Friday, April 17, 2009

Bad Chinese Chips = US Security Penetrated. Chinese Propose Copper base Currency

I found on a article back in 2007 about China's quest to become a military superpower.  This aphorism that old Charlie Chan himself could have utter:  "Listen to what they say, but observe what they do."  

What Beijing is saying is quite different from what it is doing.  

It has been reported recently that Chinese cyber-spies have penetrated the US computer system.  Such things as Banks, Power Grids, etc.  Now comes word some computer chips in our fighter planes may also be comprimised.  I.E. a modern-day Trojan Horse put into place by the Chinese security forces.  China says its not resposible (I'm sure that is the case - just haven't found that news report yet). 

National Counterintelligence Executive, Joel Brenner of the University of Texas at Austin stated in a transcript released on Wednesday, "Chinese penetrations of unclassified DoD networks have also been widely reported.  Those are more sophisticated, though hardly state of the art.

He added, "We're also seeing counterfeit routers and chips, and some of those chips have made their way into the US military fighter aircraft.  You don't sneak counterfeit chips into another nation's aircraft to steal data.  When it's done intentionally, its done to degrade systems, or to ahve the ability to do so at a time of one's choosing."

Joel Brenner said that the Chinese were mapping our the US network systems.

China has also realized that it has WAY TOO much of USA's debt on its hands.  So they are dumping the dollar and buying up copper.  They have also been aquiring huge stocks of aluminium, zinc, nickel, and rarer metals such as indium (thin-film technology).  Also titanium, rhodium (that can be used in such thngs as catalytic converters and praseodymium (for glass).  John Lennon, head of commodities at Macquarie Bank said, "(Chinese)They are definitely buying metals to diversify out of US Treasuries and dollar holdings."

UBS Metals Chief, John Reade said, Beijing may have made a strategic decision to stockpile metal as an alternative to foreign bonds. "We're very surprised by Chinese demand.  They are buying much more copper than they will need this year.  If this is strategic, there may be no effective limit on the purchases as China's pockets are deep."  

China may be worried that the U.S. Federal Reserve is in the process of creating a (covert) default on America's debt by printing money.  Premier Wen Jiabao issued a blunt warning last month that China was tiring of US bonds.  He is concerned about the huge amount of money lent to the U.S. and thus worried about the safety of those assets.  

By going the metal route instead of buying more U.S. bonds is that it "Kills so many birds with one stone.  It stops the yuan rising, without provoking complaints of currency manipulation by Washington, D.C..  Metals are mroe esily stored in warehouses, unlike oil.  The holdings are likely to rise in value over time since the earth's crust is gradualy depleting its accessible ores.  Above all, such a policy safeguards China's industrial revolution - while the West will one day face a supply crisis.  

China is not buying gold.  They say that there is just as much chance of having a "Copper Standard" backing the currency as there is the old standby, "Gold Standard." 

"Listen to what they say, but observe what they do."  

Ref. Times Of India, April 17, 2009 "Chinese spies may have put chips in US planes" (
Stop the Liberals Now. article by Crabbycon, April 17, 2009 (

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