Dr. Salla does not want his articles reproduced in full. Here are two extracts. The Dragon family are very important sources of funds intended to spark economic growth. We’ll be hearing much more about them “soon.”
Michael E. Salla, MA., Ph.D., Exonews, © February 8, 2012
(Extract 1)
Introduction
One of the enigmas of U.S. trade policy is the willingness of policy makers to allow China open access to U.S. markets while China throws up many obstacles to American imports. This has predictably led to the US China trade imbalance becoming an issue in the U.S. Presidential Republican campaign. In an interview on Fox News on February 2, 2012, Republican Presidential front runner, Mitt Romney, declared:
On my first day in office, I will label China a currency manipulator and under US law once that label has been affixed the president is able to apply tariffs to any of their goods … I’ve made it very clear to the Chinese that’s where we’ll go if they continue the practices they’re pursuing right now.
Romney’s get tough on China rhetoric impressed Donald Trump who promptly endorsed Romney for the Republican Presidential Primary. According to Trump: “I love what Mitt was saying about China and the rest of the world, which is just absolutely ripping us off and trying to destroy this nation with a smile. And I think that Mitt Romney really sees China for what they are.”
It is a fact that China maintains a huge trade deficit with the U.S. The exchange rate of China’s currency, the Renminbi, is kept artificially low making it very difficult for U.S. products to compete with cheap Chinese imports. Imports of Chinese products have devastated the U.S. manufacturing industry. To make matters worse, China establishes tariffs on a range of key U.S. export products, such as automobiles, making it even more difficult for the U.S. to reverse the trade deficit which continues to grow. Compounding the issue is China’s flagrant violation of intellectual property laws where Chinese firms pirate many U.S. products with almost total impunity thereby removing another means of balancing the trade deficit.
The trade imbalance has led to China accumulating vast reserves of US dollars, becoming the biggest purchaser of U.S. treasury bonds, and becoming America’s chief creditor. According to the U.S. Treasury, as of November 2011, China held 1.1 trillion dollars in U.S. treasury securities. All this has U.S. Republican presidential candidates and many economists speaking out loudly against China and calling for retaliatory measures such as tariffs, getting tough on Chinese violation of intellectual property laws, and pressuring China to revalue its currency. So are Romney, Trump and a host of prominent economists correct about China? Do they make a compelling case for abandoning a bad China trade policy?
(Extract 2)
1. Dragon Family Trillion Dollar Lawsuit
A mysterious trillion dollar lawsuit filed on November 23, 2011 in the U.S. District Court for the Southern District of New York, claims that 145.5 billion dollars worth of gold was secretly given to the U.S. government in the mid-1930s by the then Nationalist government of China for safekeeping. The lawsuit claims that 1934 U.S. Federal Reserve notes were issued to the Chinese government, and the gold transferred to the Federal Reserve Bank:
Upon information and belief, between 1927 and 1938, as a result of arrangements made between China and the United States, the United States … leased vast amounts of gold from the nationalist Chinese Government, known as Kuomintang. During this period, China was partly occupied by Japanese troops and there was a fear of China being overrun by the Japanese.
It is claimed that a total sum of almost one trillion dollars representing both the principal and accumulated interest of the 1934 Federal Reserve notes was fraudulently taken from the plaintiff, Neil Keenan, an agent for the owners, a mysterious Asian entity called “The Dragon Family.” According to Courthouse News:
Plaintiff Neil Keenan claims he was entrusted in 2009 with the financial instruments – which included U.S. Federal Reserve notes worth $124.5 billion, two Japanese government bonds with a combined face value of $19 billion, and one U.S. “Kennedy” bond with a face value of $1 billion – by an entity called the Dragon Family, which is a group of several wealthy and secretive Asian families.
The Japanese bonds and Kennedy bond were allegedly added to the initial bond issue as interest. To calculate the total amount of gold ‘leased’ by China’s nationalist government to the Federal Reserve we can use the 1938 historic figure for the price of gold which was $34.87 per troy oz. $124.5 billion converts into an approximate total of 3.6 billion troy oz or 110 thousand metric tons
Given that the world’s total gold reserves is officially only 165 thousand tons, this is a staggering amount of gold that was secretly leased from China’s nationalist government. Using the current spot price of gold, nearly $1700 per troy oz, the value of Chinese gold in possession of the Federal Reserve has a price of six trillion dollars! This is more than double the total income for the 2012 U.S. federal budget of 2.6 trillion dollars. Surprisingly, there appears to be another similar size cache of gold that was leased by China as an incident on the Swiss-Italian border in 2009 illustrates.
4/15/2012
China US Trade Imbalance: Bad Policy or Payback for CIA Use of Stolen WWII Gold? 2012 April 15
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