China has not only embarked on a subversive campaign to provide dangerous and poisonous exports to the United States, increased its spying on America to record levels, used its trade surplus with the U.S. to build its military at an astronomical rate, but now is threatening to use its $1.3 trillion of foreign exchange reserves as a political weapon to make the federal government bend to China's political demands. The London Telegraph is reporting that two leading Chinese Communist Party officials have publicly stated that China may consider a liquidation of its dollar reserves in an effort to make Congress quit its legislation to curb China's dangerous export practices.
Chinese Academy of Social Sciences official He Fan was quoted in the China Daily as saying, "China has accumulated a large sum of US dollars. Such a big sum, of which a considerable portion is in US treasury bonds, contributes a great deal to maintaining the position of the dollar as a reserve currency. The Chinese central bank will be forced to sell dollars once the yuan appreciated dramatically, which might lead to a mass depreciation of the dollar." China holds almost a trillion dollars worth of U.S. bonds, which, if liquidated, would send the already sputtering housing market into a tailspin.
For several years, China has manipulated the value of its currency in order to take advantage of foreign exchange rates favoring the yuan over the dollar- China uses this manipulation to buy U.S. goods cheap and sell Chinese goods to the U.S. at a larger profit. In response, Democratic Senator Max Baucus and Republican Senator Orin Hatch introduced the Trade Enforcement Act of 2007 which adjusts trade status and requires action against China to provide "relief," meaning trade tariffs, if China continues its unfair trade practices.
This attempt by Chinese officials to blackmail the U.S. Congress into allowing continued barbaric trade practices because of fear that China will send the U.S. into financial oblivion is the long term result of greed on the part of the Federal government and American business. And unless the government moves quickly to protect America's financial market, a new brand of economic terrorism threatens the welfare of the Republic. The long-term chess match where the U.S. wants to capture China's vast market potential and China wants to capture the U.S. leaves America in peril. Proverbs 11:29 says, "He that troubles his own house shall inherit the wind; and the fool shall be servant to the cunning of heart."
Word of Life Ministry
· Father, forgive the American people who have so blithely accepted the cheap goods from China and failed to heed the warnings that the USA has become a debtor nation to China. Now, we are in deep financial trouble. Pray for American financial experts who can find strategies to lead us out of such incredible debt. But mostly we need the intervention and wisdom of the Lord to break our ties with China, a nation that does not value life but rather money, power, and face saving.
· "He that troubles his own house shall inherit the wind; and the fool shall be servant to the cunning of heart." (Proverbs 11:29)