"There is no means of avoiding a final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion or later as a final and total catastrophe of the currency system involved."
- Ludwig von Mises

Friday, November 19, 2010

Pat Buchanan Asks: Who Fed The Tiger?

Readers of this blog probably know by now that I don't care much for politics or political parties.  I consider political parties two sides of the same coin.  Economics and the monetary system we employ is what my focus is on, and to me, it helps me understand the world and how it works - who pulls the strings, who controls it, etc...

But political analyst and former speechwriter to US President Richard Nixon, Patrick Buchanan writes an intersting essay on China's ascent, and what it means to the US.  I think he inordinately blames the Republican Party (both parties are at fault), but his view on globalization is spot on.  What he ignores, however, is more important role of the banking system in requiring an ever expanding marketplace and cheaper labor to keep inflation low.   A fiat debt-based monetary system is easily captured by private interests that are given the right to create money out of thin air.  And thus, to keep inflation caused by their efforts of money printing to buy the world, they push for opening markets to access cheaper labor, to keep inflation, and the masses, at bay.

I have written before on this.  We have indeed experienced severe inflation these past 40 years of fiat money.  It showed up in the stock markets and real estate.  We called it wealth creation.  Now we are realizing it is a Ponzi Scheme.

But enough of my rant, here are portions of Pat Buchanan's essay:
Missiles fired from the Chinese mainland could destroy five of the six major U.S. air bases in the Far East. So states a new report of the U.S.-China Economic and Security Review Commission, adding:

"Saturation missile strikes could destroy U.S. air defenses, runways, parked aircraft, and fuel and maintenance facilities. Complicating this scenario is the future deployment of China's anti-ship ballistic missile, which could hold U.S. aircraft carriers at bay outside their normal operating range."

Opposite Taiwan, China's missile force has reached 1,600.

Beijing is also building rockets, submarines and surface fleets to extend her dominance out to the third chain of islands, enabling the People's Liberation Army to strike U.S. carriers and bases as far away as Guam.
Since the demise of the blue-water navy of Russian Adm. Sergei Gorshkov, the Pacific has been an American lake. No more...

Napoleon said of the Middle Kingdom, “Let (China) sleep, for when she wakes, she will shake the world.” The shaking has begun.

So the question arises: Who put us in this predicament? Who awakened, fed and nurtured this tiger to where she is growling at all Asia and baring her teeth at the United States? Answer: the free trade uber alles Republicans...

Under Bush II, the GOP made MFN permanent and sponsored Beijing’s entry into the World Trade Organization, despite China’s downing of a U.S. surveillance plane and incarceration of its American crew on Hainan Island. Colin Powell was forced to apologize.

For decades, corporate America championed investing in China and trade with China, though the massive transfer of U.S. factories, technologies and jobs was clearly empowering China and weakening America.
Now, with U.S. political, military, industrial and strategic decline vis a vis China manifest to the world, we hear the wails of American businessmen that they are not being treated fairly by the Chinese. And the politicians responsible for building up China are now talking tough about confronting and containing China.

Free trade was the policy of a Great Britain whose clocks those generations of Americans cleaned, even as the Chinese are cleaning ours.

As for a U.S. policy of containment, we have no vital interest in China’s border dispute with India, or Beijing’s claims to islands in the South and East China seas, or in China’s claims against Russia dating to the ninth century.

Time for our Asians friends to take responsibility for defending their own claims. As LBJ said in 1964, “We are not about to send Americans boys 9 or 10 thousand miles away from home to do what Asian boys ought to be doing for themselves.” This time, let’s mean it.

The day of the globalist has come and gone.
Full Article HERE.

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