Alekstheblogger

A World Without Zinc

2007-02-25T01:04:00.000-05:00

A great short video on You Tube on what the world might have looked like if there was no America.

It is almost as bad as a world without Zinc.

Old School

2007-02-22T22:33:00.000-05:00

A group of US senior citizens on tour in Costa Rica fought off three attackers that tried to hold up their bus. Two of the assailants were sent running, while the third, a man in his twenties, was killed after a skirmish with a seventy year old retired US military man.

According to the report, "...a retired member of the U.S. military aged about 70 — put assailant Warner Segura in a head lock and broke his clavicle after the 20-year-old and two other men armed with a knife and gun held up their tour bus Wednesday."

To add insult to injury (or death in this case), the bus then drove the assailant to the nearby Red Cross station where he was pronounced dead. One of the seniors had to be treated for an anxiety attack.

This is again a demonstration of why they are called "the greatest generation". We should learn from our elders, and the lesson here is, "mess with the best and die like the rest" (more or less).

Global Warming

2007-02-01T00:02:00.000-05:00

Finally, a politician that realizes that Global Warming is nothing but a "socialist scheme" designed to suck money out of the rich countries (most of which are Western).

The Canadians have finally made a correct decision in their politicians. Now we can stop blaming all Canadians and only focus on the French and liberal ones.

A great article by Robert O. Lawton (who is a Distinguished Professor, Meteorology and Oceanography for FSU; Secretary of Navy Professor of Meteorology and Oceanography) helps to shed light on the other side of the Global warming debate that seems to always be missed by the media.

Red Rising: PRC

2007-01-11T12:05:00.000-05:00

The Chinese General Administration of Customs reports that China's worldwide trade surplus grew by 75% in 2006, or in other words, it increased from $102 billion in 2005 to more then 177.5 billion in 2006. China's exports rose 27.2 percent in 2006 from the previous year to $969 billion, while imports were up 20 percent to $791.5 billion. Unlike what many “experts” are saying this is not the surplus in US trade but for the entire world. The country breakdown has not yet been reported but it is expected that China's trade surplus with the US will suppress the record $202 billion in 2005.

This means that the US is one of the only countries in the world to import more from China then we export to them. This being the case you would think that we would demand China stop imposing restrictions on their companies on what they can import and stop putting up barriers to American exports, but this is not what is happening. China still restricts US imports and still keeps its currency pegged against the dollar, not letting US products be competitive with home produced Chinese goods.

In other news, the PRC has overtaken Japan as the world's number two car market, just behind the world leader America. The overall sale of cars in China rose by 25%, with a 37% rise in purchases by wealthy drivers.

With its ever growing economic power China is now beginning to translate that into ever increasing geopolitical strength. In it's latest show of international influence the PRC has told the US to not interfere with the newly signed oil deals between Iran and Chinese state owned oil companies. Through these major deals China is helping to sponsor Iran's nuclear program and feed its own ever growing energy hunger.

Red Rising

2007-01-10T13:25:00.000-05:00

That great savior of the Bolivar revolution, Hugo Chavez, has announced that he is planning to go ahead with steps to transform Venezuela into the Socialist Republic of Venezuela. Although, I'm going to guess he is going to give the people a choice between the title being the Socialist Republic or the Peoples Republic, him being of the people and all (personally I like the Peoples Republic, it confuses us dumbed down Westerners).

In his inaugural speech Chavez outlined many of his new plans for enacting "Bolivarian Socialism". Some of them are nationalizing the utilities and kicking out foreign oil companies in favor of the newly nationalized Orinoco state oil company. The move towards more communal projects and the abolishment of presidential term limits also are at the top of his agenda.

With the US inability to democratize Cuba, destroy the FARC in Columbia, and now the fall of Venezuela, the fourth largest oil supplier to America, Communism has begun to make a larger headway in South America now then it ever did during the Cold War.

This begs us to ask the question of whether America really won the Cold War or did the Soviets just fake a collapse as part of their long range plan to spread the Revolution. I'll let you decide.

Drug Free

2006-11-27T22:41:00.000-05:00

China has sentenced a 26 year old Kenyan student Oliviah Singaniabe Munoko to a life sentence for trying to sneak 1.896 kg or about 4.18 pounds of heroin from Malaysia.

This was a lenient sentence because Ms. Munoko is a Kenyan citizen and admitted to the crime right away. The standard punishment in China for drug trafficking is to be summarily executed.

No three strikes rule in the People's Republic.

Communism and Islam: Enemies of the Internet

2006-11-07T01:31:00.000-05:00

Reporters Without Borders has come out with a report of the 13 countries it considers to be enemies of the Internet. The thirteen countries in no particular order are: Saudi Arabia, Belarus, Myanmar, China, North Korea, Cuba, Egypt, Iran, Uzbekistan, Syria, Tunisia, Turkmenistan and Vietnam.

As can be seen all the countries share a couple of similarities. They are either Communist, Muslim, or both and they are all allied against the US and the West. Just some food for thought.

House of the Rising Sun

2006-11-03T17:42:00.000-05:00

Japan is beginning to shift its military focus from defending against Russia, who they never officially signed a peace treaty with after WWII, to protecting against the Chinese threat. Strategy Page is reporting that Japan is building their new search radars and electronic intelligence facilities on the Miyako islands.

The Miyako Islands, which are 1,800 kilometers southwest of Tokyo, are 180 kilometers east of the disputed (between China, Taiwan and Japan) Senkaku islands. The Senkakus' are also 220 kilometers from Taiwan, 360 kilometers from China, and 360 kilometers from Okinawa.

Out of all the nations in Asia, Japan is the one that is most afraid of China. This is not only because it threatens its economic dominance, but also because the Peoples Republic has not forgotten about the Japanese occupation of China during the 30's and 40's. This is why we should use Japan as our counterweight to China in Asia, and let them rearm themselves, to help us better contain the Red Chinese.

Alternate Stream Media

2006-11-01T23:17:00.000-05:00

Americas News Source is a new internet news website up and running that has some very interesting stories, and looks promising overall. Time will tell if it will be popular and successful.

There is also an interesting article about Islam in America, which is a good read.

Long March

2006-10-22T20:02:00.000-04:00

Today marks the 70th anniversary of the Long March that happened from 1934 to 1936.

Hu Jintao, general secretary of CPC Central Committee, state president and chairman of Central Military Commission (CMC), delivered a key-note speech at the ceremony whose highlight was: "The Long March, which opened a bright future for China's revolution and laid an important foundation for the victory of China's revolution, has been a "pride" for the Chinese Communists, the Chinese army and the Chinese nation as a whole".

He also observed that, "the victory of the Long March shows the outstanding capabilities of the Chinese Communists in leading the revolutionary war, the undaunted spirit of the Red Army officers and soldiers who had bravely sacrificed their lives for national independence and people's emancipation, and the fact that the just powers of the people's revolutionary war is unbeatable".

I couldn't agree more.

Site Down

2006-10-16T22:52:00.000-04:00

Update: Thanks to the Great Leader the site is now back up and running so we can continue to protect your constitutional right to comment.

De-Industrialization Continiues

2006-10-12T01:11:00.000-04:00

China carries on it march towards world economic dominance by continuing to widen the trade surplus. Chinese data shows that through September exports exceeded imports by $110.9 billion, exceeding the all-time high of $102 billion in 2005. The $111 billion surplus was just for the first nine months setting the expected year end surplus to be the largest ever recorded. For September, China had a $14.1 billion surplus with the US, and sold $8.8 billion more of goods to the European Union than it bought from the bloc.

Thanks to the ever increasing surpluses China now also has the largest foreign exchange reserves in the world, totaling near one trillion dollars (that is trillion with a T). China uses these huge reserves to help finance the US debt, and not only the federal one but more importantly the corporate and consumer portions. This will allow them to one day just pull the plug and flush the US economy down the toilet, which is precisely why we look the other way when China acts against us, like when it shoots lasers at our satellites.

Not Just Toys Anymore

2006-10-10T02:12:00.000-04:00

The Peoples Daily reports that the PRC plans to boost exports of software to 10 billion dollars in an effort to increase its overall service exports. According to the Ministry of Commerce, China exported 3.6 billion dollars worth of software and related services in 2005, a rise of 28 % from 2004.

In addition, China plans to increase trade in services from 160 billion dollars in 2005 to 400 billion dollars by 2010. Now that the de-industrialization is almost complete, the Peoples Republic has set its eyes on our high-tech sector.

Now some might say that for as much as they will export they will import. Maybe you are right, but it will not be from the US. The Ministry of Commerce (MOC) reports that China's technology imports from Japan reached 4.45 billion U.S. dollars and that from the United States, 2.89 billion U.S. dollars, that was dwarfed by imports from the EU at $7.54 billion.

While it is believed China would not be able to compete with us militarily because of our technological superiority, they seem to be steadily correcting that with a build up of their hi-tech sector (at American expense of course).

Divide and Conquer

2006-10-09T16:54:00.000-04:00

Now that the North Koreans have tested their nuke, I think its time that we look at who wins in this situation, and see the long term strategy in play here. We should start by analyzing the major players and what they gain or lose, so her we go:

The South Koreans and Japanese lose because now they have a real threat of losing cities and they have to suffer economically because they will have to raise their military spending now to deal with this Northern threat.

America loses because one of the member of the "axis" has now gone nuclear. Bush especially loses since he said he would never let the North have nukes, so that is another failure of his policy just weeks before midterm elections.

The North does not make any significant gains in that they lose whatever aid they were getting from the West without really gaining anything as a deterrent. They have 10,000 pieces of fortified artillery along the DMZ with 30,000 mobile artillery available. This would allow them to rain down hundreds of thousands of rounds of hi-explosive artillery unto Soul, a city of nearly 20 million people and the industrial heartland of Korea. This was why we never attacked them, meaning they did not really need a nuclear deterrent.

So the only winner is China and to a lesser extant Russia, both countries being the only major supporters the North has had for the past fifty years. The goal of the communists is to weaken our influence and split us from our allies. They are doing this beautifully.

The North getting nukes over our promises that we will never let them have any, shows the world we are weak and that we cannot be relied upon to keep our promises. This makes our allies question us and look for other stronger countries to provide them with protection.

China steps in and provides this, because if you look at their track record their allies have not only been put under their protective umbrella, but they have been provided with nukes to protect themselves. China will not back away from its allies, while the same cannot be said of the US.

The long term strategy of the communist block has been to make them look less threatening causing us to lower our guards and to split up the anti-communist alliance. It is divide and conquer with a twist (the twist being a fake collapse of the Soviet Union, causing the reduction in the West military strength).

The results have been more then the communists could have ever dreamed of when they came up with this plan in 1956. The great NATO alliance is almost dead, the European militaries have been gutted, China has been built up with the help of Western investments, the Europeans and the Americans are split, other US allies are leaving the Western camp, the US military has shrunk from Cold-War days, and whatever is left of the US military has been stretched and warn out fighting proxy wars.

While this is happening we in America are ignorant as can be. I know there is a saying that goes ignorance is bliss, but in this case the ignorance will mean collapse and destruction.

The Enemy

2006-05-31T23:17:00.000-04:00

After Memorial Day it is time that we remember how vicious our enemy is, and how if we fail in this war, the horrors of Iraq will come to our streets.

Warning: here is a link to the graphic photos of the cameramen who was killed this weekend in Iraq. In addition to the cameramen the soundman was also killed and the reporter was critically wounded. The link comes from the Northeast Intelligence Report.

Oil Facts

2006-05-02T21:53:00.000-04:00

With the latest outrage at the ever growing gas prices many have proposed the so called “windfall-profit” tax. Now my question is who do you think will end up paying this tax you or the corporations?

It’s a rhetorical question, the answer obviously is you.

The people that cry out for this tax fail to mention the break down of oil costs, which for a $3 a gallon price goes as follows:

Gasoline Retailer $.01 cents per gallon
Oil Company $.08 cents per gallon
Refining $.29 cents per gallon
Marketing/Distribution $.32 cents per gallon
Taxes $.59 cents per gallon
Cost of crude $1.71 per gallon (delivered)

That means the corporations make 8 cents (2.5%) while the government makes 59 cents (20%). Now the oil corporations are not innocent or not responsible for growing prices, but they are not the biggest cause of this price increase.

The real solution would be to try to get the companies to cut their profits for a while and at the same time to suspend the tax on gas, but this will never happen. Just think about this statistic:

Over the last 20 years, gasoline per gallon has increased roughly 60%, which equals an annual average increase of only 3%, which is less than the average rate of inflation. While during the same 20 year period however, the salary of every member of Congress has increased 250% or 12.5% per year. More than four times the average rate of inflation.

So how can we expect our corporations to reduce their profit when the biggest beneficiary of high gas prices refuses to do so? For more on this read the great column by JB Williams.

Movie Impossible

2006-05-01T17:46:00.000-04:00

Despite spending a month of filming in China and having China Film as a co-producer the PRC has decided to delay the opening of Paramount’s Mission Impossible 3 until a later date.

The delay is most likely due to a part of the film Chinese police is depicted as being incompetent. Until they can figure out a way to censure this part MI:3 will not be released.

Once again we see Chinese censorship, and even worse we see how when you partner with the PRC and give them a cut of the profits they will still screw you. When will US business learn that Red China is not a business partner but a serious adversary?

And the Winner Is.......

2006-04-29T23:09:00.000-04:00

Here is, in my opinion, the best video that came out of this years Sundance film festival.

Chernobyl

2006-04-26T21:59:00.000-04:00

Today is the 20th anniversary of the Chernobyl nuclear reactor disaster. As a tribute to the event that has given me my superpowers here is a tour through the city, which was taken by a Ukrainian motorbike enthusiast named Elena. You can start at the beginning or at the revisit page, which has newly updated photos.

The Mexican Revolution

2006-04-17T12:53:00.000-04:00

Since illegal immigration has been the hot topic of the month, I thought I would post a few words about the country of origin for many of these illegal, sorry I mean undocumented workers. I would recommend everyone read the latest column by Nyquist about the real Mexican Revolution.

As Nyquist points out Mexican President Vicente Fox has suggestive links to both Castro and Ortega, but more importantly Fox's appointees to office are outright communists themselves. All we need to do is take a look at the appointment of Jorge Castaneda as Mexico’s foreign minister.

Castaneda is a member of the Mexican Party and was involved in assisting both Castro and Ortega in the 80's. He is currently trying to run for President of Mexico, but will probably lose to Lopez Obrador.

Lopez Obrador himself is strongly supported by Venezuelan President Hugo Chavez, a fact which he denies. He is also supported by all the major radical Marxist groups in Mexico and the United States.

Most importantly and most threatening to the US is the underreported fact of the Chinese military on the Mexico - US border. We have heard some stories about the many Mexican Army incursions onto US soil, which led to the border patrol being told to avoid U.S.-Mexican border confrontations “no matter what”. However, the stories about Chinese soldiers being across the border as well as in Panama have been non-existent.

This is important because we have to realize that we have to be careful when we give amnesty, because many of these people are not interested in the survival of the United States of America. All they are concerned about is where do they make their next buck.

Protected Growth

2006-04-06T00:43:00.000-04:00

As in every year, the understated growth prediction for the Chinese economy for the upcoming year have come out. According to the Asian Development Bank China's GDP will grow by an expected 9.5% in the 06-07 fiscal year.

After adjusting for the understated numbers this means we should again see double digit growth from China. This means more and more things that we use will be made in China, and slowly China will continue its deindustrialization of the West. As soon as this is done the West will be primed for the picking.

A Castrated Economy

2006-03-19T22:58:00.000-05:00

China has confirmed that they will not change their decision to place higher tariffs on some imported auto-parts. Actually all auto parts that are 60 or more percent of the complete price of the total vehicle will have a tariff of up to 30% placed on it, or the same tariff as a complete imported car.

China's Department of Industrial Policy the leading economic planning agency says that these measures are required to promote local production. In reality, this measure will shut down the import of most auto parts to China from the rest of the world.

In response the US has said that it has according to U.S. Trade Representative Rob Portman, "threatened to take action at the World Trade Organization unless China took measures soon on the tariffs." To which China has replied that it is acting well within WTO's rules.

For all that think further trade will help to encourage economic (I'm not even talking about political, religious, or social) freedom, this is further proof to the contrary. China is using the US until it can become self sustainable, at which point America will become expendable.

The most outrageous part is not China's action but the US response!

What ever happened to the country that would start economic wars and crush the opposition? What has happened to the country that brought down the mighty British Empire, crushed all the European colonial powers, wiped the floor with Nazi Germany and Empyreal Japan, and put the miracle Japanese economy into a permanent comatose state?

If we don't wake up soon and face our real foe, what we did to other countries will pail in comparison in what will happen to us.

China Cutting Taxes

2006-03-15T22:03:00.000-05:00

Figures issued by the National Bureau of Statistics and the People's Bank of China respectively show that China's industrial and manufacturing sectors are continuing their meteoric rise at higher then predicted rates. China's industrial output for January and February grew 16.2 percent when compared to the previous year’s numbers.

The major sector of improvement was the automobile industry, which churned out 40.6 percent more automobiles in the first two months when compared to the same time last year. During the same period China's output of steel products and cement both rose by 21.3 percent.

In an even more interesting development China is cutting taxes to help encourage household spending. This is being done to try to ensure that China is not completely dependent on exports to grow its economy.

For the US this is not good news, because this is a national security measure more then a sign of any economic reform by the PRC. The decrease in reliance on exports is meant to try to eliminate China's dependence on the US. After the PRC develops a self sustaining economy it will have no use for America, and will be able to then move to stop financing the US debt. Without Chinese cash the US consumer will not be able to finance his massive debt, thus not be able to buy any more products and this will lead to the collapse of the American economy.

The US government should take a lesson from the Chinese and try to protect its own economy. This can be best and most fairly done by reducing trade with China until the PRC starts to follow free market rules, and stops using a communist planned and protected economic system.

Deception

2006-03-14T23:07:00.000-05:00

J. R. Nyquist has written another great column on the deception being pulled by the “old communist block” on the West. In it he states how the Russians have successfully baited the US into a trap when it comes to Iran. Now the US is in a no-win situation with regards to reacting to the Iranian nuclear threat. If they let Iran have nukes then the mullahs will be free to do as they please with no fear of retaliation, but if the US decides to strike or let Israel strike this will mean an almost certain civil war in Iraq, and a massive retaliation by Hezbollah against Israel. He also has a great quote, which helps to illustrate the forgotten Chinese and Russian alliance: “We are counting on the continuation of close contacts with our Chinese colleagues [in this matter],” says the Russian foreign minister.

However, I have to disagree with his assessment that the Russians are the ultimate leaders of the "old communist block". The real king pins are the Chinese who are just letting the Russians do all the dirty work, and saving themselves for the ultimate showdown with the US. The Chinese are working to build alliances that will ultimately help them secure the upper hand in any future conflict with America, and they are focusing a lot of their effort on Latin America (especially Cuba, Venezuela, Mexico, and Brazil).

Port of Call

2006-02-25T17:32:00.000-05:00

It's time that we take a factual look at what really is all this port sale commotion about.

The basics are that the United Arab Emirates state-owned Dubai Ports World company has purchased the formerly British-owned Peninsular & Oriental Steam Navigation Co., which as part of its operations controls, according to their website 21 US ports. Some of these ports, Beaumont and Corpus Christie in Texas, are also used by the military. This is where we have to make corrections to what the mainstream media has been reporting as a sale of 6 US run ports, to that of a sale of 21 British run ports on US soil.

Next, let us take a look at the company purchasing these 21 ports, and more specifically who owns this company. The answer is the UAE royal family, which has very close ties to some people and countries that the American public does not like. For example, Osama Bin Laden has been sponsored, supported, and protected by the royal family. Furthermore, one of the major financial backers of DP World are the mullahs of Iran. Iran in general has a very big interest in the UAE in the form of 6,500 Iranian-owned tax paying companies that are now registered in the UAE under Iranian nationality, more then 20% investments in Dubai shopping centers (a major part of the UAE tourism industry), and the place where more then $300 billion will be moved by Iranian by the end of 2006, in addition to the trillions that are already there.

Now that we see the groups involved in this deal lets take a look at the implications for the US. Obviously, the first one is that of the security of items coming into the US. A terrorist would now have the ability to get a job at the ports and help sneak weapons or other terrorists into the US. A more credible and easier to accomplish threat to US security, is a person who works for DP World might also be an Iranian agent, and he just happens to report on a large shipment of US military equipment to the Middle East. Now Iran knows that the US is coming and with what.

Knowing the facts we can now make a fairly safe decision that the sale of the ports is not in the best interest of the US. However, some might say, "but you support the free market and now you are having government interfere in a deal between two companies", well in that case read this article by Jerome Corsi. Since DP World is a state-owned company that does not play by free market rules we can respond in kind.

The final issue left to discuss is why would President Bush if he has the ability to stop the deal not do it. One option is that he believes the myth that as a free market economy the US cannot interfere in the deal.

On the other hand, and more probable is that the administration has its own financial reasons for letting the deal go through. Here are some facts that are rarely stated:

Dubai Ports World purchased the global port assets of U.S. freight rail company CSX Corp. in 2005 for $1.15 billion. U.S. Treasury Secretary John Snow is a former chairman of CSX, but left the company a year before the Dubai deal.
One of DP World's top executives, David Sanborn, was nominated by President George W. Bush in January to become the administrator of the Maritime Administration in the U.S. Department of Transportation.

However, this is only my speculation and only the President and his advisors know the real reasons why the deal should be put through.

Iranian Shield

2006-02-22T22:45:00.000-05:00

With Iran becoming China's leading supplier of oil we can now see why the Iranians are so willing to go against the US and Europe. This is also why the UN will do nothing when it comes to Iran.

All we have to look at is when in 1991 when the largest supplier of oil to the US was threatened; we set up a little operation called Desert Shield. Now the Chinese have the same problem and I am pretty sure that they will not let anything happen to their Saudi Arabia.

This is all part of the Chinese plan of methodically pushing American influence and power away from Asia and then replacing it with their own authority. If we don't stand up to Iran, which I think we will not, then we should get used to seeing countries begin to turn away from us and instead look to China as a partner both economically and militarily.

Top Secret!

2006-02-16T23:45:00.000-05:00

Bill Gertz has written a great article about a commercial satellite company, which has taken photos of what many have long suspected and thanks to the images we can now see are secret military bases. One of them on the Yellow river is an underwater submarine base where it is believed the Chinese are developing their next generation nuclear attack and ballistic missile submarines. In addition, another photo shows an airbase built into a side of the mountain that helps to conceal the advanced bombers and fighters that China possesses.

The secret bases in addition to secret programs like project 863, have made China into a foe that the US knows very little about. What we do know is enough to cause concern, but what we don't would probably reveal to us the real intentions China has for its military. Personally, I would bet that it is for more then just protection of the mainland.

In Their Own Words

2006-02-15T20:31:00.000-05:00

Here is a link to an interview with three former Islamic terrorists who are talking about what Muslims, the moderate ones in the US, think about terrorism. One of them is an American born former terrorist who gives scary information of how loyal the American Muslim community really is.

Also for the bigger picture of how China is supporting the Terrorist regimes we are trying to stop here is an article from Strategy page, about Chinese designed missiles that would be used by Iran to thwart any attempt by the US or Israel to attack its nuclear weapons program.

Missiles, Missiles, Missiles

2006-02-07T22:20:00.000-05:00

Since apparently no one is worried about America's 40 Trillion dollar total debt, I'm sure that no one is even thinking about the major arms buildup going on in the far away places of the Eastern Hemisphere.

Taiwan has warned that China will have more then 1,800 ballistic and guided missiles targeting the island by 2010, and more then 50 submarines ready to blockade the small country if the need arises. This is just the tip of the iceberg when it comes to Chinese weapons, since most systems are secret and accurate numbers for the amount of weaponry that the PRC possesses are virtually impossible to uncover.

Another threat that is reemerging is Russia, which currently is the largest supplier of modern weaponry to China. Russian President Vladimir Putin has boasted about the invincibility of the Soviets (I mean Russian), brand new Topol M (SS-X-27) class missile. It is capable of swerving and changing direction mid flight, thus eluding any current or foreseeable US missile defense. Even more important, is its ability to launch in a rapid enough time to avoid detection by early warning systems, and reaching its target before a retaliatory strike can be executed.

Together China and Russia have an alliance to defend each other in case of war, and if we don't stop ignoring the real threat that these two nations pose to the US then we will sooner then later get to witness this pact in action.

Neck Deep in Debt

2006-02-05T21:41:00.000-05:00

Back by popular demand, because where else will you hear this, its time to present the annual debt statistics for the United States of America.

Warning: Not to be read an hour before or after a meal. Do not attempt to swim or use heavy machinery after reading. If you are standing sit down, if you are sitting lay down, and if you are lying down then I'm sorry.

Now that I have taken care of all the legal stuff here are the numbers:

Last year's (2004) total debt was $40.1 Trillion (that’s trillion with a T).
This is 9 times higher than the $4.6 Trillion debt in 1957 (both measured in inflation-adjusted 2004 dollars).
The debt comes out to $136,479 per every man, women and child in the US (up $7,900 over last year's $128,560); this compares to $27,084 in 1957 (both measured in inflation-adjusted 2004 dollars).
Last year's total debt increased $3 trillion (up 8.2%). Federal government debt (incl. added debt owed trust funds) increased $595 billion (8.5%), household debt increased $1.03 Trillion (up 11.2%), business debt increased $421 billion (6%), state & local government debt increased $116 billion (up 7.4%), domestic financial sector debt increased $714 billion (7.3%), and other foreign debt was up 10%.

The majority of that debt is not the governments like you are lead to believe by the media, but is household and business debt. So, you might be asking who is to blame. Well, it’s you and every other American citizen that is currently spending more then they take in.

Maybe even worse news is that somebody has to finance this debt. Unfortunately for us that somebody is the Peoples Republic of China. As the saying goes, and now you know the rest of the story.

A Frozen Forest

2006-02-05T00:54:00.000-05:00

China has announced that it will build a high-frequency radar in Antarctica. This radar will be composed of 20 antenna units (each 20 meters high), including 16 units for the main antenna and 4 units for the auxiliary antenna.

According to the US military, this installation would be able to jam and interfere with US satellites. This is all in accordance with a recent PLA (Peoples Liberation Army) report, which promoted the development of ASAT systems, which is a part of the larger Chinese plan to develop space weapons of both defensive and offensive nature.

The Chinese see the development of Space weapons as their way of defeating the US military. It is widely known that Space is the weak point of the US (mostly due to laws that have prevented the militarization of space), and at the same time the part of the battle space we most depend on in today’s modern combat.

A Nation Asleep

2006-01-30T22:03:00.000-05:00

In probably his best column in the last few months, Lev Navrozov again presents the idea that if the US does not wake up to the Chinese threat right now it will then get taken over by China in the near future. He also brings up a good example of an article in Newsweek that helps to show how the main stream media distorts facts about China so as to make it seem harmless to America in particular and the West in general.

The article by Melinda Liu uses "Program 863" as an example of China’s hunger for new technology, thus making it sound like all that the PRC wants is to research technology that will help to raise China from a status as a developing nation to an industrialized nation. This is an obvious attempt to hide from the readership the real intent of the program, which is to develop post-nuclear super weapons in seven fields that would allow China to destroy the US with a single unanswerable attack. In the end allowing China to elevate from second power status to “only superpower status” it has strived to achieve for the past five millennia.

So hopefully we in the West heed Mr. Navrozov's warning to wake up now or one day we shall never wake up at all, or if we do then it will be to a nightmare world of being enslaved by the PRC.

A Steamroller for an Economy

2006-01-25T23:28:00.000-05:00

As expected by most financial analysts, China’s economy has grown at an unbelievably blistering rate of 9.9% for the 2005 fiscal year. This was much higher then the 8% expected and predicted by the government economic planning board, also known as the National Bureau of Statistics (NBS). In the fourth quarter alone the growth was 9.9%, which again was higher then predicted by the government.

In addition, China has continued to revise its numbers from last year as well as years past (1974 to 2004 to be more specific). The PRC is forced to do this because the continually understate their growth in order to stay under the radar and try not to draw to much attention that could lead to the West waking up to the new Communist threat.

This year’s growth at even present unrevised numbers have pulled China way ahead of the British, French, and Italians, who it trailed at this time last year. Now next up are the Germans and the Japanese who are two and three in the world in terms of their economies.

This will leave only the US, which is no problem for the Chinese since America is so dependent on the PRC continuing to support the massive US debt. When China decides that it no longer needs the US and is ready to make its move for world dominance it will simply cut America off from its funds and we will collapse economically.

As always, this problem has been brought on by the West, without whose investment China would never have been able to grow at even a minimal rate. On top of that, the problem was amplified when China was allowed to enter the free market. All this help has allowed the rise of a nation which will ultimately lead the destruction of the Western world.

What China has done is used the hand of the planned economic state to cutoff the invisible hand of the free market. Now the US and Europe are left to hope for help from the hand of G-d, although the way the West shuns religion even that looks bleak.

Who's Behind Iran?

2006-01-23T22:09:00.000-05:00

As the world focuses its attention on Iran, the media is missing one important player in this very dangerous scenario. Thanks to the press, we all know about the help that Russia gives to the Iranian mullahs, yet most of the world media has been very quite about maybe the largest supporter of the Islamic Republic, which goes by the name of the Peoples Republic of China.

While Russia provides Iran with the scientists and the technology to develop its nuclear program, it is China that has bankrolled Iran’s nuclear activities. Not only that, it is China that is the main supplier of Iranian arms, it is China that is Iran's largest trade partner, it is China that has helped to protect Iran's assets, and it is China that is protecting Iran at the UN.

The PRC while not wanting to have a disruption in its oil supply knows that the US would have a hard time winning a war with Iran. Even if US only conducts an air strike it will still have to face a retaliation by Iran that will most likely see a massive rise in terrorist activity in Iraq, Afghanistan, and Israel. It is this knowledge that is driving China to encourage Iran to develop nuclear weapons in order to act as the Chinese counterweight to America's nuclear armed ally Israel. This is the same scenario that the PRC has used with N. Korea being a counterweight to American South East Asian allies S. Korea and Japan.

In any scenario that the US chooses, from an air strike to doing nothing, it will end up in a weaker position in the Middle East and the world. This is exactly what China wants, as it uses an ancient Chinese military strategy of "death by a thousand cuts". If the US does not wake up to the communist Chinese threat, than regrettably the death will come much sooner then later.

The Great Oil Hunt

2006-01-22T22:21:00.000-05:00

After reading a post by Crypto-Corinthian on the rising oil prices, I was inspired to post about China's unquenched thirst for oil and the inevitable conflict that is going to occur when Chinese oil interest clash with those of the US.

Oil as we know from our high school classes, is a finite resource that is in the opinion of many reaching its peak. China knowing this is searching for ways to secure access to oil by any means necessary. Their search has taken them to almost every part of the world; from Saudi Arabia and Africa to Iran, Central Asia, and even Canada. In the end, to achieve their final goal of world dominance the PRC will require a secure source of oil that the US will not be able to blockade, and it is this that America has to try to prevent if it wants to have a chance of winning any future conflict with China.

Related to this oil topic J.R. Nyquist has written a good article of the dangers that Peak Oil poses, and how the US (unlike China) is slow to recognize the threat that is posed by the oncoming oil shortages.

Crowd Management

2005-12-10T23:09:00.000-05:00

China has admitted to killing villagers of Guangdong province’s Dongzhou village, northeast of Hong Kong, when policeman fired into a crowd of farmers in an attempt to calm the crowd of protestors. These protests are a frequent occurrence in China due to the growing resentment that many farmers feel to the government.

Chinese farmers have for a long time been the lowest rung of society in China, but with the communal farming introduced by the communist leadership, they have had to give up the land that was the only thing that they possessed of any value. Now the government with most of its interest in manufacturing and industry has left the farmers to fend for themselves against corrupt and greedy provincial officials.

This has resulted in many thousands of protests every year, which are always put down with murder, imprisonment, and torture. This time however some outside media picked it up and now the rest of the world is able to see the real PRC government at work.

Investment Keeps Coming In

2005-12-09T20:20:00.000-05:00

China continues to attract large investment in its industry, which has translated into a red hot economy that is not only poised but in many experts eyes has already become the world’s leader in manufacturing. This year 450 out of the top 500 corporations invested in China. In addition, businessmen from 202 nations have poured 600 hundred billion dollars into the Chinese economy.

The large sums invested in the Chinese industry allow the PRC to keep the money that their domestic companies make and invest it into the Peoples Liberation Army. It is for this reason they can maintain large military spending that is required for the modernization program that the PLA is involved in without hurting the economy.

All the investment dollars that were poured into China will later come back to bite the West in the rear, in the form of a modern high-tech Chinese army.

America Funding its Own Downfall

2005-12-06T23:03:00.000-05:00

Chen Dongqi, vice president of the Academy of Macroeconomic Research at the National Development and Reform Commission, predicts that China's economy will continue to increase its GDP at the red hot rate of 8.5%-9% next year. This will be a slowdown over the past three year growth of 9.5%. Although China is known for deliberately predicting lower growth rates in order to try not to draw to much attention to itself from people in competing countries (like the US).

The drop in the growth rate was attributed to an expected drop in the growth of China's trade surplus. Again, this has been predicted for the last several years, and we are still waiting to see a drop in the surplus’s growth rate (I’m not even talking about a drop in the actual surplus). The most important part about China's growth is that it is achieved thanks to its manufacturing industry, which in the end is a countries lifeline.

Many of my readers like to point to the growth of the Chinese economy in order to show that the PRC is not a threat to the US. They reason they give is that, “China needs the US more then the US needs China,” and following this logic we can expect that China would do nothing that would hurt its best customer.

While this was true years ago, today this assumption is wrong. Thanks to US investments, technology, and manufacturing China is now able to make everything it needs for its own market, which we should remember is more then four times greater then the entire US market.

The large Chinese market was the reason given to the American public for why we should trade with the PRC. It was sold to us that Americans would first help China get on its feet and later the Chinese were going to repay us by buying our goods.

Well they are certainly going to repay us by buying our goods, except those goods will be manufactured in China by Chinese companies, and the American public will be left jobless and in crisis.

Is Europe Next?

2005-12-04T22:48:00.000-05:00

The Chinese and the European owned consortium Airbus are about to sign an agreement to let the Chinese assemble all of Airbus's single isle Airbus aircraft. Currently, five affiliates of China Aviation Industry Corp I (AVIC I) and AVIC II are involved in producing parts for Airbus aircraft.

The deal also includes the transfer of "high-technology wings for the A320 narrow-body jet to China from Britain within seven years." This transfer should allow the PRC to continue to gain expertise needed to insure their own industry will be able to soon compete with and eliminate their Western rivals.

Once again this is an example of China continuing with its plan not only to deindustrialize America, but also the rest of the West including Europe, which in any conflict could be called upon by the US as an ally.

No More Roaming in China

2005-12-02T23:08:00.000-05:00

Once again the Chinese government is finding ways to maneuver around freedoms that are afforded by new technologies, like the cell phone. The Ministry of Information has announced that it will require all users of phone cards for mobiles to register with the government or face having their service cut.

The official reason given is that according to the Ministry of Information Industry, "China will require all mobile phone users to register in the near future in an effort to stem rampant telephone fraud and illegal text massaging...." Obviously, their real reason is that it will allow the PRC to monitor conversations that were previously impossible to track. Even in their own statement they said that the new rules would help to monitor “improper political commentary."

This of course comes at the same time as the UN announced that China is still one of the worst users of torture in the world (yes, even worse then the "evil" Americans). Overall this just is another peace of evidence of the fact that letting the PRC enter the free market is not helping the citizens of China, but instead is giving the communist government more incentive to stay in power.

The Great Textile Compromise

2005-12-01T23:28:00.000-05:00

Forbes has a good article on the textile deal that the US and China had signed in early November. In this deal the US will lift emergency safeguards that it implemented earlier in the year in order to protect home and other foreign textile makers, from Chinese "competition", and in return China will limit growth in 21 textile categories until at least 2008.

While the rest of the media is making it seem like the deal was a victory for both China and the US, in reality it was an American economic defeat. As part of the deal imports from China will be allowed to grow by 10.0-15.0 pct in 2006, by 12.5-16.0 pct in 2007, and by 15.0-17.0 pct in 2008. What kind of victory is it when you still allow the other guy to increase their exports by 17% a year?

This is even worse then the deal that the Europeans agreed to in which imports are restricted to 8.0-12.5 pct a year growth, although that only covers 10 items unlike the 21 that the US agreed to.

So overall all this means is that the US agreed to a slower increase in the pace of the gradual deindustrialization of America. This in the end will lead to an ability for the Chinese to defeat the US without America putting up much of a fight.

Missile Attack On Passenger Jet?

2005-11-29T21:43:00.000-05:00

In a news story that was reportedly broadcast over many WABC affiliate radio stations, a pilot of an American Airline jet called the control tower and reported seeing a missile heading at him when he was 6,000 feet in the air. The quote from the person who heard the news report is:

"I heard on the radio this morning, that a pilot of a passenger jet departing LAX claimed to have narrowly avoided being hit by a missile. It was reported that the jet was about 6,000 feet in altitude & over the ocean when the event occurred. The news report further stated that authorities believe it was possibly a flare or a 'bottle rocket.'"

The reason why this is important is first and most importantly because it represents another clear attempt by terrorists to strike at the US on its own soil, and the media once again covering it up. You can read a more in-depth analysis of this on the Northeast Intelligence Report (just scroll down a little).

Secondly, if everyone would remember the story of the Chinese state run company trying to import surface to air missiles into the US, you can now through the alleged story above see the link between China and terrorism. This link also includes Russia, which by its own accounts has trained most of the world's terrorists. Both China and Russia use terrorism as a way to soften and weaken American military might, in order to make it easier for them to later defeat US in an armed conflict.

The Price of Chinese Lives

2005-11-28T22:50:00.000-05:00

In a few stories that have happened over the past week, the rest of the world really gets to see how little the Chinese government thinks of the lives of its citizens.

The first story is of the dangerously contaminated drinking water in Heilongjiang Province, in the Chinese Northeast. This contamination has now been brought under control after a couple of weeks of cover-up. The only reason why the world found out about this very toxic spill is because the river and thus the toxins have to pass through Russia. However, the worst part of this story is that until a few days ago the only people that knew about the spill in China, were party members in the region. Thus the rest of the population drank contaminated water with untold consequences to their health.

In a second story, at least 134 people have died and 15 others are trapped after a coal mine blast in the same Heilongjiang Province. The mine blast is a very common story in China, where the mining industry is the most dangerous in the world. The annual numbers for the mine accidents are:

Accidents killed more than 2,700 miners in the first half of this year.
China’s worst coal mine accident this year killed 214.
Accidents and disasters cause more than 1 million casualties annually in China.
They also bring economic losses of $80.5 billion each year.

I just bring this up to show how if the PRC cares so little for the lives of their own citizens, you can only imagine what they are prepared to do to all the "barbarians" of the outside world in their quest for world dominance.

China's Front Companies

2005-11-21T19:51:00.000-05:00

The current scandal over China's manipulation of the copper market has raised the business world’s eyes to the possibility that the PRC might not be a fair market player. This realization however, only touches the economic effects of Chinese toying with the West's own economic system.

A more dangerous threat comes from a security stand point, where there are more then 3,500 front companies that China uses to steal technology from the West. Many stories have been written about this ongoing problem, whether it’s a government sponsored attempt to take over an American oil company or China United airlines being a front for the PLA's air force to acquire modern Western aircraft.

These front companies not only help to deindustrialize the West in general and America in particular, but also manage to steal technology that is vital to the construction of weapons that can ensure that China will be able to beat the American militarily when the communist decide it is time to dominate the world.

China vs. Speculators

2005-11-20T21:31:00.000-05:00

In life when you play with fire you usually are going to get burned. China is learning that in a market system if you play with the market the market will send speculators on you, which is much worse then getting burned.

In a complicated story that is yet to be fully uncovered a known commodities trader for the Chinese government, Liu Qibing, has disappeared after he set a short position on copper (also meaning he bet that copper prices would fall). The reason why he disappeared is that instead of falling, copper prices have hit all time highs. To tell the full story here I would have to do another post and I don't think anyone is interested in reading the details.

In short, the reason why prices rose is that speculators knowing that Liu was an agent for the PRC felt like he was bluffing, and took on China's bluff. The results are that the Chinese State Reserve Bureau, the country's metal stockpiling agency, has had to open up about previously undisclosed numbers of reserves of copper it is holding. Even more interesting is that the reserve bureau is responsible for setting Chinas market policy and then executing it through its own bought market traders.

The result of PRC's meddling in the copper market has been major financial loss for China, and even more importantly we now openly see how the communist government is manipulating the free market. This is the reason why we should not have let it enter the market system, and why we should either remove them from the WTO or fight them on their terms (I mean defensive tariffs).

However, I know this will not happen because most economists will say you can't use tariffs in an open market system. What they should realize is that the country we are fighting does not play fair, but plays on their own terms and uses the market only when it is advantageous to them.

PLA: Future Technological Juggernaut

2005-11-17T21:56:00.000-05:00

Mary C. FitzGerald, a research fellow at the Hudson Institute, has written a very good paper on the technological future of the Peoples Liberation Army. In it she has stated how the new generation of Chinese generals now understands and promotes the importance of technology to military superiority.

She gives us a figure of 500 billion Yuan ($61.9 billion) annual spending by the Chinese to acquire the technology necessary to conquer Taiwan in seven days. Obviously the 62 billion is a number from Chinese sources that are notorious for understating military spending, and it is usually safe to double the given numbers in order to come close to true spending values.

In addition, she points out how outside observers like the Russians, have seen the way that the PLA has been modernizing as an attempt to push US military presence away from Asia’s shores. As one Russian analyst says about the new Chinese Monroe doctrine, "All of Asia belongs to the Chinese — and not only Asia.”

China's Oil Quest

2005-11-15T19:19:00.000-05:00

China continues on its quest to secure access to oil both near home and far away. The oil supply is vital to both the ever growing Chinese industrial and military complexes. It is also trying to secure supplies that would be hard to cut off in case of war, with lets for hypothetical purposes say the US.

Today they signed an oil pact with a new ally in Hugo Chaves of Venezuela. Venezuela is the fifth largest exporter of oil in the world, and one of the main suppliers to the US. The communist Chavez has been trying to move oil exports away from the US and more towards China ever since he came to office. This obviously does not sit well with Washington, but there is nothing they can do since he threatens to cut the oil supply off if the US does anything that he perceives as being threatening.

In other oil news, China finished construction on an oil pipeline to Kazakhstan. This will insure oil supply in case delivery by sea is again for whatever reason, even maybe a US naval blockade, stopped.

China's Industry Keeps on Churning

2005-11-14T21:42:00.000-05:00

Data released by the National Bureau of Statistics shows that China's manufacturing sector has grown 16.1 % from last year a .1 % decrease from expectations. It is also expected to grow at 16% for the full-year growth as compared to last year.

The strong numbers are due to exports and sustained investment growth, most of that coming from the US.

These numbers parallel with the US manufacturing numbers, which have been steadily declining, due to lack of exports and slowly dwindling investments. This is due to the Chinese slowly taking over industries which have been traditionally US staples, like steel and automotive.

China understands that to be a world power you need an economy that can produce and not one that blindly consumes. They also realize that by slowly taking away our manufacturing industry they bleed us to death by a thousand cuts, weakening us enough to be able to eliminate us out of the way without firing a single shot.

Deely Dallying With the Lama

2005-11-11T17:36:00.000-05:00

Today, President Bush has paid a visit to the Dalai Lama, the spiritual leader of the Tibetan people, who currently resides in exile in India. To this the Chinese issued a strongly worded press release condemning what they called American interference in their religious affairs.

Wooh, I got to tell you that statement is a relief, because here I was thinking that communism was just an oppressive political system run by a repressive communist political party, but apparently I was wrong.

All those millions of Tibetans tortured and killed were just sacrifices to the gods of communism. Now that makes it all better, which means the rest of the world can finally forget about Tibet with a clean conscience.

Soon, President Hu willing, Taiwan will become an internal religious conflict, since they seem to oppose being ruled by the head god, PRC President Hu himself.

Soldiers Conundrum

2005-11-08T22:33:00.000-05:00

I know I link to Lev Navrozov's articles a little too much, but this one is good not because of the threats that he exposes but the letter from a US soldier he received.

At the end of the column the soldier writes: "I am nothing but a soldier with a gun in my hand and the only difference between me and the unknowing masses is that I see my death moving towards me out of the East in slow motion." In my opinion this guy is a little too pessimistic, but he probably has the right idea.

Even though I disagree with both the soldiers and Mr. Navrozov's opinion that we should not be in Iraq (because while Islamic fascism is not as dangerous as Chinese communism, the Islamic world is used in large part by China to undermine our interest and weaken our strengths), they still both have it right that our leaders don't want us to wake up to the Chinese threat.

However, if we in the West don't wake up to the real threat that China poses to us, and wake up soon, we will either not be able to wake up at all, or we will only be able to wake up when our communist masters allow it.

National Insecurity

2005-11-07T22:05:00.000-05:00

In another show of how compromised the US intelligence community is, Bill Gertz writes an article about the recently exposed naval technology spy ring. This is a ring that has been operating for more then a decade, and has been able to steel vital data on US surface and submarine fleet.

It is believed that due to this data the Chinese have been able to build their own Aegis utilizing destroyer capable of engaging and neutralizing US missiles. In addition, by getting the information on our noise reducing technology for ships and submarines the PLA now has the ability to neutralize what was our greatest advantage (the US Navy).

A week ago he also published a shocking article on the arrest of a Chinese cell charged with importing surface to air missiles into the US. The story is interesting because it happened in my home town of Newark, NJ. What is more interesting is that a state owned Chinese company was behind this, so the only thing that I can draw from this is that the PRC leadership new of this and approved it.

Higher Oil Prices?

2005-11-06T23:28:00.000-05:00

China has started to prepare to implement a strategic oil reserve plan, which they said should help to manage any supply crisis. It should also help them in case of military action to ensure a proper reserve of oil in case of temporary blockade of supplies.

The upcoming laws will also help to manage other fossil fuels in a way that will benefit industry and insure developing growth.

Of course for the rest of the world means that this stockpile will end up increasing the strain on supply, and raising prices even higher then they are today.

PRC Capitalizes on Capitalism

2005-11-04T20:50:00.000-05:00

In a positive sign coming out of China, we see that there is some sign that capitalism is taking hold in this socialist paradise. Statistics have shown that the wealthiest Chinese just keep getting wealthier, with overall 100 wealthiest having $400 million, soaring 38 per cent over last year.

Just thinking back to a little more then twenty years ago, when the wealthy were being cannibalized in China following one of their seeming yearly Cultural Revolutions, it is good to see that some aspects of capitalism have seeped through the Great Wall.

Of course with anything positive coming out of China there are always negatives. In this case is that all the wealthy Chinese on this list are all highly placed members of the Chinese Communist Party and most of them are either current or former generals of the PLA.

China Protects Banks

2005-11-02T20:27:00.000-05:00

In another example of the "free market" in China, the government has announced that it will require foreign banks that bought stakes in Chinese banks to hold the shares for at least three years.

This is not all; the PRC has restricted foreign investment in each bank to 25%, with any single investor limited to a stake of 20%. In addition, China defined a foreign strategic investor as one that buys a stake of more than 5%, and has required these investors to transfer management and technology expertise in exchange for permission to be a board member.

China has said it is doing this to protect its banking industry from foreign banks that have competitive advantages. I say that the US should do the same thing with our steel, manufacturing, and electronics industry. Since just like China we don't want foreign companies to get control and hurt our economy.

Falun Gone

2005-11-01T23:09:00.000-05:00

In another good column, Lev Navrozov again brings to light a large group of people that are being persecuted by the Chinese communist government. This time it’s the torture to death of members of the Falun Gong movement.

This is a faith group that has a hundred million members world wide, with 75 million of them in China. This of course is a threat to the Chinese government, because any group that follows a belief other then the state sanctioned communist ideology has a possibility of realizing the evils of Red China and maybe waking the rest of the population up.

So currently members of Falun Gong are probably the most oppressed people in China (if not the world) even suppressing the Tibetans, another forgotten people.

While the world is at arms over the treatment of faith groups in countries like Serbia and Bosnia, no nation is willing to stand up to China over its horrendous human rights record.

As the saying goes first they came for the Tibetans and I did nothing, then they came for the Falun Gong and I did nothing, and then they came for me and there was no one left to do anything.

China Keeps on Milling

2005-10-31T21:12:00.000-05:00

China has reported that through the first three quarters of the year its steel industry has continued its rapid growth with a total production of 255.286 million tons of crude steel, up 27.39 percent year-on-year.

This growth numbers for iron and rolled steel show that the production of iron was 239.213 million tons, up 30.98 percent and rolled steel was 268.819 million tons or an increase of 25.82 percent.

This has transformed into significant profit for 68 major Chinese steel companies totaling 903.09 billion yuan, up 25.63 percent and the profits were 65.35 billion yuan, up 11.73 percent year-on-year.

The numbers just keep on showing that the PRC has reached the status of industrial power, and the industries that China keeps concentrating on growing are all vital to militaristic expansion. With steel production comes the ability to maintain a major military force required to accomplish China's ambitious world domination goals.

You don’t see the same kind of growth numbers in Chinas health or education sectors, mostly due to their perceived irrelevance in helping the Peoples Liberation Army.

Western Companies Walk the Plank

2005-10-30T18:35:00.000-05:00

Piracy of products and trademark rip-offs have found a home in China that has caused US companies an estimated $2.5 billion to $3.8 billion in lost revenue. Piracy of products has become so prevalent that China is now one of the worlds leading exporters of pirated and trademark infringed goods, ranging from Hollywood DVDs' to car auto parts.

The PLA has stated that it has been unable to combat this piracy due to lack of resources and manpower. However, now we see that when it comes to the Olympics and the communist party loosing profit due to piracy, all of a sudden they have found the manpower and money to very effectively combat illegal activity related to piracy of Olympic Game goods.

Once again this shows that the PRC does everything in its power to improve Chinese industry at the cost of Western companies. It is their ultimate goal to have all major Western companies be replaced by Chinese owned ones, and in this way insure economic dominance required for later world domination.

A History of Chinese Aggression

2005-10-26T21:59:00.000-04:00

While many might buy into the lie that China has never been a country to invade another nation, if you look through out history you will see that it is full of Chinese aggression.

We can start in the past when after the different principalities were united under the Qin dynasty to form the first centralized Chinese state. Then the Han dynasty took over and they peaked after conquering the Xiongnu nomads of the western part of China. The next period of aggression came when the Mongols set up the Yuan Dynasty and conquered most of what is today modern China. This was when the Chinese tried twice to conquer Japan both times being foiled by Typhoons (called kamikaze in Japanese) that destroyed the Chinese armadas.

However, we do not need to go back in history to find periods of Chinese aggression. Ever since China has come under communist rule in 1949, its history has been filled with very bloody, aggressive proxy wars.

We can start with the Korean War where against a UN mandated military action China sent in one million troops to defend North Korea against UN coalition forces.
The Chinese conquest of an independent Tibetan kingdom.
Then there was the Sino-India conflict, in which china invaded and tried to get control of Indian held territory. This ended in a Chinese defeat.
After the failure with India there was a failed invasion attempt across the Soviet border in 1969 in the Damanskiy Island area.
That was followed by a war of aggression against Vietnam in 1979.

This is just to show that you should not buy into Chinese propaganda that they are a peaceful nation that has no history of aggression. Just like any other major country they have always been the bully in the area, but unlike other powers they manage to always portray themselves as a victim.

China's Master Plan for America's Distruction

2005-10-25T00:36:00.000-04:00

Here is the link to "Unrestricted Warfare" written by Qiao Liang and Wang Xiangsui, both senior colonels in the PLA and the new generation of Chinese leaders.

Regrettably this is only excerpts from the book, I am sorry but I lost the link to the entire copy of the book. However, Amazon has started to sell it, I think.

This is the book that woke me up to the Chinese threat and a book that is used by the entire Chinese officer corps as a manual to how better combat America, and in the future take it over.

You have to remember that this book was published in 1999 and if you read even the excerpts I am linking to, you will see that many things have already happened. I will try to give some in-depth analysis in future posts, just because I think this is the most important book that no one is talking about.

For those not able to open the HTML version here is a PDF copy.

The US Cultural Empire Strikes Back

2005-10-23T22:34:00.000-04:00

For all the recent success China has experienced in the economic, political, and military sectors it still lacks in the export of its culture abroad. Even worse for the communist leadership of the PRC, its people love western culture to a point where if you want to be seen as successful you have to become westernized.

This has led to a boom in people wanting to learn English, while (regrettably) at the same time mandarin Chinese is not one of the top studied languages in America.

Culture should be the only thing that gives hope to us in America, and that through culture maybe the people of China will wake up and realize that a “socialist political democracy” is not in their best interest. Hopefully, they will see that their communist leadership does not want to better them but instead is looking to gain further control over China's population and in the end the population of the entire world.

China's Sputnik Surprise

2005-10-21T22:01:00.000-04:00

In a great report by Charles P. Vick a Senior Fellow, Space Defense policy, for globalsecurity.org we can see the beginnings of what could amount to a modern day Sputnik surprise for America.

Mr. Vick takes great care to analyze open source information to draw a conclusion that by 2015 China could beat the US in a space race. Even today we can see, the Chinese are already quickly progressing through all the initial stages of manned space flight in an effort to catch-up to America in Space technology.

It is only of matter of time before the quickly expanding Chinese space program outpaces the stagnant US program. In a different era this would not have been a tragic problem for us, but instead would have acted as a catalyst for progress and advancement. However, with the state of the US economy and industry we will not be able to recover from this surprise, and in the end be forced to surrender our technological advantage. As Mr. Vick says,

"In the final analysis China ’s efforts in space can only help, because it will force whoever occupies the Oval Office to address issues that have been largely ignored since the early 1970's. The US however, may not even be able to address these issues because of problems with the economy, huge national debt, and a possible devaluation of the dollar. The US is simply not the economic powerhouse it once was because of poor internal industrial management decisions, to the delight of many opponents of our social system world wide. If we do not watch it we can bankrupt the US economy as the former Soviet Union did to its self creating a huge vacuum for chaos to break loose far worse than the current situation."

This advantage in space will quickly lead to the military supremacy of the PLA over any opposition force including the US military. With the military advantage the PRC will be able to carry out its political ambition of world dominance. For as the report says, "The Military is the State and the State is the Military under this Chinese authoritarian regime."

China Expands Nuclear Strike Ability

2005-10-20T21:08:00.000-04:00

According to Secretary of Defense Donald Rumsfeld China has been expanding its nuclear strike capability. This came as he continues his visit to China, in attempts to force the Chinese military to be more transparent in their recent military buildup.

Some of the data shows:

China's military spending could grow to $US90billion this year; more than triple the published figure of $US29billion.
China was adding about 100 missiles a year to its arsenal of up to 730 short-range missiles pointed at Taiwan, and now had missile coverage of most of the US as well as Australia, Russia and India.

In addition, China is quickly building a naval fleet, anchored by modern submarines, which could prevent any American intervention in a conflict over Taiwan.

However, as we can see no one really cares about this and we keep free trade with China, we let them continue human rights abuses, and we ignore their sponsorship of terror mostly through their covert support of Iran.

China's White Paper on Communism

2005-10-19T22:35:00.000-04:00

China's state council has finished a white paper, which is the first time non-red paper has been used in China, on communist rule of the Chinese people. To the great surprise of everyone, the paper drew the conclusion that the Communist party of China should maintain its stronghold on leadership in order to achieve "development, stability and great national rejuvenation".

The new buzz word to come out of this paper is the "socialist political democracy" under which apparently China today is ruled. Back in the day (the 1920's to about 1970's) this was called fascism, but thanks to the market system and its synergy a socialist political democracy sounds better.

The white paper also stated, “Experience has shown that, in China, it is the CPC that unites the Chinese people, gives full play to their enthusiasm, initiative and creativity, and has them engage, heart and soul, in the common struggle for their common interests, common cause, common ideal and a better future for China.”

Thank Allah, that China was blessed by such a great system; otherwise the people of China might actually be free to speak their mind, or worse actually take part in national decisions. And we all know by looking at the West how horrible that would be for society, just think of all the unnecessary rights people would get.

No, a socialist political democracy is the government of the future, and with the PRC's help soon the entire world will be enlightened to its great wanders.

China and Japan Have Trouble Mending Ties

2005-10-18T22:15:00.000-04:00

The Chinese and the Japanese were scheduled to have a fence mending meeting of their Foreign ministers this week. However, the Chinese have said that they will not be able to see Japan's Foreign Minister Nobutaka Machimura because as the Chinese Foreign Ministry spokesman Kong Quan said, "given the current situation, it is not the proper time for such a visit and it is not convenient for China to receive him."

The current situation is due to the Japanese Prime Minister Junichiro Koizumi's visit to the Yasukuni shrine, a symbol of Japanese militarism and their unbeaten record against Chinese forces. This shrine honors all of Japans war dead through out their countries history. Some of the war dead are also recognized as A level war criminals, most received this qualification for their actions in Korea and China.

The Japanese Prime Minister has visited the shrine every year since he came to power, and this has greatly infuriated the PRC. Used to getting their own way in world affairs they pushed Japan to halt honoring the war dead at the shrine but Prime Minister Koizumi has refused to back down.

This refusal has led to China agitating its citizens against Japan and Japanese interests, which was the cause of the violent protests that happened less then a year ago in China.

I just have to give a lot of respect and praise to Prime Minister Koizumi for his determination not to back down to China. It is about time that a world leader stood up to Chinese aggressive demands, and showed that the PRC is currently not the world ruler and should respect the decisions and traditions of other nations.

Rumsfeld to China

2005-10-17T20:09:00.000-04:00

This week Secretary of Defense Donald Rumsfeld is traveling to China for a diplomatic visit. It is the hopes of Washington that the visit will encourage the Chinese military to become more "transparent and reciprocal."

Obviously that is not going to happen, and we should keep planning on having to engage in conflict with the PLA, at least over Taiwan. While a military clash with China should be avoided at all cost, mostly because we will have a hard time winning, it looks like it is inevitable.

Mostly because China is continuing with a massive and extraordinarily rapid buildup of its armed forces. We should remember that no country in history of the world has built a massive military on the scale of Chinas and never used it. They are building it with express belief that sometime soon, probably sooner then most believe, they will use it to establish their claim as a world superpower.

What Does the Peg Mean for the US?

2005-10-16T21:28:00.000-04:00

For those wandering what the recent discussions of the Yuan pegged to the dollar have to do with the US economy, the Wall Street Journal has a very good Q&A that helps explain a lot of the reasons why pushing China to stop pegging the Yuan against the dollar will be good for the US economy.

Today the PRC uses a secret basket of currency to determine the value of the Yuan, but in reality it is still pegging against the dollar at a little more then 8 Yuan for every dollar. This means that the Chinese keep their currency artificially weak against the dollar.

A weak currency decreases your purchasing power while increasing your selling ability. This is the reason why when the dollar lost a lot of value earlier in the year, it was a lot more expensive to be an American tourist, while at the same time the manufacturing sector boomed do to the decrease in the value of their goods when compared to other currency.

Again this is why the EU was so scared when the euro became so strong, and caused their manufacturing sector to go into a sharp decline.

China avoids this hassle by keeping their currency locked in to the dollar at an artificial rate, thus ensuring a weak currency and cheap products for export.

US to Help China Help US

2005-10-15T18:12:00.000-04:00

Since he began his visit to China, Treasury Secretary John W. Snow has been pushing a set of reforms that the US believes China should enact to allow for more open markets. As can be expected the Chinese are not taking to well to this, since they see it as an American intrusion into their personal issues.

Snow's main issue is trying to get China to let market forces control the value of China's currency, the Yuan. By keeping the currency artificially pegged against the dollar China is able to ensure it continues to have the cheapest products in the market place to export.

While Snow is right in pushing for free market reform from the Chinese, who say they are a so called free market economy. We should not fool ourselves that they will do anything to change their current policy.

Why would they? They currently have the strongest and fastest growing economy in the world, and the rest of the world is so scared of the Chinese economic Dragon that they will concede any issue just to keep good trade terms with the PRC.

Should China Bail

2005-10-13T23:27:00.000-04:00

Lau Nai-keung of the China Daily has written a very good article on whether China should bail out of its US assets and investments. He predicts that US will cause a major world recession, which will bring China down with it.

Overall he makes mention of our major problems that in my opinion China has helped to cultivate. Here is a short list:

The tab for the long-term promises the US Government has made to creditors, retirees, veterans and the poor amounts to US$43,000 billion, US$145,000 per US citizen, or US$350,000 for every full-time worker.
In 2000, household debt broke 18 per cent of disposable income for the first time in 20 years. Credit card debt alone averages US$7,200 per household.
The US now runs a trade deficit roughly 6.5 per cent of its GDP and the gap is widened every day.
The US Government in turn uses this foreign borrowed money to finance as much as 90 per cent of the federal deficit which stood at US$412 billion last year.
The federal deficit is expected to be running at about US$2 billion a day at the moment.

While most of these problems are self made, China by pegging its currency against the dollar at a rate determined by the government, has helped to create the large US deficit. In this respect, if China actually became a free market economy instead of artificially adjusting its economy to grow at an impossible rate, we might actually be able to avoid a crash of the American economy.

More importantly Mr. Lau brings to the forefront an issue of how easily China could bring America to a screeching halt. If the PRC was at some point to stop financing our debt we would be up the proverbial creek without a paddle.

On a more personal not with respects to him blaming America for all upcoming world problems I think that I have found my opposite.

Laughing at China not With it

2005-10-12T19:25:00.000-04:00

Burt Prelutsky, a former humor columnist for the Los Angeles Times, has written a hilarious column about the quirky manners of the Red Chinese.

It is an insightfully funny look at the “great weakness” of the China giant. In addition, this shows that even the world strongest economy cannot correct the evils of socialism from a society’s culture.

As Burt says, "Well, I, for one, wish China well. Even if they are a bunch of rotten Commies, it can’t hurt to have them at least become polite rotten Commies."

The Chinese Economic Miracle

2005-10-11T20:19:00.000-04:00

Despite all attempts by the Chinese government to curb growth, China's economy continues to grow at an astonishing level. China's planning agency reported Tuesday that gross domestic product increased by 9.4 % in the first nine months of the year, and is forecast to grow by 9.2 % for the rest of the year. Although fourth quarter growth will probably be larger because the planning agency has a history of understating its predictions for the economy.

In the first half of the year China's economy has already grown by 9.5%, and if it continues this will be the third year in a row that it is growing at above a 9% rate. This is three times the growth rate of US and six times that of Europe.

The Chinese have been working hard at curbing growth, not because they are trying to ensure they don't destroy other economies (which they hope will happen over time), but for more internal reasons. Its biggest motive is that this economic boom is overtaxing Chinas already over-extended energy base. Plus China worries that if it grows too quickly it will end in a major crash.

To slow its economic growth China has raised interest rate, cut investment both from domestic sources and foreign ones, and has tried to prevent growth in certain industries by creating laws that restrict expansion. None of this has worked.

Now all that the rest of the world can do is watch the rise of maybe the next great economic and soon to be military power. Regretfully they are also a dictatorial and repressive regime with plans for world domination.

A Potato Returns to Space

2005-10-10T22:30:00.000-04:00

Nearly half a century after Mao Zedong said that China couldn't even put a potato in space, the PRC is preparing to launch its second manned mission in two years. The first manned flight took place in October 2003.

This time China is sending up two astronauts (or cosmonauts for the ex-Soviets amongst us). They are set for takeoff on Wednesday, and will stay in orbit for a few days to conduct some scientific experiments.

What concerns me is that they said that the experiments will not be on seeds, which has been the area of specialization for China. Quoting Mr. Wang Yongzhi, chief designer of China's manned spaceflight program, he said that China would carry out: "scientific experiments with human participation in its real sense".

Now that scares me! I think we should have UN inspectors check for political prisoners tied up in the trunk of the space rocket.

Seriously though, this shows how more rapidly the Chinese space program is growing in comparison to the US. In the same time that China is sending its second manned flight, we have managed to send up one shuttle mission that has resulted in the grounding of our entire shuttle fleet. That is very sad, and foreboding of things to come in relationship to American power when compared to China.

EU to Lose the Research Race

2005-10-09T19:33:00.000-04:00

Today, the Brussels based European Union commission on research, has announced that in five years China will be spending a higher portion of their gross domestic product on R&D then will the EU.

Currently China's spending is expected to rise by double digit figures from their 1.3% spending in 2003. While at the same time the EU expects their spending to rise to 2.2 percent of their GDP by 2010, from 1.93% in 2003.

The very small increase in Europe’s spending is attributed to the large bureaucracy and high taxes on companies that want to spend on research. This has led to many companies moving their research to China, where research and development is supported and encouraged.

Not only that, but the Chinese authorities force companies that want to do business in China to either build research labs, or spend money on research and development inside China.

Once again, this is an example of how China is not a threat to only America's place in the world, but how the entire world should fear the Chinese rise. Technological superiority will lead to dominance in other areas, which will allow the PRC to accomplish their goal of world supremacy.

Trade Leader

2005-10-08T22:59:00.000-04:00

China has predicted that its trade surplus will grow to 90 - 100 billion dollars. This is a three fold increase from last year when it had a $32 billion surplus.

This growth is happening despite China strengthening the Yuan against the dollar by 2 percent, and letting it trade in a basket of currency. Of course China still does not want to give up control of the Yuan to the market, thus insuring that it will have an advantage in the price of their goods.

The international community should force the PRC to stop pegging the Yuan against the dollar. If China wants to trade in the free market system it should have a currency that is controlled by that same free market.

However, I doubt anyone in the world has the testicular fortitude to stand up to the great economic power, for fear of the economic restrictions China will impose on their companies.

At this rate it is only a matter of time before China becomes the number one trading power in the world. Currently it is number three with 1.4 trillion dollars in total trade.

Made to Import From China

2005-10-06T20:36:00.000-04:00

Andrew Stephen has published a great article on the way that Americans have helped to create, what Representative Dana Rohrabacher of California calls the "Frankenstein monster", or as it is more widely known: the Peoples Republic of China.

Here are some staggering numbers you should know with respect to China's relationship with the US (Warning! Do not read before going to bed):

Eighty-five per cent of all bikes sold in America are now made in China.
Chinese imports to the US have grown 1,600 per cent in the past 15 years; and in the first quarter of 2005 alone, imports of Chinese cotton trousers and cotton-knit tops soared by 1,500 and 1,250 per cent, respectively.
The US currently pays out six dollars to China for every one it gets back and, so far this year, its deficit with China is running 29 per cent above last year's $162bn.
Wal-Mart alone - America's biggest company, with annual sales of $288bn - buys more than $18bn worth of Chinese-made goods each year.
If it was a nation, Wal-Mart would be China's eighth-largest trading partner, ahead of Australia, Russia and Canada.

These numbers are just the tip of the iceberg. I could give even more statistics that are worse then these, but then all of us would really get depressed.

All I can say is that we have really gotten ourselves into a mess, and that unless we act quickly will not be able to get out of.

Hu's China

2005-10-05T19:16:00.000-04:00

On Saturday the Chinese President will have officially consolidated his power over the Chinese communist party and over the nation as a whole. President Hu Jintao who since 2002 has been China's leader has never really been in complete charge of the communist party, but over the last few years he has completed replacing many members of the party with his own cronies.

Many analysts believed that Hu would be a liberal, reformist President that would push China towards more democratic reforms. However, after three years in power it has been seen that he is a party loyalist that wishes to bring back many of the socialist ideals that have been lost over the last two decades of economic reform.

Hu has also shown that he is a man that believes in the ultimate goal of China becoming the dominant superpower of the world. This has led to a much more nationalistic feeling in China that currently threatens world stability.

Google Maps Taiwan as Province

2005-10-04T20:01:00.000-04:00

Taiwan has logged a protest with Google for marking it as a province of China in the Google map section. Taiwan's foreign ministry spokesman Michel Lu was confident that Google will change the error, but I do not share in his confidence.

As I have reported before the last time Taiwan complained about being called a province of China they were forced to march under a Taipei flag at the 2004 Olympics.

Once again, this is an example of a company or country cowering to Chinese demands. At this rate the PRC will not have to conquer anything, but instead will force everyone to surrender to it or loose access to its "market".

Hear No Evil, Post No Evil

2005-10-03T19:52:00.000-04:00

In the last week there has been a surge in reports of the Chinese government attempts to censor what the people of China can read on the internet. Most of this news coverage is thanks to Matt Drudge, who understandably fears any censorship of the internet in China could be a model for censorship in the US.

However, while I think that the internet will never be censored in the US, I am disturbed by the fact that American companies are helping the PRC with restricting internet sites that mainland Chinese can surf.

I can say that I have not yet been blocked from China’s leading search engine Baidu.com, that’s right Google is not the leading engine in at least one country. I cannot however say the same thing for Yahoo China, which does not allow access to this page.

Now for all those that say that the economic prosperity will lead to increased freedom, as you can see apparently this freedom does not apply to the internet. All that the economic prosperity, which is fueled at the expense of the US, brings is revenue for China to continue its military buildup.

TRex of Politcs-Religion-Crypto is beginning to gather information about products made in the US. This is a great idea, because until we the people show the government that we are willing to stand up to China, the government never will. I encourage you to go to his site and help him out, so that we can have an option that will not assist a despotic regime in suppressing its’ people.

China Holds Japan Over a Barrel

2005-10-02T21:30:00.000-04:00

This weekend the Japanese and the Chinese were holding talks to try to solve a dispute over oil exploration in an area of the East China Sea where both nations claim exclusive economic zones. To no ones surprise the Chinese were less then cooperative, and the only thing that came out was an agreement to further discuss the issue next month.

However, while the PRC is stalling in their negotiations they continue to drill wells that Japan claims take oil out of their reserves. In an even more provocative move the Chinese have moved their warships to the area, and have even pointed the guns of the ships at patrolling Japanese aircraft.

In response to Japanese complaints about the drilling and the threatening actions by the Chinese military, a Chinese representative only stated that the drilling was within their rights.

This again shows the desperation with which China is scrambling to secure any and all oil reserves they can. It also shows the clear reason for the military buildup that is currently happening in China. The Peoples army is not being buildup for the protection of the people, but for the gradual expansion of the People Republic of China.

Happy Birthday

2005-10-01T22:10:00.000-04:00

Today marks year 56 of communist rule in China. It also marks the 50th anniversary of the establishment of Xinjiang, the predominantly Muslim western region, as an autonomous state.

If we review the history of those 56 years we will see that the classical communism of Mao Zedong has been replace by the fascism of the new generation of Chinese leaders. It is a communist nation only in name, and it is now a well controlled market economy of the time of Nazi Germany.

However, for all it’s changes China has still kept that repressive, murderous one party system that has ruled for the past 56 years. But it has added an ambition to rule the world that was not possible in the disorder following the communist victory in the Chinese Civil War.

So I raise a toast to the PRC, may the rest of the world wakeup to your danger before it is too late.

Buy, Buy Unocal

2005-07-19T13:24:00.000-04:00

A source close to the board of directors of Unocal has informed Alekstheblogger that Unocal will agree to be sold to the Chinese government owned company Cnoonc. This comes even as most on Wall Street speculate that Chevron's lower offer will win because of the guaranteed approval of the deal by the US government.

The source who wishes to remain anonymous wrote that Cnooc's chief executive, Fu Chengyu, has offered to raise the bid by as much as two billion more then the current $18.5 billion offer, and guarantees to set aside $2.5 billion to pay off stock holder lawsuits that might result if the Cnooc bid fails. If Cnooc goes through with raising its bid this will make the deal too good for Unocal stock owners to refuse, even with the risk of the deal being blocked by Congress.

Fu has been trying to reassure Unocal board members that Congress will not block the deal, and this article by the Seattle Post Intelligencer shows exactly why Mr. Chengyu is so confident.

To all those that have been wandering why I have been posting so little lately: I am currently on vacation and will resume posting regularly in beginning of September. If I get more information from my source I will post it as soon as I can.

The Great American Liquidation Sale

2005-06-29T10:34:00.000-04:00

As many people have been predicting China has begun to exert its decade of built up wealth on the world markets. First it made a bid for Maytag and now it has gun after the US energy company Unocal. These hostile takeover bids have been met with fear from Congress, but with not much else. Everyone is talking about protecting an energy company, but by doing this they miss the bigger picture.

The problem is two fold. First is not that the Chinese are taking over one company, the problem is that the Chinese are taking over a US company with money from the US. The second and more important issue that is overlooked is that the purchase of Unocal is a microcosm for the whole China and US relationship. The fact that China is now America's largest creditor is never mentioned by anyone. The same way that they have just put bids on two fairly large American companies; they will do to American giants like GM and Microsoft.

The PRC has realized that they do not need to beat us militarily (although they are making preparations in case they will have to), but can do it economically. They know that once they crash our economy we will not be able to fight them, and they will have a free hand at building their empire.

Shopping the Jobs Away

2005-05-21T00:22:00.000-04:00

While visiting Minnesota, Mr. Zhou Wenzhong, the new Chinese ambassador to the United States, stated that the major reason for the growth of Chinese textile imports to the U.S. was the American consumer. He also remarked that the “safeguards" that the U.S. was starting to apply on textiles were unfair to Chinese exporters.

Ambassador Wenzhong is definitely right about the part that the American consumer is responsible for the rise in Chinese exports. If we want to stop the flood of Chinese products into our country, all we have to do is just stop buying "Made in China". However, we all know that this will not happen, since we as a nation are addicted to ultra cheep Chinese goods. Now I guess we have to live with the fact that we have financed the power that in the end will overtake us.

It is pretty ironic that Americans will keep shopping until we drop, and China will be right there to pick up what is left.

People of Europe Feel China's Might

2005-05-19T23:51:00.000-04:00

Europe has all of a sudden encountered a problem with that great trade partner known as China. Apparently, the end of quotas on textiles has shown Europe that a communist controlled economy can whoop a capitalist economy’s behind in a market system any day of the week, or in this case the first quarter of this year. As I had predicted earlier the end to the quotas has signaled the end of the European textile manufacturing industry.

Now seeing their cushy factory jobs leaving for China the Europeans, the French and Germans in particular, have started to demand measures be taken to protect their textile industries. In an ironic twist the giant bureaucracy known as the European Union, is moving very slowly on this, thus leading to losses of large amounts of jobs (20,000 in Spain, just in the first Quarter).

While the EU listens to a specially setup commission, which issued recommendations that should be taken to control Chinese textile imports; the United States has already begun to take actions to protect its own textile industry.
I just love it when the people that advocate for large bureaucracies end up getting burned by them.

This again shows that in order for China to be allowed to trade in the free market system it should first be required to give up the tight control of the economy, which gives it an unfair advantage over other countries.

North Korea: A Ventriloquist Act by China

2005-05-10T23:20:00.000-04:00

Once again by refusing to take action against the Stalinist regime in North Korea China is showing the world that it uses the DRP as its puppet. As I posted earlier China is refusing to shut off the oil to the Koreans, but now they are saying they are even against the implementations of any sanctions or other such actions in order to try to bring the North back to the negotiation table.

And why should they want to? China is not in the business to do anything to jeopardize such an important diplomatic trump card as nuclear armed North Korea. I absolutely don't blame them for refusing to take actions that might lead to the overthrow of their puppet government in North. I sure wouldn't!

What does amaze me is how we call Kim Jong Il, the ruler of North Korea, an insane mad man, yet we call the Chinese leadership, which created, helped, and now controls Kim, a partner that we depend on to try to disarm the North Koreans. It is thanks to the Chinese that Kim now possesses a nuclear arsenal, and we expect them to help us take away that arsenal. That is insane? I just don't understand why we don't blame the source of the problem?

This whole situation makes it look like a brilliant ventriloquist act by China. It uses North Korea as it's dummy, while we in the rest of the world act like little kids who believe that dummy is for real. That just begs me to ask the question of who are the real dummies in the world. Because it certainly not the Chinese.

US Autos Dig Their Own Grave

2005-05-09T23:39:00.000-04:00

Once again I am going to use the automotive industry to illustrate the threat that is posed by communist China. This time National Public Radio has done a surprisingly good piece on the American automotive industry helping to dig their own graves, by moving production to China.

First let’s start by saying that the automotive parts and automobile building industries of the United States have in the last decade been moving production to China in order to save on costs. It was an obvious decision when you see that the average Chinese worker makes $1.50 an hour. In a free market system this is going to happen, but what China is doing is using its ability to control every facet of the economy to force strong US industries to build up weaker Chinese ones.

In the automotive industry, that is requiring international companies to setup training and research centers in China in order to be given permission to produce and sell parts or cars in China. This allows the PRC to receive home grown automotive workers and engineers that it never had before, yet that possess the latest industry knowledge and know-how. In addition, they get a modern, upgraded production infrastructure that will soon allow them to build their own vehicles that are similar or even better quality wise then foreign producers.

It is China's goal to make the automotive industry one of the pillars of their economy. They wish to be able to not only sell Chinese cars in China, but sell Chinese made cars in foreign markets. Even though, they only had $8 billion in foreign sales, the PRC envisions Chinese companies ruling the Auto industry in the near future, and it is using American producers to achieve this goal.

The only solution that I can see is removing China from trading in the free market system and using protective measures (i.e. tariffs, quotas) to defend home industries against competition of the Chinese. They should only be allowed to reenter the free market system after the Communist party gives up its control of the economy, or else the free market countries will never be able to compete with China.

North Korea: China's puppet government

2005-05-08T23:12:00.000-04:00

I just do not understand why President Bush insists on involving China in negotiations to disarm North Korea. When every time we try to do something to punish North Korea for breaking one agreement after another, China steps in and insists that the punishment is too severe or is too damaging to their infrastructure or their economy. This was shown to be true once again, when China turned down a request by the US to shut off the supply of fuel to North Korea in order to force the Stalinist state to come to the six party talks.

There should be no one who is surprised at this since North Korea is just another diplomatic weapon for China to use against the West. I recommend everyone read this very good article from two years ago by WorldNetDaily talking about how China uses North Korea as a political pawn. In one example that is given, China agreed not to veto the American resolution against Iraq in return for an American guarantee not to conduct a preemptive attack on North Korea.

It just angers me to know that the American government, no matter whether of the left or the right, just keeps letting China off the hook for creating a nuclear armed North Korea. Since most everyone knows that without the blessing from the Chinese the North Koreans would never acquire nukes. In addition, it frustrates me how nobody in the main stream media covers this story, which is by far one if not the most important world issues out there.

Tibet, Tiananmen, and Taiwan

2005-05-05T01:18:00.000-04:00

Just read this very interesting article about a recent movie about the Dalai Lama and Tibet. It brought to mind a forgotten region of the world, Tibet, which the entire world has recently just given up to the Chinese without even a protest. It used to be that the whole world would be infuriated when China tried to repress Tibet, but now that is a forgotten thought and the Tibetan Buddhists have been left to fend for themselves.

Just a couple of weeks ago the Indians, the last major country to recognize Tibet as an independent state, have agreed to give up their recognition of Tibet in order to build a closer financial relationship with China. India is just the last of the world nations to give in to Chinese pressure to stop supporting an independent Tibet, but by doing so it has sent a message to the Buddhists of Tibet that the country that gives refuge to the Dalai Lama has decided to stop backing them.

Tibet is a perfect example of what China plans to do with Taiwan. First, after taking it over it realizes that the rest of the world will protest and yell, but in a short span of time they will be more interested in tapping the mythological giant Chinese market. Thus Taiwan will be forgotten like Tibet has been, and like the brutal massacre of Chinese college students at Tiananmen Square.

Don't believe me, than just read this article about the Europeans pushing for an end to the sales of weapons ban it has enforced on China since the brutal human rights violations that occurred at Tiananmen Square.

Purchasing Power

2005-05-03T22:22:00.000-04:00

This year China’s economy has become 64% the size of that of the United States economy if you use Purchasing Power Parity. These numbers are according to The Economic Times, which got them from Defense and Trade Division of the Congressional Research Service, a group that advises Congress. Currently that makes China number two, way ahead of number three Japan. China's GDP is $7.512 trillion, which is behind the US at $11.728 trillion and ahead of Japan at $3.719 trillion. What is miraculous about these numbers is that it was achieved just in the last two decades.

The rapid growth is attributed to large amount of foreign investment and personal Chinese savings. The Chinese savings rate was 42% in 2002, which makes it one of the highest in the world. This is something that the US can learn from, because we have one of the lowest savings rates in the world, and this is and will be a big cause in our economic downturn.
Just thought I would give some more news about the rapid growth of the next world superpower.

China Strategy for Canada

2005-05-03T00:39:00.000-04:00

Yesterday, CAW President Buzz Hargrove went before the Canadian House of Commons Sub-Committee on International Trade to point out that Canada needs to develop a new strategy to deal with the emergence of China. Mr. Hargrove presented that Canada has already lost 160,000 manufacturing jobs, and is threatened with the loss of large amounts of white as well as blue color jobs in the years to come. He attributed this loss of jobs in Canada to the ever increasing trade imbalance with China. Part of the problem as he sees it is that Canada’s attempt to have a complete free market policy at any cost, is leading to it loosing in competition to Asian countries that do not follow a true free market system.

In other economic news, Lenovo Group of China has finalized its acquisition of IBM's PC making business. This is a deal that I talked about in more details in an earlier post. Hopefully it will be as big a financial looser for Lenovo as it was for IBM.

Freedom of the Press

2005-05-02T00:36:00.000-04:00

China this week has arrested a journalist for allegedly revealing state secrets. The state secret was apparently notes the reporter took at a newspaper meeting. He then e-mailed these notes to several international publications.

This is not the first reporter to be arrested in China. Currently China for the sixths straight year is the country with the most reporters in jail, 42. This is according to the New York-based Committee to Protect Journalists.

Thankfully we don't have that in America or all of our media would be in jail due to treason. Oh wait, maybe that wouldn't be so bad. Just kidding! Seriously, we need an independent media as the fourth branch of government, in order to check and balance the other three.

China Gives a Yao for the Common Worker

2005-04-28T23:36:00.000-04:00

China has announced that one of the 2,900 model workers to be recognized this year will be NBA basketball player, Yao Ming. That’s right, China is telling its people to strive to be seven foot six inches tall and leave China for the United States in order to play a sport and make millions of dollars. In other words to be a communist model worker you just have to strive for the American Dream. Who knew?

And to think, all this time the whole world thought that investing capital in China would lead to it switching to capitalism. Oh how we were all wrong. Apparently we should just import Chinese that have a god given talent, make them milliners, and market them as the future of China.

Finally! Now I can say that I figured out a way that we can import from China, and at the same time bring down the Communist dictatorship. That is my new policy on curbing and solving the Red China threat.

Everyone, your job is clear. Go out and spread the word that we have a solution.

China Tightens Energy Controls

2005-04-28T03:58:00.000-04:00

In another example of the Communist party tightening its control over China, Forbes is reporting that China has just formed a new regulatory agency that will control the countries natural energy producing resources and its energy companies. The State Energy Office will report straight to the Cabinet, thus ensuring that all of its mandates are carried out. In addition to controlling China's resources, it will also probably be in charge of securing foreign resources for China, and controlling energy usage within the country.

Apparently the only thing that this new agency will not control is the use of military force to secure foreign resources. Thankfully, the leadership of the PRC has not seen it fit to give too much power to a single agency, unless that agency is the Central Communist Committee.

China's Free Banking policy

2005-04-27T00:56:00.000-04:00

To all those that say that by allowing China to enter the free market system it would force the PRC to end their restrictive government regulations, just read about the new rules that China is thinking of enacting. Currently China wants foreign banks to go to poorer western regions that do not have as many banking options, in order to prevent them from competing with local Chinese banks in major prosperous eastern provinces. In addition, they are thinking of preventing foreign banks from being able to buy equity stakes in more then two Chinese banks. This would prevent foreign banks from taking over local banks and knocking them out of competition.

To me that does not look like China is following a free trade system, where government tries to lessen regulations. Instead it looks like a communist controlled economy where the government wants to be in control of everything including the banking industry.
Amazingly the rest of the world turns a blind eye to these blatant offences of World Trade Organization rules. I'd understand if China was trying to cover this up, but public officials are stating that the reason they are doing this, is because China's local banks are not strong enough to stand up to the foreign competition.

If the United States does the same thing to protect its steel industry the whole world cries foul, but if China enacts protectionist policies everyone just ignores it and try to find an excuses for China. I'd say that’s a double standard if I ever saw one.

Weakness in China's Economy

2005-04-26T00:13:00.000-04:00

Not all economic news coming out of China is good news. China’s biggest problem is their lacks of energy, in particular oil, too fuel its economy. In a report by China Southern Airlines Co., which is the largest carrier in China by fleet size, the airline suffered a 314.2 million yuan ($38 million) net loss in the second half. While at the same time in the previous year it had recorded a 873.3 million yuan gain. The loss has been attributed to the rising oil price. Southern Airlines had to increase fuel expenditure by 66 percent. However, the airline is expected to be able to regain profitability due to the ever increasing travel demands of the Chinese citizens. In addition, China Southern Airlines plans to enact cost cutting measures to reduce the loss in the short run.

This should bring a very important point to everyone’s attention. As I have posted earlier this is probably the year that we hit the world peak in oil production. Hitting the peak will cause the prices to jump even more and costs to rise, also this will cause an ever more heated competition between the United States and China for every last drop of oil that is left. Already, the PRC is starting to catch up to the US on securing oil contracts, and it is only a matter of time before this race will take a more serious turn of direct confrontation over oil interests.

Europe in trouble? Part II

2005-04-25T00:30:00.000-04:00

With the unveiling of the new economic numbers the European Union has decided to take a tougher stance on Chinese textile imports. They began an investigation on nine separate imports, and are asking China too curb their exports of textiles to Europe. One of those textiles, pullovers, had imports rise 534% in this first quarter. However, even with these investigations which are supposed to lead to tariffs or other protective measures, Europe is very scared to go into a trade war with China.

Personally, I am happy that the European textile industry is being starved by China. It is only through loosing one of their historic staple industries that they will learn a lesson about the danger of communist China. This is a lesson that I hope the Europeans pay attention too, for unless they act and not just talk about punishing China then they will loose other more valuable industries. By the way how is the German economy doing?

Chrysler Cruises to China

2005-04-22T00:23:00.000-04:00

DaimlerChrysler has announced that it will produce a new class of compact Chrysler cars in China for export to the United States. This is yet another move that emphasizes the current trend of manufacturing moving out of the US and into China. Chrysler has said that it will keep its factories in the US and that only this new compact will be produced in China. That of course is code for: we will keep the factories here until you get too used to the ultra cheep cars from China to object to the relocation of the US factories to China. If you don't believe me, just read the New York Times article about the entire automotive industry is seeing China as the savior that will reverse their current losses.

Who could blame the companies when you compare the costs of labor of producing anywhere else? To produce in Germany it costs $49.60 an hour, in Japan it costs $40.96, in the US it is $36.55, even in Brazil and South Africa it costs $5.87 and $5.48 respectively. While in China it is only $1.96 an hour, and this number includes all the benefits.

Who is to blame you ask? Well first, I blame the Unions for driving the costs to such a ridiculous total that it is impossible for companies to compete with China. Second, I blame the people that have allowed China to enter the WTO while the Chinese government still controls labor rates, benefits, and does not allow for fare competition. How can you have a free market system when one of the countries that participates in it cheats by intervening in its economy? That is the opposite of a free market system.

I really hope that we wake up before all our industries get brought over to China, and it will be too late to do anything. It is time that our government steps in and protects our industries from the Chinese onslaught. However, somehow I really doubt this will happen.

PLA vs. Pentagon

2005-04-20T17:49:00.000-04:00

Once again another Pentagon official has said that the Chinese military is now at a level that is close to tipping the balance of power in East Asia. Peter Rodman, assistant defense secretary for international security affairs, testifying in front of a joint hearing of the House International Relations and Armed Services Committees said that China is "a problem here and now." He was trying to encourage congress to act to stop Europe from lifting an arms sales ban on China. Mr. Rodman also talked about how the current Chinese abilities to inflict severe damage to any American forces that would try to intervene in any Cross-straights conflict, would prevent US from using its military to prevent any conflict from occurring.

Here is another good article about the Chinese government planned anti-Japanese protests. Except this article takes an interesting view that these protests can backfire, and quickly turn anti-government. One can only hope that this will happen.

Who owns Senkaku and why anyone cares

2005-04-19T23:18:00.000-04:00

Senkaku is currently a chain of uninhabited islands that is currently at the heart of the chill in the China and Japan relationship. GlobalSecurity.org has taken a very in-depth look at the controversy surrounding this group of uninhabited islands (overall I recommend for everyone to take a look at this site, as it is one of the best all around resources on the internet). At the heart of the territorial dispute over this chain of islands is the oil and natural gas that is underneath these volcanic rocks. Japan, whose ownership of the islands China is disputing, has as of 1996 declared an exclusive economic zone (EEZ = 200 nm) around these islands.
However, last year China began to drill for natural gas just 3 miles west of the median line between the two countries. Now Japan claims that this Chinese drilling is actually taking away the resources that are in its EEZ. China has said that since the Senkaku islands are its territorial possessions Japan has no claim to the resources.
In response to Chinese drilling, Japan is allowing the exploration and development of the fields on its side of the EEZ. China has said that this permission is a provocation and is illegal.

I just bring this up to point out that the anti-Japanese unrest that is currently happening in China just happens to coincide with the fact that China and Japan have begun to battle over their rights in the East China Sea and the surrounding areas. In addition, I would like to mention that when after WWII the United States controlled the islands, and then in 1972 Japan regained the possession of Senkaku chain of islands China did not object to these dealings. It only began to claim the islands after it was discovered that the area surrounding the islands possessed vest natural resources.

South Korea Plays for the Fences

2005-04-18T20:53:00.000-04:00

In the last couple of weeks South Korea has been making news with its plans to bolster military ties with China and Russia. The Koreans and the Chinese have agreed to have defense minister meetings be a regular occurrence, as well as engage in more security exchanges. Currently South Korea wants to bring its military partnership with China to the same level of strategic importance as its military relationship with Japan. In addition, the South Korean defense minister will travel to Russia to try to boost military cooperation with the Russian Army.
This is the latest attempts by South Korea to distance themselves from their long time allies the United States and Japan. South Korea is currently trying to balance its traditional alliance with the US and its new cooperation with China. Currently, Korea and China are becoming major economic partners and this has led to a more strained relationship between the Washington and Seoul.
Personally I don't blame the Koreans for trying to ally with China, because if you look from their point of view you can see that American influence in the region is shrinking while the Chinese are growing ever more powerful. It is only natural that the South Koreans would want to switch to the apparent stronger side.
I just bring this up to show how gradually China is gaining strength and slowly it is even able to split our own historic, well established alliances. This is the old strategy of divide and conquer. China currently is dividing us, and very regrettably it will soon conquer us.

Peg the Yuan

2005-04-17T20:31:00.000-04:00

Bloomberg is reporting that the Group of Seven Industrialized Nations has decided to stop the "charm offensive" against China and get serious about forcing the PRC to stop pegging the Yuan to the dollar. Currently China pegs the Yuan at around 8.3 to the dollar no matter the current financial situation. This means that at a time when the dollar is depreciating the Yuan is made to artificially depreciate with the old greenback.
Europe is especially hurt by this policy because this means that while the Euro is rising companies are less willing to import expensive European goods, thus settling on cheaper US and even less expensive Chinese goods. The United States is hurt as well because even with a depreciating dollar it cannot make any headway in its trade balance with China. This is a major reason why the US currently has a skyrocketing trade deficit in general and with China in particular.
The foreign ministers have said that they are running out of patience with China, and unless the Yuan is allowed to be traded freely without any conditions, they threaten to impose tariffs on Chinese goods. I only have to say that it’s about time they stop pampering China.

Another topic I want to comment on is that I have been reading how many people are defending the anti-Japanese protests in China. Are you people smoking hash? Because you have to realize that these protests are not spontaneous, but are government organized through the Chinese university system. Does anyone really believe that China would allow protests to happen without the party’s permission? This is China's way of throwing another monkey ranch at the West. Its motive here is to simply stop Japan from becoming a permanent member of the UN Security Counsel. When time comes to vote to allow Japan to take a seat China will use these staged protests to veto Japan's bid. They know that US wants Japan on the council, and by preventing this, the PRC undermines American power at the UN.
If China is really serious, let it apologize for the atrocities it currently commits every day. Even better let them release actual protestors that are held in Chinese slave labor camps just for disagreeing with the communist party.