Showing posts with label import/export. Show all posts
Showing posts with label import/export. Show all posts

Tuesday, April 25, 2017

Op-ed:
The Upper Hand Remains Ours
By: Diane Sori / The Patriot Factor / Right Side Patriots

Thanks to President Trump, China appears to be trying to reign in the insane North Korean man-child Kim Jong-un for China’s President Xi Jinping understands well that the U.S. could and most likely will take unilateral action against the North Korean dictator if he keeps up his saber rattling and rocket launching.

And with President Xi saying that China "is committed to the target of de-nuclearization on the peninsula, safeguarding peace and stability on the peninsula, and advocates resolving problems through peaceful means," it becomes apparent that Xi knows that to do so would benefit China’s economic pocketbook...but is there actually more to his words and even more at stake than seen at first glance.

And yes...there is more at stake...much more...what with Kim Jong-un now threatening not just South Korea and Japan but threatening also to do a “mighty pre-emptive strike against the U.S.”...that is if his rockets do not keep falling into the sea. And these recent threats have seen China moving its military towards their shared border because Xi is wise enough to know that first, a war on the Korean peninsula would not serve China’s said pocketbook nor its pecking order on the world stage well and second, he also knows that a loony man-child like Kim Jong-un could just as easily turn on China... the very country that made and still finances his dictatorial bed.

In other words, while both China’s government and her people know they would suffer and suffer greatly on the economic front if war did indeed break out, they also know that both prestige and regional influence not only comes into play, but that sometimes those two factors trump even the economic scenario. And that is why President Trump tried to put the ball back in our court when he told President Xi in a recent telephone conversation that “a trade deal with the U.S. will be far better for them (China) if they solve the North Korean problem!”
 
Translation: Trump made it clear that China must, no matter the cost to them, reign in Kim Jong-un for China not only needs bi-lateral trade deals and investments with the U.S., but with us now flexing our military muscle the dynamics in both the Middle East and the Far East have changed...as in the U.S. is now leading from the front having replaced Obama’s leading from behind.

And that particular dynamic has common sense dictating that if China was smart they would switch sides in the North Korean standoff or at least call for the man-child to stand down...something they now seem somewhat to be doing.

But if truth be told an actual outward switching of sides will not be that simple for China to do what with China being a big brother, a mother, a father, and an overseer all rolled into one in regards to North Korea. And this is but a symbiotic relationship that started when China’s Chairman Mao sent more than a million Chinese troops to fight in the Korean War, and that very act directly afforded Kim Jong-un’s grandfather, Kim Il-sung, the ability to keep control of the northern half of the Korean peninsula. But as the years have unfolded, China ever so slowly has started to see and digest the reality that the current regime of Kim Jong-un has done absolutely nothing to benefit China’s growing national interests nor for its growing economy...in fact the man-child has actually harmed China’s long-coveted super-power status in certain key ways.
 
How so...with North Korea having the nuclear bomb...albeit at this time minus a successful delivery system...which in time please know they will get...and with North Korea lying on China’s eastern border...they can and do try to pretend that they are a major power broker. And as such with both threats and accusations they have held the true power brokers at bay...power brokers including China, Russia, and until just recently these United States.

Thankfully, that scenario changed for the U.S. when President Trump recently ordered U.S. warships and aircraft carriers to the waters off North Korea’s coast.

So, if an actual switching of sides by China might not be realistically feasible at this given point in time what with Chinese so-called ‘saving face’ also coming into play...know that in the near future it just might happen. And why...because China can ill-afford having a loon next door going ‘rogue’ without warning, and because the Chinese know that the U.S. dollar is mightier than North Korea’s saber rattling sword.

And how so...first let’s look at a few key number facts* about both China’s and our U.S. economy and see who, if anybody, actually holds the much needed upper hand and why they do so. 

Fact: China, thanks to rapid industrialization, is the world's largest economy with $21.27 trillion in 2016 (with the allowing for adjusted purchasing power parity which is simply the exchange rate between two currencies equaling the ratio of the currencies' respective purchasing power); the European Union is second at $19.1 trillion; and the United States, thanks to Obama’s total economic disasters, is now in third place at $18.5 trillion. But even with this China’s economic growth slowed to 7.7% last year, it continues to show some signs of decelerating further. This has certain trading partners worried, especially those that export a lot of resources to China...trading partners like Brazil and Australia.

But for China this slowdown in growth is not necessarily a bad thing as a slowing down usually does happen after years of rapid growth. And China has had an eight-fold increase in living standards in a mere 30 years...an increase that took the U.S. 122 years and Japan about 80 years to achieve. Or as economist Barry Naughton states, “China’s growth is slowing in part because it has graduated early.”

Fact: as of this past February the U.S. debt to China stands at $1.059 trillion and climbing...as in 27.8% of the $3.8 trillion in Treasury bills, notes, and bonds held by foreign countries. The rest of the $19.9 trillion national debt is owned by either the American people or by the U.S. government itself, and that once thought unimaginable number of monies owed is again thanks to the free-for-all spending of one Barack HUSSEIN Obama. 

Fact: China exported about $482 billion in goods to the U.S.in 2015 (the latest finalized numbers available), more than any other country who exported goods to the U.S., and that is according to the Office of the United States Trade Representative. However, we exported just $116 billion in goods to China during the same year, putting our goods trade deficit at $366 billion. 

Fact: China buys U.S. debt to support the value of the dollar. And why...because China ties in its currency (the yuan) to the U.S. dollar, and devalues said currency when needed to keep its export prices competitive. 

And much to the chagrin of so many, it appears on the surface that it is China who holds the upper hand in regards to the above facts for China's role as America's largest banker, if you will, gives her needed bargaining leverage no matter how the media tries to claim it does not. And China quite often, and not so quietly, states that it will sell off part of its U.S. holdings (and that includes its land holdings) if we continue to pressure her to raise the yuan's value. In fact, since 2005, China raised the yuan's value by 33% against the dollar, and between 2014 and 2015, the dollar's strength increased by 25% causing China to allow the value of the yuan to decline. And why did they allow this...simply...this decline allowed China’s exports to remain competitive with Asian countries that did not tie their currency to the U.S. dollar. 

So where exactly does our economic upper hand come in or do we actually have one at all? First, to outwardly gain the economic upper hand within a short period of time some say we can always place tariffs of up to 45% (remember President Trump spoke about that during the campaign) on goods coming into the U.S. from China. However, doing this would actually hurt both our countries as we are a prime export market for Chinese goods, and so in turn U.S. companies would lose access to China's growing middle class. 

And then China, a country who has now for all intents and purposes actually embraced capitalism, can always choose to rid itself of its U.S. Treasuries which would negatively affect U.S. financial markets by its causing so-called downward ‘shifts’ in the dollar or interest rates.

So where does our economic upper hand really lie...it lies with the fact that as China’s economy continues to develop no matter a temporary slowdown, they are now being forced to pay their workers more which in turn sees low-cost manufacturing jobs leaving China for even lower-cost countries like Vietnam, Bangladesh, and even (gasp) Mexico. And as per The Washington Post, China has also exhausted most of what economists call 'catch-up' growth from acquiring the technologies of more advanced markets for as countries catch up and get richer, their economic growth just tends to slow...and might I add while our economic growth is finally moving forward instead of just holding steady.

So how and why does all this affect China’s sudden cooperation in reigning in North Korea’s man-child Kim Jong-un...or at least their trying to. First, China is North Korea’s chief economic so-called ‘pipeline’ and that means they supply Kim Jong-un with the oil and coal needed to keep his country operational, meaning if said oil and coal is not supplied then the North Korean economy...no matter how unstable it already is...would totally collapse in full. 

Second, if that collapse did happen the Kim family dynasty would obviously come to an end, which in turn could lead to a unified Korea (which by the way will eventually happen) led by the South, which is home to tens of thousands of American soldiers sitting right on China’s border. And lastly, that would be coupled with countless numbers of refugees from the north flooding into China which would negatively impact their economy...that is unless beneficial economic trade agreements were reached between Beijing and Washington...trade agreements that would bring into China enough cash to balance out all the new mouths they would now be forced to feed.

And how does this new cooperation in turn affect the U.S...it allows the U.S. to have leverage over both any new trade agreements reached as the Chinese now know they need the increased trade and resulting cash flow in case Kim Jong-un does the unthinkable...as in turn on the so-called Chinese hand that feeds them. And that possibility is now starting to loom large what with China now doing what Kim Jong-un never thought they would do...as in suspend all imports of North Korean coal for the rest of this year. 

So in the end when push comes to shove, China does need us more than we need them for the dollar is indeed mightier than Kim Jong-un’s ever threatening sword. 
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*Number facts cited from Real Money, The Washington Post, and The Balance
 Copyright © 2017 Diane Sori / The Patriot Factor 
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RIGHT SIDE PATRIOTS...LIVE!

Today, Tuesday, April 25th from 7 to 9pm EST on American Political Radio, RIGHT SIDE PATRIOTS Craig Andresen and Diane Sori discuss who has the upper hand in regards to North Korea, misplaced indignation from both sides of the political isle, and important news of the week.

Hope you an tune in at: http://bit.ly/2cpXuRd

Sunday, May 4, 2014

Op-ed:  
Government Land Grabs: The Truth Exposed - Part 3
By: Diane Sori 
 
BLM land already owned
Before I begin please read parts 1 and 2 (out of 4) of my RIGHT SIDE PATRIOTS partner Craig Andresen's expose on these federal land grabs either on his blog 'The National Patriot' www.thenationalpatriot.com or on my blog 'The Patriot Factor' www.thepatriotfactor.blogspot.com as each part leads into the next part.
 
Now let's recap some important facts...according to the Congressional Research Service, the federal government (including the U.S. Bureau of Land Management, the U.S. Forest Service, National Parks, and military bases) controls roughly 81% of the land in Nevada, 62% in Alaska, 67% in Utah, 53% in Oregon, 62% in Idaho, 42% in Arizona, 48% in California, 48% in Wyoming, 35% in New Mexico, and 36% in Colorado, and the BLM also controls 700 million acres of subsurface mineral estates throughout the nation.
 
'Supposedly' desolate land wanted by BLM
These numbers equate to roughly 260 million acres in the western states...translating into a land grab equal to the size of Colorado and Wyoming combined...with most of that land being listed as mixed-use land (land allowing for two or more different types of uses, for example land used by the public or rented to private companies)...but now the feds want to transfer 140 million of those 260 million acres over to what they call 'Treasured Land' status (land that NO citizen or private company can access).
 
But why are the feds so interested in gobbling up the western lands as opposed to lands in other parts of the country...as Craig told you in Parts 1 and 2...it concerns reserves of oil and natural gas in addition to controlling the flow of water (he who controls the water controls the populace), but there is more to it and it has ramifications for every man, woman, and child in these United States for what sits under the surface of the land is what the feds are so desperate to control...and in a word it's 'uranium.'

Uranium deposits on BLM land
Uranium...one of the most precious elements on Earth...primarily used for the generation of nuclear power, but it's also used for quite another purpose...as in nuclear weapons...as in the main component of America's nuclear arsenal lies under the surface of the lands the feds are trying to grab.

And what will happen to all this uranium as thanks to Obama lowering the numbers in our nuclear weapons arsenal and his placing a moratorium on building any new nuclear power plants...nuclear power plants that would help supply America's energy needs thus cutting our dependency on foreign oil...on Arab oil. And remember, the feds would NOT be so desperate to grab up land that was just going to sit there, so if we can't mine or use the uranium then who will?  
 
When you cut through all the subterfuge that is a hallmark of this administration one country alone comes to mind...China. And China will benefit from our uranium at the expense of the American people.

China currently has 49% of the world's reactors under construction...we have 2%...so their need for uranium is great. And with China on target to build and complete their much needed nuclear power plants within 5 to 10 years in order to help supply clean energy to its growing populace, China will need uranium and lots of it. And while China does have some deposits of uranium, that uranium is embedded in coal and burning that coal to get to the uranium would cause pollution levels to rise to what's known as 'choking conditions'...levels so high that just the idea of burning said coal has forced China's hand to garner their supply of refinable uranium from other countries for their energy needs.

New Mexico uranium mine
Now enter center stage the U.S. With major deposits of uranium under the surface of the lands the feds are trying to grab...and with the U.S. owing China huge sums of money you just know that once the feds own the land...actually steal the land...that 'suddenly' it will be announced that this administration will allow China to mine the uranium to pay off America's notes due. And in allowing China to mine the uranium that they will ship home to be refined...and to probably drill the oil and tap into the natural gas on these lands as well...a country we owe countless dollars to will be allowed by the feds to strip our lands of its natural resources...of energy sources our country could use to cut our dependency on foreign oil.

And why will Obama allow this...the answer is quite simple. Remember, China has lent us billions of dollars and even when we defaulted on the notes due, and even though we've only paid interest on said notes, China continues to lend us money...continues to do so even as the dollar declines in value, as our S&P credit ratings continue to drop, all while Obama continues to have his hand out. So why is China willing to lend us money...it's because China wants...China needs...the uranium that's under our land because as their population grows they need to meet their population's energy needs.  
 
Simply, China does NOT want American land per se as some have feared...China wants what's under the land and they want it all...period. And as we continue to pile up notes owed to them, they could very well will soon own it all because we are indeed indebted to them.
 
Chinese nuclear plant under construction
And with the U.S. using 55 million pounds of uranium each year...equating to 25% of the global supply...we only produce 5% of the global supply...meaning we import over 90% of the uranium we use. But 5% would still be enough to fuel all our energy needs so why don't we use our own uranium...price manipulation is why. Think of it this way, if we used our own uranium it would drive down the price of uranium on the global market as we, the biggest buyers of uranium, would NOT be buying what we need from others. By our NOT using our own supplies this helps to keep the global commodities price of uranium artificially high. And anyway, if we did use our own uranium, over time we would gain energy independence and our economy would flourish cutting away at our dependence on Arab oil.

And there's a very strange caveat in all this for instead of outright selling our uranium we instead export some of our uranium to Canada (amongst other countries including Taiwan NOW part of China) and in return Canada imports their uranium back to us. And this makes NO sense for why are we exporting what is being imported right back to us? The answer to that is simple...Craig and I believe Canada might be acting as a 'straw-man' for our uranium to be sent directly to mainland China NOT having to go in small quantities through Taiwan and doing so under the radar...remember Canada does sell its uranium to China so why NOT sell them our exported uranium too. The feds make money...lots of unreported money...Canada makes money, and China is happy that they don't have to go to the costly expense of refining it from their coal deposits which would add to their pollution problems.

So as Barack HUSSEIN Obama revels in selling us out to China to pay off the debts he's run up, an added bonus to him is that he gets to keep us dependent on his brethren's oil for decades to come.

Thorium deposits on BLM land
And guess what else is under the feds grabbed up lands that China so desperately wants...that China so desperately needs...an element called thorium. China is currently working on a uranium-free nuclear plant in its attempt to break reliance on pollution causing fossil fuels and to hold down the costs of having to refine uranium. And using the cheaper and environmentally cleaner radioactive element thorium instead of uranium would be a win-win for them all the way around.

Now add into the mix Iran who desperately needs uranium for their nuclear ambitions. Iran does NOT have the needed deposits of raw uranium so Iran must get their uranium from other countries...like their trading partner China perhaps. But, if Obama allows China to mine uranium on the lands they've grabbed to pay off our notes due, and if China then decides to sell or trade some of the uranium they've mined in the U.S...or if China gets our uranium through sales from Canada...we still have NO control over what China does with anything coming from our country. Think about that for moment...our uranium possibly mined by China on U.S. soil or our uranium coming to them through Canadian exports could be sold to Iran by China.

And here's a little something else to raise your ire...the BLM claims that they're grabbing these lands to keep them environmentally safe...to protect endangered species. And that is a lie as The Arizona One Mine is producing uranium in northern Arizona on land managed by the BLM itself. Originally approved by BLM in 1988, this mine has been in active production since 2009, producing up to 300 tons of ore per day that is processed at White Mesa Mill by Energy Fuels, Inc., a Canadian company known to do business with China.

White Mesa Mill on BLM land 
This company that sells to China also explores for mines, develops and produces uranium and vanadium properties throughout the western United States on property managed by the BLN, with its principal properties located in Utah, Arizona, Colorado, New Mexico, and Wyoming ...the very lands the feds are grabbing up.

What a vicious circle of deceit and lies courtesy of our federal government.

And there is something else you need to know concerning what's under the ground of the federally grabbed lands, and it will be explained in tomorrow's Part 4 of Craig's and my expose on these government land grabs...and it's something that will shock you like nothing before.