Communist China Wants To Be Your Banker

Most of the world was transfixed recently by the historic people’s uprising in Egypt. That hasn’t been the case in the so-called “People’s” Republic of China. Beijing has been very, very quiet about events in Egypt and the other centers of public unrest in the Middle East. The Chinese regime has done its damndest to ensure the people of China hear and see as little as possible about other people demanding democracy in a dictatorship.

(Click on the audio player to listen to the podcast.)

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Lest we forget, Liu Xiaobo, last year’s Nobel Peace Prize winner remains jailed in China as a political prisoner for urging his fellow Chinese to demand changes in the Communist Party’s iron-fisted rule. This ruthless authoritarian dictatorship censored Internet traffic to ensure the Chinese people didn’t hear about the overthrow of the dictatorship in Egypt.

That’s not say China has been hunkered down. Not in the least. The Communist Chinese effort to insinuate itself into the economy and national security of the world’s greatest democracy—the United States—continued unabated as freedom began to bloom in North Africa.

China keeps chipping away at American resistance. I’m talking about our resistance to a Communist dictatorship worming its way more and more into the very fabric of the United States. Quick profits for corporate robber barons and cheap prices for willing consumers close a lot of eyes to what’s happening.

While we were distracted by events in Egypt, China let it be known that it wants to bid to supply the Pentagon with a new helicopter to be Marine One—the chopper used by the President of the United States.

The Chinese are nothing if not gutsy and relentless.

You probably aren’t familiar with the China Aviation Industry Corporation, or AVIC. It’s the same company that produced China’s first stealth fighter, which was unveiled recently. AVIC has let it be known they want to bid on the replacements for the aging helicopters that now fly as Marine One.

The chances of China actually selling us a new helicopter for the President are slim and none. It would be political suicide for any U.S. politician who supported such an idea. Some might be tempted, though, because the Chinese chopper would undoubtedly be the cheapest choice, given the slave-labor that would go into it.

Americans who bow and scrape to the Chinese dragon like to point out China wouldn’t supply the operating systems in the helicopter. Amazingly, those are still made in America. China would just supply the so-called airframe. That is, the thing we know as the helicopter.

So if there’s no chance of winning the contract, why suggest it in the first place? The answer is simple: by making an outrageous proposal the Chinese figure Americans will be relieved and more amenable when they come back with a pitch that is less sensitive politically—such as proposing to replace U.S. Northrop-Grumman T-38 training jets with AVIC’s new L-15 jet trainer.

By now you are probably saying ‘No way! There’s no way the Pentagon would buy stuff from China.’ Ah, but they do and they do it every day. China supplies the Pentagon with tens of millions of dollars in nuts, bolts and small parts through U.S. contractors who aren’t required to account for the country of origin for the small stuff. And we all know about the fixation of American business with the so-called “China price” for just about everything.

The regime in Beijing is a patient bunch. They know Americans have short attention spans and short memories. And they are fully aware of the story about the giant rock that was worn down by the steady drip, drip, drip of water. It’s quite a journey from making toys, trinkets and bric-a-brac to bidding on building the helicopter used by the President. If that were the only Chinese incursion into our economy there wouldn’t be such cause for concern. But there’s more.

The Industrial and Commercial Bank of China, Ltd. or ICBC, has signed an agreement which may allow it to become the first Chinese financial institution to offer retail branch banking in the United States. The Communist Chinese have already become the largest holder of America’s federal debt. Why not tap in to the bank accounts of average Americans? There’s even more treasure to be plundered if China owns some American banks with control over the money of the American people.

This little-noticed deal was announced while Chinese President Hu Jintao was in Washington for his show-boating state dinner at the White House. By most accounts Hu’s Washington visit didn’t produce anything but an opportunity for the Chinese leader to get lots of photos of himself at the White House to impress the people back home.

China already has a banking presence in the U.S. but Chinese ownership of retail branch banks in the United States can’t happen without the approval of our Federal Reserve, as noted by CNBC’s David Faber:

“At the end of the day this goes back to a very specific policy at the Federal Reserve; namely something called the comprehensive consolidated supervision, which basically says if you’re a foreign bank and you want in to the U.S., we have to be comfortable and you are subject to comprehensive supervision and regulation on a consolidated basis by the appropriate authorities in your own home country. Until now the Fed has not been particularly comfortable with the Chinese banking authorities and their regulation of their banks. That appears to be changing, at least from what I am hearing. They would not have embarked on this deal, that is, the principals involved, if they did not believe ultimately that this deal would get approval from the Fed under the comprehensive consolidated supervision code.”

In his report Faber also pointed out that if the Fed lets ICBC set up shop on our shores, it may be open the floodgates for Communist China to invade our banking system with a vengeance:

“There is an expectation amongst people in the industry that it could open the way for more deals, because of course, the Fed would have said ‘we’ve gotten comfortable with the authorities in China and the regulatory apparatus that takes place in that country.”

Vladimir Lenin, one of the founders of the Communist Party, said the surest way to destroy a nation is to debauch its currency. We should never forget that. The Communist Chinese sure haven’t. There’s already talk of replacing the U.S. dollar as the world’s reserve currency. If that happens, our nation’s financial troubles will only get worse.

Do you remember the hue and cry that went up in 2005 when the government-controlled Chinese National Oil Corporation or CNOOC tried to buy Unocal Oil of California?

That was just oil. Now we’re talking about letting them compete against our domestic banks for control of our checking and savings accounts.

Think about it. Chinese-owned branch banks in your neighborhood. The same people who now manufacture just about everything that you buy, things that used to be made by Americans, are now moving to establish a beachhead in American branch banking. We know how they’ve ruthlessly destroyed our manufacturing base. Now they’re after our banks. And how do you think that will play out? What this means, in blunt terms, is that the power elite of a Communist country may have control over your checking and savings accounts.

Have you heard anyone sound alarm bells over this? Have you heard any objection from any of our politicians in Washington? Have you heard any objections from the Democrats? Have you heard any objections from the Republicans? Have you heard any objections from any of the leaders of the Tea Party?

My, how our attitudes have changed toward Communist China in just five years. Or is it defeatism?

Right about now, some China apologist is sputtering that other foreign banks already have a seat at the U.S. banking table. That’s true. Dozens of foreign banks have branches in the United States.

What makes China different is that it is Communist China. It is a repressive and sometimes murderous dictatorship. Despite all the soothing assurances that it is on the road to becoming a capitalist democracy, the Politburo in Beijing remains an autocratic, rights-crushing regime that has deep roots in anti-democracy thinking. Our governance and our way of life are a threat to Communist ideology. Unlike the old Soviet Union, the rulers of China have figured out how to play the capitalism game to Communist advantage.

While we keep yammering for our government to regulate less, in China the government controls or influences just about everything related to trade and commerce.
That’s why the notion of “free” trade is such a bitter joke. There’s nothing free and open about trade with China. Some have called it authoritarian capitalism.

The China rationalizers will argue allowing China to establish branch banking in the United States ties China ever closer to the fate of the USA and thus it won’t be in Beijing’s interest to drain the finances of average Americans. This is like saying a pack of wolves wouldn’t dare eat an entire herd of sheep because doing that would deprive them of a food supply.

That’s never stopped a pack of wolves and it sure as hell won’t stop the power-hungry dictators of Beijing.

Communist China is a regime on the rise militarily, and despite all the blather about a “peaceful rise” to power, it is showing more and more evidence that it intends to grab territory and exert control whenever and wherever possible in the democracies of Asia. And the American business community is ever-so-slowly waking up to the fact that China—as a nation—cheats at trade.

The panda-huggers like to overlook the fact that a year ago a national opinion poll in China found 55% of the people there believe China and the U.S. are headed for a Cold War. Some of us argue the U.S.—China Cold War is well underway and has been an unspoken fact for some time.

Corporate globalists in the United States have made excuse after excuse for the regime in Beijing because the Communist Chinese have figured out how to play greedy capitalists by ensuring they profit from gutting America’s industrial base.

They’ve lured our modern-day robber barons to China with dirt cheap labor provided by poor Chinese citizens who take what they’re given. Often they work in squalid work conditions, or they starve. Not much of a choice. But that doesn’t trouble multinational fat-cats who get a hefty bonus by offshoring American middle class jobs to China under this Faustian bargain.

The Chinese regime, in turn, demands more and more technology secrets and industrial know-how as the price of low-wage labor and loose safety regulations. For years, gluttonous masters of the universe on Wall Street and in boardrooms across America have looked the other way while China provided sweatshop labor so these so-called “upper-class” managers could rack up obscene bonuses on the backs of Chinese workers and at the expense of American workers who lost good jobs that are never coming back.

This is why syndicated columnist Paul Craig Roberts, former Undersecretary of the Treasury in the Reagan Administration, doubts our economic recovery will be rapid or robust. In fact, he says the world has never seen a country allow its upper class to gut its working class so the upper class can get richer. Here’s how he put it in an interview with RT—the Russian television network:

“Never before has a country simply committed suicide by moving its plant and equipment and its middle class jobs into other countries and letting them benefit from the production of the goods and services that that country consumes.

“So every time you move American production offshore to China, for example, it comes back as an import and worsens the trade deficit. And every time you move the production of a good and service abroad, you take that job and that career away from an American. And there’s no substitute jobs and careers. So this is a new phenomenon that the world has never before experienced, where a country simply says ‘Oh, we can make a few people very rich by making everybody else very poor simply by moving the production to the lowest cost labor sites abroad.”

Despite all the talk, President Barack Obama and Wall Street’s lapdogs in the Republican Party show no signs of reigning in the rape of Middle Class America. Obama recently appointed General Electric chairman Jeffrey Immelt to help restore American jobs. Many labor experts are still shaking their heads. Immelt has been one of the leaders of the gutting of America’s industrial capacity by offshoring thousands of jobs. Immelt is one of China’s biggest cheerleaders. Here’s what he said last November at a meeting of the National Committee on U.S.-China Relations:

“The secret of the Chinese success that I’ve seen is they work hard, they work with passion, they execute well and that can’t be discounted.

So at GE we want to be a part of it. We want to be a part of the economy, we want to be a partner and we think we have decades of great growth ahead—in China.”

There, in his own words, is the globalist fat-cat who is going to be the President’s “jobs czar,” the head of a so-called Council on Jobs and Competitiveness.

 A guy who thinks his American company has decades of great growth ahead—in China—is supposed to help bring our economy back from the brink.

Does any of this bother you, or maybe even make you a little bit angry? If so, you can DO something about it.

These are national issues affecting all of us. For the sake of our country, maybe you might take five or ten minutes of your time to call your U.S. Representative’s local office. Tell them you want to make a complaint. Tell them who you are, that you live in the district, that you will be watching what the Representative does about letting China worn its way into our banking system. And tell them you vote. Every congressman’s office keeps a log of voter calls.

But don’t stop there. Copy the Web address for this podcast and blog in the address bar of your browser and e-mail it to anyone you think shares your concern and outrage about China’s slow-motion takeover of our economy. And encourage these people to call their representatives  in Congress, too.

And while you’re at it, send an e-mail to the White House. They encourage it, so go for it. Tell them what you think of the idea of Chinese Communist branch banking in America.

If there’s one thing our for-rent Congress fears more than the wrath of a campaign-donating lobbyist, it’s the wrath of angry voters in their home district.

Pick up the phone. Send an e-mail. Raise some hell before it’s too late.

I’m Vince Wade.

1 Response to “Communist China Wants To Be Your Banker”


  1. Michael Graham

    Disgusting. Great commentary. Our nationis now run by whores. (Of course, we supported Mubarak for three decades, so none of this is surpising.)