Hillary threatens China – Pony up, or else
The word is out. The world has been warned that it must “pony up” (meaning to pay reluctantly), or else. This threat to the world was given by U.S. Secretary of State, Hillary Clinton.
In Beijing, she called on the Chinese to continue buying US Treasuries, saying it would help jumpstart the flagging US economy and stimulate imports of Chinese goods.
“By continuing to support American Treasury instruments the Chinese are recognizing our interconnection. We are truly going to rise or fall together.”
Hillary went on to threaten, “We have to incur more debt. It would not be in China’s interest if we were unable to get our economy moving again.” Her final warning was, “The US needs the investment in Treasury bonds to shore up its economy to continue to buy Chinese products.”
Like the defunct Roman Empire of old, the American empire is now exacting tribute. Just like the Mafia – it’s pay or die. The important difference, however, is what Hillary is saying is “let us go deeper into debt, buy our toxic bonds, or die.”
China, Japan, and tiny Singapore are three Asian countries that have surplus money. Singapore has already made its tribute by investing heavily in America’s most toxic assets, including Citibank.
Hillary didn’t even bother to visit Singapore on her trip to Asia as the U.S. already controls the country’s assets.
Singapore’s sovereign wealth fund, Temasek Holdings, has just appointed an American, Charles “Chip” Waterhouse Goodyear IV, to become its boss. Even the number two man at Temasek Holdings, Michael Dee, is an American.
These two Americans now control major purse strings of Singapore’s wealth. Look for more investments by Singapore in toxic U.S. securities. Citibank shares are in freefall, plunging 44 per cent just last week alone. The U.S. is now asking Singapore’s GIC to exchange its $$6.88 billion purchased in January last year to common stock. If, however, Citibank is nationalized, the common stock will be worthless.
Singapore’s founder, Lee Kuan Yew, believes in “the Citibank franchise.” He should – he holds a position as consultant to Citibank. With Credit Suisse predicting 200,000 job losses in Singapore, this year, the city-state faces interesting times. Tensions are already growing between the citizens of Singapore and the millions of imported laborers.
On to Japan, Hillary.
Volker breaks with Obama – admits Depression
At a Columbia University dinner on Friday, Feb 20, 2009, Volker brought up the “D-Word” saying, “I don’t remember any time, maybe even in the Great Depression, when things went down quite so fast, quite so uniformly around the world.” Using a line from Saddam Hussein, Volker said “This is the mother of financial crisis.”
Volker also stated that world trade is a non-sustainable phenomenon – which means U.S. protectionism is on its way.
In other words, the current economic crisis is worse than the Great Depression.
That’s not what Barack Obama and his advisors want to hear. They believe that America is in a “recession” and can climb out of debt by going deeper into debt and by “contributions” from the rest of the world.
This “defection” by Paul Volker has been largely ignored by the media.
Soros slams the nail into the coffin
Later, at the same Columbia University dinner, renowned investor George Soros followed through on Volker’s remarks, saying the world financial system has effectively disintegrated, adding that there is yet no prospect of a near-term resolution to the crisis.
Soros said the turbulence is actually more severe than during the Great Depression, comparing the current situation to the demise of the Soviet Union.
He said the bankruptcy of Lehman Brothers in September marked a turning point in the functioning of the market system.
“We witnessed the collapse of the financial system,” Soros said. “It was placed on life support, and it’s still on life support. There’s no sign that we are anywhere near a bottom.”
Like Volker, Soros believes the current situation is worse than the Great Depression.
And it is – the Great Depression II is upon us.