September 21, 2008
Amid the ongoing financial crisis in America, I noticed an interesting item on the internet (see first link below). It was a news-story overlooked in the establishment American press. It reported that in exchange for China’s purchase of $300 million in Costa Rican bonds, the nation of Costa Rica agreed to cut its ties to Taiwan. This report illustrates that China does not “invest” its currency reserves altruistically around the world. It exacts a “price” for its infusion of funds to other nations. Those other nations need to do China’s bidding. If China exacts a price for a mere $300 Million to Costa Rica, what kind of “price” will it exact from America for, perhaps, $300 Billion or more in bail-out funds?
This ought to give sobering pause to Americans who read that Chinese investment money is being sought to rescue the Wall Street firm of Morgan Stanley or various iconic American banks. If China’s “price” for such investments is not reported publicly, you can be sure it is being exacted behind closed doors. China will be chipping away at America’s sovereignty with each “investment” or “infusion of funds” that it makes. Indeed, it may already be doing so behind closed doors. It wasn’t long after media reports surfaced that China had purchased large blocs of Fannie Mae and Freddie Mac debt that the US government (without any vote from Congress) decided to bail-out Freddie and Fannie. This put US taxpayers even further in hock to foreign investors, but it “guaranteed” China would not lose money on its large positions in Freddie and Fannie debt.
I read in an internet report that US Secretary Paulson has made over 100 trips to China. Is he going to “consult with China” in behalf of the USA or is he going to China to get his “marching orders” re: what he will commit the US government to do when he flies back to Washington? Its worth considering, given the inexorable economic law stated in Proverbs 22:7 that “the borrower is servant (slave) to the lender.” China is the lender and the USA is the borrower so it is obvious who is dominant in this financial relationship.
Have you noticed that Sec. Paulson and Fed Chairman Bernanke are completely in charge of the US government lately? Despite Constitutional requirements that Congress approve all spending bills (these bail-outs come with huge costs), Paulson and Bernanke don’t even bother asking for Congress’ approval to obligate 100s of billions of US taxpayers dollars to bail out Wall Street Investment banks, Freddie and Fannie, gargantuan amounts of bad bank loans, etc. Apparently Paulson and Bernanke realize that Congress is happy as long as they receive their regular deliveries of special interest monies and junkets to foreign locations on corporate jets. Does Congress realize that it is actually supposed to run the country in a responsible manner? Based on the record of the last 20 years, the answer is apparently “no.” So much for my rant about the entrenched venality of Congress. Back to China.
The second link below reports that China already owns a 9.9% stake in Morgan Stanley and may soon have a 49% stake in the firm! Morgan-Stanley is in negotiations to merge with Wachovia Bank so any such merger means China will also have considerable influence over a major US bank. Based on the story about Costa Rica having to “pay a price” for Chinese money, you can be sure China will exact its “price” on the American financial firms that it bails out. American voters won’t be allowed to know what these Chinese demands are, of course. As the second link notes, “the talks aren’t public.” What, you thought the USA was run “for the people, by the people, and of the people?” Not any more. It is run for the benefit of the large money firms of the political-corporate alliance called “Babylon the Great” in Revelation 18. If you wish to learn more on this subject and the origins of this “Babylon” economic system which now controls the USA and the Western world, you can read about it in my article “What Kind of Captivity?” You will see that debt can conquer a nation as easily as armies.
The USA is fast becoming an economic basket-case as its leaders resort to desperate “Depression-era measures” to keep the US financial system from collapse. The “official” reports say the USA is not even in a recession yet, but if that were really the case, why would the government be using “depression-era” measures to keep the economy afloat? If you have any doubt about how financial markets are now being “rigged,” I invite you to watch the surprisingly-candid comments of Jim Cramer, host of the cable-TV program “Mad Money” in the third link below. The fourth link below documents that the modern equivalent of Depression-era “Hoovervilles” are now becoming manifest in the USA as “tent cities” are springing up around the USA.
The September 20, 2008 issue of the Minneapolis Star-Tribune ran a column by Rosa Brooks entitled “You’re in a pickle. We understand.” It had a tongue-in-cheek analysis of the USA’s descent into profligate, banana-republic status (see 5th link below). However, it had some most revealing information (again not reported by the establishment press in the USA). Ms. Brooks’ column reported that “13 former finance ministers convened…and agreed that [the USA] must fix [its] ‘broken financial system.'” It also cited the former Finance Minister of India as saying “The time has come. The U.S. should accept some monitoring by the IMF.” That’s a gentle way of saying that America’s foreign creditors are planning some kind of “receivership” for the profligate American government. I indicated that such an event was likely being planned in a recent blog at this website. This foreign “receivership” will surely be given a benign name such as an”international rescue package” or something similar (its a delicate matter to foreclose on a nuclear power). What it means is that America’s foreign creditors have decided that the USA can not be trusted to manage its finances in a responsible manner. Just as concerned relatives may plan an “intervention” for a person who is hooked on alcohol, cocaine, etc., foreigners are apparently planning some kind of an economic “intervention” upon a US government which is hooked on excessive debt. This “IMF monitoring” will likely come after the election. No one wants the American voters to “wake up” to the imminent dangers they face before the US elections.
Internet reports can be found that China and Russia are calling for a new international financial system that is not dominated by the USA. Above reports indicate that new system is coming. When/if the US Dollar is formally devalued and no longer is the global reserve currency, Americans will learn what “paying the piper” really means. Ezekiel 38-39 warns that Russia, China and a large alliance of other nations will eventually militarily invade the USA and other western nations (the modern nations of the ten tribes of “Israel”–the Jews/Israelis are called “Judah” in the Bible) to seize their assets. Given the current trends in the world, this invasion may prove to be seen by Russia, China, et. al. as a future “foreclosure raid.”
The USA has willfully, defiantly, openly and consistently mocked God’s economic law in Proverbs 22:7. Galatians 6:7 says “God is not mocked.” The USA is not immune to being punished for breaking immutable economic laws. You really owe it to yourself to read my article “What Kind of Captivity” to understand the kind of economic “captivity” that could be coming to America…unless it repents and changes its ways very quickly. The White House and Congress repent? What do you suppose the chances are of that happening?