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A Declassified Jon Huntsman On China's Terror Of A Gold-Pegged Dollar
While last night's quid-pro-quo from Chinese officials will likely be remembered as the start of escalating trade wars, Wikileaks has uncovered a declassified cable from John Huntsman indicating China's clear understanding of the growing tension and comprehension of the ability of the US to entirely destroy it economically with one swipe of the Presidential pen via a massive devaluation of the USD or repegging to gold.
Evidently, while we may be used to seeing Jon Huntsman spew truisms and political one liners, there was a time when he actually had something interesting to say:
a. "Sino-U.S. 'trade war' is heating up again"
The Shanghai-based Shanghai Media Group (SMG) publication, China Business News (Diyi Caijing)(02/08)(pg A1): "The United States provoked a trade war again by imposing high anti-dumping duties on Chinese-made gift boxes and packaging ribbon. This once again shows that 2010 is off to a difficult start for Sino-U.S. relations. It also reflects that, because of the mid-term elections, Obama is eager to prove to the American voters that the U.S. Administration's China policy is tough so as to restore his declining support rate. Yao Jian, the Ministry of Commerce spokesperson, issued a statement on February 1, saying that following the financial crisis American trade protectionism has risen. China has become the biggest victim of the U.S.'s abusive implementation of trade remedy measures.
But more critically in terms of actions taken perhaps:
b. "The United States no longer sits still; it frequently uses evil tricks to force China to buy U.S. bonds"
The Shanghai-based Shanghai Media Group (SMG) publication, China Business News (Diyi Caijing)(02/08)(pg A7): "This time the quick change of the U.S. policy (toward China) has surprised quite a few people. The U.S. has almost used all deterring means, besides military means, against China. China must be clear on discovering what the U.S. goals are behind its tough stances against China. In fact, a fierce competition between the currencies of big countries has just started. A crucial move for the U.S. is to shift its crisis to other countries - by coercing China to buy U.S. treasury bonds with foreign exchange reserves and doing everything possible to prevent China's foreign reserve from buying gold.
The nature of such behavior is a rogue lawyer's behavior of 'ripping off both sides': taking advantage of cross-strait divergences, blackmailing the Taiwan people's wealth by selling arms to Taiwan, and meanwhile coercing China to buy U.S. treasury bonds with foreign exchange reserves and extorting wealth from the mainland's people. If we [China] use all of our foreign exchange reserves to buy U.S. Treasury bonds, then when someday the U.S. Federal Reserve suddenly announces that the original ten old U.S. dollars are now worth only one new U.S. dollar, and the new U.S. dollar is pegged to the gold - we will be dumbfounded.
Today when the United States is determined to beggar thy neighbor, shifting its crisis to China, the Chinese must be very clear what the key to victory is. It is by no means to use new foreign exchange reserves to buy U.S. Treasury bonds. The issues of Taiwan, Tibet, Xinjiang, trade and so on are all false tricks, while forcing China to buy U.S. bonds is the U.S.'s real intention."
And since this memo, Gold has risen 105% and the USD (measured by DXY) is unchanged - that is all.
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Some tough words in this article.
Now and then, US citizens break their mask of perpetual duplicity to let facts out.
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China has become the biggest victim of the U.S.'s abusive implementation of trade remedy measures.
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"The United States no longer sits still; it frequently uses evil tricks to force China to buy U.S. bonds"
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and meanwhile coercing China to buy U.S. treasury bonds with foreign exchange reserves and extorting wealth from the mainland's people.
(By Jove. Admitting the US runs an extortion business)
and this one:
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A crucial move for the U.S. is to shift its crisis to other countries
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Woooooooooooooooo... Admittance that the US is not the solution, the US is the problem.
US citizens have kept exporting their internally made issues onto an exterior.
By the way, a remark here: quite a lot of US citizens want to make believe that the conditions of the collapse have to be found in the interior, focusing on countries like Europe, the US and Japan.
Nope, sir, the conditions of the collapse are found in the exterior and its resiliency to take the shit thrown at them.
Once their resiliency is gone, the interior collapses. Useless to focus on the US and its gang captains. The real question is to know how long the rest of the world will be able to endure the shit thrown at them.
Screw China. And fuck the myth.
They're even loonier than the Americans.
Can you imagine a world led by those fuckheads?
No, thank you.
http://geraldcelente.proboards.com
Ship China some opium. That will fix them.
Opium?
We've got them chasing Prada and selling organs for iPads. They're toast already.
The Japanese have it figured out; the Kanji character for money is the same as that for gold.
Read the text guys. It was not written by a US Ambassador. It was written by someone Chinese. The perspective is clearly Chinese. For example, do you really think Jon Huntsman wrote: "The United States no longer sits still; it frequently uses evil tricks to force China to buy U.S. bonds"? I suppose he gave wicked laugh while he was writing it, had his little finger in the corner of his mouth and carried a mini-Jon on his lap.
www.silverrevolucion.com
www.silverrevolucion.com
So what happens to that ounce of gold that I bought for $1500 when the US gov't repegs the dollar to gold??
I'd bet you lose.
But on paper it'll be a big gain.
Don't worry, I think they will always pay at least fifty dollars for it.
Can someone help me a little bit here. I am trying to learn a little more about GLD options.
Is this the contract that expires this friday "trip witch"(oct 22, 2011) ? and the calls that are in the money are massive "until" the 160.00 strike.........Right
So this info is telling me the magic "beatdown" number is $160.00 to take everyone out of the money ? Trying to learn the ropes.
http://www.nasdaq.com/aspxcontent/options2.aspx?symbol=gld&selected=gld&qm_page=98646&qm_symbol=GLD
Thanks in advance
China wouldn't increase the value of its currency, so now the rest of the world is devaluing its currency.
China complains that we are devaluing the dollars that they hold. So why is China not happy when we peg the dollar to gold? Creating new dollars worth 1/10 is immaterial assuming that all dollars are exhanged.
Buying Dollars pegged to gold is the same as China buying gold.
Not sure I agree with the article basic premise. Comments?
What a pile of rant. "Evil tricks" is just stupid. China has been bidding down the yuan vis the dollar for decades!
Someone caught through the grapevine a glimpse of the truth. Chinese (large) corporation, city, muni, bank, and central government debt makes the rest of the world look good, and will inevitably cause a yuan squeeze. Then the best they can hope for is decades of stagnation as the bulk of their population reaches retirement age.
Of course they want to blame this on the United States in advance. But this attempt is juvenile in the worst sense.
If the Treasury devalued the dollar 90% overnight, there would be revolution in this country. Besides, China should realize that it's losing money anyway on bonds who's yields are less than inflation.
All fine and dandy but despite all words I don't see the Chinese doing somtin significantly about it. Still buying dollars not buying up gold massively so .... hollow words.
Need to read the article more carefully.
The US policy makers, money changers and business leaders CANNOT compete in the arena of ideas, hard work and innovation so, like with every part of the new America, we must resort to lies, cheating and counterfeiting. What a fuckin disgrace. We have overspent and abused every tradition that made us the greatest country on this planet and at the base of all these abuses stand the most courrpt banking cartel in the world,... the most evil of all.
Frankly, I think this article is a disgrace and I am ashamed to be part of this charade. The US counterfeiting gangsters will continue to suppress Gold and Silver and run dead companies stock higher on lies, corruption and fraud because that is our new business model. When they fail, they will devalue the USD and steal your gold,… just sickening!
Clipping newspaper articles is something interesting to say for a politician?!