Monday, November 29th, 2010
Earlier tonight, Larry Kudlow …the moderator-host of CNBC’s primetime “The Kudlow Report” made a comment in which he used the term “paper tiger” in drawing an analogy between the U.S. response to China’s rather cavalier lack of will to chide North Korea for its shelling of a South Korean Island last week.
In this, Larry stated that it was his hopes that America would not become a paper tiger.
To this …I say; it is too late to hope in one hand and wish in another.
The fact of the matter is, America has become and now is …your “paper tiger.”
And in looking back into my files, I found a piece I wrote which addresses our diminished ability to support our allies in Asia in view of America’s willingness to mortgage Her sovereign independence with Her indebtedness to China …in Her sick reliance upon Chinese credit.
Asian debt is not in America’s best interests.
Asian debt is a direct threat …not only to America’s independence …but also poses a threat to the health of Her global relationships with Her allies ….
To this end, on June 6th 2006 I wrote the following piece:
Tuesday, June 06, 2006
( 6 – 6 – 06 )
In light of President Bush’s recent appointment of Mr. Paulsen as Secretary of the Treasury, there has been no small speculation that this move (in a large part) was based upon an apparent need to place more pressure upon China to float its currency …allowing it to rise against other currency valuations in a fair market manner.
As an after thought, making Paulsen Secretary of the Treasury was a move which the president, most likely made so as to leverage Paulsen’s vast financial experience, far reaching contacts and broad, wide-spread tiess in the world of finance. Paulsen had developed tallents which would well serve to efficiently market treasuries at a time of ever rising dependency upon the need for auctions to come off successfully without a hitch. And as Treasury Secretary, Paulsen had accumulated quite a good deal of valuable experience while working at Goldman Sacks. Paulsen’s dealings with securities would make a valuable highly sought after addition to the president’s cabinet.
All speculation aside, despite all that the shaking and moving this administration seems to be engaged in, I have to ask; what truthfully is shaping and affecting the administration’s China policies and actions?
This question begs still another question. How committed to our own relative national interests are we as a free democratic people?
Are we not still a sovereign nation?
Then why do not our national interests reflect this with regard to our habits of over spending and those of over barrowing? Why do these routines seemingly stand in direct conflict with our international foreign policies in ways which portend to more than suggest that America is rather more in favor of economic globalization than looking out for Her sovereign interests?
If Washington’s message is so urgent …so as to be deserving of more than mere political lip-service, then, why do we continue in the same laughable and ineffective currency (weak dollar monetary) policies which favor China?
If the Chinese are not willing to play ball in their refusal to float their currency valuations (exchange rates) using generally accepted international practices, why not adopt a plan to gradually implement an escalating program of systematic tariffs until they are willing to play fair?
(Soon hereafter …there actually was a tarrif placed on imported Chinese printed glossy paper products. Week play …paper tiger? Howbeit, it still was a play!)
In other words, rather than continue in laughable, ineffective, adverse policies, and playing with an unfair player whose play is detrimentally affecting us nationally; …why not instead provide the Chinese with motivations which place a goodly portion of forced reason for plain fair play?
In other words, give the Chinese motives to make them want to participate internationally in good spirit.
Why can not Washington confidently place our own Homeland and national economic interests on equal ground, if not higher than the interests and issues surrounding Taiwan and Korea?
Could it be that our leadership is afraid of being bullied by a nation who we are becoming more and more dependant upon as a creditor?
Actually, I rather bellieve that this may already be the case.
Are we …as a nation, not unlike a parent who has more than well …spared the rod and spoiled the child?
Have we not enabled China’s ability to purchase more and more of our Treasury Notes and thus buy into our public debt at a greater and greater pace?
As we have barrowed more and more, is this not, after all, a problem we all have had a hand in making?
As we go into the mid-term elections, it is paramount to elect public servants who will be willing and able to address these and other issues and thus serve our national and international interests in a perspective of honesty and clarity with an emphasis upon the relative good priorities of our own national interests. We need to be healthy and strong to go forward.
But we need first to be willing to straightforwardly address these issues and avoid the temptations to overshadow the tough issues by sidetracking these issues using smoke and mirrors to avoid responsibility to the greater good.
A wise man once said, “If, in order to serve the weak, the strong are made to become weak; who, if at all, is served?”
Hopefully, our choices will reflect an openness which places an emphasis upon priorities which best look out for all of our interests here at home while not diminishing our abilities to look out for our allies who count on our abilities to react in healthy manners to international issues.
We need to be able to be responsive to crisis from positions of strength and from a base of honorable honest leadership.
We must not leave our homeland vulnerable in any weak position of state; …especially not fiscally.
Let us make clear the issues before us as well as where the candidates stand on these difficult issues.
Let us not be diverted nor sidetracked for the mere sake to serve the need for power for power’s sake.