China’s Emergence as a 21st Century Superpower

The China Complex: the Big Picture – Part 2

Al Jazeera (2019)

Film Review

Part 2 starts with the 1989 so-called Tiananmen Square “massacre,” which recent evidence suggests was a failed CIA-instigated color revolution.* Five months later, the Berlin Wall would collapse. According to historian F William Engdahl, the CIA also played a much greater role in the collapse of the Soviet Union than they have officially admitted.**

The 1990s saw an increasingly prosperous middle class under Deng Xiaoping’s “Strike Harsh” policy. This is described as harsh “extra legal” punishments against dissidents and “hooligans.” Much of this repression was directed against violent protests by Tibetan  (China annexed the protectorate of Tibet in 1951) and Uyhgar separatists. Though not mentioned in the documentary, both groups continue to receive significant funding and support from the CIA (see How the CIA Uses the Uyghurs to Destabilize China).

Uyghur jihadists have received additional funding and support from Turkey. With a stated goal of liberating Xinjian province as independent East Turkmenistan, they have been conducting major bombing campaigns against transportation and other government facilities.

In 2019, documents leaked by US intelligence supposedly indicate China is holding two million Uyghurs in concentration camps, as well as forbidding them to have bears or to display Arabic symbols. Given that China is far less Islamaphobic than the US, I am more inclined to believe Chinese claims the CIA photos are of voluntary vocational centers serving unemployed Uyghur youth as part of a government deradicalization program. See How Dare the US Lecture China About the Rights of Muslims

In Part 2, commentators also discuss growing Western concerns (after China joined the WTO in 2001) that it would usurp the US and Japan as the world’s major trading partners. These concerns sharply escalated when China literally saved the world from economic collapse in 2008 – by buying up a large quantity of US Treasury bonds and using central bank funding to stimulate internal economic growth.

Filmmakers go on to describe Xi Jinping’s accession to the Chinese presidency in 2012 and the immense popularity of his “Tigers and Flowers” anti-corruption campaign. The latter has resulted in the arrest and imprisonment of many notoriously corrupt local officials.

The documentary then explores China’s Belt and Road trade program that now extends from Asia into Africa. There China has essentially replaced the World Bank in handing out infrastructure development loans to struggling economies.

The film concludes by describing the trade war Trump started with China in 2018, allegedly to reduce the country’s trade surplus with the US and to punish them for failing to enforce international property treaties.

---

*See Tiananmen Square: The Failure of a 1989 US-inspired Color Revolution and The US-China Trade War Can be Traced Back to the Failed Tiananmen Square Color Revolution. According to several US reporters on the scene, there were no actual deaths when Chinese tanks rolled into Tiananmen Square (see The Tiananmen Square Massacre: Facts Fiction and Propaganda/).

**See Russia’s Criminal Oligarchy and the Rule of Bush Senior and the CIA

How Banks Invent Money Out of Thin Air

Money as Debt

Directed by Paul Grignon (2006)

Film Review

Money as Debt is the classic primer for understanding where money comes from in contemporary society.

Most people erroneously believe that government issues all the money in circulation by printing bills and minting coins.

In reality, less that 5% of all the money circulating in the global economy is issued by government. More than 95% is issued by private banks as loans to businesses, families and governments.

Most people also mistakenly assume that banks lend money their customers have deposited in savings accounts. The truth is that banks lend out vastly more money than they have on deposit. In fact, every time they issue a loan, they simply create the money out of thin error as a bookkeeping entry.

There is a deliberate effort (by banks and government) to conceal these facts. Even front line bank employees don’t understand this is how money is issued.

The belief that the economy would improve if all government and private debt were repaid is also erroneous. Because nearly all the money in circulation is debt-based money issued by banks, if we paid off all the debt, there would be no money left to run the economy.

A severe shortage of debt triggered both the Great Depression of 1929 and the 2008 economic crisis. Both occurred when banks drastically reduced the supply of new bank loans.

Money as Debt also makes an important link between this debt-based monetary system and the drive for perpetual economic growth. Banks only create (out of thin air) the principal for new loans. Money to pay the interest can only be found by creating more debt through new loans. This pressure to create more and more debt requires a continual increase in production and simultaneous depletion of resources.

The film traces how our current debt based money system first started in England in 1694 and how US founding fathers fought to resist private bank control of the US monetary system until 1913. That was the year Woodrow Wilson signed the Federal Reserve Act, handing control of the US monetary system over to a consortium of private banks called the Federal Reserve.

Filmmaker Paul Grignon is particularly concerned about a system in which governments are forced to borrow from private banks to run military and public services. Because it gives banks far more control than voters over government decisions, he calls it an invisible economic dictatorship.

Check out Positive Money to examine some of the alternatives.