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Scary: Chinese Checkers

800px-China_banknote_20Yuan_in_1949If you don’t want anyone to know, don’t do it. — Chinese Proverb

Just like the rest of us, the Chinese have wisdom traditions they ignore.  The present climate characterized by secrecy, espionage, theft of intellectual property, cyber attacks, currency wars and militarism does nothing to forward the aspirations of the people that governments supposedly serve.  The Chinese do not want people to know they aspire to global dominance, but the more they take measures to achieve that end, the more people know it. 

One thing most notable about Chinese leaders is they have brilliant smiles.  Always brilliant smiles.  And then you read an official press release that urges the U.S. president to disarm American citizens, and you have to wonder, especially as you recall the millions of Chinese bullets flying into American bodies during the Korean War, a war that was just re-declared by the North Koreans.  Still they smile and nod, and sharpen knives it would seem.

You have to wonder about China, the second largest economy on earth with about two million men in uniform, claiming impotence in the face of North Korean aggression.  Smile and nod and bow.

Last century an epic battle was waged for the soul of China.  Would Mao prevail or Chiang Kai-shek?  Although Chiang was not exactly pro-capitalist, he was decidedly anti-communist.  Mao of course, like Stalin and any number of other communists, was so sold on centralized power and economic collectivism, he was not bashful about slaughtering millions of people to establish those systems.

Mao “won” and Chiang’s ideas were banished to Taiwan.  People living on the island of Taiwan are much better off in most every category compared to their Chinese cousins.  Comparably, South Koreans fare much better than their brethren to the north.   And the conclusion is?

(Note that American Maoists hold numerous positions of power and authority in the U.S. government.  The folks in Taiwan, once certain of American protection, like the Israelis, aren’t so sure anymore. )

In recent years state-run semi-capitalism in China has prospered largely because their purposefully devalued yuan has paved the way for selling goods to Americans at low prices.  (It is estimated Walmart imports from China each year about $30 billion in goods.) Concurrently, Americans have settled for lesser quality to take advantage of bargains.  Cheap labor in China and the migration of American manufacturing to China have also driven her remarkable rise economically.  

Now that Americans and others are fed up with economic decline, it is said these countries are retaliating against China by devaluing their currency.  And further it is said this currency war will likely be won by China, since China is the world’s largest gold producer, and China is running around buying gold and gold mines faster than a Bruce Lee round house kick to the head.

Excerpt from a recent Reuters article:

There are indications that the early skirmishes of a currency war have begun. This is a dangerous business. If countries undercut their competitors’ prices by devaluing their currencies, the stability of the world economy is put at risk. A full-fledged currency war invites deflation, a ruinous downward spiral of prices that in turn invites a worldwide recession.

And then there’s the matter of the Chinese  holding and hording U.S. treasuries and dollars.  It is said we owe the Chinese so much money, they essentially own us, and should they dump their dollars on the open market, hyper-inflation would destroy us.  The Chinese’s holding dollars holds us back from the the abyss, keeping us buying Chinese exports, so it’s a symbiotic set up.  

However, the more debt the Chinese allow Washington to incur, the more we hang ourselves, thanks to profligate spending by U.S. politicians and bureaucrats.  We are hooked on the opium of debt and spending encouraged by Beijing and our own leaders.  If the Chinese stop buying securities to prop us up, we will have no more marbles on the checkerboard.  That day approaches fast since the Chinese are losing their laundry buying treasuries.  

All this brings to mind from recent reading the topic of the petro dollar versus the gold standard.  As it is told, the U.S. used to be on the gold standard. We used to back our paper money with gold.  Solid value.  Global trust.  After World War II, America was in the cat bird seat. We got the western nations to agree that the U.S. dollar would be essentially the world standard, almost a global currency.  Of course such agreement enriched us, making America the commerce crossroads of the world. 

However, many governments around the world started becoming suspicious of America in the 60s, we are told.  They saw us squandering our wealth, trying to be the global policeman abroad, and the sugar daddy at home.  Between numerous foreign adventures, the cost of confronting the Soviets, the Vietnam War and the Great Society, western nations began asking, “Does Uncle Sam have enough gold to cover all those dollars they are spending?”  When they began to answer that question, ‘no,’ then President Nixon, did some figuring.

He concluded there was too much paper and not enough gold so he took the U.S. off the gold standard.  That was in 1971.  Since then, the dollar has value only because people agree it has value (fiat currency), but far fewer agree today than in 1971, and the Chinese are banking that fewer still will agree down the road, meaning the dollar will eventually collapse, and when that happens, so will America.

But in 1973, to stave off collapse, Americans in government decided to do something pretty clever, we are told.  Seeing Saudi Arabia as the largest source of the most valuable resource – oil – and noting the kingdom was basically defenseless, Americans made the Saudis an offer:  we’ll protect you for all time, if you agree, and get the other Arab nations to agree, that only U.S. dollars will be accepted as payment for oil.

The deal was struck and the petro dollar was born.   This of course buttressed U.S. currency like crazy, relieving the threat of declining confidence after forsaking the gold standard.
But guess what happened last September?


Pastor Lindsey Williams, former minister to the global oil companies during the building of the Alaskan pipeline, announced the most significant event to affect the U.S. dollar since its inception as a currency. For the first time since the 1970’s, when Henry Kissenger forged a trade agreement with the Royal house of Saud to sell oil using only U.S. dollars, China announced its intention to bypass the dollar for global oil customers and began selling the commodity using their own currency.

Lindsey Williams: “The most significant day in the history of the American dollar, since its inception, happened on Thursday, Sept. 6, 2012. On that day, something took place that is going to affect your life, your family, your dinner table more than you can possibly imagine.”

So you see, America is on the brink.  We are being eclipsed and conquered according to the very plan drafted by Chinese colonels in 1999:


In 1999, two Chinese colonels, Qiao Liang and Wang Xiangsui, wrote a groundbreaking book titled Unrestricted Warfare that was published by the People’s Liberation Army (PLA) Press. There should be little doubt that the work of the two colonels has been followed carefully by the PLA in determining means of engagement. In fact, the book has become the de facto manual for economic warfare worldwide.

• Financial warfare (manipulation of currencies, banks and the stock market),
•             Technological warfare (gaining primary control of various technologies),
•             Resources warfare (manipulating the price of, or access to, key resources),
•             Network warfare (control of the Internet and real-time communication), and
•             Economic aid warfare (controlling other nations by creating economic dependencies).

For many years the Chinese have been forming alliances and buying up and controlling resources worldwide.  It is no longer a secret they decided long ago to dominate the world.  They are very near their goal.

And what has the American government done to protect American security, liberty and prosperity?  Next to nothing, other than continue the orgy of spending and the running up of debt which plays right into Chinese hands.

Another bit of our own wisdom we thoroughly ignore, wisdom the Chinese now use against us:
The rich rule over the poor, and the borrower is slave to the lender. — Proverbs 22:7

Allan Erickson

Allan Erickson---Christian, husband, father, journalist, businessman, screenwriter, and author of The Cross & the Constitution in the Age of Incoherence, Tate Publishing, 2012.

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