Keep your eye on China

I don't know if this is article is credible but if it is, it's not good.

http://www.321energy.com

From the link:

Despite what Washington may say about Iran, China is the primary number-one national security threat for these reasons: China and the United States are the largest users and competitors for the world's rapidly diminishing oil reserves. Going forward, the US and China's projected requirements will consume 60%-70% of the world's production. This demand cannot be met and one country will experience brown outs, gasoline shortages, factory shutdowns as a result of having a lack of energy.

China has aligned itself with Iran, cited by Bush as the world's leading terrorist exporting nation and nuclear threat. Military alliances with Iran coupled with a massive naval build up have Washington concerned.

The Chinese have the United States in a dollar and Treasury note trap which could put the economy in a tail spin with one news announcement that they are no longer buyers of U.S. debt.

The war for final resources is the ultimate global showdown. The People's Liberation Army Colonels have developed a blueprint to destroy America. Actions, not words, seem to be bearing out this fact. China is merging financial, economic, political, and military forces together in a pursuit to dominate the world's resources, particularly oil.

The article also mentions that China has signed a deal with Venezuela for most if not all of their oil. I wouldn't be surprised if we don't start hearing about the need for military action in Venezuela soon.

I find it extraordinarily odd that given the text of the link, the country we are most indebted to is China. Something very strange is going on here. It appears that the very plan of U.S. dollar hegemony to exploit and dominate the world is going to backfire on the U.S. because China is using it as a means to our undoing.

Today, the U.S. is the world's largest debtor nation. We must borrow $2.6 billion dollars each and every day to finance our society's addiction to consumption. The lion's share of this borrowing is done with China which is going through their own industrial revolution just as we did 100 years ago. They lend us billions of dollars so we can continue to purchase goods from them creating demand which in turn fuels their growth. We are consuming and they are producing. We are now in a dangerous downward spiral.

This is not a symbiotic relationship. We have everything to lose and China has everything to gain and they are in total control of the situation. The danger is that if they were to stop lending to the U.S., we would be economically devastated. China on the other hand, would only have to open new markets for their goods. This might not be particularly easy but it could be done.

Perhaps the bigger problem is that while we fuel their economy (to the detriment of our own) we are promoting their demand for oil and other natural resources. So the side effect of our policies are creating a serious competitor for the very life blood of our country. This demand can only lessen availability and pressure the cost of these resources upward, something we can ill afford.

I wonder if all of this has something to do with my rant from the other day about the latest wave of corporate insiders selling their shares.

It would be interesting to examine the stock portfolios of our congressmen. I suspect we would see large holdings in companies involved in defense, energy and natural resources. They are directly responsible for the predicament we are in today and one can count on them "getting theirs" on the way down. Kinda' like the crew of the Titanic raiding the ship's wine cellar after hitting the iceberg.

I'd like to write more on this if time permits.