DONATE

Showing posts with label GDP. Show all posts
Showing posts with label GDP. Show all posts

Sunday, March 3, 2013

A War Between China and Japan: What It Could Cost You

War- Japan-China and USA watching
It is my thought that a World War is inevitable. It is also my thought such a war will embroil the USA because of Islamic cultural hatred for America and the American love (not necessarily the U.S. government’s love) for Israel’s existence.

Just as America fought in two major war theaters in WWII, it is quite likely but not talked about enough that a global would again have two major theaters of war. Do you realize that there is a huge conflict dispute increasingly growing between Japan and (Communist) China?

Below are an essay and an incredible video effectively illustrating the choices that the USA must make in joining an Asian theater war. It is my opinion that if Middle Easter conflict draws the USA into war, then it will embolden Asian powers to militarily assert their national interests hoping America will be too committed elsewhere to interfere.

It is my opinion that Asian powers – China comes to my mind – are mistaken that the USA will not enter the Asian conflict. A less powerful USA entered World War II fighting in two theaters. I fully expect a call of allies will view the USA as the apex to maintain a free world joining in mutual interests to fight despotism occurring on a regional basis. I am just not sure who those allies to America will be. It may take awhile for free nations catch the vision of maintaining freedom on the long term in the face of short term economic benefits.

JRH 3/3/13 (Hat Tip: Emily S)
*********************************
A War Between China and Japan: What It Could Cost You


Global economists are keeping their eyes glued to the Asia-Pacific region, where a bitter feud is brewing between two of the world’s most powerful nations over a small collectivity of islands in the East China Sea. The Chinese government argues that a treaty signed during the first Sino-Japanese War (1894-95) conferred ownership of the islands to China. Japan has long disputed these claims, and today argues that the islands are integral to its national identity.

The argument came to a head last September, when a boycott of Japanese products led Chinese demonstrators to target fellow citizens who owned Japanese cars. Three months later, the situation escalated when when (sic)Japanese jets confronted a Chinese plane flying over the islands; no shots were fired, but the act of antagonism has set a troubling precedent between the military forces of both nations.

The conflict between China and Japan has put the United States in a precarious position: if a full-scale war were to erupt, the U.S. would be forced to choose between a long-time ally (Japan) and its largest economic lender (China). Last year, China’s holdings in U.S. securities reached $1.73 trillion and goods exported from the U.S. to China exceeded $100 billion. The two countries also share strong economic ties due to the large number of American companies that outsource jobs to China.

However, the U.S. government may be legally obligated to defend Japan. In November, the U.S. Senate added an amendment to the National Defense Authorization Act that officially recognizes Japan’s claims to the disputed islands; the U.S. and Japan are also committed to a mutual defense treaty that requires either country to step in and defend the other when international disputes occur. Not honoring this treaty could very easily tarnish America’s diplomatic image.

The countries of the Asia-Pacific region are collectively responsible for 55 percent of the global GDP and 44 percent of the world’s trade. A major conflict between the region’s two largest economies would not only impose a harsh dilemma on U.S. diplomats, but also have a significant impact on the entire global economy. It is in every nation’s best interest that the Chinese and Japanese settle their territorial dispute peacefully.


Video Transcript

Whispers of the unthinkable are wafting throughout the Asian-Pacific Region: war between China and Japan over a small cluster of resource rich islands in the East China Sea claimed by China (Diaoyu) and Japan (Senkaku).

In September, the dispute quickly came to a boil. Fueled by nationalism and the memory of Japan’s brutal occupation of China during World War II, enraged Chinese crowds filled the streets. They targeted owners of Japanese cars and launched a massive boycott of Japanese products, sending a debilitating gut punch to Japan’s still struggling economy. In November, the Wall Street Journal Live reported that the boycott had cost Japanese companies “billions of dollars.”

Since then, both nations have flexed their military muscle. In December, Japan scrambled jet fighters to respond to a Chinese plane flying over the islands. Although no shots have been fired yet, such dangerous confrontations are likely to continue.

Should the crisis worsen from its current status to, say, missiles launched and a ship sunk or an airplane knocked out of the sky, the United States will be forced to choose between backing a longtime ally (Japan) and supporting a nation more central to our economic health (China).

In terms of economics, China has the clear bottom-line edge, serving as America’s biggest lender. As of September, China’s holdings in US securities ($1.73 trillion) topped the global list of creditors.

In terms of trade, the most significant US relationship in the Asia-Pacific Region is with China – by far. According to the Office of the US Trade Representative, the export of US goods to China amounted to $104 billion in 2011, while exports to Japan over the same period were $66.2 billion.


Then there’s the extensive outsourcing by American companies, which ties the economies of China and the US even closer. A case in point is Apple, which designs its iPhone and other products in the US, but has them assembled at China’s massive Foxconn City facility.

All of this could be put at risk if the US sided with Japan in the current dispute – and the Chinese retaliated. A boycott would obviously harm American companies that ship agricultural products as well as cars and other finished goods to the Chinese market. Less clear is whether Chinese anger would extend to US firms such as Apple, which have deeper Chinese economic roots.

There’s also the possibility that China, to punish the US, could sell off its stash of US securities, a move that would devalue the dollar. It’s possible but not likely, at least according to a December report by the Congressional Research Service. Among other consequences, such a sale “could diminish the value of these securities” and “lead to large losses” for China.

In November, the US Senate unanimously approved an amendment to the National Defense Authorization Act recognizing Japan’s administration of the Senkakus and opposing the use of force. The Japanese cheered, and the Chinese howled. But the provocative sentiment expressed in the amendment should be no surprise.


In 2011, President Obama announced a major foreign policy shift. He declared that the Asia-Pacific Region – which generates “approximately 55 percent of world GDP and about 44 percent of world trade” – would be a top US security priority. The declaration was couched in normal and nuanced diplomatic niceties.

It could also prompt the Japanese to scrap their antiwar constitution – adopted after the US However, China and the other nations of the region weren’t fooled.
For the United States, China is a classic “frenemy” – an economic partner, a rival, and a potential enemy that has upgraded its military capacity and used it to reinforce its claim to other disputed islands in the South China Sea.

More importantly, the US and Japan – which is home to ships of the powerful US Seventh Fleet – are bound together by a mutual defense treaty, which commits the US to defend its longtime ally. US failure to support Japan would undermine US credibility not just in Japan but throughout this strategically important region. Firebombing of Japanese cities and the atomic devastation of Hiroshima and Nagasaki during World War II – and commit their deep pool of technological skills and talent to a single goal: a massive rearmament program that could include nuclear weapons. No one doubts that the Japanese, have the capacity to become a world-class military power – an outcome no rational person wants to see.

Should a shooting war erupt, the US will side with Japan despite the nightmarish economic scenarios that could follow. The challenge facing US officials and diplomats in 2013 is to help China and Japan find a face-saving way to keep the dispute from getting that far.
_____________________________
Copyright © 2013


Tuesday, July 3, 2012

Email Thoughts of Tony Newbill

Resist NWO
Tony Newbill sends volumes of emails to me in which I fail to do him justice because lately I have had a rough time getting to those emails. I usually write little summaries to the links within Newbill’s thoughts however I simply do not have the time. I encourage you to peruse the link content because it is vital to connecting the point that is being made.

JRH 7/3/12
*************************
What Happens to USA after Foreign Assembly Part Dependency?

Sent by Tony Newbill
Sent: 5/30/2012 10:51 AM

What’s the USA GDP worth if WE are Dependent on assembly parts from a foreign supplier who does not want to take our dollar anymore? See how the BRIC nations (Brazil, Russia, India and China), the main foreign suppliers of all world’s Assembly Parts supply and develop by years of out sourcing to Western Nations. Industrial manufacturing of the parts production all in the name of lowering production costs, but at the expense now of Our Self Reliance and Independence, is a huge mistake of economic imbalance that will lead to war no doubt.

Japan, China Currency Deal Symbolic Step


China slowdown threatens US factory revival

This is why the USA and Europe need to be manufacturing MORE of the Assembly Parts supplies we need to at Least supply the basic Vital Infrastructure needs of our Nations!!!!! Being too Dependent on Asian Parts supplies is a National Security Threat!!!

++++++++++++++++++++++++++++
Blaming Bush and Financial Thought of the Day

Sent by Tony Newbill
Sent: 6/1/2012 8:41 AM

Watching Squawk Box this morning they had Steny Horner on and he Blamed Bush for the 400 millionth time and I had to ask for the 400 millionth time: How the hell did Bush bring down the whole cotton pickin world economy??? Watch the video and scream at the scream please!!!!  


Trivia for a Private sector Financial thought of the day........

You do know Hank Paulson is a Really Big time Environmentalist (Founded Nature Conservancy Group) and one of the Fund originating Banker to boot, so How many others are Like Him that are Heavily Influenced at the top of the Money Tree in the Private sector??? ... Kinda a conflict of interest when it comes to financial policy to drive private sector growth, don't you think??

Eric Canter’s right about the private sector being the Way forward with TRUE Stimulus growth. The problem is the Obama Environmentalists are standing in the way of this kind of Growth because THEY Fear Peak Earth and this Unfettered Growth is Harming the Earth and they THINK they need to Control Consumption rates. So this is why we have a stalled out supply-side growth economy..... Hum ... How long before investors realize this and RUN for the EXITS???
 
Here is Canter talking about what is Needed to recover the Free Markets from the Grip of Environmentalism's strangle hold on Growth, and we better get busy cause the supply-side pile of vital needs is not growing as fast as population is .... Can you say Bolsheviks?

+++++++++++++++++++++++++
Let’s put things into perspective......

Sent by Tony Newbill
Sent: 6/1/2012 12:00 PM

"Your First Amendment rights can be terminated," yells the Chicago police officer, caught on video right before arresting two journalists outside a Chicago hospital.


Now compare these 2 stories to the above action in US Constitutionality....... Khrushchev said in this Glenn Beck Video, the USA would be transformed to Communism with small slow doses of socialism and wouldn't even realize it till it was too late....



Then we have Obama saying this to Russian Prez Medvedev:

++++++++++++++++++++++++++
The Beginning of the One World Order?

Sent by Tony Newbill
Sent: 6/2/2012 10:29 AM

Hey I pulled this sentence out of the article, Think how Obama is attacking the Coal Industry and what this will do to that???

Here’s the quote in the link that slapped me in the face big time as the beginning of a One World Order......

"Panetta also issued a strong call for Asian nations to set up a code of conduct, including rules governing maritime rights and navigation in the South China Sea, and then develop a forum where disputes can be settled".


This sounds like a One World Order in development that sides with the LOST Act Obama is trying to force through the Senate. Did you know about this vote coming up now?


This is what a vote for LOST in the Senate will do: It will transfer control over Water Resource management over to the United Nations. Then Private Enterprise will be at the Mercy of the Environmentally Influenced United Nations. This will spread fear in the risk taking enterprise economy to the point that market collapse results. Then Obama will have no choice but to implement Executive Order National Defense Resource Preparedness Act: 




Hank Paulson, Bush Treasurer, bailout KING of the TARP Bill, founded this environmentalist Organization. Is this conflict of Interest regarding Tier 1 Money allocations towards the financial Private sector or what??? 
+++++++++++++++++++++
United States Budget Dilemma

Sent by Tony Newbill
Sent: 6/5/2012 8:45 AM



They are using the dependency of the Western nations on the BRIC Nations parts manufacturing supply as the means to collapse the solvency and sovereignty of the Western nations’ financial and vitality as they pour more paper dollars off the backs of US citizens into the IMF bleeding more paper cash into Europe.  The problem with pouring more cash into the country is the same problem we have here in the USA. We have out sourced our primary wealth creator, Parts manufacturing down to where we are only an assembler of BRIC Parts manufacturing supply. This has capital circulating in the USA and Europe now maybe 2-3 times before it flows out of the USA and Europe over to the BRIC nations and this is why there is no recapitalization or capital formation taking place in the USA and Europe anymore just DEBT formation.
 
We need to Restore a balance to manufacturing not just because of financial displacement of capital but also so we are not Begging BRIC suppliers for Parts supplies like we are now to the point they are willing to defect from the Dollar, yes?
We have to be as tough on the BRIC nations as we are wanting to be with European budget gaps in terms of Currency valuation and revaluations regarding equality of nations GDP % or European divisions are going to drive them away from the USA and over to the BRIC nations alliance. This would be the first time since WW2. This would leave the USA and the Dollar wide open to defections and Isolate the USA from Parts supplies because we don't have an Industrial base of manufacturing left to take the place of the Loss of imports that this kind of event would create.
 
It can't be just all about pouring more paper into the IMF because if the BRIC suppliers still defect then what good is all that Paper capital going to do?? The defectors from the EU will transition to the Yuan. They are already talking about this. The leverage is not in the paper anymore because we out sourced to much of what represented the paper - dang it, and now the BRIC have too much of that Leverage!!
 
I use to run cattle out in the deserts of eastern Oregon and we would Put Green Goggles on the Cattle so they would think there was some Grass to chase and eat.... it didn't work ... neither will just putting the Green paper in the pockets of the same unproductive nations ... Substance baby. It’s all about substance and who’s controlling the majority of it!!!
++++++++++++++++++++++
Federal Supremacy Clause and Two Links Regarding Constitutionality

Sent by Tony Newbill
Sent: 6/5/2012 10:01 AM

Do these 2 links below seem to follow the US Constitution regarding Federal Supremacy Clause??


Obama Admin Cites 'Int'l Permission,' Not Congress, As 'Legal Basis' For Action In Syria



Mueller: I Can’t Say Whether I Now Can Kill Citizens In The United States Under Obama’s Kill Doctrine

+++++++++++++++++++++++++
Market rumor: Pimco and JP Morgan halt vacations to prepare for economic crash

Sent by Tony Newbill
Sent: 6/5/2012 11:29 AM

Sunday, June 3, 2012

The Day the Dollar is Rejected by BRIC Nations

BRIC Nations
Newbill touches on the theme of a group but not necessarily aligned nations of Brazil, Russia, India and China could have power to collapse the American economy by messing the U.S. Dollar.

JRH 6/3/12

*****************************
The Day the Dollar is Rejected by BRIC Nations

By Tony Newbill
Sent: 5/24/2012 12:09 PM

June 30, 2012, could that be the day the Dollar is rejected by BRIC Nations?

This is How the US Government and the Federal Reserve are Containing Inflation, but it will unleash Hyper Inflation event that will over night collapse the Free Markets Once the Federal Reserve action is rejected as well as private dollar denominated capital by Foreign Suppliers of the BRIC Nations!!! The Free Market private capital Investors are gone from this Process and this means we are close to defection between Nations. The Trigger point is a lack of supply after June 30 at Levels that we can equate Current GDP to. Once the markets digest this information and Flash Trading takes hold a crash will be imminent after June 30 or before even if the Federal Reserve Announces another program. But the BRIC nations will reject the dollar denomination.


"… the average American enjoys the lifestyle they live and the benefits of a fiat currency that is reasonably controlled."

"My argument rests on one very simple point. That the negatives are a small price to pay for the positives."

"the fear of hyperinflation is completely unfounded. It requires a loss of faith in the currency."

---
I think the fatal flaw in the 3 statements in the above argument is an assumption in support of quote #3 above. Namely, that the Fed can continue propping up the house of cards, even as they necessarily continue to build it ever higher and more complex in order to do so.

People made similar arguments in favor of the stock market and housing prices back in 2007. Ben Bernanke did this also on the national TV programs. People didn't lose faith in the stock market, the housing market or GM until it came crashing down around them and then people lost faith very very quickly. The exits weren't nearly big enough to accommodate everyone who lost faith at that time.

A family living far beyond its means often doesn't lose faith in buying things on credit until their creditors cut it off. That's when the panic hits. Before then they may realize their finances are out of balance. They may even take some steps to try and bring it a little closer to balance. But they all too often don't take the necessary steps to bring it into balance until they hit that brick wall when they're suddenly forced to do so against their will. That's when their "faith in the [currency]" collapses.

Some of people in countries that have experienced hyperinflation episodes: 


People may have done the math and seen the warning signs long before the catastrophe struck, but the majority went merrily along their way until inflation started getting uncomfortably high, then painfully high, and then became catastrophic. "Having faith" couldn't have prevented the catastrophe. Lack of faith didn't destroy the currency; the inflation is what destroyed the faith.

The U.S. can't keep up the status quo with an inflation rate similar to what we've had up until now, even if other countries continued to throw their savings down the treasury rat hole, which they aren't.

Not only is our official debt to GDP already 100% and rising rapidly (far above the 90% threshold history teaches is a tipping point for much pain), but our increase in liabilities (funded and unfunded) was in excess of 53% of GDP last year and also 346% of total revenues:   


And that's at near zero interest rates. If the BRIC nations, among others, are already taking the preliminary steps towards moving away from the U.S. as a reserve currency, and have been screaming loudly and publicly about the Fed's money printing already, don't you think that's already evidence of some loss of faith in the currency?

The problem is that once it gets out of hand, the central bank can't keep things relatively under control, any more than Bernie Madoff could have kept his Ponzi scheme going as long as everybody "kept the faith".

Look at this graph of the U.S. debt:    


It doesn't include the "off the books" & "unfunded liabilities" that dwarf the official debt. Social Security & Medicare taxes have been counted as revenues in the pay as you go U.S. version of Madoff's Ponzi scheme. The first of the baby boomers hit age 65 at the tail end of last year. I believe it's something like 9,000 people are retiring every day. A Zerohedge article a couple of days ago said we're already at the point that we only have one full time worker for every retired person.

Those deficits are going to skyrocket.

As Chris Martenson so ably shows, Compounding is the Problem: 


The purpose of this mini-presentation is to help you understand the power of compounding. If something, such as a population, oil demand, a money supply, or anything, steadily increases in size in some proportion to its current size, and you graph it over time, the graph will look like a hockey stick.

Said more simply, if something is increasing over time on a percentage basis, it is growing exponentially.

Using an example drawn from a magnificent paper by Dr. Albert Bartlett, let me illustrate the power of compounding for you.

Suppose I had a magic eye dropper and I placed a single drop of water in the middle of your left hand. The magic part is that this drop of water is going to double in size every minute.

At first nothing seems to be happening, but by the end of a minute, that tiny drop is now the size of two tiny drops.

After another minute, you now have a little pool of water that is slightly smaller in diameter than a dime sitting in your hand.

After six minutes, you have a blob of water that would fill a thimble.

Now suppose we take our magic eye dropper to Fenway Park, and, right at 12:00 p.m. in the afternoon, we place a magic drop way down there on the pitcher’s mound.
To make this really interesting, suppose that the park is watertight and … READ THE REST



It becomes mathematically impossible to continue on this path, and "faith" can't make up the difference. Reality will crush an unfounded faith in a government that betrayed that faith, and upon a fiat currency backed only by a faith and trust in that government.

At this point, massive tax increases all the way to 100% of all tax payers earning above $250,000 wouldn't even come close to balancing the budget as Tony Robbins shows in this short video  



Doing so and then confiscating all of the assets of millionaires and taxing the top 500 corporations at 100% would barely balance the budget for one year (if they stood for it, of course), but that couldn't be repeated the next year, obviously. You can only take all of their assets once. You killed the golden goose.

Bottom line, our only options are a massive austerity program, which just will not happen until absolutely forced upon us one way or another, de facto default through inflation/hyper-inflation, or outright default.

Most governments go the inflation/hyperinflation route by default. It seems to be the least painful way to kick the can down the road a bit further and it's less obvious to many people who are at fault. The results are delayed at least somewhat and the people scatter the blame among multiple targets...  It is big business' fault, or "the speculators", or "bond vigilantes", or "gold and silver hoarders" etc.

Don't get too cocky when in the eye of the hurricane. It may well be that "You haven't seen nothin' yet."
___________________________

Edited by John R. Houk