Monday, May 12, 2014

On the High Level Plotting in China by Treasury Secretary Lew

On Tuesday, Treasury Secretary will, according the the Treasury, "discuss progress on China’s reform agenda, efforts to level the playing field for U.S. workers and firms, and preparations for the upcoming U.S.-China Strategic and Economic Dialogue."

Specifically, in the morning, the Secretary will meet with People’s Bank of China Governor Zhou Xiaochuan.

Also in the morning, Secretary Lew will meet with Vice Premier Wang Yang.

In the afternoon, Secretary Lew will meet with Premier Li Keqiang.


  1. Level the playing field? Is he serious?

    Uncle Sam has done everything possible to hamstring the economy, including excessive taxation, regulation, litigation, ZIRP, minimum wages. Our government should stop trying to reform the policies of foreign countries and right the ship here at home.

    Of course, doing these things would involve drastic spending cuts, de-regulation, market rates of interest, and sound money. We're not going to get any of the kind. Expect more of the same, which means increased volatility, more manipulation, and a bunch of lies and propaganda.

    Brace for impact, folks.

  2. Global Capitalism, the US Empire and Russian Nationalism Leo Panitch analyzes the complex relationship between the process of global economic integration and nation state rivalry

    JAY: If you go back to Brzezinski's book--

    Global Capitalism, the US Empire and Russian Nationalism Leo Panitch analyzes the complex relationship between the process of global economic integration and nation state rivalry

    PANITCH: Grand Chessboard. That--very good. Yeah.

    JAY: --and you take his basic thesis, which is, if the United States is going to maintain its fundamental policy that this should be a single-superpower world dominated by the United States--. And, of course, in Brzezinski's mind--and, I guess, Obama's mind and most of the American elites' mind--they see this as a force between, you know, democracy and anarchy: if the Americans aren't in control, the world goes to chaos. Clearly the real economic reasons are the Americans benefit from this position, so--however they rationalize it. But all that being said, the fundamental thesis is you can't allow another power to be a rival at a serious level. And what Russia's been doing, most markedly in Syria, for example: really defying American plans. Germany, there's no sign they would ever do such a thing or any country in Western Europe would do such a thing, and the most they did is you had France stand up at the United Nations and a few European countries and not go along with the invasion of Iraq. But then after they made their stand, that was the end of it. But Putin actually seems to want to chart his own course and not totally play ball. And I don't know that the Americans can abide that.

    PANITCH: Well, I think they can and they will within certain limits. I mean, it's very clear that they are not about to not only use a nuclear weapon; they aren't about to send troops into a Ukrainian Civil War. And they are using--and this is very interesting and very non-Brzezinski-like--they are using the power of the U.S. Treasury. The U.S. Treasury has, by its central place in managing global capitalism--they're using that as the main means of geostrategic maneuvering here.

    On the other hand, I think that the real business, the main business in running the world these days lies much less in that kind of thinking coming out of the national security apparatus and much more in the kind of thinking that comes out of the Treasury or the Fed. Clearly the important thing is to keep global capitalist flows and free trade going. That's not to say that they totally are able to do this. Things could get out of hand. It's a very messy world to run.

  3. Russia & China To Bring On Worst Nightmare For US Authorities

    “What about the fact that the U.S. has been attacking the ruble in the foreign exchange markets?”

    Embry: “The United States better be careful doing that because I think the Chinese and the Russians could attack the U.S. currency and bring on the worst nightmare the U.S. authorities could ever imagine. The West is impotent in Ukraine, so the U.S. is trying to attack Russia in the markets. But as I said, they better be careful because those tactics may end up blowing up in the faces of the central planners in the United States.”