War on Currency?

[theDoors]

Pentagon, bankers, prepare for financial warfare
Posted By Annie Lowrey Thursday, April 9, 2009 - 11:56 AM Share
http://blog.foreignpolicy.com/posts/2009/04/09/pentagon_bankers_prepare_for_financial_warfare

The Politico reports that the Pentagon invited a host of banking and investment experts to participate in a war game anticipating how foreign countries or rogue entities might try to cripple the U.S. financial system.

Participating professors, hedge fund managers, and bank executives were separated into five teams -- the United States, Russia, China, "East Asia," and "Others." They sat at tables facing large screens with streaming financial data. Then, the Department of Defense staffers would simluate a "global calamity," such as the "collapse of North Korea, Russian manipulation of natural gas prices, and increasing tension between China and Taiwan." The result?

At the end of the two days, the Chinese team emerged as the victors of the overall game – largely because the Russian and American teams had made so many moves against each other that they damaged their own standing to the benefit of the Chinese....

[One participant says] the event left him questioning one prevailing assumption about economic warfare, that the Chinese would never dump dollars on the global market to attack the US economy because it would harm their own holdings at the same time. Bracken said the Chinese have a middle option between dumping and holding US dollars – they could sell dollars in increments, ratcheting up economic uncertainty in the United States without wiping out their own savings. “There’s a graduated spectrum of options here,” Bracken said.

One final detail: the name of the game was, erm, "WALRUS," an acronym for the "Warfare Analysis Laboratory Registration and User Website." If the Pentagon's going to envision further collapse, something like "BARTER ECONOMY" might be more fitting.

 

[theDoors]

TARP's International Impact Greater Than Impact of Other Nations' Rescues on America
Panel Recommends Further Stress Testing and International Financial Crisis "War Games"

WASHINGTON, D.C. - The Congressional Oversight Panel today released its August oversight report, "The Global Context and International Effects of the TARP." The report recommends that Treasury collect data on cross-border flows of funds, increase the scope and frequency of stress testing on financial institutions, and collaborate with foreign policymakers on a cross-border resolution regime and for regular crisis planning and financial "war games."

The financial crisis that began in 2007 exposed the interconnectedness of the global financial system. Although the crisis began with subprime mortgage defaults in the U.S., its damage spread rapidly overseas. The Panel found that policymakers were ill-prepared for such a worldwide crisis and that "the internationalization of the financial system has outpaced the ability of national regulators to respond."

Despite the limits of international coordination, most countries ultimately intervened in markets using the same basic set of policy tools: capital injections to financial institutions, guarantees of debt or troubled assets, asset purchases, and expanded deposit insurance. The U.S., however, targeted its rescue very differently than other countries. While most nations targeted their funds to save individual institutions, America simply flooded the markets with money to stabilize the system. Since much of this money accrued to U.S. institutions with extensive international operations, it appears that America's rescue had much greater impact internationally than other nations' rescues had on the U.S.

The Panel made several recommendations, including:

Policymakers need strong, clear data to measure the success of their rescue efforts and to respond effectively to future crises. Treasury gathered very little data on how bailout funds flowed overseas, which makes pinpointing the exact amounts and sources of the flow of cross-border rescue funds impossible. In the interests of transparency and to help inform regulators' actions in an increasingly integrated world, the Panel urges Treasury to collect and report more data about the international flow of TARP funds and to document the TARP's impact overseas.

The Panel believes financial "war gaming" and "stress tests" should be used much more widely. One of America's most powerful tools in the financial crisis, and one that was emulated by other countries, was the Supervisory Capital Assessment Program (SCAP), or "stress tests." On the international level, vigorous stress tests could identify the weakest points of the international financial system and allow policymakers to plan an emergency response. U.S. officials should encourage regular international crisis planning and financial "war gaming."

The crisis revealed the need for an international plan to handle the collapse of major, globally significant financial institutions. A cross-border resolution regime could establish rules that would permit the orderly resolution of large international institutions, while also encouraging contingency planning and the development of resolution and recovery plans. Such a regime could help to avoid the chaos that followed the Lehman bankruptcy and the struggles that preceded the AIG rescue.

The full report is available at cop.senate.gov.

The Congressional Oversight Panel was created to oversee the expenditure of the Troubled Asset Relief Program (TARP) funds authorized by Congress in the Emergency Economic Stabilization Act of 2008 (EESA) and to provide recommendations on regulatory reform. The Panel members are: J. Mark McWatters; Richard H. Neiman, Superintendent of Banks for the State of New York; Damon Silvers, Policy Director and Special Counsel for the AFL-CIO; Kenneth Troske, William B. Sturgill Professor of Economics at the University of Kentucky; and Elizabeth Warren, Leo Gottlieb Professor of Law at Harvard Law School.

August 12, 2010

For Immediate Release

732 North Capitol St., NW, Rooms C-320 and C-617, Mailstop: COP, Washington, DC 20401

 

[theDoors]

I believe the current US campaign against the Yuan is carefully well thought out plan from financial war gaming conducted by the Pentagon.

The dollar depreciation is intentional as a form of financial warfare.

 

[silliporean]

The West and a few others are finding an excuses to default their sovereign debts owing to China.

They spent what they dont have, went on a borrowing spree from China and now they are telling China to be more responsible whilw handling her Foreign exchange?

 

[mayliewwan]

Did the commies repay the IOUs when they seized power in 49???

The West and a few others are finding an excuses to default their sovereign debts owing to China.

They spent what they dont have, went on a borrowing spree from China and now they are telling China to be more responsible whilw handling her Foreign exchange?

 

[longbow]

Aiyoh no conspiracy theory about war lah. Very simple. US has huge debts and will continue to run deficits for a far as eye can see. So they keep printing $$ as sucg their US$ getting weaker.

If they have huge amount of US$ denominated debt, if they devalue their currency they are reducing amount of debt they pay back.

Furthermore if there is indeed a war against China, they are stabbing themselves in their heart. A majority of US consumer products are made in China, if they cost more they will affect profitability of the thousands of US companies with stuff made in China. And they will cause consumer prices to increase (inflation!!).

I think right now is US boh pian and have to keep printing money.

 

[theDoors]

Aiyoh no conspiracy theory about war lah. Very simple. US has huge debts and will continue to run deficits for a far as eye can see. So they keep printing $$ as sucg their US$ getting weaker.

If they have huge amount of US$ denominated debt, if they devalue their currency they are reducing amount of debt they pay back.

Furthermore if there is indeed a war against China, they are stabbing themselves in their heart. A majority of US consumer products are made in China, if they cost more they will affect profitability of the thousands of US companies with stuff made in China. And they will cause consumer prices to increase (inflation!!).

I think right now is US boh pian and have to keep printing money.

The thing is, United States is the single country with the largest holder of gold reserves, 8000 tons. Yet it has never offer to repay a single cent of the multi trillion national debt with a single ounce of gold.
http://en.wikipedia.org/wiki/Gold_reserve

It just prints more money to buy up existing debt. I think the Washington Wall Street banking cabal is playing paper money inflation game to bankrupt countries holding US dollars as reserve currency.

 

[prince123456]

yes .. usa knows gold is king................... never never give out any of your gold reserve.. in fact i am suprised.. sg is no 25... gold reserve..

 

[theDoors]

yes .. usa knows gold is king................... never never give out any of your gold reserve.. in fact i am suprised.. sg is no 25... gold reserve..

http://www.straitstimes.com/print/BreakingNews/Money/Story/STIStory_586785.html

Billionaire financier George Soros, echoing comments from investment guru Warren Buffett, last month described gold as the 'ultimate bubble' because it is costly to dig up and has no real value except its market price. -- REUTERS
Copyright © 2007 Singapore Press Holdings.

Such people are hypocrites.....

 

[theDoors]

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

Currency Wars by Song Hongbing, also known as The Currency War, [1] is a bestselling book in China, reportedly selling over 200,000 copies[2][3] and is reportedly being read by many senior level government and business leaders in China.[4] Originally published in 2007 the book gained a resurgence in 2009 and is seen as a prominent exponent of a recently emerged genre labeled "economic nationalist" literature.[4]

Another bestselling book within this genre is Unhappy China, however, unlike this and other books within this genre, Currency Wars has been received more positively by the Chinese leadership as its recommendations are seen as less aggressive towards the US.[4]

The premise of this book is that Western countries are ultimately controlled by a group of private banks, which according to the book runs their central banks. This book cites the fact that the Federal Reserve is a private body to support its role. The book's author correctly predicted a banking crisis in the US in 2008. In July 2009 the book was followed by a sequel, Currency Wars 2, which The Financial Times reported as being one of the most popular books in China by late 2009. [5]

 

[theDoors]

http://www.theaustralian.com.au/bus.../story-e6frg90x-1111114509943?from=public_rss

THE Battle of Waterloo. The deaths of six US presidents. The rise of Adolf Hitler. The deflation of the Japanese bubble economy, the 1997-98 Asian financial crisis and even environmental destruction in the developing world.

In a new Chinese bestseller, Currency Wars, these disparate events spanning two centuries have a single root cause: the control of money issuance through history by the Rothschild banking dynasty.

Even today, claims author Song Hongbing, the US Federal Reserve remains a puppet of private banks, which also ultimately owe their allegiance to the ubiquitous Rothschilds. Such an over-arching conspiracy theory might matter as little as the many fetid tracts that can still be found in the West about the "gnomes of Zurich" and Wall Street's manipulation of global finance.

But in China, which is in the midst of a lengthy debate about opening its financial system under US pressure, the book has become a surprise hit and is being read at senior levels of government and business.

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"Some senior heads of companies have been asking me if this is all true," says Ha Jiming, chief economist of China International Capital Corp, the largest local investment bank.

The book also gives ammunition, however haywire, to many in China who argue that Beijing should resist pressure from the US and other countries to allow the yuan to appreciate.

The book's publisher, a unit of the state-owned CITIC group, says Currency Wars had sold almost 200,000 copies, with an estimated 400,000 extra pirated copies in circulation as well.

Song, an IT consultant and amateur historian who has lived in the US since 1994 and is now based in Washington, says his interest was sparked by trying to uncover what lay behind the Asian crisis in 1997. After he began blogging some of his findings, his friends suggested he find a publisher for a longer work. He professes himself surprised by the book's success.

"I never imagined it could be so hot and that top leaders would be reading it," he says during a book tour in Shanghai. "People in China are nervous about what's going on in financial markets, but they don't know how to handle the real dangers. This book gives them some ideas."

The thing that most shocked him, he says, was his "discovery" that the Fed is a privately owned and run bank. "I just never imagined a central bank could be a private body."

The Fed does describe itself "as an unusual mixture of public and private elements". While its seven governors are all appointed by the US president, private banks hold shares in its 12 regional reserve banks.

But Song ignores the government's role and argues that the Fed's key functions are ultimately controlled by five private banks, such as Citibank, all of which maintain a "close relationship" with the Rothschilds.

Song is defensive about his focus on the Rothschilds and what the book depicts as their Jewish clannishness.

"The Chinese people think that the Jews are smart and rich, so we should learn from them," he says. "Even me, I think they are really smart, maybe the smartest people on earth."

Jon Benjamin, chief executive of the Board of Deputies of British Jews, is not impressed. "The Chinese have the highest regard for what they see as Jewish intellectual and commercial acumen," he says. "This claim, however, plays to the most discredited and outmoded canards surrounding Jews and their influence."

Ha puts the book's popularity down to the decade-long stagnation in Japan and the Asian financial crisis, which he says had a profound impact on many Chinese policy makers.

Chinese officials remain deeply suspicious of advice from Western countries to open up the financial system and float the currency. "They think it is just a new way of looting developing countries," Ha says.

Song himself has been commissioned to write a number of new books to capitalise on his success: on the yen, the euro and also on China's financial system.

But he sounds hesitant about the line his future tomes might take. "This book may be totally wrong, so before the next one, I have to make sure my understanding is right," he says. "Before, I was a nobody, so I could say anything I liked, but now the situation has changed."

 

[huahero]

I believe the current US campaign against the Yuan is carefully well thought out plan from financial war gaming conducted by the Pentagon.

The dollar depreciation is intentional as a form of financial warfare.

The country that promotes World Peace, Human Rights and Freedom is infact the Biggest trouble maker!:oIo: They just hate others getting better than them.

 

[theDoors]

http://www.straitstimes.com/print/BreakingNews/SEAsia/Story/STIStory_589213.html

Oct 11, 2010 Gates reassures allies
HANOI (Vietnam) - THE United States will back up small Asian nations who feel bullied by China and will insist on diplomatic solutions to territorial disputes among China and Pacific neighbors, US officials said.

US Defence Secretary Robert Gates is in Vietnam to reassure jittery South-east Asian nations that the United States won't cede its longtime role as the pre-eminent military power in the Pacific as Chinese naval ambitions expand.

The United States is concerned that newly heated disputes over Pacific island chains little known to most Americans could hurt access to one of the world's busiest commercial sea lanes. Smaller nations complain that China may try to seize the areas outright or assume de facto control with naval patrols.

Mr Gates was scheduled to see a Chinese general on Monday, and both were attending an Asian security ministers' meeting on Tuesday. Mr Gates will meet separately with delegates from some of the small nations that want US support to counter the growth of China as a regional power.

Pentagon officials travelling with Mr Gates said he will make the same argument about US interests in the Pacific and the limits of Chinese dominion that has infuriated China before. The officials spoke on condition of anonymity ahead of sensitive discussions among South-east Asian defense chiefs.

President Barack Obama and South-east Asian leaders recently reiterated support for a peaceful resolution of the disputes, which some fear could set off Asia's next conflict. The United States is trying to persuade China that it would be better off with smoother, more regular contacts between the two militaries. Their relationship has been fitful and mostly superficial for years, in contrast to closer economic and political cooperation. -- AP

Copyright © 2007 Singapore Press Holdings.

 

[theDoors]

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[longbow]

1 kilo of gold = US$44K. 1 ton = $44 million. 1000 tons = $44B. 10,000 tons = $440B.

So while it sound like a lot of money, it is peanuts in terms of debt US is carrying.

You are correct, Fed are trying to devalue their currency to discount the debt.

The thing is, United States is the single country with the largest holder of gold reserves, 8000 tons. Yet it has never offer to repay a single cent of the multi trillion national debt with a single ounce of gold.
http://en.wikipedia.org/wiki/Gold_reserve

It just prints more money to buy up existing debt. I think the Washington Wall Street banking cabal is playing paper money inflation game to bankrupt countries holding US dollars as reserve currency.

 

[High Command]

1 kilo of gold = US$44K. 1 ton = $44 million. 1000 tons = $44B. 10,000 tons = $440B.

So while it sound like a lot of money, it is peanuts in terms of debt US is carrying.

Don't forget off-loading so much gold will actually cause the value to drop!

 

[theDoors]

http://sammyboy.com/showpost.php?p=582143&postcount=1

http://www.washingtonpost.com/wp-dyn/content/article/2010/10/09/AR2010100903543.html
Mr. Wen confesses
Sunday, October 10, 2010

The thing is that the CCP is corrupt. From Beijing to provincial government, the Chinese officials are interested in hoarding personal wealth instead of raising the wages of the Chinese peasants and workers, to increase internal consumption.

US is playing the Chinese. Appreciate the Yuan, and make losses on the USD reserves, or depreciate the Yuan and pay more for raw materials and commodities.

Either way there will be repercussions for the Chinese population.

 

[theDoors]

Don't forget off-loading so much gold will actually cause the value to drop!

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[singveld]

Japan yen is so high now, i dun want to go there anymore for shopping and tour until they drop.

everytime usa have economic problem, they sure get their minions to hammer the japs.

good luck to the japs.

 

[theDoors]

Japan yen is so high now, i dun want to go there anymore for shopping and tour until they drop.

everytime usa have economic problem, they sure get their minions to hammer the japs.

good luck to the japs.

BoJ praised for ‘decisive’ economic plan
By Mure Dickie in Tokyo

Published: October 5 2010 06:20 | Last updated: October 5 2010 17:42
http://www.ft.com/cms/s/0/3aab9de0-d03f-11df-9e63-00144feab49a.html

The Bank of Japan on Tuesday set a course towards quantitative easing, drawing praise from Tokyo policymakers eager to see the central bank do more to shore up the nation’s faltering recovery.

Ministers lauded a BoJ policy package that includes a conditional pledge to hold interest rates at virtually zero until deflation is defeated and a plan to push down longer-term interest rates by buying up to Y5,000bn ($60bn) in financial assets.

Japan, US's ally in financial warfare against China? I am sure the Chinese also holds significant amount of Yen as currency reserves.