Wednesday, March 5, 2014

China vs. Japan and USA
By: Ricardo C. Amaral


Here is one of the reasons of why during the Ukraine crisis China is on the side of Russia.


Crisis: China vs. Japan and USA



Xinhua – February 28, 2014

Abe's Comments "Wrong and Dangerous"
http://english.cri.cn/6966/2014/02/28/2702s815092.htm

The world should be cautious against Japan's attempt to break its peaceful constitution and the potential threat to regional peace, Chinese experts warned on Friday.

Japanese Prime Minister Shinzo Abe's comparison of China-Japan relations to those between Britain and Germany on the eve of World War I (WWI) was "wrong and dangerous", according to an article published in the overseas edition of the People's Daily, the flagship newspaper of the Communist Party of China.


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East Asia Now Like Europe in the 1910s? That’s Bunk, China Says – February 7, 2014

China’s ambassador to the U.K. has delivered a lengthy and eloquent rebuttal to a recent suggestion by Japanese Prime Minister Shinzo Abe that the Asia-Pacific today has some similarities Europe before the First World War.

Speaking at the Chatham House think tank in London, Ambassador Liu Xiaoming’s response could be summed up in a word: codswallop.


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United States vows to defend Japan against China – February 8, 2014


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Japan indicates US could bring nukes into its territory in case of emergency – February 15, 2014

Tokyo suggested that it would allow the US to bring nuclear weapons into Japanese territory in the event of a serious threat to its security.

In a briefing with lawmakers, Japanese Foreign Minister Fumio Kishida outlined conditions that would lead Prime Minister Shinzo Abe’s government to make exceptions to Japan’s longstanding posture against possessing, producing, or allowing nuclear weapons within the nation’s borders, Kyodo News reported.

Kishida’s comments come amid heightened tensions between Japan and China thanks to a heated territory dispute in the Pacific. Last week, US Secretary of State John Kerry met with Kishida to stress that the US will support Japan in the conflict.

Late last year, China declared a portion of the East China Sea between Taiwan and Japan to fall within its exclusive economic zone, infuriating Japanese officials who had long considered that region to be within their control. In an almost immediate response, the US mobilized in the region and sent surveillance craft and B-52 bombers over the air defense zone in defiance of China’s wishes.

The two countries have further clashed in their respective claims to a small group of islands, known as Senkaku in Japan and Diaoyu in China.


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US Ambassador Warns China, Japan Against Provocations – February 27, 2014

U.S. Ambassador to China Gary Locke, who leaves office Saturday, warned against provocative actions by Beijing and Tokyo, who are involved in a heated territorial dispute.


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Reuters – February 17, 2014

China concerned at Japan holding weapons-grade plutonium

(Reuters) - China said on Monday it was "extremely concerned" by a report that Japan has resisted returning to the United States more than 300 kg (660 lb) of mostly weapons-grade plutonium, the latest dispute between the two Asian neighbors.

Japan's Kyodo news agency said that Washington had pressed Japan to give back the nuclear material which could be used to make up to 50 nuclear bombs. Japan had resisted, but finally given in to U.S. demands, it added.

The material was bought for research purposes during the 1960s and the two governments will likely reach an official agreement on its return at the Nuclear Security Summit at The Hague in March, an official at Japan's Education Ministry said.

China is involved in a bitter territorial dispute with Japan and has warned Japan is trying to re-arm.


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Japan secretly developing nuclear weapons: Yazhou Zhoukan – February 18, 2014
http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20140218000087&cid=1101

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he Hong Kong-based Yazhou Zhoukan reports that Japan is secretly developing a nuclear weapons program in anticipation of a potential crisis over the Diaoyutai (Diaoyu or Senkaku) islands in the East China Sea.

Japan is currently the only nation in the world which has a complete nuclear industry. Mitsubishi, Hitachi and Toshiba are the three largest Japanese companies which produce nuclear energy. Under those three corporations, there are an additional 200 smaller firms which possess nuclear fuel or who have the know-how to handle plutonium.

For this reason, Yazhou Zhoukan said Japan has the ability to build its own nuclear bomb if it were to revise its postwar peace constitution. Japan holds a total of 40.7 tonnes of plutonium, including 5.5 tonnes in Japan, 21.6 tonnes in France and 13.6 tonnes in the United Kingdom. The country also accumulates about 3,000 tonnes of nuclear waste in its six disposal facilities located in Aomori prefecture, which surpasses the figure for the United States.

Major General Yoshiaki Yano of the Japan Ground Self-Defense Force said in an article written for Japan Military Review magazine that Tokyo should adjust its nuclear policy despite the damage this might do to its relationship with Washington. With the capability to build at least 2,000 nuclear warheads, Japan has recently demanded the United States return 300 kilograms of plutonium. A Japanese military analyst told Yazhou Zhoukan that Washington has paid close attention to the potential development of nuclear weapons in Japan.


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Drone warfare priority in China-Japan standoff – January 2013
http://youtu.be/LkFWA8Fi434


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Reuters - Japan China tensions take center-stage – January 23, 2014


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Bill Gertz discusses China-Japan conflict with Rick Amato – February 20, 2014

The Washington Free Beacon's senior editor Bill Gertz discussed the escalating conflict between China and Japan, as well as the decline of Obama foreign policy, Thursday on The Rick Amato Show.


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Harvard Professor Warns of Devastating China Japan War – February 14, 2014

WORLD WAR 3 - Harvard Professor Warns of Devastating China Japan War.


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February 15, 2014

WARNING of Possible WW3 in 2014 as CHINA & JAPAN Tensions in South China Sea Grow


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Arms Race in the Far East: China, Japan Vietnam, the Phillippines increase their military budgets – February 5, 2014


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The Diplomat – March 4, 2014

China Backs Russia on Ukraine

Despite its principle of non-interference, domestic and international interests have Beijing siding with Moscow.


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Ukraine crisis becomes knottier as China backs Russia – March 4, 2014
http://www.firstpost.com/world/ukraine-crisis-becomes-knottier-as-china-backs-russia-1417873.html

China’s state-owned news agency Xinhua accused the Weste of adopting a Cold War-like mindset towards Russia and trying to isolate Moscow at a time when much needed mediation is need to reach a diplomatic solution to the crisis in Crimea.

It is a normal practice with China to air its foreign policy thoughts on major international issues through its state-owned media. In this context, the following paragraph from an opinion piece carried by Xinhua assumes an even greater significance:

"Based on the fact that Russia and Ukraine have deep cultural, historical and economic connections, it is time for Western powers to abandon their Cold War thinking. Stop trying to exclude Russia from the political crisis they failed to mediate, and respect Russia's unique role in mapping out the future of Ukraine… Right now, the West should show more appreciation for what Russia can do to solve the crisis in Ukraine. Given Russia's historical and cultural influence in the country, the Kremlin is the piece that cannot be missing in this political puzzle."

However, a spokesperson for the Russian foreign ministry quoted by the Russian Itar-Tass news agency spoke in far more diluted terms: "The foreign ministers of both countries exchanged views on the situation in Ukraine. They noted the coincidence of positions on this aspect."

Going by the reading of the Chinese tea leaves as filtered through its state-controlled media it offers fairly substantial evidence that the Chinese have, after all, lent their support to the Russians over Ukraine.


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“Currency Wars”


In December 2013, China did Cut $ 50 billion dollars in US Treasury Holdings – just part of the “Currency Wars” that is underway....


Bloomberg News – February 18, 2014

China Cuts Treasury Holdings Most Since 2011 Amid Taper

China the largest foreign U.S. creditor, reduced holdings of U.S. Treasury debt in December by the most in two years as the Federal Reserve announced plans to slow asset purchases.

The nation pared its position in U.S. government bonds by $47.8 billion, or 3.6 percent, to $1.27 trillion, the largest decline since December 2011, according to U.S. Treasury Department data released yesterday. At the same time, international investors increased holdings by 1.4 percent, or by $78 billion, in December, pushing foreign holdings to a record $5.79 trillion.


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With a friend like that who needs enemies?


Right after John Kerry speech in Keiv, Ukraine, CNN News announced that the United States has recognized the “coup d'etat” government that took over power in Ukraine and deposed by force the democratically elected government of Ukraine.

The same type of "American Style" of democracy that the US supported in Egypt.

The American interference and meddling in the internal affairs of Egypt has worked so well, that it's something that the Ukrainians also can look forward for such a great results as in Egypt.

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It seems to me that democracy “American style” is not working very well in Egypt, even though this type of democracy the US is proud to implement in other countries, and claim that it's a great American success.

The other countries of the world should think twice regarding following the US agenda, and to back up its endeavors, because with a history of so many successes such as in Iraq, Afghanistan, Libya, Syria, Iran, Egypt, Venezuela, China vs. Japan, ...with a list of historical successes like that is no surprise that today only Canada and Japan still backing up the US on its latest adventure in Ukraine.

For the United States there's no prestige and clout left anywhere...only a vast amount of massive failures all over the place to showcase.

Egypt's turnabout towards Russia is seen a yellow card to US – February 28, 2014
http://www.youtube.com/watch?v=oQppQua4jI8&feature=youtu.be

The head of Egypt's military, Field Marshall Abdel Fatah el-Sisi is the man widely expected to become the country's next president. Sisi recently visited Russia as his first oversees trip since the ousting of President Mohamed Morsi. Experts believe the visit was meant to be a warning to the US.


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Here are some reasons why the United States is becoming increasingly isolated in the world?


1) NSA betrayed the world's trust


TED – November 2013

Mikko Hypponen: How the NSA betrayed the world's trust - time to act


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NSA snooping could cost US tech companies up to $35bn over 3 years – August 18, 2013

The role of America's intelligence boss on the panel reviewing government surveillance programmes is causing controversy. James Clapper was expected to lead the inquiry, which was promised to be independent - but now it looks like he'll only have a limited part to play. And all this scrutiny of spying methods is costing big tech companies, big money.


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Kerry On Damage Control: NSA spying under fire in Latin America – August 13, 2013


The massive NSA snooping revelations have cast a shadow over John Kerry's trip to Latin America - his first visit there since he assumed the position of Secretary of State. He has already received a chilly reception in Colombia - where officials demanded an explanation to reports that Washington had collected vast amounts of internet data there. The next stop on his trip is Brazil - which allegedly was the top regional target of the surveillance program. For more perspective RT talks to geopolitical analyst Eric Draitser.


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BBC News – November 11, 2013

Brazil debates internet law in wake of NSA scandal

Along with Russia, China and Iran, Brazil was one of the countries of most interest for US intelligence agencies, according to the leaks from the US National Security Agency (NSA).


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Digital Divorce: Merkel proposes new spy-proof network for Europe – February 17, 2014

Angela Merkel and Francois Hollande will review plans to build up a trustworthy data protection network in Europe. The challenge is to avoid data passing through the US after revelations of mass NSA spying in Germany and France


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Brazil looks to break fromUS-centricInternet
The Associated Press - September 16, 2013


RIO DE JANEIRO (AP) — Brazil plans to divorce itself from the U.S.-centric Internet over Washington’s widespread online spying, a move that many experts fear will be a potentially dangerous first step toward politically fracturing a global network built with minimal interference by governments.

President Dilma Rousseff has ordered a series of measures aimed at greater Brazilian online independence and security following revelations that the U.S. National Security Agency intercepted her communications, hacked into the state-owned Petrobras oil company’s network and spied on Brazilians who entrusted their personal data to U.S. tech companies such as Facebook and Google.


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Brazen Bugging: NSA tapped into Merkel's phone – October 28, 2013

Merkel made her outrage clear in a recent phone call to Obama. She said such monitoring practices would be a 'breach of trust' - if confirmed. The Chancellor also said that 'spying among friends does not work'.Obama apologized - and insisted he had no previous knowledge that the NSA had been tracking her. Merkel had been targeted by the agency for over a decade - according to the latest leaked documents. European leaders are now pushing for a new "spy code of conduct" with the U.S. Let's talk more on this with Sevim Dagdelen, a lawmaker from Germany's Left Party.


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Spain Joins France, Germany As Targets Of NSA Spying – October 28, 2013

"The Spanish prime minister, Mariano Rajoy, has summoned the US ambassador to explain the latest revelations to emerge from the files leaked by Edward Snowden, which suggest the National Security Agency tracked more than 60m phone calls in Spain in the space of a month.

Spain's European secretary of state, Íñigo Méndez de Vigo, is meeting James Costos as the White House struggles to contain a growing diplomatic crisis following accusations that the NSA monitored the phones of scores of allies, including the German chancellor, Angela Merkel.


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2) U.S. Gold Gone, Gone, Gone...



Gold Gone? Germany baffled as Fed bars access to bullion - August 15, 2013

The world is losing trust in the dollar as a safe haven. A major blow came after Germany's Bundesbank demanded the repatriation of a big chunk of its gold being held in the US. Because as RT's Gayane Chichakyan reports, some are concerned the assets of foreign nations in the Federal Reserve are not secure or even there. The Germans were infuriated when the US Federal reserve didn't even let them examine their own assets properly. Peter Boehringer, the founder and chairman of 'German Precious Metal Association', says that's a bad sign.


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Keiser Report: Goodbye, German Gold? - October 25, 2012

In this episode, Max Keiser and Stacy Herbert discuss how it is that Gordon Brown's Bottom turned into an audit the gold movement in Germany. They also discuss the mother of all bond bubbles getting set to burst and all that will be left in the Bank of England 'gold' vaults are a big pile of gilts.

In the second half of the show, Max Keiser talks to Dominic Frisby, author of Life After the State, about Germany's gold quest, the future of relations between the US and Germany if the gold is not there and about 'life after the state.'


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Germany's Missing Gold - David Morgan – January 14, 2014


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Keiser Report: Goodbye German gold – January 30, 2014
https://www.youtube.com/watch?v=aGwXOcgCMDM

In this episode of the Keiser Report, Max Keiser and Stacy Herbert discuss the print, taper, print, taper talk that has led to the economic and financial chaos that finds the Financial Times opining that one should do like the Bundesbank did and demand physical delivery of your gold before your wealth becomes pixellated.

In the second half, Max interviews John Mauldin, author of CODE RED: How to Protect Your Savings From the Coming Crisis, about money printing, inflation/deflation, gold prices and wages.


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Germans declare gold markets are rigged! Bill Murphy Interview – February 9, 2014

Published on Jan 20, 2014 Cambridge House - Bill Murphy, the chairman of the Gold Anti-Trust Action Committee, chats with Cambridge House Live's Bridgitte Anderson about the recent news that Germany is taking a serious look at potential criminal activities in the gold market.


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Word of the Day: Hypothecation, Re-hypothecation and Churning! - March 1, 2012

This is our word of the day, where we break down a financial term or concept for our viewers. Today's word is "re-hypothecation," but to understand it, we must first start with "hypothecation." Hypothecation occurs whenever a borrower (for example, a bank or financial merchant) pledge collateral to secure a debt. The borrower retains ownership of the collateral, but it is controlled by the creditor in that he has the right to seize possession if the borrower defaults. A common example is when someone enters into a mortgage agreement with a bank. In this case, the mortgagee lives in the house, which remains collateral for the bank until the mortgage is finally paid off.

Now, rehypothecation is simply the hypothecation of collateral that has ALREADY been hypothecated. This occurs principally in the financial markets, where a bank or other broker-dealer reuses the collateral pledged by its clients as collateral for its own borrowing. In the US, rehypothecation of collateral by broker-dealers is limited to 140% of the loan amount to a client under Rule 15c3-3 of the SEC. So what then is churning? Well, churning is the process of rehypoethecating something that has already been rehypothecated! Sounds nuts right?

Well, it's really nothing other than a form of fractional reserve lending, except you aren't using depots but instead, you are using hypothecated collateral. It's kind of like me going into your safety deposit box and borrowing the money from the box and lending it out to someone else, who then re-lends it to someone else and so on. The only difference is that the cash in the box has not been posted as collateral.


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Jim Willie Reveals the SMOKING GUN On US Gold Rehypothecation! - January 27, 2014


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Greg Hunter – January 20, 2014

Dr. Paul Craig Roberts - U.S. Gold Gone

Dr. Paul Craig Roberts, the Father of Reaganomics, predicts, "I think, this year, you are going to see a further downturn in the economy. The signs are not only that we do not have a recovery, but it's going to get worse. . . . Christmas sales were very negative. There's no growth in people's income and no jobs. So, if the economy goes down further, what does that mean? It means the deficit widens. It means they have a greater debt ceiling lift. They have to have a bigger debt ceiling increase, and all of this will alarm the world. They'll say, good heavens, they already had a trillion dollar deficit. Now it's gone up, and the Fed can't stop the quantitative easing without the stock and bond market collapsing. The banks' solvency will become an issue. So, the world is watching a bigger deficit, more printing of money, and they are likely to start dumping dollars.

When they do that, they'll say 'gold, I want gold.' There's not much supply to meet demand, and the price has to escalate. So, I wouldn't be surprised if that shows up this year." Dr. Roberts also contends that America's gold is "mainly gone."

Join Greg Hunter of USAWatchdog.com as he goes One-on-One with economist and former Assistant Treasury Secretary, Dr. Paul Craig Roberts.


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Greg Hunter – December 24, 2013

Rob Kirby-When China Doesn't Get Their Gold-That's When This Ends

Rob Kirby of KirbyAnalytics.com claims the U.S. "arbitrarily set the price of all strategic goods in the market." As an example of control, Kirby explains, "We have 10-year U.S. bond rates under 3%, and I would say the United States is actually insolvent, and we have countries like Greece where 10-year bonds are yielding over 9%." When does this end? Kirby points to look to the finite physical gold market and massive Chinese global buying for a clue. Kirby says, "When China doesn't get their gold, that's when this ends, and that might be when we have a war." Join Greg Hunter as he goes One-on-One with Rob Kirby of KirbyAnalyitics.com


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Bloomberg News – January 17, 2014
Metals, Currency Rigging Is Worse Than Libor, Bafin Says

Germany's top financial regulator said possible manipulation of currency rates and prices for precious metals is worse than the Libor-rigging scandal, which has already led to fines of about $6 billion.

The allegations about the currency and precious metals markets are “particularly serious because such reference values are based -- unlike Libor and Euribor -- typically on transactions in liquid markets and not on estimates of the banks,” Elke Koenig, the president of Bonn-based Bafin, said in a speech in Frankfurt yesterday.

Koenig is the first global finance regulator to comment publicly on the investigations as probes into the London interbank offered rate, or Libor, expand into other benchmarks. Joaquin Almunia, the European Union’s antitrust chief, said this week that its preliminary probe into possible foreign-exchange manipulation covers similar practices as in the regulator’s probe into Libor-rigging.

Investors should short Deutsche Bank AG (DBK) stock because of probes into currency manipulation and as a rally in banking shares reverses, Berenberg Bank said in a report today. “The investigations by regulators into the bank’s foreign-exchange trading remain a significant risk considering Deutsche is the world’s largest foreign-exchange dealer,” Berenberg said.


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Ricardo C. Amaral
Author and economist


He can be reached at:

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