A Chinese Advantage

The participants in the US-China Strategic & Economic Dialogue Conference (S&ED) have adjourned this initial phase of their treaty-mandated, semi-annual meetings. To no one's surprise the closing memo showed, as one commentator reported, "little in the way of substantive agreements." However there is little doubt that the Obama Administration has developed and is now implementing an international relations program that turns away from America's traditional partnerships with England and Europe to one that emphasises the role of Communist China. Recent statements by President Obama and Secretary of State Clinton have stressed the importance of China and particularly the need for the United States along with China to "lay a foundation for global economic recovery". The success of the 21st century, our American leaders proclaim, will be the product of the joint efforts of America and China.



It was reported that China and America had many serious and open discussions which covered a number of areas but the topics most often of concern to the Chinese delegates were the need for international recognition of the rising predominance of the Chinese economy [the Chinese economy is currently the 3rd largest in the world and projected to be the 2nd largest, superseding Japan, but the end of this year's fourth quarter] and the need for America to address the fact that the dollar could soon suffer from "the flare of inflation". China also questioned the Obama Administration's excessive deficit spending to which an Obama spokesman replied that such spending would ease and be eliminated once the "vigor of the American economy" had been restored.



The only internationally important aspect of this two-day meeting was the very unemphasised American agreement to bring about a reform in the internal governing mechanism of the International Monetary Fund [IMF] and the World Bank. The sole reported goal of this reform was "to better reflect China's status" in the global economy. This may well be the message that Obama wants to quietly send to the nation but in fact this "reform" is yet another Obama step toward world socialism. In the very near future, the US dollar will be removed as the international monetary standard and will be replaced with a "basket" of different national moneys, including the dollar, the euro and the yuan. From this "basket" will emerge an internationally recognized unit of value and will become the only specie by which to transact international business. The restructured IMF and the restructured World Bank will lead the transition from nation currencies to the international unit. In fact this is one step closer to an internationally controlled global economy featuring an internationally controlled global financial system and the worldwide use of an international currency. All individual national coins and bills will only be elements of numismatic collections.



American gains nothing from this modification of the IMF and the World Bank other than additional loss of prestige. On the other hand, China receives the economic recognition it desires; gains the ability to influence if not control global economic decisions; and insures the payment of the huge American IOU in a far less volatile internationally recognized unit of value. Yes, Obama, in a show of internationally cooperation, will bind America to an agreement that all American governmental debts - past, present and future - will be paid by the implementation of the new internationally recognized unit of value.



China had one very successful S&ED conference.