UK Police State? 'New law would ban protests, even imply thought crime'

The March to War Continues: China sets up air defense zone over East China Sea

Source: AFP

Beijing on Saturday announced it was setting up an "air defence identification zone" over an area that includes islands controlled by Japan but claimed by China, in a move that could inflame the bitter territorial row.
Along with the creation of the zone in the East China Sea, the defence ministry released a set of aircraft identification rules that must be followed by all planes entering the area, under penalty of intervention by the military.
Aircraft are expected to provide their flight plan, clearly mark their nationality, and maintain two-way radio communication allowing them to "respond in a timely and accurate manner to the identification inquiries" from Chinese authorities.
The outline of the new zone, which is shown on the ministry website and a state media Twitter account (pic.twitter.com/4a2vC6PH8O), covers a wide area of the East China Sea between South Korea and Taiwan that includes the Tokyo-controlled islands known as the Senkakus to Japan and Diaoyous to China.
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Despite threat of nicotine poisoning, federal law allows 12-year-olds to work in tobacco fields

Topics: tobacco fields

A group that fights child labor has called on the U.S. Department of Labor to prohibit children from working in tobacco fields.
“We don’t let 12-year-olds buy and smoke cigarettes,” said Sally Greenberg, co-chair of the Child Labor Coalition, in a statement released Friday. “Why would we let them perform dangerous work in tobacco fields beginning at the age of 12? It simply isn’t right.”
Earlier this month, The Nation reported that children as young as 12 were toiling in tobacco fields, where they often suffered a form of acute nicotine poisoning from handling wet tobacco.
Children and teens are particularly vulnerable to green tobacco sickness due to their smaller body size. The illness often causes weakness, headache, dizziness and vomiting, and can require emergency medical treatment.
The Labor Department had proposed updating the Fair Labor Standards Act of 1938 in 2011 to strengthen child labor laws and ban children from working with tobacco.
The Act set a minimum work age of 16 for most occupations, but exempted minors who work in the agriculture industry.
The new regulations would have prohibited “the employment of young hired farm workers in tobacco production and curing in order to prevent occupational illness due to green tobacco sickness.” They also would have prohibited those under the age of 16 from operating heavy machinery, working with pesticides, and working in dangerous locations.
The Labor Department said it proposed the new regulations because of studies showing that children were significantly more likely to be killed while performing agricultural work than while working in all other industries combined.
But the proposed changes were shelved in 2012 due to pressure from the American Farm Bureau and members of Congress.
“In withdrawing these badly needed safety rules, the Obama Administration yielded to industry lobbyists, but this new information about exposure to tobacco raises new warning flags,” Greenberg said. “The Nation’s reporting makes it clear that the US government has a responsibility to protect 12-year-olds toiling in the fields. It must pick up the process it started and protect child workers from the known dangers of tobacco harvesting.”
[Woman working in tobacco field on Shutterstock]

Ron Paul – “We’re More Likely To Have More QE Then Tapering With Yellen”

Where Did All The Gold Go?

22 November 2013, by Tyler Durden (Zero Hedge)

The last twenty years have seen an acceleration of real wealth transfer from the west to the east. Nowhere is that more evident than the change in gold stock piles since 1993 with Russia and China gorging and Holland, Belgium, and most notably Switzerland selling it all...

Federal Reserve and Wall Street Assassinate US Dollar

Paul Craig Roberts
Activist Post

Since 2006, the US dollar has experienced a one-quarter to one-third drop in value to the Chinese yuan, depending on the choice of base.

Now China is going to let the dollar decline further in value. China also says it is considering undermining the petrodollar by pricing oil futures on the Shanghai Futures Exchange in yuan. This on top of the growing avoidance of the dollar to settle trade imbalances means that the dollar’s role as reserve currency is coming to an end, which means the termination of the US as financial bully and financial imperialist. This blow to the dollar in addition to the blows delivered by jobs offshoring and the uncovered bets in the gambling casino created by financial deregulation means that the US economy as we knew it is coming to an end.

The US economy is already in shambles, with bond and stock markets propped up by massive and historically unprecedented Fed money printing pouring liquidity into financial asset prices. This month at the IMF annual conference, former Treasury Secretary Larry Summers said that to achieve full employment in the US economy would require negative real interest rates. Negative real interest rates could only be achieved by eliminating cash, moving to digital money that can only be kept in banks, and penalizing people for saving.

The future is developing precisely as I have been predicting.

As the dollar enters its death throes, the lawless Federal Reserve and the Wall Street criminals will increase their shorting of gold in the paper futures market, thereby driving the remnants of the West’s gold into Asian hands.

PBOC Says No Longer in China’s Interest to Increase Reserves
By Bloomberg News – Nov 20, 2013

The People’s Bank of China said the country does not benefit any more from increases in its foreign-currency holdings, adding to signs policymakers will rein in dollar purchases that limit the yuan’s appreciation.

“It’s no longer in China’s favor to accumulate foreign-exchange reserves,” Yi Gang, a deputy governor at the central bank, said in a speech organized by China Economists 50 Forum at Tsinghua University yesterday. The monetary authority will “basically” end normal intervention in the currency market and broaden the yuan’s daily trading range, Governor Zhou Xiaochuan wrote in an article in a guidebook explaining reforms outlined last week following a Communist Party meeting.

RELATED:
China Announces That It Is Going To Stop Stockpiling U.S. Dollars

This article first appeared at Paul Craig Roberts' new website Institute For Political Economy.  Paul Craig Roberts was Assistant Secretary of the Treasury for Economic Policy and associate editor of the Wall Street Journal. He was columnist for Business Week, Scripps Howard News Service, and Creators Syndicate. He has had many university appointments. His Internet columns have attracted a worldwide following.

China Announces That It Is Going To Stop Stockpiling U.S. Dollars

By Michael Snyder | The Economic Collapse Blog | November 22, 2013

China just dropped an absolute bombshell, but it was almost entirely ignored by the mainstream media in the United States. 

(Photo: Wikimedia Commons)

The central bank of China has decided that it is “no longer in China’s favor to accumulate foreign-exchange reserves”.  During the third quarter of 2013, China’s foreign-exchange reserves were valued at approximately $3.66 trillion.  And of course the biggest chunk of that was made up of U.S. dollars.  For years, China has been accumulating dollars and working hard to keep the value of the dollar up and the value of the yuan down.  One of the goals has been to make Chinese products less expensive in the international marketplace.  But now China has announced that the time has come for it to stop stockpiling U.S. dollars.  And if that does indeed turn out to be the case, than many U.S. analysts are suggesting that China could also soon stop buying any more U.S. debt.  Needless to say, all of this would be very bad for the United States.
For years, China has been systematically propping up the value of the U.S. dollar and keeping the value of the yuan artificially low.  This has resulted in a massive flood of super cheap products from across the Pacific that U.S. consumers have been eagerly gobbling up.
For example, have you ever gone into a dollar store and wondered how anyone could possibly make a profit by making those products and selling them for just one dollar?
Well, the truth is that when you flip those products over you will find that almost all of them have been made outside of the United States.  In fact, the words “made in China” are probably the most common words in your entire household if you are anything like the typical American.
Thanks to the massively unbalanced trade that we have had with China, tens of thousands of our businesses, millions of our jobs and trillions of our dollars have left this country and gone over to China.
And now China has apparently decided that there is not much gutting of our economy left to do and that it is time to let the dollar collapse.  As I mentioned above, China has announced that it is going to stop stockpiling foreign-exchange reserves…

The People’s Bank of China said the country does not benefit any more from increases in its foreign-currency holdings, adding to signs policy makers will rein in dollar purchases that limit the yuan’s appreciation.
“It’s no longer in China’s favor to accumulate foreign-exchange reserves,” Yi Gang, a deputy governor at the central bank, said in a speech organized by China Economists 50 Forum at Tsinghua University yesterday. The monetary authority will “basically” end normal intervention in the currency market and broaden the yuan’s daily trading range, Governor Zhou Xiaochuan wrote in an article in a guidebook explaining reforms outlined last week following a Communist Party meeting. Neither Yi nor Zhou gave a timeframe for any changes.

It isn’t going to happen overnight, but the value of the U.S. dollar is going to start to go down, and all of that cheap stuff that you are used to buying at Wal-Mart and the dollar store is going to become a lot more expensive.

But of even more importance is what this latest move by China could mean for U.S. government debt.  As most Americans have heard, we are heavily dependent on foreign nations such as China lending us money.  Right now, China owns nearly 1.3 trillion dollars of our debt.  Unfortunately, as CNBC is noting, if China is going to quit stockpiling our dollars than it is likely that they will stop stockpiling our debt as well…

Analysts see this as the PBoC hinting that it will let its currency fluctuate, without intervention, thus negating the need for holding large reserves of the dollar. And if the dollar is no longer needed, then it could look to curb its purchases of dollar-denominated assets like U.S. Treasurys.
“If they are looking to reduce these purchases going forward then, yes, you’d have to look at who the marginal buyer would be,” Richard McGuire, a senior rate strategist at Rabobank told CNBC in an interview.
“Together, with the Federal Reserve tapering its bond purchases, it has the potential to add to the bearish long-term outlook on U.S. Treasurys.”

So who is going to buy all of our debt?
That is a very good question.
If the Federal Reserve starts tapering bond purchases and China quits buying our debt, who is going to fill the void?
If there is significantly less demand for government bonds, that will cause interest rates to rise dramatically.  And if interest rates rise dramatically from where they are now, that will set off the kind of nightmare scenario that I keep talking about.
In a previous article entitled “How China Can Cause The Death Of The Dollar And The Entire U.S. Financial System“, I described how China could single-handedly cause immense devastation to the U.S. economy.
China accounts for more global trade that anyone else does, and they also own more of our debt than any other nation does.  If China starts dumping our dollars and our debt, much of the rest of the planet would likely follow suit and we would be in for a world of hurt.
And just this week there was another major announcement which indicates that China is getting ready to make a major move against the U.S. dollar.  According to Reuters, crude oil futures may soon be pricedin yuan on the Shanghai Futures Exchange…

The Shanghai Futures Exchange (SHFE) may price its crude oil futures contract in yuan and use medium sour crude as its benchmark, its chairman said on Thursday, adding that the bourse is speeding up preparatory work to secure regulatory approvals.
China, which overtook the United States as the world’s top oil importer in September, hopes the contract will become a benchmark in Asia and has said it would allow foreign investors to trade in the contract without setting up a local subsidiary.

If that actually happens, that will be absolutely huge.
China is the number one importer of oil in the world, and it was only a matter of time before they started to openly challenge the petrodollar.
But even I didn’t think that we would see anything like this so quickly.
The world is changing, and most Americans have absolutely no idea what this is going to mean for them.  As demand for the U.S. dollar and U.S. debt goes down, the things that we buy at the store will cost a lot more, our standard of living will go down and it will become a lot more expensive for everyone (including the U.S. government) to borrow money.
Unfortunately, there isn’t much that can be done about any of this at this point.  When it comes to economics, China has been playing chess while the United States has been playing checkers.  And now decades of very, very foolish decisions are starting to catch up with us.
The false prosperity that most Americans are enjoying today will soon start disappearing, and most of them will have no idea why it is happening.
The years ahead are going to be very challenging, and so I hope that you are getting ready for them.

THIS ARTICLE ORIGINALLY APPEARED ON THE ECONOMIC COLLAPSE BLOG

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