging middle class — that are beating down Brazil’s industrial sector.
“The relationship has been very unbalanced,” said Rubens Ricupero, a former Brazilian diplomat and finance minister. “There has been a clear lack of strategy on the Brazilian side.”
While visiting China last month, Brazil’s new president, Dilma Rousseff, emphasized the need to sell higher-value products to China, and she has edged closer to the United States. “It is not by accident that there is a sort of effort to revalue the relationship with the United States,” said Paulo Sotero, director of the Brazil Institute at the Woodrow Wilson International Center for Scholars. “China exposes Brazil’s vulnerabilities more than any other country in the world.”
China’s moves to buy land have made officials nervous. Last August, Luís Inácio Adams, Brazil’s attorney general, reinterpreted a 1971 law, making it significantly harder for foreigners to buy land in Brazil. Argentina’s president, Cristina Fernández de Kirchner, followed suit last month, sending a law to Congress limiting the size and concentration of rural land foreigners could own.
Mr. Adams said his decision was not a direct result of land-buying by China, but he noted that huge “land grabs” in Latin America and sub-Saharan Africa, including China’s attempt to lease about three million acres in the Philippines, had alarmed Brazilian officials.
“Nothing is preventing investment from happening, but it will be regulated,” Mr. Adams said.
A World Bank study last year said that volatile food prices had brought a “rising tide” of large-scale farmland purchases in developing nations, and that China was among a small group of countries making most of the purchases.
Foreigners own an estimated 11 percent of productive land in Argentina, according to the Argentine Agriculture Federation. In Brazil, one government study estimated that foreigners owned land equivalent to about 20 percent of São Paulo State.
International investors have criticized the restrictions. At least $15 billion in farming and forestry projects in Brazil have been suspended since the government’s limits, according to Agroconsult, a Brazilian agricultural consultancy.
“The tightening of land purchases by foreigners is really a step backwards into a Jurassic mentality of counterproductive nationalism,” said Charles Tang, president of the Brazil-China Chamber of Commerce, saying that American farmers had bought sizable plots in Brazil in recent years, with little uproar.
Responding to the criticism, Brazil’s agriculture minister said this month that Brazil might start leasing farmland to foreigners, given the barriers to ownership.
China itself does not allow private ownership of farmland, and it cautioned local governments against granting large-scale or long-term leases to companies in a 2001 directive. China also bans foreign companies from buying mines and oil fields.
But as more of its people eat meat, China is expected to increase its soybean imports, mostly for animal feed, by more than 50 percent by 2020, according to the United States Department of Agriculture. Last month, Chongqing Grains signed a $2.5 billion agreement to produce soybeans in the Brazilian state of Bahia. Last October, a Chinese group agreed to develop about 500,000 acres of farmland in Río Negro Province in Argentina.
In both cases, Chinese officials proposed buying large tracts of land before local officials steered them toward production agreements.
“We are never going to sell the land,” said Juan Manuel Accatino, the minister of production in Río Negro.
Brian Willott, an American farmer who came to Brazil in 2003, said Chinese interest in buying farms had not abated. “Everywhere you go to look at a farm they say, ‘We are considering selling to the Chinese,’ ” he said.
In Goiás State, nearly 70 percent of the soy grown went to the Chinese last year, and the Chinese are seeking to use about 20 million acres of pastureland that has not been cultivated for decades.
“For them, the faster the better,” said Antônio de Lima, Goiás’ agriculture minister.
Farmers here say they share Chinese officials’ goal of breaking the stranglehold of international trading companies like Cargill and Archer Daniels Midland.
But Tan Lin, a manager at the Chinese company involved in Goiás, said he doubted Chinese companies were ready to replace them.
“I don’t see that the Chinese companies working here have that expertise yet,” Mr. Tan said. But “if you can do that, it is good, of course.”
How Is The Central Economic Planning That The Federal Reserve Does Different From The Central Economic Planning That Communist China Does?
Most Americans believe that we still live in a capitalist system and that free markets primarily determine the growth and development of our economy. But is that really the case? No, sadly it is not. The truth is that the U.S. Federal Reserve does a tremendous amount of central economic planning. So what makes the central economic planning that the Federal Reserve does different from the central economic planning that communist China does? Yes, in China it is the government that does the central planning and in the United States it is a private central bank that does the central planning, but other than that are there any huge differences? And if our economy is centrally planned, then how can we continue to claim that we still have a free market capitalist system?
Certainly China goes into greater detail in their economic planning, but that does not mean that the economic planning that the Federal Reserve and the U.S. government do is not similar.
After all, free markets do not set interest rates in this country – the Federal Reserve does.
The Federal Reserve also determines what the money supply will be.
The Federal Reserve is the one that decides if inflation is too high or too low.
The Federal Reserve is the one that decides if unemployment is too high or too low.
In addition, the Federal Reserve has a tremendous amount of regulatory power over U.S. banks and the entire financial system. Most Americans simply do not realize how much power the Federal Reserve has over our banks. Just last year Federal Reserve officials walked into one bank in Oklahoma and demanded that they take down all the Bible verses and the Christmas buttons that the bank had been displaying.
Like the communist Chinese, the Federal Reserve is not elected and it is essentially accountable to nobody.
Like the communist Chinese, the Federal Reserve also picks winners and losers. You see, not all financial institutions are treated equally by the Fed. For example, some have access to the Fed’s discount window and others do not.
How is that fair?
Certainly the Federal Reserve does not do all of the central economic planning in this country. The U.S. government loves to get involved in economic planning as well. For example, the U.S. government has decided that there are certain types of light bulbs that we are allowed to buy and certain types of light bulbs that we are no longer going to be allowed to buy. It doesn’t matter that the new light bulbs are far more dangerous to children or that most of us would still like to have the choice to buy the old light bulbs.
But getting back to the Federal Reserve, how “democratic” or how “capitalist” is it to have 12 unelected people sitting around a table deciding the economic direction of this country?
The truth is that we live in a system that simply does not trust free markets and that believes that our economy needs to be “managed”.
I have to admit that my thinking on these issues was stimulated when I recently read an excellent article by Vitaliy Katsenelson in which he asked the following question….
It is a fundamental tenant of American capitalism that central planning of economies doesn’t work in the long term, whether in Soviet Union historically or in China today. But I often wonder: How is the Fed’s Board of Governors – the proverbial 12 guys in a room – any different than the 24 guys in a room who make up the Chinese politburo?
Is Katsenelson not right about this?
How in the world is the Fed’s Board of Governors all that much different from the Chinese Politburo?
In both cases, a group of unelected elitists makes the major economic decisions for all the rest of us.
That certainly does not sound like “capitalism” to me.
Would the free markets really produce worse results for our economy than the Federal Reserve does?
Would America ever have gone through the Great Depression if the Federal Reserve had not been created in 1913?
Would we have experienced the financial crash of 2008 if the policies of Greenspan and Bernanke had not created tremendous bubbles in the financial system?
Would the U.S. dollar have lost over 95 percent of its value since 1913 if the Federal Reserve was not around to constantly inflate our currency?
Would the U.S. government have the largest debt in the history of the world if we were not using the debt-based monetary system imposed upon us by the elite international bankers?
Now that the total debt of the U.S. government is $14,228,193,126,138.72, it is getting really hard to deny that the federal government is drowning in debt.
Dallas Federal Reserve Bank President Richard Fisher unknowingly indicted the very system he serves when he recently made the following statement….
“If we continue down on the path on which the fiscal authorities put us, we will become insolvent, the question is when.”
If the Federal Reserve had never been created, and the U.S. government had been issuing debt-free currency all this time, it is entirely conceivable that we would have absolutely no federal government debt at this point.
But defenders of the Federal Reserve tell us that if not for the brilliant people over at the Fed, America would be an economic basket case by now.
In case anyone has not noticed, Federal Reserve Chairman Ben Bernanke has a very long track record of incompetence. Nearly every major judgment that he has made since taking over that position has been wrong. If one of us could go down the street and appoint the manager of our local Dairy Queen as the Chairman of the Federal Reserve, it is very doubtful that person could do a worse job than Bernanke has done.
Unfortunately, most Americans do not understand this. Most Americans are still convinced that “the greatest economy on earth” will just keep roaring along forever. Most Americans are spending and partying as if everything is going to be just fine.
Sadly, as Richard Daughty recently pointed out, most Americans will not wake up and realize just how bad our economic problems really are until it is too late….
In fact, to use an analogy, the economy is like a group of overpaid people, milking the government for every dollar and benefit they can get, on a chartered airplane that has been certified as “unsafe,” where one minute everybody is having fun, drunk as skunks, laughing and telling dirty jokes, and the next minute the plane is plunging out of the sky, out of fuel, one wing is in flames, the engines are dead, the entire electrical system is kaput, and, worst of all, the beverage cart is completely empty of cold beer and those little bottles of different kinds of tasty liquors. Uh-oh!
Most Americans have become so “dumbed down” that they still won’t even understand what is happening even after the economy has collapsed. Newsweekrecently found that 63 percent of Americans do not know how many justices are on the Supreme Court and 29 percent of Americans cannot even name the current Vice-President.
America today is rapidly degenerating in many of the same ways that the Roman Empire once did. Tens of millions of Americans are lazy, slothful and absolutely addicted to entertainment. It is frightening to see just how many Americans did not show any empathy during the recent crisis in Japan or when we started launching missiles on Libya. The following mini-documentary that was recently posted on YouTube does a beautiful job of making this point….
So is there any hope for America?
Let us hope that people wake up, because there are going to be even more economic disasters coming our way. Right now a large percentage of the American people don’t even know enough to realize what the real problems are, much less what the solutions may be.
When most Americans talk about economics, they instantly start blaming “Obama” or “Bush” and a lot of them never even bring up the Federal Reserve.
But it is the Federal Reserve that has the most power over our economy.
If Americans want to blame someone in Washington D.C. for the economic mess that we are in, the number one culprit is the Federal Reserve.
Yes, Obama, Bush and virtually every member of Congress has played a role in our economic nightmare as well. But it is the Federal Reserve that is actually “managing” our economy.
We would have been much better off if we had allowed free markets to “manage” our economy all this time, but very few Americans actually seem to still believe in free markets anymore.