Category Archives: Blog Posts

China Dumps Bonds

China dropped $21.5 Billion in US bonds recently. That is only likely to accelerate as our relationship “deteriorates” (read “gets realistic”). Other countries are following suit (Japan). Good, we should finance our own debt and pay our own folks back with higher interest rates the way we used to when America was prosperous.

chart1s

What to do about it?

I’ve been buying into TBT for sometime. TBT is an exchange trade fund that  should rise as (existing) bond prices drop – because folks are dumping them and because the yields on new bonds must increase to attract investors. It has been up more than 25% in the last few months due to the Fed cutting back on QE (printing money). TBT could really spike if China exercised their so called “nuclear option” threat to dump U.S. bonds in bulk as a policy punishment.

Word to the wise, ” Never project your own motivations on your adversaries.” Sun Tzu would admonish you to instead seek to understand their thinking.  Whereas most naive U.S. analysts dismiss this economic warfare possibility because it would “hurt China more than the U.S.” they miss the point that China’s leaders put power and politics ahead of economics. For  the Boys in Beijing the flirtation with Western Capitalism is simply a phase on the way to global totalitarianism and economic growth is a tool to increase political and military power. Capitalism is NOT a systemic part of their ideology. They’ve never said this. The Politburo members would rather see China (and the world) impoverished with Communist leadership than wealthy under democracy and freedom. Letting some Chinese get rich off the backs of others is a technique to capture Western technology and capital for the ongoing conflict. If you don’t understand that fact you simply don’t understand China. See today’s WSJ cover story for a recent example of  neoMaoism revealing itself from Zhongnanhai.

In fair warning you need to stay on top of any investment. TBT might drop in the event of:

  1. U.S. government actually deals with their spending addition – not bloodily likely.
  2. System is changed so gov’t revenues increase – not bloodily likely because it must involve a politically  unpopular situation where multinational corporations actually pay income taxes (as opposed to continuing to soak only the entrepreneurial class “rich”).
  3. We see a double dip recession and gov’t does QE4.0 or whatever – this could indeed happen, though the Feds ability to print money is becoming constrained.

As noted, I hold this fund. It is leveraged and therefore a highly volatile investment. If you care I’m also long on TSLA and AAPL (with constant “constructive activism” on China) and often short on BBRY (in on the bumps out on the drops until it dies) at this time. Do your due diligence before making any investment decision and monitor the changing conditions that signal it is time to get out – I won’t tell you. Don’t email me when you lose all your money. 🙂

Greg Autry serves as Senior Economist with the American Jobs Alliance, Economist with theCoalition for a Prosperous America and is co-author (with Peter Navarro) of Death by China: Confronting the Dragon – a Global Call to Action. He blogs regularly at: http://www.gregautry.us/blog  and on the Huffington Post.

Apple Bashing: The Taiwanese Understand How Things Work in Beijing and Can Still Laugh!

Checkout this hilarious new video from a group of Taiwanese animators at NMA World Edition. Their take on China’s  hypocritical attempts to discredit U.S. brands and drive them out of the Chinese market, speaks for itself and it is a fun follow on to my recent post on the subject.

I love the way that these guys poke fun at unethical commie culture of IP theft and the holier than thou attitude that comes out of CCTV and Zhongnanhai. The bogus, Chinese made iPhone chargers killing people and the signs falling off the fake Apple stores while the cops shrug are all too real. Of course, corporate America is a big part of the China ethics problem and the way Tim Cook “beams over” to grovel in Beijing is particularly embarrassing for us activist Apple product fans and shareholders.

cookpanda

Greg Autry serves as Senior Economist with the American Jobs Alliance, Economist with theCoalition for a Prosperous America and is co-author (with Peter Navarro) of Death by China: Confronting the Dragon – a Global Call to Action. He blogs regularly at: http://www.gregautry.us/blog  and on the Huffington Post.

Exposing the Free Trade Fairy Tale

Here’s an excerpt from my recent talk to the Eagle Forum Collegian’s Summit at the Heritage Foundation. I discuss the empirical result from our 30 year experiment with “Free Trade” (as it is currently defined), which to avoid technical terms is best described as “utter failure.” I then move on to the fundamentally flaw in the dominant economic current model, which is the naive assumption that “market forces” efficiently determine global production sites, when in fact it is active government policy that determines where most things are made these days.

Amusingly, I had the opportunity to teach Glenn Hubbard’s otherwise very fine Macroecon textbook (Pearson) this year and Hubbard chose the production of the iPad to demonstrate this theoretical economic principle underlying the “free trade” paradigm. Coincidentally, I just happen to have shot a video inside of Foxconn city where a Foxconn manager explains to me that the production location of the iPad was entirely determined by Chinese government subsidies designed to get Apple business. The Communist Party decides where your electronics are made, not “market forces.” The globalized economy is a command economy, not a “free market.”

http://youtu.be/3cQzqkVbnnU

The sad thing of courses, is millions of American kids are being indoctrinated in the Free Trade Fairy Tale, while their parents struggle to pay their tuition.

Greg Autry serves as Senior Economist with the American Jobs Alliance, Economist with theCoalition for a Prosperous America and is co-author (with Peter Navarro) of Death by China: Confronting the Dragon – a Global Call to Action. He blogs regularly at: http://www.gregautry.us/blog  and on the Huffington Post.

 

Don’t Let the Door Hit You on the Way Out American Corporate Friends, Bye Bye!

monopolyYou just can’t make this stuff up! A Shanghai court has convicted U.S. based Johnson & Johnson of violating Chinese “anti-monopoly” laws. Really, this from the One Party State? According to the Chinese state media monopoly “The market for medical instruments in China faced a lack of competition.” What a hoot in the land of State Owned Enterprises.

Although the multinational firm was fined a measly 530,000 yuan, the decision is indicative of an accelerating trend, where local government regulators and media actively work to damage the reputation of Western firms who have been doing business in China for a long time.

Other recent moves to harm American firms include the parade of stories deploring the sanitation of our fast food chains like McDonald’s and KFC. An astounding charge to those who know anything about the horrific nature of Chinese food production. Chinese media reports claimed ice served at KFC was often “dirtier than toilet bowl water.” Which, in my personal experience, would make it a lot more appealing than the Yangtze river. Of course, if they made their ice with water from the Shanghai municipal water monopoly it would be full of bacteria from the thousands of dead pigs floating in the water source.

Another fun story has been the barrage of attacks on Apple that came after Tim Cook made the announcement he would be moving some manufacturing back to the U.S. Gotta love the article entitled “Defeat Apple’s ‘Incomparable’ Arrogance” from the folks at the People’s Daily. This from a government that believes it is their right to determine what Chinese readers read and when possible, think. As soon as China can find a domestic smart phone OS (think buying out struggling BBRY), Samsung and Apple can kiss this market good bye. Of course, in the meantime Cook got on his knees to kiss the ring of the communist media.

The real goal here is to tilt the playing field in favor of Chinese domestic firms by undermining the powerful legitimacy foreign products have in the eyes of Chinese consumers. It is also a subtle way of  inviting American companies to leave China. Having brought the capital, technology and know-how to China, they are no longer necessary. Being unnecessary they are also unwelcome and have been shown the door.

This does not surprise those of us who understand China’s history. The go to strategy for Chinese Communist leaders since Mao has been to fawn on their enemies until they get what they need  from them and then arrange an arrest on trumped up charges or perhaps a convenient airplane crash. Watching the arrogance and gullibility of American CEOs play out on this stage would be darn humorous, if it were not for the  jobs, national wealth and global power that we’ve lost in the process of enriching this oligarchy of thugs.

Greg Autry serves as Senior Economist with the American Jobs Alliance, Economist with theCoalition for a Prosperous America and is co-author (with Peter Navarro) of Death by China: Confronting the Dragon – a Global Call to Action. He blogs regularly at: http://www.gregautry.us/blog  and on the Huffington Post.

Crowd Prepares to Bus off to “Welcome” Dictator Xi

I was honored to give a bon-voyage to this group of Vietnamese American Patriots headed to protest Xi Jinpings summit with Obama. Nobody appreciates their freedom as much as Orange County’s Vietnamese community!

I asked them to tell Xi “YOU ARE NOT WELCOME IN CALIFORNIA!” and to tell Obama, “THE AMERICAN PRESIDENT SHOULD NOT HUDDLE WITH A CRIMINAL DICTATOR!”

 

crowdA great group of Americans exercising their constitutional rights!

Protest Rally sm

 

photo 5

Proud to talk to the crowd!

 

photo 1 Meeting with the Mayor of Westminster and the Mayor Pro-Tem of Fountain Valley. Good people.

 

 

 

 

 

 

 

photo 3

SoCal Vietnamese-American Community on Xi Jinping Visit

PRESS RELEASE

 

For Immediate Release

June 5th, 2013

 

Vietnamese-American Community Rally

to Protest Xi Jinping

Date: Friday & Saturday June 07th and 08th, 2013

Place: The Annerberg Retreat at Sunnylands Estate, Rancho Mirage, CA

 

Considering that:

– Vietnamese people, Tibetans, Mongolians, Koreans, and Japanese…truly understand the meaning of “China Dream” because for thousands of years, China has dreamed to conquer and wipe out neighboring countries and races for Chinese expansion.

– Recently, to empower itself, China sent military spies and used cyber-espionage to steal US secret defense technology and business information causing tremendous damage to both U.S. national security and economy.

– China’s infiltration of toxic foods and unsafe products worldwide has caused epidemics and human casualties, by disregarding the safety of the U.S. consumers and the world.

– China claims ownership of 80 percent of the Southeast Asia Sea disregarding the right of adjacent countries such as Vietnam, Philippines, Malaysia, Indonesia, and Brunei…under the rules UNCLOS 1982 (United Nations Convention on the Law of the Sea).

– China claims ownership of the Senkaku Islands which lawfully belongs to Japan.

– China claims ownership of the Panatag Shoal’s Islands which is clearly within the territory of the Philippines.

– China’s allies, supports, and directs North Korea regime which has threatened the US, South Korea, Japan and other neighboring countries.

– China invaded and illegally took over the Paracel Islands in 1974 and part of Spratly Islands in 1988 which rightfully belonged to Vietnam for hundred of years, while killing 138 Vietnamese.

– China constantly harasses and kills Vietnamese fishermen while they work inside the 200 nautical miles of Vietnam Exclusive Economic Zone (EEZ).

The Vietnamese American Community in USA will stage a rally at Sunnylands, the Walter and Leonore Annenberg Estate, 37977 Bob Hope Drive, Rancho Mirage, California 92270 to protest against China’s presence when President Obama meets Xi Jinping on June 7- 8, 2013.

There will be a hunger strike against China for World Peace that will take place at the end of the rally on Friday June 07th, 2013. We call upon President Obama to act as a World Leader to continue leading the Democracy and Human Rights Movement that is now spreading out into the the world and reaching every oppressed country; Further, we ask Obama to demand and to guide China to respect the security and peace within the region as well as to work with the international body for a better future for mankind and to refrain from bullying other countries for China’s own interests.

In the nineties, our former President Ronald Reagan helped knock down the Communist Walls in East Germany and liberated Russia and the Eastern Bloc of Communist Countries, leaving him the legacy of a true World Leader. We sincerely hope that President Obama will follow a similar path and ingrain for himself such a legacy to liberate the rest of the world from the plague of Communism and Terrorism.

 

Patriot

 

For more information, please contact:

Neil Nguyen, Esq.

Tel: (714) 423-8888

Email: lsnxn2007@aol.com

 

Minh Van Tran

Tel: (714) 398-9641

Email: minhvantran99@yahoo.com

 

Protest Info For Xi Jinping Summit

The following info provided by Ann Lau (one of LA’s best human rights organizers) for those able to make it out to the desert tomorrow. If you can, make it out there and let President Obama know that we do NOT want him meeting with dictators in our state.  (I will be addressing a rally in Little Saigon tomorrow). At the very least post an Ai Wei Wei salute to the Communist Party on your Facebook page.

 

Please scroll down to read all information including rallies, press conference, candlelight vigil
and directions and transportation carpool and buses from Los Angeles
請向下讀取所 有信息,包括集會,新聞發布會,記者招待 燭光守夜
交通方向和交通拼車從洛杉磯 和 特別巴士從Orange county Westminister 
WHAT: INFORMATION ON PRESS CONFERENCE,  PROTEST, CANDLELIGHT VIGIL, RALLIES ACTIVITIES
 AT RANCHO MIRAGE AND VICINITY
on Meeting of President Obama with China’s President Xi Jinping
(President Xi Jinping will arrive at Ontario International Airport today Thursday, June 6, 2013
President Obama will arrive at LAX Friday, June 7, 2013 at 10:30 a.m. and
depart for Palms Springs International Airport at 2 p.m.)
JUNE 7 FRIDAY 9 a.m. RALLY
When:  Friday, June 7, 9 a.m.
Where: Corner of Bob Hope drive and Gerald Ford Dr., Rancho Miragee, California

Who:    Vietnamese Group Mr. Phan Ky Nhon (714-548-0440), Mr. Tran Van Minh (714-398-9641),
Mr. Nguyen Van Cu (626-421-0940), Mr. Hua Trung Lap (714-720-4722)
JUNE 7 FRIDAY 12:30 p.m. PRESS CONFERENCE :
When: Friday, June 7, 12:30 p.m.
Where: Thousand Palms Community Center
31-189 robert Rd., Thousand Palms, Ca. 92276
What:    Message to Xi Jinping and President Obama

Unveiling of Art work “Tibet in Burning” by Weiming,
Who:   Chinese-Tibetan Liaison Team of Rally against Xi Jinping’s Visit
Contact:  
Giovanni Vassallo (415-264-3264), Min Wong (510-333-0026) Zheng Fang (650-255-2498)
JUNE 7 FRIDAY around 1:30 p.m.PROTEST MARCH
         When:  Immediately after the Press Conference of June 7, 12:30 p.m.
Where:  March to corner of Gerald Ford Drive and Bob Hope Drive, Rancho Mirage
, California
JUNE 7 FRIDAY 9 p.m. CANDLELIGHT VIGIL
When:     Friday, June 7, 9 p.m.
Where:   Corner of Bob Hope Drive and Gerald 
Ford Drive, Rancho Mirage, California 
Contact:  Ann Lau, Visual Artists Guild 310-433-0697
JUNE 8 SATURDAY 9 a.m. RALLY
         
When:  Saturday, June 8, 9 a.m.
Where: Corner of Bob Hope drive and Gerald Ford Dr., Rancho Miragee, California

Who:    Vietnamese Group Mr. Phan Ky Nhon (714-548-0440), Mr. Tran Van Minh (714-398-9641),
Mr. Nguyen Van Cu (626-421-0940), Mr. Hua Trung Lap (714-720-4722)
CARPOOL and Buses
         For carpool from San Gabriel area please contact Gene Sun
 626-318-5752
For buses: leave at 7:00 a.m. 14550 Magnolia St., Westminister, Ca. 92683
                               Contact :Mr. Phan Ky Nhon (714-548-0440), Mr. Tran Van Minh (714-398-9641),
Mr. Nguyen Van Cu (626-421-0940), Mr. Hua Trung Lap (714-720-4722)
DRIVING DIRECTION TO PRESS CONFERENCE:

I-10 east, off from Exit “Bob Hope Dr./ Ramon Rd.” Right turn on Bob Hope Dr. and then left turn on Ramon Rd. Robert Rd. is at the second light. Left turn on Robert Rd., you may see, on the left side, the elementary school, large grassland and a library. Turn left into the library’s parking lot and you will find the conference hall.

*****
DRIVING DIRECTION FROM LOS ANGELES
Interstate 10 east—driving from Los Angeles and points west: Take exit 130, Bob Hope Drive. Turn right onto Bob Hope Drive. Go approximately 3 miles, (you will pass the Agua Caliente Hotel/Casino on your left) and the Sunnylands entrance will be on the right, a half mile past Gerald Ford Drive.

FROM THE CITY OF RANCHO MIRAGE

From City of Rancho Mirage:

 

Road Closures:

 

Bob Hope Drive from Gerald Ford Drive south to Frank Sinatra Drive; both directions; Frank Sinatra Drive from Morningside Drive east to Monterey Avenue; both directions.

 

These roadways will be closed to all vehicular traffic simultaneously beginning Friday June 7 at 7:00 am thru Sunday evening June 9.

 

The Public gathering location will be open Friday morning June 7 only after Bob Hope Drive has be closed to traffic.

Public gathering will be allowed on the east side of Bob Hope Drive from Gerald Ford Drive south for approximately 1900’.

 

Off-loading and loading of buses will be allowed on Gerald Ford Drive east of Bob Hope Drive. No parking will be allowed on the Gerald Ford Drive or on private property.

Organizations are strongly encouraged to use shuttle buses or car pools.

 

Portable restrooms will be provided.

 

The heat in the desert should not be overlooked.  Temperatures will reach 108.  Organizations should bring plenty of water as there is no shade.

 

 

 

 

It’s Time, indeed

Zhu Yufu was sentenced to seven years in a Chinese Prison for writing this Poem entitled “It’s Time.”

ZYFLet us read this, the day after the Tiananmen anniversary and remember who we are dealing with when we see Xi and Obama hug each other and talk about “progress” this week at Sunnylands. There is nothing to celebrate in this “summit,” where the leader of the free world will host the head of a criminal gang that attacks American businesses, steals at least million jobs every year, brutalizes its own people and is preparing for war against America and nearly every nation in Asia. This is a humiliation for the American people.

 

It’s time, people of China! It’s time.
The Square belongs to everyone.
With your own two feet
It’s time to head to the Square and make your choice.

It’s time, people of China! It’s time.
A song belongs to everyone.
From your own throat
It’s time to voice the song in your heart.

It’s time, people of China! It’s time.
China belongs to everyone.
Of your own will
It’s time to choose what China shall be.

translated by A. E. Clark

 

是时候了

是时候了,中国人!是时候了
广场是大家的
脚是自己的
是时候用脚去广场作出选择

是时候了,中国人!是时候了
歌曲是大家的
喉是自己的
是时候用喉唱出心底的歌曲

是时候了,中国人!是时候了
中国是大家的
选择是自己的
是时候用自己选择未来的中国

-朱虞夫

 

——————

Greg Autry serves as Senior Economist with the American Jobs Alliance, Economist with theCoalition for a Prosperous America and is co-author (with Peter Navarro) of Death by China: Confronting the Dragon – a Global Call to Action. He blogs regularly at: http://www.gregautry.us/blog  and on the Huffington Post.

The Public Doesn’t Want to Know Who is Going to be Making their Sausage

China’s Shuanghui is going to buy U.S. Smithfield Foods. Shuanghui is a former communist state owned enterprise and Smithfield is the largest American pork production and distribution firm filling packages with dozens of brand names including: Armour, John Morrell, Cook’s, Healthy Ones . . . Before we let Congress and regulators roll over on this fat deal for U.S. bankers, let us remember that it hails from the land of outrageous food production scandals.

Before we start, let me be clear that I don’t know the details of Shuanghui’s food production, but I know way too much about what goes on with food in China and that just ain’t pretty. I could write a whole chapter (hey, we did) on Chinese product quality nightmares. For instance, I’ve watched sausage made in rural China and captured the cultural expectations of sanitation in these charming images:

Pig copy Sausage Close copy Sausage copy

Now, before you say that stuff just happens out in the sticks, let me point out that these nightmares are not limited to the medieval Chinese hinterland. Recently thousands of rotting pig carcasses were found to be polluting Shanghai’s drinking water. In a story entitled “Rivers of Blood” the Guardian newspaper writes of dead piglets bobbing on the shores of the river supplying China’s largest city with water. Nobody seems to know where 16,000 rotting pigs came from – or more likely the culprit is a big, well connected Chinese firm protected by the authorities. That’s just the way the Communist Party and their homies roll. The plutocracy gets richer, truth gets buried, the people get screwed.

China’s U.S. apologists will say, “those sort of problems will remain in China and we have the government to protect us in America.” Ridiculous, do you have any doubt that the Chinese owners of Smithfield backed by large American banks are going lower their costs by shutting down American farms – like they’ve done to our factories – and stocking your grocery shelves with pork produced in China, to Chinese standards? The regulatory argument allowing Chinese firms into the U.S. is the equivalent of allowing known bank robbers into our country because “we have police to protect us.”

The apologists will also say, despite all the evidence to the contrary, “China is working hard to clean up its act.” Well I’ll admit the commies get pretty nasty when they are publicly embarrassed. In 2008, the Chinese government executed the head of their own FDA and several others over a series of horrific scandals including the intentional tainting of milk and baby formula with melamine that sicken hundreds of thousands and killed several children. That’s how they roll in the nation that executes more of its people than the entire rest of the world combined. Get ready, the ethics of dead pigs and dead people are coming soon to your local Wal*Mart.

 

Greg Autry serves as Senior Economist with the American Jobs Alliance, Economist with theCoalition for a Prosperous America and is co-author (with Peter Navarro) of Death by China: Confronting the Dragon – a Global Call to Action. He blogs regularly at: http://www.gregautry.us/blog  and on the Huffington Post.