Hat tip to Mark at Strategic Energy Research and Capital for alerting me to this news report.
"Because the United States' issuance of dollars is out of control and international commodity prices are continuing to rise, China is being attacked by imported inflation. The uncertainties of this are causing firms big problems," Chen was quoted as saying by the official Xinhua news agency.
Here's the actual reuters news report: Link
In the context of Tim Geithner's agenda being thoroughly squashed at the G20 meeting this past weekend, this official statement from the Chinese Government overtly conveys that China will implement monetary and financial policies which will protect its own economic interests. This is a direct and visible repudiation of the U.S. Government's attempt to exert influence on China's trade/monetary policies.
China has been quietly and diplomatically brushing off U.S. geopolitical hegemony dating back to four years ago when Bernanke and Henry Paulson went over in a determined attempt to "strong-arm" the Chinese into obeying the U.S. You can read about that here: Link
What are the ramifications? One glimpse of the "out of control" money printing by the Fed/Treasury is in the current spike in commodity prices, which will soon translate into much higher food prices. Now imagine what the conditions will look like in this country once China inevitably demands that its own currency is to be used in all trade between the U.S. and China. In other words, don't get used to the prices you are currently paying at Walmart and Best Buy.
Tuesday, October 26, 2010
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Oh now the US issuance of dollars is out of control! Glad they think so!
ReplyDeleteCan't be far from a total collapse now if China are overtly saying these things.
ReplyDeleteAnonymous, more like trade war escalating in military conflict of some sort...
ReplyDeletegyc you back from the Bahamas? Can't believe the Saints got beat by the Browns. I'm not discussing the Broncos. That wasn't a football team on the field the other day...
Dave,
ReplyDeleteSDRG's ounces in mexico went down from 27 million ounces to 14 million ounces because they did not exercise their Puro Corazon concession option (see 10K or 10Q). Do you know why they didn't?
Ricky T
The Russian blogs have been saying for some time that Medvedev and Lavrov are moving Russia into the US camp. The US need Russia to end game Iran and China in the Stans. They quote this new Wikileaks dump as an attempt to pull down Putin whose personal and oligarch backers oil interests lead Russia to develop strong relationships with Iran as a counter balance to the US presence in the Stans. This would be a new step up of the conflict to direct personal attacks on the leadership in Russia and then I guess next, China. This comes with heightened tension in Iraq as the US has clearly lost control their to Iran and the new government is going to confirm this. How much of this theatre for the proles to justify the coming war to cover up the financial crisis is anyone's guess. But it appears that the press are now taking second fiddle to the internet in the propoganda war which is a definite escalation over the currency war.
ReplyDelete"We have compromising materials about Russia, about your government and businessmen," Mr. Assange told the pro-government daily Izvestia. "But not as much as we'd like... We will publish these materials soon."
He then dropped a hint that's likely to be nervously parsed in Russia's corridors of power: "We are helped by the Americans, who pass on a lot of material about Russia," to WikiLeaks, he said....
Assange and another WikiLeaks spokesperson, Kristinn Hrafnsson, who talked to the daily Kommersant Tuesday, refused to provide details. "Russians are going to find out a lot of interesting facts about their country," Ms. Hrafnsson told Kommersant, adding that WikiLeaks would soon be targeting "despotic regimes in China, Russia, and Central Asia" in a series of fresh document dumps.
"If they are going to disclose details of secret bank accounts and offshore businesses of the Russian elite, then the effect will be shocking," says Stanislav Belkovsky. president of the Kremlin-connected Institute of National Strategy. "Most Russians believe that political leaders and others have siphoned off billions of dollars into foreign accounts, but proof of something like that would be dynamite."
The question then becomes, what sort of impact this will have inside Russia. Eminent Russian intelligence reporter and past FP contributor Andrei Soldatov notes that past online leaks about the activities of the FSB never reached the public sphere because they weren't reported in the largely pro-Kremlin Russian press.
Good question Ricky T. Here's the answer from one of the larger shareholders:
ReplyDeleteOver a year ago they chose to not renew the Pura Curazon concession, which was about 8 million ozs. but only about 20% silver. Wasn’t worth the money, and the guy that owns it has said he’ll vend it back in once the mill is up and running any way.
The other 18 or so is now 13-15 silver equiv. ozs. b/c when it was calculated lead and zinc were above $1.50/lb. each. No change in the resources, and worth more anyway b/c silver now 50% higher.
But once they have the cash they’ll start drilling again. All parties in the area know there are around 100 million ozs. on the property.
Here's something else you should know and you can get this info from the CEO if you ever call him:
They will soon be working on revising the 43-101 for Dadi and it is thought that the resource there will double. Also they will soon have a 43-101 for Laopandao. We already know there's been an unexpectable large amount of tin found in drilling samples. For the significance of this go to kitco or bulliondesk and chart the price of tin. China is a massive buyer of tin right now...
China official: dollar printing causing inflation
ReplyDeletehttp://finance.yahoo.com/news/China-official-dollar-apf-1263355013.html;_ylt=AmlSX2GrVooL_fYQRpz0y5y7YWsA;_ylu=X3oDMTE1NmpraHYxBHBvcwM5BHNlYwN0b3BTdG9yaWVzBHNsawNjaGluYW9mZmljaWE-?x=0&sec=topStories&pos=6&asset=&ccode=
"If they are going to disclose details of secret bank accounts and offshore businesses of the Russian elite, then the effect will be shocking"
ReplyDeleteIf everyone believes it, how can it be shocking?
It's like saying, "We have proof, that the stimulus was no job stimulus at all. We have proof the bank bailouts were paying out derivatibve losses and counterparties." This confirms what the people thought.
And what happenned exactly? Russians know their gov't and oligarchs are corrupt. I don't see what proof of their suspicions will do.
Dave,
ReplyDeleteThanks for answering my SDRG question. Do you know when Sprott is set to purchase 20 million ounces of silver for its new trust?
Ricky T
Rothbard,
ReplyDeletePerhaps the best place to explain how a government is destabilised and the agenda is controlled is to listen Benjamin Freedman’s seminal speech at the Willard Hotel in 1961. Just put his name into the internet and this will come out. You will recall perhaps that Ben was one of the 120+ members of the American Jewish Board of Deputies who signed the Balfour Declaration.
If you are more interested in George Orwell aka Eric Blair you might read his private letters from Jura and ask why he always watched the boat from the mainland arrive and checked every passenger. Blair lived in fear of assassination after Animal Farm and 1984, (originally called 1948). It is no coincidence that the pig in Animal Farm and the weak anti hero who cracked under pressure were both called Winston. If you want to know the political background Archibald Maule Ramsey who was the aide de camp to Neville Chamberlain wrote a book called the Nameless War explaining British politics at the time. Ramsey was one of the 60 or so High Tory Members of Parliament Churchill had thrown in Brixton prison when he took over the country in coupe d’etat.
As far as Putin goes Wikileaks is now going to reveal all of Putin’s bank accounts and those of his backers and the Medvedev and Lavrov are going to be portrayed as Mr. Squeaky clean by the Russian Press which will be turned against Putin. It is Animal Farm all over again.
look at you dave, givin' props to a browns fan. i guess we can be gracious as we didn't have max byner fumble at our two yard line :)
ReplyDeletebut that oakland loss was the nastiest beatdown (for me) since the jags took us in the playoffs some ten years ago, oh, and those horrible super bowl losses in the late 80s...wow. wasn't mcdaniels supposed to change all that? :)
sorry for the digression.
satya
LOL satya. Dude, I came out of my mother's womb with orange and blue blood and a bronco tatooed on my left butt cheek.
ReplyDeleteFor the first time in a couple of decades i did not watch a Bronco from start to finish. I stopped watching at halftime
I can't explain what happened on the field. That team that showed up was completely different from the team that showed up against the Jets the week before. I hope McD learned whatever lesson he needed to learn and can move onward and upward from that.