Re: [A-List] Euro Currency War: Implications for Anti-War Movement

["annewilliamson" <annewilliamson@xxxxxxx>]

Tariq:

I quite agree that the Chinese people are not necessarily "winners"
in this game, but due to the cleverness of their leadership's fixed
tie of the yuan to the dollar and the foresight of  having kept out
the IMF they will not be decimated as other foreign peoples are
routinely.

But China had some special cards to play, as well.  The eagerness
of Western firms to tap into cheap Chinese labor and a potentially
huge new market for everything from tennis shoes to microwaves
to automobiles, meant direct investment flowed into the country,
and speculative financial games were secondary (while usually
they are the primary game in the "foreign aid" racket.)

As China's productive capacity increased, wealth was created
enabling them to stay current with those subsidized World Bank
loans along with the commercial lending they received - this
is not always the case with foreign loans; often, too often, those
loan payments become heavy chains enslaving a population that
did not receive any benefit whatsoever from the loans, as in
Russia.

Again, the key point is that the borrowed sums were put to
productive use, building factories, and other capital investment.
Additionally, the tenacity, shrewdness, and propensity to save
of the hardworking Chinese people worked to make those
investments successful.  The role of the Chinese government
was critical too in that that leadership is interested in
developing their country economically rather than taking the
usual ten percent for a private Swiss bank account, squandering
the remainder, and then taking new loans to make the payments
on the old loans ("round tripping") thereby enslaving their
people further.

Anne


----- Original Message -----
From: "Tariq Mahmood" <zaogir@xxxxxxxxxxxxxxxxxx>
To: <a-list@xxxxxxxxxxxxxxxxxxx>
Sent: Monday, February 10, 2003 1:00 PM
Subject: Re: [A-List] Euro Currency War: Implications for Anti-War Movement


> Anne,
>
> I respect with awe all your econmic wisdom but in one case when you say:
>
>  "PS  The Chinese learned the system, and they profited from their study:
> by tying the yuan to the dollar, they only profit more from dollar decline
> as their goods also become cheaper and domestic producers can not
compete -
> they are in position to literally suck all production, including every
> manufacturing job, out of the West.  Decades ago they understood the game,
> and that's why they happily took the World Bank's subsidized loans and
never
> let the IMF in!  A truly brilliant people."
>
> No doubt the Chinese snatched all the production and manufacturing out of
> the west, but they are now slaves of a different kind. The cheap and
> industrious Chinese labour is working for the west against the inflated
> paper money they get in return.
>
> Tariq
> =============
> "annewilliamson" <annewilliamson@xxxxxxx> wrote:
>
>
> > Hans:
> >
> > The effort did not begin with Bush, it began with
> > the founding of the Bretton Woods institutions
> > post-WWII.  I've gone blue in the face trying to
> > explain dollar hegemony for seven years --
> > only now are people beginning to understand it.
> > This is why my book, Contagion, has been supressed
> > -- not just to keep the dirty stories of what we and Harvard operatives
in
> cahoots with Yeltsin's quislings did in Russia in the 90s off the screen,
> but because it explains the entire racket and shows how it applies to
> Argentina, Turkey, Africa, etc., etc. as well as alerting Americans to the
> fact that his system will consume them in the end.
> >
> > The tragedy for Europe is that a strong euro is not
> > desirable now - the EU is suffering from a trade-weighted euro at
> 108-110 - if it goes higher, they simply won't be able to endure it in
their
> present stagnant circumstances.  And their leaders know it.  The world's
> central banks will start dumping gold into the market in order to pump the
> dollar back up next week, especially with Snow now on the job at Treasury
to
> manage the Exchange Stabilization
> > Fund (which has been rudderless since O'Neil's resignation, and it was
the
> next day that gold's price began to rise.)
> >
> > The US really can't afford an over-valued
> > currency either at this time, but Bush is happy for the
> > population to take the hit as a falling dollar is not helpful as he goes
> into Iraq.   After all, the stakes couldn't be higher - dollar hegemony or
a
> spiral into deflation and decline for the empire.  And Europeans will
> comply, their own power and positions domestically are at stake as well as
> the entire euro and EU project.
> >
> > I am on my knees here asking A-Listers to please, please learn the
> mechanics of money and banking.  There is no ideology in this request nor
in
> the best source to learn it, i.e. Murray Rothbard's "The Case Against the
> Fed," and "Wall Street, Banks, and American Foreign Policy."  Yes,
> > Rothbard was not a Marxist, but he was a very great scholar
> > and these two books, which can be purchased for about $10
> > each from www.mises.org and read over a weekend, will give
> > A-Listers critical knowledge and understanding which you can
> > employ on behalf of your own perspectives.  You can not just
> > rely on Henry's work, for which I have the greatest respect.  He
> > has labored vigorously and intelligently to demonstrate how a fiat
> > currency and central banking could work without the establishment
> > of a tyranny, but he has not solved the problem.  Maybe he will,
> > maybe one of you will, but that's a long ways down the road and
> > the greatest roll of the dice the money monopoly has ever wagered
> > is happening now.
> >
> > Until all citizens of every political view possible understand the
> > money monopoly, they will be out-foxed, out-maneuvered, and
> > out-gunned every time, only to remain subject to the banksters'
> > perpetual looting and their politicians' nonstop betrayal, leading
> > to endless wars, impoverishment, and oppression.
> >
> > Anne
> >
>  PS  The Chinese learned the system, and they profited from their study:
by
> tying the yuan to the dollar, they only profit more from dollar decline as
> their goods also become cheaper and domestic producers can not compete -
> they are in position to literally suck all production, including every
> manufacturing job, out of the West.  Decades ago they understood the game,
> and that's why they happily took the World Bank's subsidized loans and
never
> let the IMF in!  A truly brilliant people.
>
>
>
>