Saturday, March 15, 2008

Communists love conspiracies. They steal, plunder and kill but if anyone resists it is a CIA conspiracy. There are two juicy conspiracies concerning China for the comrades to ponder. The first is that China was set up by being awarded the Olympic games. Once the games are in sight encourage the Tibetans and, maybe, the Falun Gong to go on the rampage. Being inherently brutal the Chinese would respond brutally thereby giving the western countries excuse to boycott the games and humiliate the country. The second is economic. For years the West has been asking China to revalue the Renminbi to reduce the trade deficit but the Chinese have refused steadfastedly. So engineer a huge fiscal deficit by giving insane tax refunds which produces downward pressure on the dollar. Asian countries, including China, respond by buying dollars from the market to maintain competitive advantage of their currencies. Then give subsidy to the biofuel industry so that farmers divert their crops away from wheat thereby pushing up food prices across the world. The subprime crisis and the drought in Australia just hastened matters nicely. Now China is caught between runaway inflation if they leave their currency at the present level or risk losing market share if they allow it to revalue. Hopefully China will implode and break up like Yugoslavia, Chechoslavia and the USSR. Ancient Chinese curse - 'May you live in interesting times'. Interesting times ahead for the comrades, methinks.

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