08.08.07
China threatens the dollar
Two Chinese officials at leading Communist Party bodies have given interviews in recent days warning, for the first time, that Beijing may use its $1,330bn [i.e., $1.33 trillion - LG] (£658bn) of foreign reserves as a political weapon to counter pressure from the US Congress. Shifts in Chinese policy are often announced through key think tanks and academies.
Described as China’s “nuclear option” in the state media, such action could trigger a dollar crash at a time when the US currency is breaking down through historic support levels.
It would also cause a spike in US bond yields, hammering the US housing market and perhaps tipping the economy into recession.
It is estimated that China holds more than $900bn in a mix of US bonds.
Xia Bin, finance chief at China’s Development Research Centre (which has cabinet rank), kicked off what appears to be government policy, with a comment last week that Beijing’s foreign reserves should be used as a “bargaining chip” in talks with the US.
“Of course, China doesn’t want any undesirable phenomenon in the global financial order,” he said.
He Fan, an official at the Chinese Academy of Social Sciences, went further yesterday, letting it be known that Beijing had the power to set off a dollar collapse, if it chose to do so.
“China has accumulated a large sum of US dollars. Such a big sum, of which a considerable portion is in US Treasury bonds, contributes a great deal to maintaining the position of the dollar as a reserve currency,” he told China Daily. “Russia, Switzerland and several other countries have reduced their dollar holdings. China is unlikely to follow suit as long as the yuan’s exchange rate is stable against the dollar.
“The Chinese central bank will be forced to sell dollars once the yuan appreciated dramatically, which might lead to a mass depreciation of the dollar.”
Can this be true?
Sadly, I have to say that it probably is:
NOTE: This story, like the Christian Embassy story I’ve been writing about recently, derives from the investigative research work of Mikey Wenstein’s Military Religious Freedom Foundation. If you like this work and want it to continue, please consider making a donation to MRFF. You could also help out by writing to Olberman, Colbert, or John Stewart to suggest they have a MRFF representative on their show to discuss the Pentagon’s endorsement of promoting ideology apocalyptic religious warfare among US troops in combat ; Osama Bin Laden is surely cheering from the sidelines, and US troops will probably die due to this PR disaster that will suggest to the Islamic world that, yes indeed, the Pentagon really does want to wage a religious crusade. I don’t think most Americans want that, and it’s up to us to get that message out.
Courtesy of the US Pentagon, troops in Iraq can now unwind after a hard day’s urban warfare and play a video game in which they command a Christian fundamentalist army waging urban warfare in America! On the streets of New York City!
In the screens that appear between different levels of play, there are short essays attack the Theory Of Evolution.
How cool is that ?
[image: detail from "Left Behind: Eternal Forces" game]
The “Left Behind: Eternal Forces” video game, is set in a “post apocalyptic” New York that looks almost exactly like New York City after the September 11, 2001 terrorist attacks and lets players simulate commanding a paramilitary Christian army that seeks to convert Jews, mainline Christians, Muslims, atheists, Buddhists, and everyone else in New York City to fundamentalist Christianity. All who resist will be killed.
Some who criticized the game have said that it conditions players for religious war. Others think it’s way cool:
Army says soldier’s story is false
There’s something odd about this news story in the NY Times.
An Army investigation into the Baghdad Diarist, a soldier in Iraq who wrote anonymous columns for The New Republic, has concluded that the sometimes shockingly cruel reports were false.
“We are not going into the details of the investigation,” Maj. Steven F. Lamb, deputy public affairs officer in Baghdad, wrote in an e-mail message. “The allegations are false, his platoon and company were interviewed, and no one could substantiate the claims he made.”
The brief statement, however, left many questions unanswered. Just last week The New Republic published on its Web site the results of its own investigation, stating that five members of the same company as Pvt. Scott Thomas Beauchamp, who had written the anonymous pieces, “all corroborated Beauchamp’s anecdotes, which they witnessed or, in the case of one soldier, heard about contemporaneously. (All of the soldiers we interviewed who had first-hand knowledge of the episodes requested anonymity.)”
The report goes on to detail the claims that Beauchamp made, along with other details.
What the report (mysteriously) does not include is any mention whatsoever of the many official statements by the Army that turned out to be lies: Pat Tillman, Jessica Lynch, the Abu Gharib scandal (“only a few enlisted soldiers”), and so on. You’d think that, when an organization demands that we believe its statements, that a reminder of a pattern of prevarication and falsehoods would be relevant and even important.
Iraq is even more of a mess than one thinks
First, of course, was the report in the Washington Post about all the arms going astray—the military cannot account for about 30% of the weapons distributed to Iraqi forces:
A Government Accountability Office report last week found that the U.S. military has lost track of about 190,000 AK-47 assault rifles and pistols given to Iraqi security forces, and experts worry that many of those weapons could have fallen into the hands of enemies in Iraq. The report noted that 125,000 pieces of body armor and 115,000 helmets also were missing from inventory records.
And then it’s worse: The Anonymous Liberal today:
In the New York Times this morning is Part 47 of Michael Gordon’s ongoing series devoted to uncritically passing along unsubstantiated allegations against Iran. As usual, Iran is up to no good (say military sources). The allegation is a familiar one by now:
Attacks on American-led forces using a lethal type of roadside bomb said to be supplied by Iran reached a new high in July, according to the American military.
The devices, known as explosively formed penetrators, were used to carry out 99 attacks last month and accounted for a third of the combat deaths suffered by the American-led forces, according to American military officials.
As with previous versions of this story, Gordon doesn’t do nearly enough pushing back. How, for instance, can we be sure that these devices are being supplied by Iran when, as has been reported elsewhere, we’ve actually found factories in Iraq that are making them? And even if these devices are being supplied by Iranians, what reason is there to believe the Iranian government is responsible, as opposed to regular Iranians trying to make a buck or support their fellow Shia in Iraq? To date, the U.S. military hasn’t done much of anything to substantiate these allegations publicly or to address obvious questions, and until they do, their claims deserve far less deference than Gordon is giving them.
Gordon is more precise is one key respect, though. In previous versions of this story, the military was intentionally vague about whom the Iranians were supposedly supplying these bombs to. Was the military claiming that Iran was arming Sunni insurgents? It was never clear. Military briefers would cryptically refer to “extremist groups” or “militants” in an obvious attempt to imply, without actually saying so, that Iran was somehow in league with al Qaeda and Sunni insurgents groups, who were responsible for the vast majority of American deaths. This never made any sense, but to the extent people believed it, it helped shore up the narrative the administration wanted to tell.
In this morning’s piece, however, Gordon is quite clear:
Such bombs, which fire a semi-molten copper slug that can penetrate the armor on a Humvee and are among the deadliest weapons used against American forces, are used almost exclusively by Shiite militants.
This makes sense, of course. It would be strange indeed if Iran was supplying Sunni militants. But this is also a key fact, one that, at least to my knowledge, has never been stated quite so clearly. Remember, many of these Shiite militants are allied with the Malaki government, which we are fighting to protect. Most of our military efforts in Iraq have been directed at fighting Sunni insurgents. Gordon reports:
While the group [al Qaeda] is seen by the American military as the most serious near-term threat, there are other signs that Shiite militias remain active. According to General Odierno, the day-to-day commander of American troops in Iraq, Shiite militants carried out 73 percent of the attacks that killed or wounded American troops in Baghdad in July.
That’s a staggering number, if true. The administration would have us believe, particularly of late, that our primary enemy in Iraq is al Qaeda of Mesopotamia. But if 73% of attacks in Baghdad in July were carried out by Shiite militants, who are certainly not al Qaeda fighters, then that’s a major story, one that underscores just how unmanageable the situation in Iraq is.
We are simultaneously under attack by Sunni and Shiite militants, who, when not attacking us, are attacking each other. Both Sunni and Shiite militant groups are (apparently) being supplied, whether with official blessing or not, by sympathetic parties in Iran, Saudi Arabia, and Syria. Some have suggested that we are in a proxy war with Iran. I think it’s far more accurate to say that we are stuck in the middle of a proxy war between Iran and its Sunni rivals.
Meanwhile, in order to root out al Qaeda, we’ve started arming the very Sunni militants we were previously fighting. And we continue to support a Shiite-led central government that is openly allied with Shiite militias who, when not ethnically cleansing Sunnis in the Baghdad area, are apparently blowing up our troops with Iranian-made bombs. There’s a word for this type of situation and it rhymes with fustercluck.
Megs, busy with her hobby
Today the cleaning ladies come, so I stripped the bed to wash the sheets. Megs immediately moved to take over some of the bedclothes. She seems to like the Thermocule blanket—that’s pretty much how she spends the night, only on or beside me.
National health insurance factoid
“Adults aged 19 to 29 are the biggest group of the newly uninsured,” composing “30 percent of the 45 million Americans without health insurance in 2005.”
This group can vote, of course, and if they united about this issue, they would have a strong voice. Will they?
Save big bucks on real estate purchase
Cool Tools tells us about Redfin. From their write-up:
We used this recently to purchase a home in the Bay Area and saved $15,000 this way. That is, after we closed the deal at the agreed-to price with the seller, Redfin gave us a check for $15K, in effect reducing our cost of the house by 2%. In our book that was enough to make the deal work.
The current drawback? This service is only available in a few cities in California, Washington, and a very few east coast cities. I have no experience in using Redfin in selling a house, although they claim you can save a similar amount.
GOP makes sure government doesn’t work
The GOP has as a core belief that the government cannot do things so well as private corporations, like (for example) the auto industry. And when the GOP gets in power, it takes steps to ensure that its belief holds true by working hard to sabotage the government—far beyond simply replacing effective experts with partisan hacks. And, typical of the GOP, they like to do it in secret. Here’s an example:
A decision by the Bush administration to rewrite in secret the nation’s emergency response blueprint has angered state and local emergency officials, who worry that Washington is repeating a series of mistakes that contributed to its bungled response to Hurricane Katrina nearly two years ago.
State and local officials in charge of responding to disasters say that their input in shaping the National Response Plan was ignored in recent months by senior White House and Department of Homeland Security officials, despite calls by congressional investigators for a shared overhaul of disaster planning in the United States.
“In my 19 years in emergency management, I have never experienced a more polarized environment between state and federal government,” said Albert Ashwood, Oklahoma’s emergency management chief and president of a national association of state emergency managers.
The national plan is supposed to guide how federal, state and local governments, along with private and nonprofit groups, work together during emergencies. Critics contend that a unilateral approach by Washington produced an ill-advised response plan at the end of 2004 — an unwieldy, 427-page document that emphasized stopping terrorism at the expense of safeguarding against natural disasters.
Bruce Baughman, Ashwood’s predecessor as president of the National Emergency Management Association and a 32-year veteran of the Federal Emergency Management Agency, said that a draft of the revised plan released to state officials last week marks a step backward because its authors did not set requirements or consult with field operators nationwide who will use it to request federal aid, adjust state and county plans, and train workers.
“Where’s the beef?” asked Baughman, who is Alabama’s emergency management chief. “I don’t have any problems with a framework . . . but it’s not a plan . . . and it’s not national. Who are we fooling here?”
Book sales
The book just broke 1,200—not that many copies, you understand, but the ranking on Lulu.com in terms of sales. My book is now 1,196th in terms of sales. Not bad, when you consider not long ago it was around 5,000th.
So all you nice readers who haven’t bought the book: you probably should order some copies now for back-to-school gifts, early Christmas shopping, etc.
Reader-directed shave
I’ve in correspondence with a reader who’s just venturing into safety-razor shaving, and this morning’s shave is based on what he’ll be using.
Of course, my first step was to wash my beard with the Musgo Real Glyce Lime Oil pre-shave soap—a step I now view as essential. (I don’t recall whether he did get a bar of this, but I hope he did.)
The I took the Rooney Style 3 Medium Super Silvertip brush (my handle is faux ivory (note the grain in the handle at the link), his is faux horn) and Taylor of Old Bond Street Lavender shave soap. Very fine lather, very quickly—and the brush holds a ton of it.
The Futur, using a Treet Platinum blade. I’ve worked my way up to a setting of 2.0, but I know he’ll be wise and start at 1.0. Extremely smooth shave, easily done.
Aftershave treatment was alum block over my wet face, then rinse and dry and applied Taylor of Old Bond Street Sandalwood aftershave. Great stuff. Good start to the day.




