Thought for the day

"Evil cannot create anything new, they can only corrupt and ruin what good forces have invented or made." -- J.R.R. Tolkien

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Coast Guard Spots Chinese, Russian Warship Formation Off Alaska MikeRivero Tue, 10/04/2022 - 15:12

The US military revealed Monday that earlier this month a US Coast Guard had ship embarked on a routine patrol in the Bering Sea and its crew was surprised to come across a Chinese PLA Navy guided missile cruiser.

But more rare and unexpected was that the Coast Guard soon discovered the Chinese ship wasn't alone as it sailed off Alaska's coast, but was accompanied by two additional Chinese military ships and four Russian naval vessels, including a destroyer. The Chinese-Russian patrol group was described as being "in single formation". 

After it joined the World Trade Organization in 2000 and anchored the Chinese yuan (a.k.a. renminbi) to the U.S. dollar, China linked its economy to the United States. Enforcing a fixed exchange rate regime with strict capital controls, China benefited from large inflows and relatively low-interest rates due largely to the low-interest rate environment in the United States. What happens to the Chinese economy when interest rates increase in the United States?

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China warned the United States it could face severe consequences—including the prospect of nuclear war—if it allows Ukraine to join the North Atlantic Treaty Organization (NATO), drawing the 30-member alliance into the country's conflict with Russia.

Chinese companies that have signed long-term contracts to buy U.S. liquefied natural gas have been selling their excess inventories to Europe and reaping big profits from the sales thanks to weak demand in China, the Wall Street Journal reports.

WSJ reports that just 19 LNG vessels from the U.S. docked in China in the first eight months of the year, a far cry from 133 recorded for last year’s comparable period. China’s key buyers are located in Europe, Japan and South Korea.

The U.SGovernment Accountability Office conducted a study, requested by House Republican Conference Chair Elise Stefanik and House Foreign Affairs Ranking Member Michael McCaul, which found that U.S. government agencies sent more than $28 million taxpayers dollars to Chinese entities for research and development between 2015 and 2021.

The People's Bank of China has told major state-run banks to prepare to shed dollar holdings while snapping up offshore yuan, which has continued to fall despite prior interventions, sources told Reuters.

The scale of this latest effort to prop up the yuan will be big and could provide a floor to the Chinese currency, according to the report.

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Leftist American President Joe Biden, skipping the funeral of longtime Japanese Prime Minister Abe Shinzo, signaled to Japan that “he’s more worried about the midterms than the threat of China and Russia,” Japanese conservative journalist and commentator Yoko Ishii told Breitbart News in an exchange on Friday.

Defense Secretary Lloyd Austin declined to directly endorse President Joe Biden’s statement that the U.S. military would defend Taiwan if China invaded, saying that America’s priority is helping Taiwan prepare to protect itself.

Speaking on CNN’s “Fareed Zakaria GPS” in an interview that aired Sunday, Austin said: “In accordance with the Taiwan Relations Act, we’re committed to helping Taiwan develop the capability to defend itself. And that work has gone on over time and will continue into the future.”

China has opened dozens of "overseas police service stations" around the globe to monitor its citizens living abroad, including one location in New York City and three in Toronto.

China has told state-run financial institutions to prepare to sell off their dollar holdings while stocking up on offshore yuan, as Beijing tries to bolster the national currency, Reuters reported on Thursday, citing sources with knowledge of the matter.

The simultaneous dumping of the US dollar and purchasing of the yuan are expected to avoid further drops in the Chinese currency, which is currently on track for the biggest annual loss versus the greenback in nearly three decades. So far this year, the yuan has dropped over 11% against the dollar.

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