Sep 112008

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American corporate leaders and government officials with special ties to the Chinese government are using their connections for the benefit of China, according to critics.

Henry Paulson helped China become a trading superpower.Did you ever wonder why Secretary of the Treasury Henry Paulson and others in the Bush administration seem to be so ineffective in getting China to play fair under the WTO rules for trade with the United states? It might be that their personal situation would be substantially improved by that special relationship with Beijing.

Paulson, before becoming treasury secretary, made many trips to China as chief executive of Goldman Sachs, where he advised Chinese leaders “to adopt its present policies. He helped pour billions into investments to boost China’s economic power, including state-owned enterprises. How could anyone think he would renounce everything he did in China, or give up the self-serving spin that he used to justify his efforts to make Beijing into the next global superpower?” See Hawkins.

According to author Pat Choate,”China’s Pavlovian conditioning of U.S. investment banks and equity funds ensures that those the Chinese have chosen for special preference and access, such as Goldman Sachs, Bank of America, Blackstone, and Citigroup, are virtually guaranteed vast profits year after year. They have enormous incentives to please their real client, the Chinese government. They also know that the Chinese have long memories and will punish those who disobey their desires.[1]

“These U.S. financial institutions bring more than money; they also bring China their unique knowledge and influence within the government. As of 2007, a number of former Goldman Sachs executives held key positions in the Bush administration, including Josh Bolton as chief of staff to President Bush and Henry Paulson as secretary of the Treasury. Robert Zoellick was appointed by President Bush to be president of the World Bank. At the same time, former Goldman Sachs Chairman Robert Rubin, secretary of the Treasury in the Clinton administration and now chairman of Citicorp’s executive committee, is the leading economic adviser to the Democratic Party, even as House Democratic Majority Leader Richard Gephart is working at Goldman Sachs on public finance issues. Peter Peterson of Blackstone is Chairman of the Council on Foreign Relations, the principle foreign relations policy organization in the United States, and the Peter G. Peterson Institute for International Economics, the most influential trade policy think tank in America.

“Our financial and political elites are everywhere involved with the neuron systems of economics and politics. They have the pulse of American governance and help shape what is happening in virtually all U.S.-based industries. They bring it all to China.”

George Bush, in his ‘National Security Strategy of the United States,’ 2002, stated:

“The power of market principles and the WTO’s requirements for transparency and accountability will advance openness and the rule of law in China to help establish protections for commerce and for citizens.”

Rupert Murdoch and his wife Wendy Deng have a home in Beijing.Instead of moving toward openness and the rule of law in China, it has made American companies a party to censorship and repression.

“Rupert Murdoch (Fox News) banned the BBC from Star TV, his China satellite network, after the BBC ran reports about human rights in China.” [2]

American internet companies, “like Microsoft and Cisco, have all sold China security tools and firewalls that China has turned into political controls…Some, including Yahoo, signed a pledge of ‘self-discipline’ in 2002, promising to follow China’s censorship laws. Many internet portals actively censor their Chinese websites.” (NYTimes)

One American company, Yahoo, helped the Chinese authorities (2005) find a dissident from his emails. The man, Shi Tao, a journalist, was sentenced to 10 years in prison.

“It was the force of capitalist profits, not Communist law, that compelled Yahoo to hand over Shi Tao and its unapologetic response seems devised to ingratiate Yahoo further with Beijing. Last month (08/2005) Yahoo spent a billion dollars to buy a 40 percent share of, China’s largest e-commerce company. It was the single largest foreign investment in China’s internet sector, and like everything else in China, it would not have happened without the good will of the party.” (Tina Rosenberg, NYTimes)

As for our trade problems with China, Hawkins says that Henry Paulson “has pushed concern for the national impact of the trade deficit on America out of his calculations.” Paulson defended his actions in a speech, stating:

“Closer economic ties between nations help promote international peace and prosperity by creating common interests and raising the costs of conflict.”

This, of course, is not the case. Those players engaged in this winner take all game have nothing honorable guiding their actions and have shown they will do anything to succeed. The Bush plan includes converting nations to democracy and free trade, by force, if necessary. As the guarantor of peace, we would be in a state of perpetual war. McCain has told audiences to prepare for more wars, with much pain and suffering. He would continue the Bush legacy. (China also has hegemonic intentions.)

But both candidates for president will take us down the same road to ruin. They never talk about the issues that are impacting our nation with serious consequences for our future; massive illegal and legal immigration, the SPP-a North American trading state, destructive effects of free trade such as replacing our middle class with cheap labor, and the end of our sovereignty and individual rights. (A problem since our “leaders” are the perpetrators.)

American transnational corporate leaders and their accomplices in government continue to make deals with the devil in order to “grow their business” and reap enormous personal wealth at the expense of our nation and its citizens.

If they are not stopped, America’s demise will be violent, painful and complete. And, as goes America, so goes the world.

[1] Pat Choate, Dangerous Business (New York: Alfred A. Knopf, 2008), pp. 41, 42.

[2] Tina Rosenberg, Building the Great Firewall of China, with Foreign Help, New York Times, Sept. 18, 2005.

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 Posted by at 1:54 pm