Does Cap and Trade Signal China’s Rise as the World’s New Super Power?

For the past 40 years, China’s leadership has systematically implemented a 50-year strategy to overtake America as the world’s leading economic and political power.  In the history of the world, no country has ever accomplished this feat without a major war.  Yet China brilliantly planned to dethrone America without bloodshed by disabling America’s ability to conduct war well before our politicians would ever think to drum up a war frenzy.

China strategized that she could accomplish a first ever bloodless transition of superpowers through rapid economic growth, overbuilding industrial infrastructure, cheapening the dollar with massive American debt, building a gold backed Yuan world reserve currency, strengthening her military to protect critical trade routes, co-opting America’s elite to support China over America, and gutting America’s industrial capacity to support a sustained world war.

A critical assumption of China’s strategy was that America’s international investors and financial institutions would scurry to help her grow, given the chance. America’s elites did not disappoint China’s leadership.  With promises of riches, America’s capital investors feverishly rushed in to help China achieve most of her goals in just four short decades.

While both China’s and America’s leaders wanted China’s economy to grow dramatically, the motivations of each country’s leaders were strikingly different.  China’s leadership grew rich while building a massive economic and technological infrastructure to support her people’s future.  On the other hand, America’s leadership grew rich by stripping our citizens’ future to fuel their own personal wealth.  China simply had to offer a gold rush to America’s investors, and they in return blindly transferred America’s wealth for China to overtake the United States.

Knowing that the world could only extract a finite amount of debt from western economies to support China’s growth and that the cash flow from West to East would ultimately create an unsustainable debt bubble, China rapidly overbuilt manufacturing capacity in anticipation of slowing of investments from America and others. Now, China sits atop a mountain of physical assets while the rest of the developed world sits atop a junk pile of debt.

The West is now in the precarious position of either propping up China, or of sending the world into depression.  If the World’s debt bubble bursts, much of America’s investors’ wealth will evaporate. China will also default on her debt, but tens of thousands of new factories will remain in China.  China, will recover from an unprecedented depression with infrastructure, skills, trade relations, and gold to restart a new world economy.

Given America’s amassed debt and gutted manufacturing capacity over the past 40 years, we cannot withstand a long, deep depression. Our central bank has no alternative but to assist China in keeping the bubble afloat.  But, our citizenry must adopt a long term strategy to reverse what has left us in this dire predicament.

With a massive shift in power that the world unwittingly gave China as a backdrop to the issue of global warming, China’s President, Xi Jinping, has now come to America offering his support for pollution cap and trade.  Until now, neither America nor China has been willing to sacrifice economic growth to reduce carbon emissions.  Why then is China now willing to offer pollution cap and trade?  At this stage in the progress of her 50-year strategy, China can now manipulate cap and trade to further her bloodless revolution.

Americans believe that a small consolation of our slowed economy from tens of thousands of factories being transferred from America to China is that pollution was also transferred from America to China.  Our air and water is cleaner as a result.  Yet, in a cap and trade environment, this transfer of pollution now gives China “pollution assets” to either expand her own economy or to sell back to America.   Cap and trade would force America to either trade existing American pollution for new pollution or to buy pollution from countries like China.

Cap and trade thus could give China the ability to manipulate America’s industrial collapse even more.  With a massive worldwide debt bubble already in place, cap and trade would give China yet another powerful lever to either rise through the bubble or to send the world crashing into depression, to then rise through the ashes of world economic chaos as the world’s next superpower.  Adding pollution cap and trade to the mix would give China an untenable political and economic lever to control America’s destiny.

America’s dollar is so diminished, our central banking tools so depleted, our industries so gutted, our trade relations so reduced, our nation so indebted, that we are almost toothless to counter China’s 50-year strategy.  If we do not coalesce around a focused strategy to counter China, our Constitutional Republic could be endangered.  Xi Jinping’s visit should be a wake-up call.  America must not let Cap and Trade have a place in our economy until our economy, national security, and future is placed first in the hearts and minds of America’s investors and politicians.

Don’t Spit Into the Wind That Blows from the Bowels of a Mighty American Empire

A fatal flaw of all democracies thus far has been that representative governments tend to spend for the vote ultimately to their ruin. Once entrenched in the final throes of this buying spree, the political system seems to overtake its participants, dragging them into an inflationary spiral that ends in a financial stall leaving their nation vulnerable to attacks from within and without. Of course for those elites of these participative governments, the financial consequences can be devastating.

The Koch brothers had no intention of seeing America’s governmental system implode from within and therefore set about to fund a movement that touched a central nerve within an existing party of that system to stop the bleeding of our republican form of participative government. After five years, this movement is in a position to begin to turn the tide if the tsunami of world financial events does not overtake it instead.

If the Tea Party is finally successful at reversing America’s spending spree before our dollar based government bursts upon itself, it will not be because the masses rose up and organized themselves. It will be because one of our financial elite was able to connect with the masses with a mutually self preserving idea strong enough to overcome the deadly inertia of a Republic gone mad clinging to its pocket book of a fiat currency.

The system that enables America’s spending spree is not contained within America nor will the devastation that ensues from our zealous spending obsession be contained within our shores. I am not ready to pass judgment just yet on whether the Tea Party and the Kochs will be successful. I am, however, examining that their efforts are not an example of inspired bubbling of grassroots politics unsupported from entrenched power. The Tea Party is rather an example of the synthesis of a guttural urge of the electorate with capitalism in its purest form. As such, it is a potential model for other efforts yet to come.

America is a capitalist country, centuries deep in its centuries more of political life and no chaotic uprising will challenge the near term direction of our powerful state. The thriving path forward for our nation must combine ideals with established capital. It must forge compromises in the essence of our forefathers who carved out a place for both the elite and the masses within our system of government.

Those that denigrate the Koch brothers for their Tea Party successes merely spit into the wind that blows from the bowels of a mighty American empire. Better to get on our hegemonic train than to get run over by it. Raise up your chalice of ideals and hitch yourselves to the wagons of our elite who can help to ease forward a symbiotic path.

Find solutions that benefit the masses and America’s capitalists together. This is the thriving path that must be forged. For America’s capitalism is impenetrable to the grass roots of disorganized movements. Our future must be guided from within by the means of capitalistic synergies for the good of all if we are to heighten the trajectory of our fairly new nation.