RP: Borrowing Money From China?

M

Meekus

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I was hoping I could get some reference material for one of Dr Paul's positions. I've heard the good Doc say something to the effect of "You can't even fight your war without borrowing money from the Chinese".

I wanted to know more about this borrowing from China, but am having no luck finding any good resources. How exactly do we borrow this money?

Here is a youtube link in which he mentions it. Its part 2 in a series he did for fff.org. Definitely worth a watch, as well as the other parts.

http://www.youtube.com/watch?v=iQBs7AjhjnE
 
This article is helpful..

http://en.wikipedia.org/wiki/United_States_public_debt

"In recent years, the debt has soared and inflation has stayed low in part because China has been willing to accumulate reserves denominated in U.S. Dollars. Currently, China holds over $1 trillion in dollar denominated assets (of which $330 billion are U.S. Treasury notes). In comparison, $1.4 trillion represents M1 or the "tight money supply" of U.S. Dollars which suggests that the value of the U.S. Dollar could change dramatically should China ever choose to divest itself of a large portion of those reserves.[8][9][10][11]"
 
Good post Ryan_G.

Yes, China is being very kind to send us TVs and computers in exchange for promises to some day give them something of value in return. If you don't like a competitor owning your future then don't go hopelessly into debt.
 
Yes, they hold a lot of US Treasury notes. They also have been accumulating a lot of US dollars, propping up the value for a while.

The Chinese and the large oil producers would likely be the ones that would begin a dollar collapse / hyper inflation.
 
Those notes are also a reason China holds us by the balls. Should we really upset China and they dumped those notes our entire economy would crash. Our economy (not the mention the futures of our children) is now dependent on the goodwill of a Red China. Nice.
 
The only way for the vast majority of Americans to escape this kind of nonsense was to use an alternate currency like the Liberty Dollar. Then if our government crashed, we would still be a prosperous nation.

Way to go Fed.

I think they are doing this intentionally. Once they crash our only currency and the economy with it, then Americans will be more susceptible to an NAU. They just gotta get a monkey in there that people will put the blame on. The problem with Ron Paul, to them, is that he might actually successfully ween America off the Federal Reserve system. Having minimal control here would place them in a position where they would leverage China against us in either an economic war or nuclear war.
 
Yes, China is being very kind to send us TVs and computers
Click to expand...

Well, yeah, if that was actually what they are sending us. We get TV's & computers from Japan. From China, we get cheap Happy Meal toys, lead painted toys, poisonous pet food, and household junk that breaks 2 weeks after you buy it.
 
therealjjj77 said:
The only way for the vast majority of Americans to escape this kind of nonsense was to use an alternate currency like the Liberty Dollar. Then if our government crashed, we would still be a prosperous nation.

Way to go Fed.

I think they are doing this intentionally. Once they crash our only currency and the economy with it, then Americans will be more susceptible to an NAU. They just gotta get a monkey in there that people will put the blame on. The problem with Ron Paul, to them, is that he might actually successfully ween America off the Federal Reserve system. Having minimal control here would place them in a position where they would leverage China against us in either an economic war or nuclear war.
Click to expand...

I agree. The Bank of International Settlements upped their capital ratio for member banks to 8% so tightening credit. Enter the credit crisis. It is being engineered for a purpose I am sure. This is their modus operandi over the centuries. Precipitate a crisis then ride to the rescue. The call will be, as usual, for greater centralisation. Also the Sovereign Wealth Funds from the East and the Middle East are buying into the big money center banks. This is a payoff to the Chinese and Arabs who have been admitted into the inner circle. Now they can benefit from inside information and become billionnaires. This is all increasing the grip of the plutocrats on the world banking system which is now fully in place. Iran is still a wild card which is why they are under so much pressure and being vilified by the constant beat of the war drums in the MSM. It is a really simple system they have. All they do is keep repeating the same moves over and over. They do it over decades and pretend to be the guardians of our economies while they are actually preparing us for the Big One.

Can RP make a difference? Will his election give the world a chance to bring these criminals down? I believe he can because there is more going on here than meets the eye.
 
"Well, yeah, if that was actually what they are sending us."

Well, my computers and monitors all say "made in China". Interesting to know that Japan is shipping through China now, probably to get better tariff deals. I'll make a note of that.

And the guy in charge of the factory that had the problem with the pet food committed suicide after his mismanagement was found out. If only Ted Kennedy or Cheney or any of our overlords would do the same for THEIR mistakes, then I might be impressed.
 
AgentOrange said:
Well, yeah, if that was actually what they are sending us. We get TV's & computers from Japan. From China, we get cheap Happy Meal toys, lead painted toys, poisonous pet food, and household junk that breaks 2 weeks after you buy it.
Click to expand...

Japan subcontracts electronics to Taiwan, and Taiwan subcontracts to mainland China. China makes all the components and Japan assembles the device, which is exactly what we do.
Japan has been offshoring a lot lately. I work in Dalian, China, which is where all the call centers that support Japan are moving to. (Dalian is Japan's Bangalore.)

To be completely accurate, LOTS of countries have dollar reserves and buy US Treasury Bills. Not just China, but Japan, France, Saudi Arabia, etc. Japan and China especially survive on exporting to the US, and by buying up dollars and T-bills they can maintain an exchange rate vis-a-vis the dollar that allows them to be profitable.

In Japan, for example, if the yen climbs too far above 100 yen to the dollar, people really start to suffer.
 
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