Chinese Communists Pull Rug Out From Under USA Capitalists

Elaine Meinel Supkis

As I kept on saying, the Chinese COMMUNIST government wanted a trillion dollars in FOREX money and then they would discipline us. The USA investors and tax evaders in our government thought the money would flow forever. As my blog title here says so clearly: Red Ink Kills Currencies.

As usual, before a collapse, things skyrocket to the heavens.

BEIJING, Feb. 27 -- Shanghai's benchmark stock index continued its rally into the new lunar year, closing yesterday for the first time above the 3,000 mark as trading resumed following the weeklong Spring Festival.

The Shanghai Composite Index, which tracks yuan-denominated A shares and hard-currency B shares, jumped 1.40 percent to 3040.60, the best close since the bourse started trading in 1990.

From Bellepheron on Pegasus to Icarus or the son of Helios, when one rides the wild horses to the very heavens themselves, the fall is great and obvious. For several years, I have said repeatedly that a trillion dollars in FOREX funds would trigger the secret (HAHAHAHA) Chinese plan to upend the American empire via economic meltdown.

The ernest Chinese felt they should warn us so several months ago, as they approached that sum, they warned us to cut spending and start saving...ALL OF US. Not just any one person. Having warned us, now comes the inevitable storm.

Just this morning, I warned everyone about the Chinese stock market fall after the commuist leaders tightened credit and warned banks to be careful with loans.

On a side note, today the Chinese stock exchange fell a great deal because they know the American markets are about to collapse because we can't use rising home values to pay for goodies from China. The Chinese government doesn't care if billionaires lose money. They want people to put money in savings, not stocks. Stocks are gambling.

But this drop in value reflects reality: the USA is going belly-up and won't be able to buy stuff much longer as the dollar drops in value and the USA continues insane spending programs that are entirely based on generous loans from Asia. The Chinese assessment of the future is correct. Our own leader's rosy prognastigations are wrong.

And this is the real bomb that is set to go off right under our noses.

The silly American media has been lying to everyone about China: that the Chinese were foolish and stupid and didn't understand inflation or the idea of comparative value versus comparable trade or anything. They were supposed to be naive and frankly, stupid.

The Chinese smiled behind their fans and waved languidly at us and offered us more loans, endless loans.

Our appetite for these loans has gone through the roof. When Katrina hit New Orleans, Congress and the media excitedly talked about how this would make our economy grow (!!!!!) because we had an excuse to ask the Chinese for $250 billion in loans. The Chinese quietly told our Treasury, nope.

This should have caused great alarm and our economy should have gone into a recession but it didn't. Even as we racked up half a trillion in war debts, nothing happened. When I first blogged about the budget deficit, for example, it was under $8 trillion. Today, it is a cat's whisker away from $9 trillion. Our entire economy is only $14 trillion so if you deduct the debt from this, you get only a $5 trillion GNP.

I wrote last week about how the top financial editor of the News and World Report was lying about our economic condition and he sent me this email, attacking my article:

Click on image to read dumb email from JPethokoukis@usnews.com. Pethokoukis wants to hear from everyone! Heh.

The level of venality and delusional thinking is astonishing! I bet he is coming up with all kinds of childish explanations for what is happening today. The grasshoppers still laugh at us ants who toil to save and fix things. The reckless amorality due to cheap Asian loans has corrupted our nation's leaders and pundits. Well, the loans will dry up and the Chinese investors have figured this out.

This is the definition of a total collapse:

NEW YORK (MarketWatch) -- U.S. stocks plunged over 500 points on Tuesday, with the Dow Jones Industrial Average dropping 200 points in one minute around 3 p.m. before recovering some ground, sending the blue-chip average towards its worst one-day loss in over five years.

Concerns that tighter credit conditions in China and Japan might dampen global growth first sent Shanghai sliding 9% overnight before the sell-off spread to other markets.

After sliding all day, U.S. stocks seemed to fall off a cliff in the afternoon, as data providers failed to keep up with selling programs, noted Stephen Sachs, head of trading at Rydex Investments.
"Right now, there's not even a flight to quality into gold or the Swiss franc, which tells me that we're closer to the beginning than to the end of this," Sachs said.

At the beginning? Hell's bells! It started at 9am, 9/11/1. Today is another magical, harmonic day. 2/27/2007 adds up to 9/11 in reverse. 2+2+7=11 and 2+0+0+7=9. How interesting. And because our rich and powerful leaders pray to the Devil that is Death and they use magic numbers, it doesn't suprise me to see Lady Luck pulling their collective legs and paying them back on a super-duper magic number day.

We should have changed the way we did things after 9/11. Going steeply into debt and letting the trade deficit go haywire and using oil like there is no tomorrow as well as wild military spending and starting ridicukous wars all over the place was the worse thing we could do and we did it.

Today, the Jews in Israel were here in DC demanding tribute. They want at least $12 billion more dollars for oppressing Palestinians and waging war all over the Middle East. On top of that, the Pentagon wants to up spending even more, we are surging troops into Iraq and Cheney was nearly blown up and that is the funniest thing today: we are shown, naked, to the Communist Chinese as utter fools, patsies and victims of pick pockets. So time to stick that knife in our ribs.

The Communists held a meeting this week where they discusssed how they will deal with the capitalists.

BEIJING, Feb. 27 (Xinhua) -- China's top officials were given ten lectures in 2006 on the major issues affecting Chinese society, according to a report by Xiaokang, a magazine related to the CPC Central Committee.

Since the lectures were introduced by Chinese President Hu Jintao four years ago, members of the Standing Committee of the Political Bureau of the CPC Central Committee and members of the Political Bureau of the CPC Central Committee have attended 38 such lectures.

The subject of the lectures was decided by the Policy Research Office of the CPC Central Committee. Fifteen fields, including law, the economy, technology, national defense, agriculture and education, were covered. Law was the most frequently discussed topic.

They never planned to live like the Japanese, feeding the American fatsos forever. Unlike the Japanese, they intend to cut off our funding and to do this at the worst possible time because this would weaken our ability to project power and they want Taiwan and we better get ready to hand it over because we are departing both Asia and the Middle East unless we become Saudi Arabia's mercenary army which means hell for Israel.

Investors were utter idiots in America, believing their own propaganda they churn out for chumps.

For much of the past year, stock prices have risen steadily as the economy appeared to be holding up despite a significant slowdown in growth. But that sense of optimism among investors took a mighty blow today.

“It was sort of one of those days where somebody snaps their fingers, and the market’s hypnotic trance is over,” said Stuart Hoffman, chief economist of PNC Financial. “We’ve had this, ‘What me worry?’ mentality. And this is a little bit of a wakeup call.”

A little bit of a wake up call? Like a bullet to the back of the brain! How many stupid hedge funds will the rabbits eat? How many hedge funds will the plague of locus devour? If any of those stupid pre-1929 entities are solvent in two years, I will eat a dinner of fried grasshoppers with ketchup.

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Comments

[DeVaul]

What do you mean by "pre-1929 entities"? Give me an example so I will know.

Just want to make sure you avoid your "dinner with fate" fair and square. :)

[JSmith]

" This is the definition of a total collapse:"

No it isn't. The US markets is still well above where it was when the dot-commies tanked way back in Y2K.

Compare 11722.98 (the record close before the dot-com bust) with 12289.78 (where we are right now, after ysterday's selloff.)

[Elaine Meinel Supkis]

Um. Smith, you left out all the 'red ink' stuff. Review all my graphs which I posted in the cartoon round up story. The fundamentals today are FAR, FAR worse than in 2000. No ifs, ands or buts.

Trade deficit, bankruptcies, government debt, personal debt, ect. All ten times worse.

[Elaine Meinel Supkis]

Also, inflation: bad. 12,000 points, if dollars would be far less if compared to 1929 dollars. Like, we are barely floating along and that, on a sea of red ink.

[DeVaul]

Elaine is right. In inflation adjusted terms, the Dow is still way down since 2000.

I am surprised you do not know about monetary inflation, Smith. I thought you were a mathmetician.

[JSmith]

OK... whatever you central bankers say.

Guess I'll start selling off my holdings and go buy some gold I can bury under the toolshed...

[DeVaul]

Well...it's your money. Do what you will.

[Elaine Meinel Supkis]

Smith, I have a backhoe. I'll bury your loot.

[blues]

Colloidal silver. Black dust, Non-conductive. Not findable with metal detectors. Some fools eat it to 'enhance health'. Eventually they turn bright blue, forever!

[cha]

"I will eat a dinner of fried grasshoppers with ketchup."

sounds tasty even though i'm not a ketchup man

Dow is only 30 companies. The wider market didn't do as well in the last 7 years

[Elaine Meinel Supkis]

When the cream of the crop wilts and then burns, you can bet a famine is around the corner.

As for the grasshoppers: my flock of hens would happily eat them for me, nay, they would break down the door of their chicken pen for grasshoppers.

[moder]

JSmith, things are decidely mixed on the markets. The NASDAQ at 2,407 is still at less than half of it's intraday high on March 10, 2000 of 5,133. The S&P 500 at 1406 is still 9.6% below it's intraday high of March 24, 2000 of 1553. That being said, the NYSE is up 27% from Sep. 2000.

[Elaine Meinel Supkis]

Thanks for the stats, Moder.

[Jack]

I'm just writing because I'd like to mention that the "dumb email" stated some valid points, but you pasted a screenshot of the message and wrote it off as stupid. Whether or not they were right doesn't make them stupid or smart; as a political analyst you should recognize your chance, if nothing else, to respond to their points and disprove them if you must. I'm not siding with them, necessarily, but I'm surprised at your reaction.

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