Prospect of New China-U.S. Economic Ties in a "New Era" Sends London Crowd Ballistic

November 7, 2017
President Donald J. Trump and First Lady Melania Trump visit Japan | November 6, 2017 (Official White House Photo by Shealah Craighead)

At of the end of Pres. Trump's visit in Japan today—the first of visits to five nations on his Asian tour — word has leaked out on some of the economic content anticipated for Trump's meeting Thursday with Chinese Pres. Xi Jinping; and the very prospect is anathema to the London/Wall Sweet axis, bent on retaining its failed monetarist system of looting, geopolitics, and war, at any cost.

After visiting South Korea today, and activities in China Wednesday, Trump will join Xi Nov. 9 in Beijing's Great Hall of the People, where, it is said, an announcement will be made that the Chinese sovereign wealth fund CIC (China Investment Corporation) will form an entity with Goldman Sachs, for Chinese funding of investments in American physical economy. This was reported, without sources, in today's Wall Street Journal (which, otherwise, griped and moaned about China not opening itself up enough for Wall Street to come in).

Other memoranda of intent for China-U.S. business relations are expected to be announced, for deals in energy, agriculture, and so on. Commerce Secretary Wilbur Ross is en route to China, with a delegation of executives from 29 U.S. firms.

For the CIC-Goldman Sachs project, an investment amount of $5 billion was put out, without corroboration. However, the investment target areas are said to include high-tech manufacturing, rail, highways, and other such non-real estate categories. The U.S. opportunities in these areas are vast, given the desperate need for infrastructure-building in the storm and fire disaster zones, plus in critical zones across the nation, of decrepit infrastructure, such as New York/New Jersey's transportation system, the aged Great Lakes and river locks and dams, and so on.

What is required on the U.S. side, beyond a "kick-start" entity as exemplified by the CIC-Goldman initiative, is a nation-serving national bank, to receive and direct huge amounts of investment and credit, in a Glass-Steagall reorganized banking system. Chinese investments, including conversion of holdings in existing U.S. debt, to backing for infrastructure-related debt, are more than welcome.

What is at stake this week in Beijing, is the concept of "China-U.S. Ties in a New Era," reported Xinhua today, referring to the presentation on a New Era by Pres. Xi at the recent 19th CPC National Congress. Xinhua notes that, "China-U.S. ties are crucial to the new type of international relations and the community of shared future for humanity. Since Trump took office, the two leaders have maintained close contact, including face-to-face meetings, phone conversations and sending messages...[this week's visit] is of great significance to Sino-U.S. relations and to peace, stability and prosperity in the Asia-Pacific region and the world."

This favorable context makes clear the timing of the unleashing of a wild Russia-gate attack on Wilbur Ross, the leader of the U.S. business delegation to join Trump in China. The operation against Ross has a classic British dirty-tricks M.O.. Over last weekend, charges were issued in British and German media that Ross has clandestine, incriminating Russian business connections, based on data in newly-surfaced records called the "Paradise Papers." It is a re-play of the 2015 "Panama Papers" hit operation, conducted against targeted individuals. Today, the smear is all over the U.S. media, featuring British "experts," such as the London Guardian's Jon Swaine, guest on National Public Radio. Today's Washington Post headline is, "Leaked Files Link U.S. Commerce Secretary to Putin Allies." Ross condemned the attack as "totally wrong," speaking to CNBC yesterday, on the eve of departing to China.

The reality is that the potential is alive and well, for moves to a "New Era," from Trump's Nov. 8-10 time in China. He will then meet with Russian Pres. Vladimir Putin at the time of the APEC Summit in Vietnam, and Indian Pres. Narendra Modi, on the sidelines of ASEAN/East Asia Summit in the Philippines.