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Actually the wand belong's to China and it's wealth. They have enabled the US to manipulate US and world markets.
Here's a question about China that it's buggin' the heck out of me. We have, for some time, said that China has an amount of wealth that has allowed China to have a certain level of global influence. Now, it took the U.S. 144 years to amass or better said to build an economy of $12 to 14 trillion since around the end of the civil war. On the other hand, China opened up their doors to Western investment in 1971 which is fairly recent compared to the U.S. or some European countries for that matter. Mao Tse-tung understood that in order for the power structure to have continuity, the Chinese govn't needed to provide jobs and walk away from the agrarian economy that China embraced as a result of its Communist regime. However, the saw that the Soviets were in deep financial trouble that eventually would collapse.......which in effect did happened. So, how can a country build such an incredible amount of influence from nothing in 38 years? How much of that Chinese wealth is owned by foreign investors?
Since 1971, basic manufacturing industries, service oriented industries, technologies, and recently gigantic financial institutions have rushed to China. So......whose wealth then? I reckon that China has increased their economy in every single level since 1971, however, I do believe that the supposed influence of China is overly hyped. I believe also that China has been used as a pawn for political and financial fear mongering. Obviously, the Chinese govn't wants the same benefits that the U.S. has, in terms of buying goods and services with printed paper and not real factors of production. But they, just like the U.S. govn't, have been hijacked. Now in regards of hypes, does anyone remember the paranoia during the 80's and the supposed threat to U.S. supremacy at the hands of the Japanese?.....East vs. West so on and so forth. Sort of like.... first the U.S. fought the communist, and now the fight is against terrorism. We can't live without an enemy because it is not economically profitable.
So, how can a country build such an incredible amount of influence from nothing in 38 years?
You realize that China had an economy prior to 1971?
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Since 1971, basic manufacturing industries, service oriented industries, technologies, and recently gigantic financial institutions have rushed to China. So......whose wealth then?
Besides domestic growth, I'm pretty sure it was investment by the American, French, British, Dutch, Australian, German, Japanese, et cetera
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I reckon that China has increased their economy in every single level since 1971, however, I do believe that the supposed influence of China is overly hyped. I believe also that China has been used as a pawn for political and financial fear mongering.
I disagree about them being 'overhyped'.
I agree that they've been used, in America, for baseless political fearmongering by both Republicans (primarily the military) and Democrats (primarily jobs).
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Obviously, the Chinese govn't wants the same benefits that the U.S. has, in terms of buying goods and services with printed paper and not real factors of production. But they, just like the U.S. govn't, have been hijacked. Now in regards of hypes, does anyone remember the paranoia during the 80's and the supposed threat to U.S. supremacy at the hands of the Japanese?.....East vs. West so on and so forth. Sort of like.... first the U.S. fought the communist, and now the fight is against terrorism. We can't live without an enemy because it is not economically profitable.
I don't think the need to have an enemy has anything to do with profit. I don't even see how having enemies would be profitable anyway, at least not on a national level. I think it is rooted in the ignorance and xenophobia of human beings.
You realize that China had an economy prior to 1971?
Besides domestic growth, I'm pretty sure it was investment by the American, French, British, Dutch, Australian, German, Japanese, et cetera
I disagree about them being 'overhyped'.
I agree that they've been used, in America, for baseless political fearmongering by both Republicans (primarily the military) and Democrats (primarily jobs).
I don't think the need to have an enemy has anything to do with profit. I don't even see how having enemies would be profitable anyway, at least not on a national level. I think it is rooted in the ignorance and xenophobia of human beings.
1) As I said before, China had an agrarian based economy that was nowhere near its current GDP.
2) Mao Tse-tung welcomed foreign investment in order to keep the power structure intact. Therefore, the post 1971 flow of foreign investment in China was much larger than the preceding trends.
3) I have no idea how you can agree and disagree at the same time over the same point. Maybe I wrote something that implied a different point?
4) The Policy Analysis Market, otherwise known as FutureMAP tells me that there are lots of profits to be made from the so call "enemies" . Just the same way that short selling or naked short selling are financial instruments intended to invest and consequently make profits on the possibility of a company's demise; FutureMAP allows the potential investor to make profits on military casualties, terrorist attacks, or political instability in some regions. Former RDML, John Pointdexter (Iran-Contras) with the help of other people created this financial model that in my opinion is beyond preposterous.
A couple of months ago, we also learned through Zero Hedge [4] that Goldman had profited greatly from a sweetheart deal with the federal government concerning a new program instituted by the Feds known as "The Supplemental Liquidity Provider" Program ("SLP"), launched while we were all eating Turkey last Thanksgiving. It is supposed to provide "market liquidity" (i.e.: an ongoing, active market) for selected groups of 500 different NYSE stocks per SLP participant. The problem is as Durden pointed out to all who were interested, it certainly appeared to him that Goldman was the only active participant in the program.
We also learned from Bloomberg [5] that as of April, Goldman-Sachs had reaped the benefits of more $100 million-plus days of trading revenue than it had in the history of its business, WOW! HOW DID THEY DO THAT?
What many may not know is the fact that Goldman is at the heart of the government's Plunge Protection Team, a/k/a the "President's Working Group On Financial Markets," (thus making this a matter of so-called national security.) So you see there is the possibility that Goldman could have easily been "frontrunning" the rest of the market using their exceptionally fast proprietary computer program, or code as it is called, identifying others' market-making trades and strategies, then acting upon them for Goldman's own benefit, instead of reporting to the PPT , and executing in-house trades before the third-parties' trades were even concluded. So the Code may explain their extroidinary fortune lately. Ah, but trouble comes knocking.
(tpm cafe)
I'm shocked to find that gambling is going on here!
I find these conspiracy theory threads pretty funny. I'm a banker at a middle market firm and my roommate is a bond trader at U.S. bulge bracket firm (i.e. JPM, GS, MS, etc.). I showed him this article today. He says Goldman is probably making it out to be a national security risk so they can get more cooperation and attention from the attorney general in prosecuting the guy. Essentially they don't want their code stolen because (as the article explains) they will lose their proprietary trading algorithms that help them make millions. These programs are vitally important to banks' bottom lines -- and no, it has nothing to do with manipulating the market.
Keep believing it is a massive conspiracy to keep the common man down though. It makes these threads all the more entertaining to read.
goldman sachs said that the markets would be manipulated if you read the article:
in a court appearance July 4 in Manhattan, Assistant U.S. Attorney Joseph Facciponti told a federal judge that Aleynikov’s alleged theft -- the largest breach at Goldman Sachs -- poses a risk to U.S. markets. Aleynikov transferred the code, worth millions of dollars, to a computer server in Germany, and others may have had access to it, Facciponti said, adding that New York-based Goldman Sachs may be harmed if the software is disseminated.
“The bank has raised the possibility that there is a danger that somebody who knew how to use this program could use it to manipulate markets in unfair ways,” Facciponti said, according to a recording of the hearing made public yesterday.
china got their population under control for one thing. they have made some wise choices as far as investments and they have a lot of trading partners. (the united states isn't their only trading partner). i don't think that most people are demonizing the chinese, just pointing out that our country is doing the importing and their country is doing the exporting. for our own country to advance we obviously need to change something about that formula.
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