Skip to comments.WHO IS ATTACKING CHINA AND WHY?
Posted on 05/21/2004 11:57:33 AM PDT by FreeMarket1
WHO IS ATTACKING CHINA AND WHY?
By David Morgan, editor of Silver and Industry Trend Investor
This article first appeared on FreeMarketNews.com
Chinese issuances are coming under attack and the press is doing what it does best act as a gigantic echo chamber for whatever dominant financial influence has mustered the clout to utilize its services.
In this case wire reports tell us that: China Commissions Robinson cautions investors on Chinese stock and bond offerings.
If this were not enough to make you shiver, the report invokes the name of the U.S.s dominant financial media enterprise to make sure you, the reader, understand the gravity of the situation: The front page of today's Wall Street Journal, features a lengthy, above-the-fold exposé of the initial public
offering by China Life, a state-owned insurance company, that last December raised some $3.5 billion on the New York Stock Exchange.
Worried now? The report has details gleaned from the Journal article that make it clear you should be. Only thereafter was it disclosed that the China National Audit Office had been poring over China Life's books for much of 2003. It turns out that the auditors had detected numerous accounting irregularities and violations of law, including fraudulent handling of some policies.
The result? The stock price fell significantly as American and other unwitting international investors who had hugely oversubscribed this IPO finally learned the truth about these "widespread irregularities."
Whom do we have to thanks for this newfound knowledge? Why its the chairman of the U.S.-China Economic and Security Review Commission, Roger W. Robinson, Jr. Hes quite a quotable fellow: "In the post-Enron era, these black boxes are becoming a real concern. As corporate governance gains prominence, Chinese issues will receive more scrutiny."
Now, who is Mr. Robinson? Lets hunt down his bio on the Net. Quite impress ive really. The gentleman has worked in the field of trade relations at the highest levels of government and directly served under several presidents. His private-industry experience is lustrous as well: Prior to joining the NSC staff, Mr. Robinson was Vice President in the International Department of the Chase Manhattan Bank in New York City. As a banker, he had responsibilities for Chase's loan portfolio in the USSR, Eastern Europe and Yugoslavia for five years.
Geez. Chase Manhattan. Isnt that wait. Look at this! His bio informs us that: He also served for some two and a half years as a personal staff assistant to former Chase Chairman David Rockefeller and earlier on assignment with the Chase branch in Tokyo.
David Rockefeller. Imagine that.
Those who are regular readers of my reports know that I am fairly enthusiastic proponent of Franklin Roosevelts credo that nothing in politics ever happens by accident. I also happen to believe that public service is merely a mechanism by which powerful private interests gain their objectives through regulatory capture as lawyers so delicately put it. Those who make the laws, you see, are in a position to profit from them. And no one in the history of the 20th century, and now the 21st, has profited more handsomely from the crucial intersection of self-interest and public policy than David Rockefeller.
No matter what financial and social histories you read, so long as they are fairly objective, you will find David Rockefellers name writ large or small nearby most momentous events designed to advance U.S. interests and globalist causes. From the deeding of the land for the United Nations headquarters, to its founding and initial charter -- worked up by the eager young socialists he likes to befriend and push into positions of power -- to the opening of the Soviet Union (and probably China) you will find Rockefellers name nearby.
Rockefeller, in tandem with others who share his worldview, has seemingly been at the forefront of almost every single political event of significance for the last 50 years. It is truly astonishing how hard Rockefeller works on
behalf of his own interests and those who are associated with him.
Of course, Rockefeller is at a fairly advanced age now: But if we look hard enough, perhaps we can discern some stirring of the waters in the wake of the powerful mechanism of world governance he created. Yes, indeed, the water is choppy here. The fine hand of Rockefeller and the interests he represents are traveling purposefully nearby.
I think they are going to China.
Actually, they are already there, along with all the powerful old money from Europe the representatives of which populate that fine and hopeful instrument of transnational government, the European Union.
So, since we are at least realistic, if not paranoid, at least quizzical if not cynical, we are left with -- at the very least -- the following modest list of questions:
--Why is someone associated with the internationalist Rockefeller group attacking China? --Why are they warning the U.S. buying public about Chinese public offerings? --What do they gain from any loss of investor confidence in Chinese issuance?
I am not at the moment sure of the answers.
Perhaps American interests are merely warning Chinese ones not to become too chummy with the Europeans. (We can still rock the boat.) Or perhaps there is some concern that full-blown China mania is happening too soon and that it needs to be slowed somewhat through the application of the U.S. regulatory and media apparatus. Realistically, regulatory pressure has always been applied to urge those who are on the receiving end to share the wealth. (This kind of activity usually results in a more practical power-sharing arrangement.)
I do know that the concern of the U.S. government for its smaller shareholding citizens is on a par with the Carpenters faux sympathy for the oysters he was about to eat in Alice in Wonderland. (Theres no there there.) No, the U.S. government and those who make it, shape it and nurse its vital signs, have hollowed out the industrial base of America, transferred its wealth overseas and converted its currency from precious metals to base metal and wood pulp (paper).
The headlines reverberating in the media echo chamber seem aimed at warning investors off China. I think they are aimed at the Chinese. Perhaps this is the right supposition. If so, watch for a flurry of news stories about Chinese reactions ranging from belligerence to cautious cooperation as behind the scenes, the pot is being reconfigured.
In this scenario, American interests will insist on more of the pie; the vast Chinese public enterprises controlling the issuance of public debt and equity in the United States and China will agree to spread the wealth.
Once the details have been worked out, the headlines will blare again with modest reassurances that the Chinese are aware of their governance issues are taking steps to rectify the problems. The game will begin anew. The mania will mount, as it is intended to fiat money demands mania in fact and those who have positioned themselves properly will benefit accordingly.
I am not sure of the reasons why certain U.S. interests are attacking Chinese ones. But I am certain that concern for the small American shareholder is not the motivating factor. In fact, these headlines make me more convinced than ever that the game is afoot in China. New hands having been dealt, the
action will recommence. I intend to play.
Bottom-line it for me: Are we all gonna die?
Probably not all at once. But there are certain scenarios which dispute this.
Well, actually, they do. A huge chunk of it goes to Russia to buy all kinds of arms. Another huge chunk goes to fund state run "enterprieses" that are fronts for China's vast intelligence initiatives. A lot gets lost in the nearly limitless swamps of corruption. They are also buying up staggering amounts of Treasury bonds.
But I do agree that despite all that they have a huge surplus of dollars that they don't quite know what to do with.
The walls are going to fall down and we'll all be killed.
In the long run we're all going to die.
It's not like Congress doesn't know this.
Look through Steve La Tourette's website and find co-sponsered by him on China honoring their bond payments to American investors.
Eventually, yes. In the mean time just maybe suffer a little (or a lot) more...
I do know that commodities like portland cement and metals have gone up in price because China is using so much of these items in their construction projects.
It's having an effect-- concrete pours have been delayed for weeks now, locally.
It was a mistake to engage them economically from the beginning. From MFN status to the HongKong handover, stupid mistakes. We should have taken a stance of economic aggression against the Communists. They probably would have fallen by now, with an emerging free market.
Mistakes? - not by Rockefeller. Everything was done on purpose.
We should have taken a stance of economic aggression against the Communists. They probably would have fallen by now, with an emerging free market.
As FM1 indicates, ain't nuthin' happens by accident.
Agreed. Not a fun road to mentally go down.
In the end, I think we all realize that politicans, with few exceptions, are not serving We The People.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.