The conditions for huge trade imbalances with China really began under the Clinton administration. The problems needed to be dealt with early on but now that China holds much of our debt and is having its own economic crises and its leadership is threatened is not the time to corner this tiger. The response will be predictable. Did anyone in this administration learn anything about the causes of the last great depression? If nations try to solve this current crises through a retreat into protectionism we are heading for a huge world wide depression and wars. This is a prime example of why in a time of crises you do not put into power a man who has not shown any experience or any wisdom in his life.

We now see that the “yes we can” man picks for Treasury chief a tax cheat and he picks for Secretary of State an inexperience woman to head a bureaucratic staff that caused this trade imbalance problem to begin with. Now these global free trade “experts” think they will solve our economic crises by making the leaders of China who hold our dept lose face. What a joke!

Just two weeks into the new Presidency of Obama. He already broke his word about a moral administration when he picked two tax cheats for his Cabinet. His bipartisan promise has already failed with his stimulus plan and the attitude of vindictiveness and tyrannical control shown by the democrats running the House.

Obama is now kissing up to tyrants and terrorists that he should already have known would take it as a sign of weakness. By their recent rhetoric toward him that has proved to be true. His wrong headed direction in his dealing with Israel will only cause Israel to strike out on their own and further alienate them from the world. His policies on trials for terrorists like they were U.S. citizens will just embolden them. His polices in Afghanistan and Pakistan will turn into a much wider war. Now instead of “Bush’s war” the democrats will be bogged down in “Obama’s war” or even a world war. What goes around comes around.

Mexico is going to be a drug state on our border and Obama better address that problem with some wisdom (what wisdom?) His honeymoon with Castro and Chavez already seems to be falling apart. North Korea is on the brink of war with South Korea. What wisdom can he or Hillary bring to solve problems through agreements with a madman that Hillary’s husband started?

On the Military front Obama intends to cut funding ten percent so they can see defeat and also intends to allow homosexuals to flaunt their perversion to the pride of America so they can also destroy their moral and the all volunteer force.

On the home front through the FTC and local control boards he will try to stop talk radio and stop opposing voices. He will waste huge sums of money on programs to stimulate an economy by amassing huge debt that no one will finance. His energy and global warming polices will make energy unaffordable for most Americans and waste hundreds of billions of dollars. He will bring big socialist government and regulations controlling everyone and everything. Through taxation and regulation he will transfer wealth from the productive to the unproductive in our own nation. He will destroy any literal reading of our Constitution for a living constitution and appoint judges that will bend the nation to conform to their own liberal views. He will sign hate speech laws that will muzzle free expression and also muzzle Christianity.

He will fund killing babies with taxpayer money not just in the U.S. but in the world. He will transfer wealth from our nation to others nations of the world by signing UN global governance programs.

I could go on and on because the absurdness of Obama’s folly will have no end. Then when he destroys the nation and puts many in this nation in a position of rebellion and civil war the world power brokers will probably destroy Obama by releasing secret information that they have been covering up and he will become their sacrificial lamb. When the world media turns against him after he carries out most of their globalist agenda he may be driven out of office and the globalist controlled press will continue to pretend that they were always on the side of the American people.

US-China currency war eclipses Davos, and threatens the world :: Ambrose Evans-Pritchard

Turning a corner in the labyrinthine corridors of the Davos nerve-centre, I ran smack into Chinese premier Wen Jiabao – followed by a regiment of retainers and senior offices in full regalia.

Mr Jiabao smiled at me benignly, but he is not in a good mood. Indeed, he is fuming over the remarks by US Treasury Secretary Tim Geithner that China was “manipulating” its currency to gain market share. Reports were circulating this afternoon in Davos that Mr Jiabao erupted into a tirade after lunch at the mere mention of Mr Geithner’s name.

Mr Geithner – the first US Treasury chief who can actually speak Chinese, and Japanese, nota bene – is clearly operating under instructions from President Barack Obama. If his resolve fails, Hillary Clinton is there at Foggy Bottom (State Department) to renew the broadside against Beijing – at least judging by her Sinophobe reflexes in the campaign.

This has the makings of an almighty superpower bust-up. It is fast becoming the theme of Davos 2009. It may soon be the burning issue of our times. We will all learn how to pronounce Renminbi.

Mr Geithner is playing with fire. Beijing has amassed reserves of $1.9 trillion. From what we know, most of this money is held in the form of US Treasuries and other bonds. Creditors exercise power. Don’t be fooled by claims that China could not deploy this weapon without damaging its own interests. All kinds of things can and do happen when tempers flare, and they were flaring today.

The IMF’s chief economist Olivier Blanchard said it was unwise to “obsess” over the exchange rate in this fragile climate. “It is probably not the right time to focus on the Chinese exchange rate, given that it is not a central element of the world crisis. There are many other things we should be thinking about. It is an item on the list, but it is not at the top of the list.”

Stephen Roach, head of Morgan Stanley Asia, offered a harsher verdict, calling it pure folly to pick a fight with Beijing. “The Chinese economy most likely contracted in final quarter of 2008 and most likely in this quarter too. China has hit a wall,” he said.

“A country that is contracting doesn’t take kindly to its major trading partners saying you have to increase the value of its currency. What they are being told to do is tantamount to economic suicide,” he said.

Mr Jiabao said it was “imperative that China and the US step up their co-operation”. He pleaded with the West not to retreat into protectionism. Washington – and above all Capitol Hill — would be well advised to listen.

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