March 01, 2009

China-US relationship still shrouded in secrecy

(9:10 a.m., Monday, March 2, 2009)

Federal Government Grants Eminent Domain as Collateral for US Debt

Read it and weep. The new administration has sold us out to the Chinese government.

Source Story at Hal Turner Show

Source Story at Bloomberg

Star Tribune Puts Hilary in China Discussing Eminent Domain
About the Star Tribune story: I have not yet had time to confirm it. More later.

(2:10 p.m., Monday, March 2, 2009:)

The Star Tribune article linked above does not mention Hillary Clinton. It does discuss the insane new budget Pres. Obama is proposing. It appears that this post at was the starting point: Fed Grants Eminent Domain as Collateral. However, there are two important articles that laid the foundation for the LiveLeak article, one at Bloomberg on Feb. 11, and one at Hal Turner on Feb. 27, both are linked above. An article at Atlas Shrugs suggests that the LiveLeak claim is "Not Likely", but this section of the article at Bloomberg keeps coming back to haunt me:

China may voice its concerns over U.S. government finances and the potential for a weaker dollar when Secretary of State Hillary Clinton visits China on Feb. 20, according to He Zhicheng, an economist at Agricultural Bank of China, the nation’s third-largest lender by assets. A People’s Bank of China official, who didn’t wish to be identified, declined to comment on the telephone.

“In talks with Clinton, China will ask for a guarantee that the U.S. will support the dollar’s exchange rate and make sure China’s dollar-denominated assets are safe,” said He in Beijing. “That would be one of the prerequisites for more purchases.”

Keep in mind, barely two weeks ago Karl Denninger posted this alert: Massive FX displacement in progress. That displacement came only four days prior to Secretary of State Clinton's visit to China to discuss "military cooperation". I'm thinking it was a Chinese show of force and the administration not only took it to heart, they did indeed send Hilary to Yu with some kind of assurance that if America defaults, the Central Bank of China would be protected. Whether or not that includes the granting of "Eminent Domain" is, to say the least, problematic. Despite Pres. Obama's campaign promise of greater transparency, it is becoming obvious that the exact nature of the American-Chinese relationship is going to remain a closely guarded secret.

The book of Wu-Tzu, a text on military strategy, opens this way:

Wu Ch'i, wearing the distinctive garb of a Confucian, had an audience with Marquis Wen of Wei to discuss the strategic crux of warfare. Marquis Wen said, "I do not like military affairs."
Wu Ch'i replied, "From the visible I can fathom the concealed. From the past I can discern the future. How can your lordship say this topic does not accord with his thoughts?"

Sun-tzu, the Chinese strategic master everyone loves to quote, says this:

Subjugating an enemy's army without fighting is the true pinnacle of excellence.

To the Chinese, diplomacy and war are one and the same.

Meanwhile, over at the Washington Post, there is an article dated Feb. 28 that did not appear in my RSS feed until this morning: U.S., China End Talks with Plans for More. After discussing details such as fighting piracy on the open seas, it closes with this ominous paragraph:

"Because of self-confidence, because of the bad U.S. economy, because of domestic unrest, China has become harder to almost everyone who makes trouble: to France, to the Russians, to the E.U.," said Shi Yinhong, who runs the Center for American Studies at People's University in Beijing. "In this context, with the cooperation of [Secretary of State] Hillary Clinton, who had an almost perfect visit, China is saying it desires a good beginning with the Obama administration."

CNN, for some reason, has almost nothing to say about the nature of Secretary of State Clinton's visit and what, if anything, was agreed on: CNN Special Report on China

Drug wars in Mexico, a possible grant of Eminent Domain to China, and a rapidly rising Muslim lobby in the United States? Over the past few weeks, international and domestic events have begun rapidly spiraling out of control. Maybe I was hasty calling for a shooting war, but if this hurricane is not stopped and stopped now, a shooting war may be inevitable. The only question remaining is who is going to be shooting whom.