Most folks miss all the interesting stuff affecting our economy in the news, but you shouldn’t let it get by you. Just recently way back on page 5 of the financial news there was a rather important article which was hidden from view. It is important enough to make a note of, it was regarding China’s dealings with the US as a trading partner. In fact, I see a rather alarming pattern, albeit also predictable when it comes to economic dealings, trade negotiation, and playing fair, when China is involved. Perhaps, you saw the APEX Meeting in Hawaii on TV and the comments generated between China’s President Hu and President Obama, well, there was a reciprocal response from the Chinese Central Bank just following that incident, and it was rather childish in my opinion. There was an interesting article, along this same topic in China Economic Times Review on November 14, 2011 titled; “China Rating Agency Warns of US Debt Downgrade” and I say to that “go for it” but it will only make your rating agency look silly and hypocritical, especially as we watch the EuroZone collapse and massive amounts of money flow to safety; namely the USA. This threat sure looks a lot like a political power play and payback from the APEX meeting where President Obama warned Chinese President Hu that we expected fair and honest trade with no cheating and an end to currency manipulation. Especially at a time when China posted yet another steep increase in trade deficits. Anyway the article above stated; “Dagong Global, a subsidiary of the central bank and the only Chinese agency to issue ratings on foreign sovereign debt, downgraded the US rating from AA to A+ in 2010, then downgraded it again to A in August. Only a few days later, Standard & Poor’s also downgraded US debt.” Okay so, let me get this straight, this is the third time Dagong downgraded US Debt, and Dagong is a “subsidiary of China’s Central Bank” and thus, you can’t tell me this coincidental downgrade is not political payback. Apparently, Beijing has stooped to a new low, but it’s not fooling anyone. Dagong has now lost all credibility with me as a part-time global financial and geopolitical analyst for our think tank. This move is nothing short of a back-stab to America, China’s largest customer, and it is very close to being an attempt at economic warfare and a shot across the bow in my view.. If this continues, at some point it will anger the American Consumers and could even lead to a boycott Mainland China products, that would not be good for either nation right now. President Obama told Hu that the US Consumer and Business Community was getting frustrated, and that was an understatement, people here are very upset, not frustrated, at least that is what I am hearing in coffee shops, in and around California and reading online. We’ve even watched the GOP Presidential candidates mention it, why? Because their constituents are concerned and they’ve been talking to the public whil traveling the country to get votes, this is what they are hearing too. You see, President Obama was being nice, it is getting much worse with regards to angry Americans right now, and this sort of maneuver on China’s part looks like a warning for Americans to back off, but it is things like this that anger the American People, small businesses, and many of our corporations. I believe, and this is my opinion, that China has showed its true face and colors in this downgrade, as it is a purposeful attempt on Beijing’s part and the timing shows that China wants to up the ante in this trade war, but there is no war, we just would like China to play fairly. If not, then may I ask why the US should continue trading and buying China products? How does that help me, my family, or my country to be a customer of Chinese goods? China needs to work with the US in a win-win trade arrangement, because right now – it is win-lose, and the US is getting the short end of the stick, and thus, it’s not worth playing anymore in my opinion. Think on this.
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