The House voted 348-79 on Wednesday to require the Dept. of Commerce to calculate countervailing duties on imports from China and other countries (they just mean China) that manipulate their currency to the detriment of the US.
China wasn’t happy to hear anybody from one of their client states talking back and promised there would be repercussions if the measure was passed. They needn’t have worried themselves, the Senate will not engage in such pre-election posturing as the House members who need to fool the peasants every two years. Chris Dodd came right out and said that the Senate won’t be voting on the measure, Dodd isn’t running for re-election, time to retire and cash in as a lobbyist for the big banks.
Just the same, little Timmy Geithner ran right out and made all sorts of declarative statements to reassure China that we know who is the boss, saying “It’s important to recognize that we’re not going to have a trade war, we’re not going to have a currency war,” and to placate the peasants in the US, he boldly lied by saying, “I would say that a substantial fraction of the Chinese leadership understands it is very important to them economically to let this exchange rate move,” and he went on saying that China realizes that to have access to global markets that it must play by the rules.
China made it clear that it has its own view of what the rules are and China’s view is the only one that matters. And China can back up their threats. It’s not just that they could dump a trillion dollars worth of US debt on the market and make our Treasury bonds worthless. We are a big enough country that we can just print money, in fact that’s what we’ve been doing for a couple of years now, the problem is that if China stops taking our money we are done.
You see, the real threat is that they can shut off our economy like it was on a switch. We don’t make anything anymore and can’t live without China’s exports and without China’s rare earth metals we can’t make anything ourselves. With 97% of the world’s supply of essential metals, China can throw the switch on anybody in the world anytime they want to, so we can’t look to anybody else for help either. Japan found this out the hard way and it took less a week before they started seeing things China’s way.
The tea baggers can make all the noise they want about taking back their country. The Republicans and the corporate Democrats have sold it to China and China intends to keep it. If the tea baggers think they are “suffering” under the socialist Kenyan fascist that they think has taken their country from them, they are in for a rude awakening as the People’s Republic of China begins to assert its dominance over its tenants. www.prairie2.com