Wednesday, March 04, 2009

Did Obama Give China USA Collateral?

Back on Feb. 11, 2009, there was a brief Bloomberg news story published which emphasized the growing discontent China has been feeling with respect to buying USA Treasuries so we can fund our ballooning debt.

Read: "China Needs U.S. Guarantees for Treasuries, Yu Says"

Indeed, the discontent from China against the USA has been growing since the global economic meltdown first began, and made worse by careless comments tossed out by Geithner.

Read about China's REAL reaction, as reported by the UK Telegraph regarding Geithner's comments:
Turning a corner in the labyrinthine corridors of the Davos nerve-centre, I ran smack into Chinese premier Wen Jiabao - followed by a regiment of retainers and senior offices in full regalia...

...Mr Jiabao smiled at me benignly, but he is not in a good mood. Indeed, he is fuming over the remarks by US Treasury Secretary Tim Geithner that China was "manipulating" its currency to gain market share. Reports were circulating this afternoon in Davos that Mr Jiabao erupted into a tirade after lunch at the mere mention of Mr Geithner's name.

Mr Geithner - the first US Treasury chief who can actually speak Chinese, and Japanese, nota bene - is clearly operating under instructions from President Barack Obama. If his resolve fails, Hillary Clinton is there at Foggy Bottom (State Department) to renew the broadside against Beijing - at least judging by her Sinophobe reflexes in the campaign. [link]

So, it probably isn't much of a surprise that Hillary Clinton's first mission in her new appointment by Obama as Secretary of State would be a quick trip to China and other parts of Asia.

The real surprise now, after Obama's Secretary completes her visit, is the new tone with respect to continued purchase of USA Treasuries by China. Watch the video through this link and pay close attention to what is said near the end of the interview: Li Wei Says China to Likely Keep Buying U.S. Treasuries

Now the BIG question -- Did Obama give China some kind of USA collateral in order to change the tone?

There is a rumor flying around the blogosphere referring to "eminent domain" that has alarmists freaking out right now.

On a personal note...

We know one farmer's son who got shoved off his farm (a farm that had been in the family for years) because he complained too much about a certain shooting range that was parked practically on his doorstep by the State Government. It's a traumatic example how the Government can use eminent domain like a knife, slicing into the heartland whenever it pleases in the name of their idea of "the common good" ...and there are several more such heartbreaking stories across this nation.

But would the Federal Government actually mortgage our future in order to bankroll it's pork stuffed spending sprees?

There are some in California who think it's already happening. Check out this video to learn more about what is happening there.

Could this be why the number of States has risen from 4 to 8 (with a possible 20 more to follow soon) who are making moves to reclaim sovereignty based on the Ninth and Tenth Amendments of the Constitution?

Read: Lawmakers in 20 states move to reclaim sovereignty
Obama's $1 trillion deficit-spending 'stimulus plan' seen as last straw

What's up, America? Why are so many States now scrambling to "protect themselves" from their Federal Government?

If it hasn't got you scratching your head, it should.

But here's another little tidbit that hasn't yet made a splash in the mainstream media.

While Obama plans to bloat the Federal Government payroll with his so-called Stimulus and trim back what he considers "unnecessary military spending" ...China has far different plans with their latest stimulus announcement.

Read: China Plans to Boost 2009 Military Spending by 14.9%

The REAL stimulus will not be coming from Governments, however...

Another Bloomberg news story declares today that, "Cheap Oil Beats Obama as Economic Stimulus: Chart of the Day"
March 4 (Bloomberg) -- The cheapest oil in five years, a sign of the global recession, may deliver the biggest boost in purchasing power since at least 1980, Longview Economics said.

The CHART OF THE DAY shows oil spending will be about 2 percent of worldwide gross domestic production in 2009, down from 4.9 percent in 2008, Longview Chief Executive Officer Chris Watling said in March 2 report. Assuming an average price of $41.90 this year, the world is poised to save $1.72 trillion on oil compared with last year, Watling estimates.

“It’s a savings which is approximately three times larger than the entire announced 2009 fiscal stimulus of China and the western economies combined,” Watling said. “The savings from the fall in the price of oil will go straight into consumers’ and businesses’ pockets, will not be impeded by bureaucracy and will happen, unlike parts of the fiscal stimulus, which are likely to be delayed.” [link]

Unfortunately for us here in the USA, Obama's energy policies will make darn sure we don't get a chance to enjoy the low-priced-energy-stimulus that the rest of the world will be taking advantage of in the months (and years?) to come.

In fact, here in Indiana, Obama's attack on the coal industry is about to be a heavy punch to the pocket book when electricity prices skyrocket as the new cap and trade clamps down on all of us.

Our new solar panels will be ordered in May.

When are you ordering yours?

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