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March 5, 2010

“To save itself, to save the world, China must prepare to become the (world’s) helmsman”, according to the recently published book by China’s People’s Liberation Army (PLA) Senior Colonel, Liu Mingfu.  To fund all of the military development, China has become the third largest economy on the planet, after United States and Japan (2008).  China is also the largest trading nation in the world and the largest exporter and the second largest importer of goods.  The road to the present has undertaken many significant changes since 1949 and the rule of Chairman Mao.

During the internal power struggles of the Communist leader, Mao Zedung, Mao murdered and/or starved to death as many as 46 million of his countrymen during the twenty years he had the greatest influence on the government, ridding the country of ‘intellectuals’ and people who did not ‘think right’.  This was also a time when China was exporting their form of Communism throughout the world.  During this ‘Cultural Revolution’, China detonated their first Hydrogen Bomb in 1967 and they launched their first  Dong Fang Hong satellite on January 30, 1970.  China was quickly developing into a powerful nation, even 40 years ago.

Another former Chinese leader, Deng Xiaoping, had rejected Mao Zedung’s policy of imposing the Chinese version of the brave new world of communism worldwide. Instead, the Middle Kingdom was to tread carefully and build up its strength.  China has been increasing its use of oil by 20% per year and its automobile market is increasing by a whopping 50% per year.  China uses more coal per year than any other country on the planet, burning about 300 MILLION tons more than America. 

‘Adopt a low profile and never take the lead,’ Deng advised. The main goal of foreign policy was to ensure that China was not regarded as a threat to anyone, including the United States. China needed a presence throughout the world but this was to ensure an uninterrupted flow of oil and raw materials to the motherland. 

 This phase is now over. China has gained the self-confidence to undertake new ventures and to act as a great power. A symbiotic relationship is developing with the United States because the two countries are dependent on one another economically. President Obama’s recent visit to China underlined the fact that Beijing has become very self-confident in dealing with Washington. For example, human rights’ violations are being played down by stating that Tibet and Xinjiang are domestic Chinese concerns.

To fund the expansion of industry, China has been exporting weapon systems (high-tech jet fighters, surface-to-air missiles and other missile systems) to anyone who will buy them, including America’s Muslim enemies in Iran.

China has the world’s largest stockpile of available cash, more than $2.3 trillion dollars, as some estimates show.  About 70% of that, slightly more than $1.6 trillion is in American dollars and this gives China a huge financial weapon to use against us.  Americans are paying about $450 billion per year to service our debt to China; without these loans, our income taxes would be 40% lower. 

Because of its huge hold on America, including owning about $376 billion dollars in Fannie Mae and Freddie Mac debt, American taxpayers had to ‘bail-out’ Fannie and Freddie, last year.  It should also be noted that the management of those two institutions were overseen in the Congress by Senator Dodd and Rep. Barney Frank.  The actual management teams ‘earned’ many millions of dollars while causing them to fail.

China is also diversifying its investments worldwide in oil.  At a time when the world economy is depressed, China is buying and making deals for future oil resources, locking in price structures for decades in the future.  From Nu Wire Investor, we find:

 China’s leaders know that they must lock up oil supplies at a time when the Western world can’t seemingly be bothered to understand that this is a zero-sum game. In other words, China views the global financial crisis as an opportunity to be exploited for economic gain and the security of its people, not as a problem to be solved. China understands the big picture, and even though we apparently painted it, the West doesn’t.  By scouring the earth for oil at a time when the West is hamstrung by the global financial crisis, not only is China able to strike more favorable deals at more favorable prices, but it’s locking up huge supplies of commodities for its own use for years, even decades, to come. In doing so – and this is the part of the equation so many experts don’t get – these resources are no longer available for our use here in the United States, which has major supply and pricing implications for this market.

Is it any wonder why China is making deals with American Presidents to obtain our ‘dual-use’ technologies?  During the Clinton administration, the sales of ‘sensitive technologies’ was transferred from the State Department to the Commerce Department.  Commerce Secretary, Ron Brown “opened the door to everything but the kitchen sink’, according to Softwar, Inc (2001):

The nineties, however, were quite different. The Department of State and the Pentagon approached the GAO in 1995 with a request to study the Commerce Department approval of dual use technology sales to China. The GAO report concluded that Ron Brown had more or less opened the door to everything but the kitchen sink. Secretary Brown’s Far East commerce trips corresponded with each new batch of approvals for dual use, advanced US technology. The assertions by Mr. Brown that the US products would be monitored behind the bamboo curtain were simply pipe dreams since the Chinese would not allow such follow ups.

In late February, 1996, the Chinese Warlords were finally able to buy their way into the White House when Wang Jun entered for a coffee with President Clinton. Wang would donate $690,000 to the Democratic National Committee in a quiet effort to reward those who have helped China. Wang, a son of the ruling class in China, had far more than a few checks in his pocket. Wang has also been accused of attempting to smuggle 2,000 fully automatic AK-47s to Florida drug gangs. Wang Jun’s history as an arms dealer is world renowned. It was Wang who set up the original delicate deal with Russia to buy the SA-10 Grumble. Wang was among a host of other unsavory characters to pass through the White House and leave a check. Wang’s credentials as a dealer in billion dollar weaponry were well established long before 1996.

Today, President Clinton says he knew nothing of all this.

Is he serious? Are not missiles and world domination the very essence of Presidential power? Did the warnings issued over the last few years by various sources, ranging from the GAO to the Pentagon, fall on deaf ears at the White House? One would expect the President would at least familiarize himself with people he was about to meet. A simple briefing on Wang Jun would have set alarm bells off in a heartbeat. In fact, his administration took the money and went back to sleep. Like a guard-dog bribed with a t-bone steak the Clinton administration ignored the threat and took the cash. Now US pilots are tracked by Chinese missiles equipped with US technology and US cities are threatened by nuclear tipped missiles guided by US science.

We have been unable to locate any evidence that shows President George W. Bush made any ‘dual-use’ technology or weapons systems technology sales to China during his 8 years in office.

China tests anti-satellite missile and successfully shoots down one of their own satellites (video 1:18) using a ground-based missile.

President Obama has been quite active in his desires to sell ‘dual-use’ technologies to China, masking such sales as providing jobs and being good for industry.  However, security experts in America do not see things the same way President Obama does.  From The Washington Times (January 27, 2010):

Gary Milhollin, director of the Wisconsin Project on Nuclear Arms Control, said he is concerned the new policy will be skewed toward promoting business at the expense of U.S. national security.

“This new policy is a giant push by industry to export technology that was developed by taxpayer dollars for defense purposes,” Mr. Milhollin said. “This also appears to include a push to decontrol manufacturing technology for defense items, which if carried out, will send high-tech defense jobs overseas.”

He added: “If industry gets its way, and we drop controls on dual-use technology, then [other countries] will do the same. It will be impossible to keep dangerous items out of the hands of the Iranians and the Chinese.”

Edward Timperlake, a former Pentagon technology-security specialist, said there is broad agreement that export controls need reform, but warned that the national-security risks are proven by the aggressive efforts foreign spies make to steal or illegally acquire U.S. defense technology. These efforts could be made redundant and U.S. counterintelligence pointless if the goods become freely available.

“The counterintelligence challenge has been to stop military technology from falling into the hands of Chinese intelligence agents,” Mr. Timperlake said. “And now it is possible that the effort could be undermined by a new policy that puts the entire program in doubt.”

The Scowcroft report, “Beyond ‘Fortress America’: National Security Controls on Science and Technology in a Globalized World,” stated that current export controls “now quietly undermine our national security and our national economic well-being.”  

 Note that the Scowcroft report was developed by the Scowcroft Group, Inc.  More background on Brent Scowcroft shows he is now a highly paid lobbyist for not only big business but for entire countries (China?):

He is the founder and president of The Forum for International Policy, a think tank. Scowcroft is also President of The Scowcroft Group, Inc., an international business consulting firm. He is co-chair, along with Joseph Nye, of the Aspen Strategy Group. He is a member of the Trilateral Commission, Council on Foreign Relations, a board member of The Center for Strategic and International Studies and The Atlantic Council of the United States.

China is looking after its interests on the world stage and in so doing, has become intimately involved in America’s economy.  It is as though Americans have an economic sledge hammer poised over our heads, waiting to be financially crushed at the whims of Communist China.  But that’s not all:  Through the purchase and theft of the technologies it needed, China has very quickly modernized its military capabilities and has exported those military technologies on a global scale.  It is no wonder that China is the economic mega-powerhouse that it has become, and has assured itself of energy resources for the next 50 years.

Since 1949, China has demonstrated that it can easily murder tens of millions of its own citizens, in order to accomplish its political goals.  It can now blind American satellites at any time.  China will soon be in a position to be ‘the world’s helmsman’ when it can use its military and economic power and abundant energy resources to cause or prevent American actions, rendering America a ‘superpower’ that is unable to act in its own defense.  China’s strategy is in place and unless our leadership changes their short-term thinking and begins moving toward long-term goals of strength and energy independence, America may forever be changed.  We have to ask ourselves:  As Americans, do we want to live in a country dominated by Communist China?


Thank you for reading this article that documents some of the larger picture of America’s situation on the world stage.  Please show your support for our efforts by making a purchase of a tee-shirt or coffee mug at our store.  Show your support for ‘No Political Lemmings’.  Many thanks.

10 Comments leave one →
  1. Kim permalink
    March 5, 2010 1:19 pm

    Excellent article.
    Thank you

  2. Lou permalink
    March 6, 2010 2:23 pm

    good article, keep up the great work.

  3. notamisandrist permalink
    March 7, 2010 4:37 pm

    Thank you for spotlighting our gradual surrender to China. This is in addition to the ongoing surrender to the U.N. and to Islam. When our own President Clinton and Obama can compromise our national security, the paramount responsibility of any President, for such a tawdry pretext as campaign contributions and crony kckbacks, one wonders if United States sovereignty is all a delusion. However, conservative radio and websites such as yours are waking people up to this sinister creep, and it is not too late to peel off the vines that strangle and entangle us. We will fire them in 20-10 and again in 20-12 and bring back Common Sense in our National Defense..

  4. Betsy Ross 2 permalink
    March 8, 2010 10:02 am

    Thank you for the article, very interesting. Useful information. Sounds like China wants and will be #1 if BO has
    his way, but Clinton opened the door.

  5. Mike Rakowsky permalink
    March 15, 2010 8:29 am

    I share concern over China and its intentions, though we should analyze truthfully and not overreact, either. China is also a threat in terms of human rights (Tibet, Xinjiang, Taiwan, curtailment of press and internet freedoms) and the Environment (excessive use of both coal and oil without scrubbers and global deforestation, as well as fouling of rivers), though on the latter they have wisely invested more than we have in solar, wind and other renewables. President Obama is working hard to catch up, but the Chinese have a lead and are even establishing significant solar business footholds in this country!

    While their economic might is unbelievable (Schumer is correct to focus on the monetary exchange rate as a crucial element), their military power is, to this point, a mere shadow of America’s, though we have overspent ourselves into poverty on this front.

    Your historical analysis suffers from a distinct lack of balance. While Daddy Bush was well-versed in Chinese matters, having served as Ambassador there, Bush the Younger was a naive dunce on this front, obsessing on the well-being of Christian missionaries there to the neglect of far more pressing problems.

    While I am glad that we are engaged with China on many fronts, including exchanges and education, I agree with you that we need to be more vigilant and stronger with regard to dual-use technology, internet and press openness, human rights, exchange rates, and the Environment.

    As examples, both Taiwan and Mexico are extremely loyal friends and customers for the US. China, quite obviously, is not.

  6. April 29, 2010 11:13 am

    If your rich, and you loan all your money out to someone else, then who really becomes the rich person, and who really becomes the debtor? If you had a million dollars, and you loaned me 750K, at that point, arent I richer than you? And if I am such a good credit risk for you to invest that significant of a percentage of your wealth in my prospects, wouldnt I actually logically need to be more valuable than you? I mean if you were more valuable than me, you would invest in yourself right? So if china were more valuable or profitable, they would invest in themselves, but as long as we remain more profitable than any other country, they will continue to invest in us. So debt is really no indication of the value or liquidity of a country. In fact america may be the only place that a country like china could invest a trillion dollars knowing full well they will earn a good return on their investment. There is no other place on earth like it.


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