Looking overseas, seeing ourselves

(News & Editorial/ Looking overseas, seeing ourselves)

“Dark clouds gather on the global horizon, the wind direction is changin’.
Flashing light in the darkening sky, promise storms gale soon rising ”.
……….Mr. Larry

 A.  Europe Is Heading Into A Full-Scale Disaster
24 October 2012, Gold-Eagle.com, by Graham Summers
Pasted from: <http://www.gold-eagle.com/editorials_12/summers102412.html&gt;

You see, the debt problems in Europe are not simply related to Greece. They are SYSTEMIC. The below chart shows the official Debt to GDP ratios for the major players in Europe.

As you can see, even the more “solvent” countries like Germany and France are sporting Debt to GDP ratios of 75% and 84% respectively.

These numbers, while bad, don’t account for unfunded liabilities. And Europe is nothing if not steeped in unfunded liabilities.

Let’s consider Germany. According to Axel Weber, the head of Germany’s Central Bank, Germany is in fact sitting on a REAL Debt to GDP ratio of over 200%. This is Germany… with unfunded liabilities equal to over TWO times its current GDP.

That’s one thing most invetsors don’t know about Europe.

To put the insanity of this into perspective, Weber’s claim is akin to Ben Bernanke going on national TV and saying that the US actually owes more than $30 trillion and that the debt ceiling is in fact a joke.

What’s truly frightening about this is that Weber is most likely being conservative here. Jagadeesh Gokhale of the Cato Institute published a paper for EuroStat in 2009 claiming Germany’s unfunded liabilities are in fact closer to 418%.

And of course, Germany has yet to recapitalize its banks.

Indeed, by the German Institute for Economic Research’s OWN admission, German banks need 147 billion Euros’ worth of new capital.

To put this number into perspective TOTAL EQUITY at the top three banks in Germany is less than 100 billion Euros.
And this is GERMANY we’re talking about: the supposed rock-solid balance sheet of Europe. How bad do you think the other, less fiscally conservative EU members are?
Think BAD. As in systemic collapse bad.

Indeed, let’s consider TOTAL debt sitting on Financial Institutions’ balance sheets in Europe. The below chart shows this number for financial institutions in several major EU members relative to their country’s 2010 GDP.

As you can see, financial institutions in Germany, France, Italy, Spain, the UK, and Ireland are all ticking time bombs.

Indeed, taken as a whole, European financial institutions have more debt than Europe’s ENTIRE GDP.
And this is only the “official” numbers. When you account for off balance sheet liabilities, banks are even more indebted than this!

That’s the second thing most investors don’t know about Europe.
Let’s compare the situation there to that in the US banking system.

Taken as a whole, the US banking system is leveraged at 13 to 1. Leverage levels at the TBTFs are much much higher… but when you add them in with the 8,100+ other banks in the US, total US bank leverage is 13 to 1.

The European banking system as a whole is leveraged at nearly twice this at over 26 to 1. That’s the ENTIRE European Banking system leveraged at near Lehman levels (Lehman was 30 to 1 when it collapsed).
To put this into perspective, with a leverage level of 26 to 1, you only need a 4% drop in asset prices to wipe out ALL capital. What are the odds that European bank assets fall 4% in value in the near future as the PIIGS continue to collapse?

 .

 B.  45 Signs That China Is Colonizing America
23 May 2012, The American Dream
http://endoftheamericandream.com/archives/45-signs-that-china-is-colonizing-america

“Just because you were once the most powerful nation on earth does not mean that you will always be the most powerful nation on earth. Every single year, hundreds of billions of dollars leaves the United States and goes to China. This enormous transfer of wealth has had a dramatic effect on both countries.
In case you haven’t noticed, many of our formerly great manufacturing cities such as Detroit are rotting away while shining new factories and skyscrapers are going up all over China. If you go into any major retail store today and start turning over products, you will find that hundreds of them have been made in China and that very few of them have been made in America.
As a nation, we buy far, far more from China than they buy from us. As a result, China is absolutely swimming in cash and they have been looking for things to do with all that money. One thing that China has done is loan the U.S. government over a trillion dollars and this has given the Chinese a tremendous amount of leverage over us. China has also started to buy up businesses, real estate and natural resources all over America.
This kind of “economic colonization” is similar to what China has already been doing in Africa, South America and Australia. The formula is actually very simple. We send them our money and then they use it to buy us. With each passing day China’s ownership over America grows, and it is frightening to think about where all of this could end.
The following are 45 signs that China is colonizing America:
#1 It was recently announced that China’s Dalian Wanda Group has bought U.S. movie theater chain AMC Entertainment for a whopping 2.6 billion dollars. This deal represents China’s biggest corporate takeover of a U.S. firm ever.

#2 Earlier this month, the Federal Reserve announced that it has given approval for banks owned by the Chinese government to buy stakes in U.S.-owned banks.

#3 A few days ago Reuters reported that China is now able to completely bypass Wall Street and purchase U.S. debt directly from the U.S. Treasury Department.

#4 A recent investigation by the U.S. Senate Committee on Armed Services found more than one million counterfeit Chinese parts in the Department of Defense supply chain. How in the world could we be so stupid?

#5 After being bailed out by U.S. taxpayers, General Motors is currently involved in 11 joint ventures with companies owned by the Chinese government. The price for entering into many of these “joint ventures” was a transfer of “state of the art technology” from General Motors to the communist Chinese.

#6 A Chinese company known as “Sino-Michigan Properties LLC” has purchased 200 acres of land near the town of Milan, Michigan. The goal is to build a “China City” with artificial lakes, a Chinese cultural center and hundreds of housing units for Chinese citizens.

#7 As I reported on recently, corporations controlled by the Chinese government have been rapidly buying up U.S. oil and gas deposits worth billions of dollars.

#8 Chinese investors have been gobbling up real estate all over New York City. The following is from a recent Forbes article….
According to a recent report in the New York Times, investors from China are “snapping up luxury apartments” and are planning to spend hundreds of millions of dollars on commercial and residential projects like Atlantic Yards in Brooklyn. Chinese companies also have signed major leases at the Empire State Building and at 1 World Trade Center, the report said.

#9 The Chinese are also doing huge real estate deals in cities in the middle part of the country. The following example is from an article in the Toledo Blade….
Dashing Pacific Group Ltd., which has already purchased the nearby Docks restaurant complex for $2.15 million, put its $3.8 million offer to buy the southern 69 acres at the Marina District in East Toledo back on the table for approval by Toledo City Council. Additionally, Dashing Pacific Chairman Yuan Xiaohong, in a letter signed in Hangzhou, said the firm wants a two-year option to buy the decommissioned Toledo Edison power plant property on the site.

#10 According to ABC News, major road and bridge projects all over the United States are being built by Chinese companies. Meanwhile, there are millions upon millions of blue collar American workers that cannot find jobs. The following is a brief excerpt from a recent ABC News article….
In New York there is a $400 million renovation project on the Alexander Hamilton Bridge.
In California, there is a $7.2 billion project to rebuild the Bay Bridge connecting San Francisco and Oakland.
In Alaska, there is a proposal for a $190 million bridge project.
These projects sound like steps in the right direction, but much of the work is going to Chinese government-owned firms.
“When we subsidize jobs in China, we’re not creating any wealth in the United States,” said Scott Paul, executive director for the Alliance for American Manufacturing.

#11 The new World Trade Center tower is going to include glass that has been imported from China.

#12 The new Martin Luther King memorial on the National Mall was made in China.

#13 Check out this incredible photo which contrasts the decline of Detroit over the years with the amazing rise of Shanghai, China.

#14 A couple of years ago, a large Chinese company was considering building “a 10,000- to 30,000-acre technology zone for industry, retail centers and homes” just south of Boise, Idaho.

#15 Our trade deficit with China in 2011 was $295.5 billion. That was the largest trade deficit that one country has had with another country in the history of the planet.

#16 In 2011, our trade deficit with China was 28 times larger than it was back in 1990 and more than 49,000 times larger than it was back in 1985.

#17 Back in 1998, the United States had 25 percent of the world’s high-tech export market and China had just 10 percent. Today, China’s high-tech exports are more than twice the size of U.S. high-tech exports.

#18 America has lost more than a quarter of all of its high-tech manufacturing jobs over the past ten years.

#19 According to the Economic Policy Institute, America is losing half a million jobs to China every single year.

#20 The U.S. spends about 4 dollars on goods and services from China for every one dollar that China spends on goods and services from the United States. Does that sound like “fair trade” to you?

#21 While we allow Chinese goods to freely flood our shores, China just keeps slapping new tariffs on American-made goods. According to the New York Times, a Jeep Grand Cherokee that costs $27,490 in the United States costs about $85,000 in China thanks to all the tariffs.

#22 According to U.S. Representative Betty Sutton, an average of 23 manufacturing facilities a day closed down in the United States during 2010.

#23 The United States has lost an average of approximately 50,000 manufacturing jobs a month and more than 56,000 manufacturing facilities in the United States have been shut down since China joined the World Trade Organization in 2001.

#24 The United States has lost a staggering 32 percent of its manufacturing jobs since the year 2000.

#25 Between December 2000 and December 2010, 38 percent of the manufacturing jobs in Ohio were lost, 42 percent of the manufacturing jobs in North Carolina were lost and 48 percent of the manufacturing jobs in Michigan were lost.

#26 In 2010, China produced more than twice as many automobiles as the United States did.

[Don’t think for a minute that the Chinese are still all riding around on bycycles. The pic above was taken over a freeway in Urumqi (where’s that?) China. Mr. Larry]

#27 In 2010, China produced 627 million metric tons of steel. The United States only produced 80 million metric tons of steel.

#28 In 2010, China produced 7.3 million metric tons of cotton. The United States only produced 3.4 million metric tons of cotton.

#29 Today, China produces nearly twice as much beer as the United States does.

#30 85 percent of all artificial Christmas trees are made in China.

#31 China is now the number one producer of wind and solar power on the entire globe.

#32 Chinese solar panel production was about 50 times larger in 2010 than it was in 2005.

#33 Right now, China is producing more than three times as much coal as the United States does.

#34 China is now the number one supplier of components that are critical to the operation of U.S. defense systems.

#35 According to author Clyde Prestowitz, China’s number one export to the U.S. is computer equipment. According to an article in U.S. News & World Report, during 2010 the number one U.S. export to China was “scrap and trash”.

#36 According to Professor Alan Blinder of Princeton University, 40 million more U.S. jobs could be sent offshore over the next two decades.

#37 The United States had been the leading consumer of energy on the globe for about 100 years, but during the summer of 2010 China took over the number one spot.

#38 15 years ago, China was 14th in the world in published scientific research articles. But now, China is expected to pass the United States and become number one very shortly.

#39 China now awards more doctoral degrees in engineering each year than the United States does.

#40 China now possesses the fastest supercomputer on the entire planet.

#41 China now has the world’s fastest train and the world’s most extensive high-speed rail network.

#42 The Chinese economy has grown 7 times faster than the U.S. economy has over the past decade.

#43 The Chinese economy is projected to be larger than the U.S. economy by 2016.

#44 One economist is projecting that the Chinese economy will be three times larger than the U.S. economy by the year 2040.

#45 China now holds approximately 1.17 trillion dollars of U.S. government debt. If you were alive back when Jesus was born and you had spent a million dollars every single day since then, you still would not have spent that much money by now.
In compiling the statistics above, I relied heavily on two articles that I previously authored.
Please share this list with as many people as you can. It is imperative that the American people get educated about why our economy is falling apart and about why there are so few jobs.
Thanks to the foolishness of our politicians, today American workers have to compete directly for jobs with workers on the other side of the globe where it is legal to pay slave labor wages.
Do you want your standard of living to continue to descend toward the level of a communist worker making about a dollar an hour?
Do you want tens of millions of American workers to be unemployed indefinitely as millions of good jobs continue to leave this country?
If not, you better stand up and say something while you still can.
The greatest economy the world has ever seen is falling to pieces right in front of our eyes and most Americans are dead asleep.
Is there any hope for us?”

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