Chimera
08-09-2011, 02:38 PM
The Point.fr: what do you think of the latest statements from China after the deterioration of the U.S. sovereign rating?
Antoine Brunet: Whether they come from the CPC itself or the official media, reports say two main things. First, it is time the United States realize that they spend far more than they produce, then it's time to reduce their expenses, particularly the military. It's totally ironic. Because China has been contributing ten years to de-industrialization of the United States but also in Europe. Instead of producing ourselves, China forces us to buy Made in China due to its undervalued currency. This translates into a budget deficits, but also by a growing external deficit for the balance of trade. Western governments then try to artificially maintain the activity by increasing public spending and consumption.
Is not giving too much importance to China in the debt problems of the West?
China is not a small country it has long claimed to be. The GDP of China has already surpassed the U.S. for two years, although this is not the official figures. The UN has recognized that Chinese manufacturing output exceeded that of the United States in 2010. Public works exploded in recent years: the production of highways, airports, ports, buildings is much higher than in the U.S.. China is also the largest consumer of primary energy in the world (coal, oil, electricity ...), it is the first consumer of cement, copper, steel ... It is impossible to make these findings and continue to believe that China's GDP is half the U.S. GDP! By now, year after year, a surplus of 6% of its GDP, China has the capacity to destabilize other countries in the world. This includes not only Western countries but also countries such as India and Brazil, which registers a surplus that because China turns it into an emirate. It imports from Brazil soybeans, sugar, its oil, its ore, the iron and wood. Brazilians complain of being imposed with a low Yuan when importing goods.
China did not she agreed to revalue the Yuan?
China revalued the yuan between July 2005 and 2008 when the U.S. Congress had shown clear signs of impatience with China. She then increased it by 21%. But this has not prevented the Chinese currency from depreciating at the same time against the euro. Since the 2008 crisis, which weakened politically Western countries, China allows itself to no longer re-evaluate the Yuan. From July 2010 to July 2011, it rose from 6.48 to 6.60 dollars, which was negligible.
has she no interest in letting its currency appreciate to control inflation?
Normally, yes. Why is China not doing so? Because China is more interested in destabilizing the West on all fronts, economic, social, fiscal ones. By destabilizing public finances, for example, it requires governments to reconsider a number of social arrangements, which will raise the anger of the people.
How to explain this desire?
The Chinese want to take over the world, they want to snatch the "world hegemony" from the United States. This is not just the economy. The Chinese applied the same approach on the territorial level, in the Arms race, by diplomatic alliances. China has brought Pakistan into its sphere of influence an, China said the South Sea belonged to her. She never ceases to amaze Westerners by his new military capabilities. This explains why China asked the United States a reduce its military spendings. The United States has already abandoned his project of station on the moon for budgetary reasons, as China accelerates its own Space projects.
Should we fear China getting rid of its U.S. Treasury bonds?
We tend to think that, as the US is a major client of China, destabilizing Western economies to much would not serve her well. But do not forget that China has succeeded mainly in the last six years to build up new markets for its exports in commodity by exporting in countries like Russia, Central Asia, the Middle East, Australia, South America, many African countries ... China is already diversifying its foreign exchange reserves. China is indeed behind the Gold price increase. If the gold is increasing it is because hedge funds have realized that China would never allow the gold to drop because they want to bring more discredit on the dollar as world reserve. China is also behind the recent appreciation of the Korean currency, Brazilian, Swiss currency...
Why the Chinese say they support the European debt by purchasing securities of countries in trouble?
They are arsonists who want to make you believe that they are firefighters. Their plan is to lend to Europe in order to seize its assets. The Chinese know they will not be refunded. Some say we must use the Chinese liquidity to solve debt problems of Western countries. If this is done in a few years, China will have taken hold of companies assets of Total, Air Liquide or Generali.
How can the West respond?
The only solution is to impose reprisals on China's goods with high customs until it stops its current currency policy. WTO can go the hell. We now have to reverse the game led by China for more than ten years. There must be 100% customs duty on made in China. It is the only solution to stop this madness on our economies.
IWouldn't it triggers massive retaliation from China?
There would be a period of economic war, with two-three years of rising prices for manufactured goods, but with the prospect of a positive outcome. The alternative is to always back up until we find ourselves deprived from our assets, our technology and end up with inferior military capabilities.
http://www.lepoint.fr/economie/les-chinois-veulent-s-emparer-du-monde-09-08-2011-1361150_28.php
Antoine Brunet: Whether they come from the CPC itself or the official media, reports say two main things. First, it is time the United States realize that they spend far more than they produce, then it's time to reduce their expenses, particularly the military. It's totally ironic. Because China has been contributing ten years to de-industrialization of the United States but also in Europe. Instead of producing ourselves, China forces us to buy Made in China due to its undervalued currency. This translates into a budget deficits, but also by a growing external deficit for the balance of trade. Western governments then try to artificially maintain the activity by increasing public spending and consumption.
Is not giving too much importance to China in the debt problems of the West?
China is not a small country it has long claimed to be. The GDP of China has already surpassed the U.S. for two years, although this is not the official figures. The UN has recognized that Chinese manufacturing output exceeded that of the United States in 2010. Public works exploded in recent years: the production of highways, airports, ports, buildings is much higher than in the U.S.. China is also the largest consumer of primary energy in the world (coal, oil, electricity ...), it is the first consumer of cement, copper, steel ... It is impossible to make these findings and continue to believe that China's GDP is half the U.S. GDP! By now, year after year, a surplus of 6% of its GDP, China has the capacity to destabilize other countries in the world. This includes not only Western countries but also countries such as India and Brazil, which registers a surplus that because China turns it into an emirate. It imports from Brazil soybeans, sugar, its oil, its ore, the iron and wood. Brazilians complain of being imposed with a low Yuan when importing goods.
China did not she agreed to revalue the Yuan?
China revalued the yuan between July 2005 and 2008 when the U.S. Congress had shown clear signs of impatience with China. She then increased it by 21%. But this has not prevented the Chinese currency from depreciating at the same time against the euro. Since the 2008 crisis, which weakened politically Western countries, China allows itself to no longer re-evaluate the Yuan. From July 2010 to July 2011, it rose from 6.48 to 6.60 dollars, which was negligible.
has she no interest in letting its currency appreciate to control inflation?
Normally, yes. Why is China not doing so? Because China is more interested in destabilizing the West on all fronts, economic, social, fiscal ones. By destabilizing public finances, for example, it requires governments to reconsider a number of social arrangements, which will raise the anger of the people.
How to explain this desire?
The Chinese want to take over the world, they want to snatch the "world hegemony" from the United States. This is not just the economy. The Chinese applied the same approach on the territorial level, in the Arms race, by diplomatic alliances. China has brought Pakistan into its sphere of influence an, China said the South Sea belonged to her. She never ceases to amaze Westerners by his new military capabilities. This explains why China asked the United States a reduce its military spendings. The United States has already abandoned his project of station on the moon for budgetary reasons, as China accelerates its own Space projects.
Should we fear China getting rid of its U.S. Treasury bonds?
We tend to think that, as the US is a major client of China, destabilizing Western economies to much would not serve her well. But do not forget that China has succeeded mainly in the last six years to build up new markets for its exports in commodity by exporting in countries like Russia, Central Asia, the Middle East, Australia, South America, many African countries ... China is already diversifying its foreign exchange reserves. China is indeed behind the Gold price increase. If the gold is increasing it is because hedge funds have realized that China would never allow the gold to drop because they want to bring more discredit on the dollar as world reserve. China is also behind the recent appreciation of the Korean currency, Brazilian, Swiss currency...
Why the Chinese say they support the European debt by purchasing securities of countries in trouble?
They are arsonists who want to make you believe that they are firefighters. Their plan is to lend to Europe in order to seize its assets. The Chinese know they will not be refunded. Some say we must use the Chinese liquidity to solve debt problems of Western countries. If this is done in a few years, China will have taken hold of companies assets of Total, Air Liquide or Generali.
How can the West respond?
The only solution is to impose reprisals on China's goods with high customs until it stops its current currency policy. WTO can go the hell. We now have to reverse the game led by China for more than ten years. There must be 100% customs duty on made in China. It is the only solution to stop this madness on our economies.
IWouldn't it triggers massive retaliation from China?
There would be a period of economic war, with two-three years of rising prices for manufactured goods, but with the prospect of a positive outcome. The alternative is to always back up until we find ourselves deprived from our assets, our technology and end up with inferior military capabilities.
http://www.lepoint.fr/economie/les-chinois-veulent-s-emparer-du-monde-09-08-2011-1361150_28.php