THE NEXT PHASE: INFLATION, CHINA, AND IRAN

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At first sight, inflation seems unavoidable. A historic government deficit, and the possibility (I would say likelihood) that the Treasury Department will not take back all of the Quantitative Easing money it had issued, seem to point to a return of inflation. One advantage of inflation is that it would infuse tax proceeds into the treasuries, both federal and state.

There are some brakes being applied to the process of inflating the economy. Politically, I suspect that the widening of the ranks of independents is due to the concern by these, and those joining them, that the process of printing money (expenditures without commensurate taxation; and actual printing - -“Quantitative Easing”) should eat up into their savings. That would be particularly true if the housing market doesn’t revive; which means that those joining the ranks of the independents are aware that they couldn’t count on the equity in their houses to ease their way into retirement.

But, as we have seen in the election of Mr. Obama, anyone elected, regardless of platform, should end up doing more-of-the-same. Accordingly, the independents should not have their way.

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IF INFLATION

If inflation, commodity prices, including oil, should increase. That would replenish even more the coffers of the Israel-Anchored Idiots’ de facto bank - - the countries of Saudi Arabia, the UAE, and Kuwait. Since it is my hypothesis (backed by some facts) that these Gulf protectorates are paying for the Idiots’ current military campaigns in Iraq, Afghanistan, and Pakistan, the military fest should be expected to continue on - - particularly that the Idiots’ bank (the above-named Gulf countries) would’ve been refurbished with inflated oil revenues.

If inflation, Iran’s treasury should, too, be buoyed, by the printing of dollars. Here, the Israel Idiots might try to use their sanctions to diminish Iran’s ability to export oil and gas to fetch euros and dollars.

That would mean in part that the Israel Idiots would need to break the connection that Iran currently has with China and Turkey. I’ve given Turkey my attention in two prior posts.

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CHINA

I don’t think China can afford to give up on Iran.

Iran is a powerful and pivotal card for China not only for access to Iran’s oil but, too, for Iraq’s. It’s not every day that China can secure such a plum position in as important a country as Iran, courtesy of the Israel anchor that weighs down the Idiots. The Israel-Anchored Idiots can lure-and-promise China to their hearts’ delight. But foreign policy elites, unless they’re Arab friends of David Ignatius, rarely ever base their decisions on promises. They base them on power relationships. In this context, should China give up on Iran, the Israel-Anchored Idiots would win out. Iran’s regime would become an American regime. (This, as a best-case scenario for the Israel Idiots - - it’s not necessarily what will happen; see prior posts. I’m just making a point.) Iraq would follow suit. At that point, what would prevent the Israel-Anchored Idiots from going back on their promises to China? Nothing; China would be screwed.

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Currently, short of full war with Iran, the Israel-Anchored Idiots can threaten to diminish China’s supplies of oil from the region. But China can retaliate by engaging even deeper with Iran’s Islamic government and by passing money on to the Taliban (and that part of Pakistani intelligence that is willing) and to Islamist groups the region-over. This would be the lesser-of-two-evils type of policy. And, importantly, by putting China’s faith in policies by the regional forces which are open to it. (One, likely two, of those policies had been meant to be the subject of the last post.)

If inflation, China’s income should increase since the American consumer will have money in her pocket to buy Chinese goods. True, China’s U.S. Treasury bonds should lose in value, but that loss-in-value should be compensated for by a revived purchase of Chinese products. Such is the trade bed our policy-makers had made for us. It’s unlikely they can disassemble it fast enough - - or, more correctly, that they have the interest or willingness to do that.

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Hence the Israel-Anchored Idiots’ desperate threats to China - - see the post about the Israel-Anchored Idiots bragging about bullying China on the front page of the Washington Post. The Idiots were/are trying to use the window of opportunity, pre-inflation and the refueling of demand, to obtain concessions from China on Iran BEFORE the American consumer, whose pockets should be full with printed money, returns to spending on Chinese products. China is stupid, you see.

In other words, on Iran, the Israel-Anchored Idiots are asking China to shoot itself in the foot - - as they had us in Iraq and as they are now in their silly and absurd project in Afghanistan and Pakistan. It had never occurred to the Israel Idiots, both Harmful - - Crusader’s crowd - - , or Self-Defeating - - Obama’s crowd - - , that there had been a systemic power-vacuum trap out there for us to avoid. They used our September 11 hysteria to walk us straight into that trap. They’re just brilliant.

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In this context, all the Islamic Republic need do is to withstand the current pressures. It’s unlikely the Iranians would be scared by new weapons. For instance, new-and-improved bunker-busting bombs (David Ignatius is proud of these) being developed by the Idiots are, if anything, more evidence that the Idiots haven’t understood that conventional weaponry and high-tech, while great sources of employment and profit-making at home, aren’t what things are all about overseas. In this instance, as in so many others, the Islamic Republic can enjoy the clueless and idiotic nature of the Israel Crowd while making plans to shield its nuclear programs, such as by erecting costly (to our reputation as one distinguished creator of refugees - - Iraq) human shields. They can, for instance, copy the idiots’ Israelis by providing incentives to Iranians to build small towns/settlements above the nuclear sites. (But we just spent another $3000,000.0000,000000 billion developing those bunker busters! F----! Damn!) In the meanwhile, the young ones of the idiotic Green Revolution (they haven’t seen what happened to the Cedars’ Revolution) can line up in Turkey for visas to join the millions-upon-millions in estimated new immigrants heading our way over the next decades. Maybe, just maybe, that’s what the young ones desire; and maybe, just maybe, that is what we as an aging society in need for widening the young base of the demographic pyramid, want and need.

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In addition to providing “stimulus” money to build towns above the nuclear sites, Hezbollah in Lebanon should be part of the Iranians’ deterrence to the Idiots’ expensive bunker busters. And Iraq, always Iraq, for generations to come.