The Senate has taken up debate on a bill aimed at forcing China revalue its currency or face higher tariffs. While the bill doesn’t name China, it is the only country that qualifies as a currency manipulator. Beijing spends as much as 200 billion dollars a year to keep its currency pegged at 40% cheaper than it should be.
It seems counter intuitive to spend money to make your own currency cheap. It makes everything exported from China cheap (you would think that would mean less money for China), but more importantly it makes everything coming into China very expensive and that makes all the sense in the world. The thing about economics is the only thing that matters is the total at the end of the equation, and the end of the equation for China is a world that they own.
If China actually needs something like airliners for example, then their government will provide some sort of subsidy, and if it’s something they want to make themselves like Buicks, they don’t provide the subsidy and Chinese Buicks happen as if by magic. It’s a way to have tariffs while pretending you have free trade. Everybody in the world does this in one way or another, except the US.
We don’t do it because we are a conquered people who are having their country strip mined of its wealth. We weren’t conquered by China of course, at least not yet, we were conquered by a relative handful of rich people. It’s doubtful that the people behind this policy realized just how well China would make this “deal with devil” work for them. It has also worked fabulously well for the rich people here as wealth drains away from the 99% and into their pockets, even if China takes a huge cut in the process, and as China homes in on world domination in a race with the one percent here who also plan to dominate the world.
This concept of a rigged system is nothing new of course, Gen. Smedley Butler wrote a book about the practice titled War is a Racket, China is just the first country to play the game with our capitalists and make it work for them, normally the third world player gets taken down in the process.
The same names like Prescott and Bush have been trying for world domination and to do away with democracy in the US for over a century, some names like Koch and Walton are more recent but just as deadly. In reality there have been people like them up to this sort of thing all the way back to the founding of the country. Different Presidents and political movements have pushed back periodically, and the New Deal nearly made democracy permanent, but sadly the people have forgotten.
The in the past 40 years the rich have skillfully used the media to make themselves seem like super-patriots and wise men who can do no wrong and that they are here to protect us. The exact opposite is true of course. Even the tea baggers realize something is wrong, but they are easily distracted.
The new 99% movement has a chance at bringing back democracy but the 1% will stop at nothing to destroy them. The pretense that “Occupy Wall Street” has no leaders makes it difficult to target them but that will only go so far. A class war is like any other war. There are no rules for the winner. www.prairie2.com