China Hijacks the Internet

[tacticalnuggets 24]

Hi Iroquois Pliskin

As I pointed out in an earlier post replying to MehMan the reason Mr. Chairman of the FRB and chairman of FRB NY are trying to devalue the US Dollar is something called Seigniorage; which a primary income source of national banks such as the FRB.

In particular Government Bond Seigniorage, you may note the nationality of the author though the US FRB is happy to take the old fashioned cash Seigniorage too.

Seigniorage is a form of Inflation Based Taxation policy. Some also call it a Ponzi scheme. The Republican party has always favoured this as its primary taxation method in the US; as it is stealthy and does not affect those who are wealthy enough to shift money's out of the country or into assets and commodities that accumulate value during times of inflation.

Essentially it is a tax on the poor and middle classses or those who are rich but do not know, or are too nationalistic to realise the purpose and effects of inflation. It is also a flat rate Tax; in that those who are poor pay the same percentage per dollar as those who are rich and or stupid enough to have too much cash when the inflation tax is applied. It is also a way of redistributing wealth to the wealthy as the real value of wages are driven down. While those in the know shift to foreign investments then return and buy up cheap assets.

Importantly Signiorage is great way of exporting taxation to those who buy your currency and or bonds have to pay it. A recent study showed that Government Bond Seigniorage had become bigger than money Seigniorage as a portion of GDP. Which is where China comes in!

Of course China is no longer so dumb as to fall for the Ponzi Scheme and just pegs the Yuan to the US dollar. It also buys enough dollars and US Debt which it can forclose on and thus ensure it can wipe out the US dollar if US bankers push too hard.

China has been spending an awful lot of money on education and in particular in training and retaining economists. Some of the best economists in the world are Chinese. Government Economist is one of the best jobs in China and they are linked to the Chinese PLA; so that gives you an idea of how seriously China takes foreign exchange as a defense issue.

Kind Regards walker

I'm not sure if just the Republicrats favor the inflationary tax. Both sides have been doing it for years since the dollar was no longer supported by gold.

[Iroquois Pliskin 0]

walker,

only thing is, China hasn't been bidding on US Treasuries for some time now and Ben Bernanke has since took over, which will result in the straw that breaks the Ponzi camel's back. In other words United States pulls a Weirmar Republic circa 1930. :clap:

There's a saying - "Why does your pussy hurt when you do business with Chinese?" :D

The one thing I love about Westerners in regards to other Cultures is ignorance: they're so confident of China's desire to avoid any conflict even if it compromises their energy security.

When the time runs out there won't be any options available: War over resources, be it conventional or Nuclear, Chinese can afford it. For now, there are two scenarios: 1) War; 2) Elevation of 700 million plus Chinese peasants to Western Middle Class life standards; 2.a) 300 million are already living lower-middle Middle Class style; 2.b) The UN says it's unsustainable and those 3 billion people won't have a shot at Western standards of life -> refer to 1).

You're going to see India and Pakistan allying with China before you'll see them refusing their people the industrialization the West has gone through.

[Ulanthorn 10]

Rinsing Chinese people to western middle calss is easier now than 10 yeasr before just bhecause the middle class standard in lots of countries of the western world and especially in europe has dropped since the 90's significantly. In germany midle class salaries are practicaly frozen since the late 90's to compete with China in production unit costs. In fact we have a loss of 0,8% in the last 10 Years. China is the new reference you look at when calculating your product costs, such as Japan was in the 70's and 80's.

[joshrego 10]

Cyber attacks now a days are the biggest emerging threats for some nations including developing countries. Developing countries are facing this problem more may be because of their incapability or limited capabilityto detect and neutralise them. Now a days chinees cyber attacks are more in news.

[Iroquois Pliskin 0]

Ulanthorn,

that is true. As per UN vision, without population reduction, Europe would need to 'consume' as much as an average Chinese does, while US outright kills it's economy and spreads the wealth 'round.

With the continuing destruction of the Middle class is America, you condition the World to lower standards of living, which are 'sustainable'. :)