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Gary Edwards

Google News - 0 views

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    Exhaustive article about how the Chinese are converting US DEBT into economic assets - converting US assets to Chinese owned assets. Instead of breaking our knees to collect on our debt, the Chinese are taking land. Exactly what the Japanese did back in the 1980's. Convert the dollars into hard assets; business's and land. And get the conversion done before the dollar collapses totally. Intro: "What in the world is China up to?  Over the past several years, the Chinese government and large Chinese corporations (which are often at least partially owned by the government) have been systematically buying up businesses, homes, farmland, real estate, infrastructure and natural resourcesall over America.  In some cases, China appears to be attempting to purchase entire communities in one fell swoop.  So why is this happening?  Is this some form of "economic colonization" that is taking place?  Some have speculated that China may be intending to establish "special economic zones" inside the United States modeled after the very successful Chinese city of Shenzhen.  Back in the 1970s, Shenzhen was just a very small fishing village, but now it is a sprawling metropolis of over 14 million people.  Initially, these "special economic zones" were only established within China, but now the Chinese government has been buying huge tracts of land in foreign countries such as Nigeria and establishing special economic zones in those nations.  So could such a thing actually happen in America?  Well, according to Dr. Jerome Corsi, a plan being pushed by the Chinese Central Bank would set up "development zones" in the United States that would allow China to "establish Chinese-owned businesses and bring in its citizens to the U.S. to work."  Under the plan, some of the $1.17 trillion that the U.S. owes China would be converted from debt to "equity".  As a result, "China would own U.S. businesses, U.S. infrastructure and U.S. high-value la
Gary Edwards

Jim Kunstler's 2014 Forecast - Burning Down The House | Zero Hedge - 0 views

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    Incredible must read analysis. Take away: the world is going to go "medevil". It's the only way out of this mess. Since the zero hedge layout is so bad, i'm going to post as much of the article as Diigo will allow: Jim Kunstler's 2014 Forecast - Burning Down The House Submitted by Tyler Durden on 01/06/2014 19:36 -0500 Submitted by James H. Kunstler of Kunstler.com , Many of us in the Long Emergency crowd and like-minded brother-and-sisterhoods remain perplexed by the amazing stasis in our national life, despite the gathering tsunami of forces arrayed to rock our economy, our culture, and our politics. Nothing has yielded to these forces already in motion, so far. Nothing changes, nothing gives, yet. It's like being buried alive in Jell-O. It's embarrassing to appear so out-of-tune with the consensus, but we persevere like good soldiers in a just war. Paper and digital markets levitate, central banks pull out all the stops of their magical reality-tweaking machine to manipulate everything, accounting fraud pervades public and private enterprise, everything is mis-priced, all official statistics are lies of one kind or another, the regulating authorities sit on their hands, lost in raptures of online pornography (or dreams of future employment at Goldman Sachs), the news media sprinkles wishful-thinking propaganda about a mythical "recovery" and the "shale gas miracle" on a credulous public desperate to believe, the routine swindles of medicine get more cruel and blatant each month, a tiny cohort of financial vampire squids suck in all the nominal wealth of society, and everybody else is left whirling down the drain of posterity in a vortex of diminishing returns and scuttled expectations. Life in the USA is like living in a broken-down, cob-jobbed, vermin-infested house that needs to be gutted, disinfected, and rebuilt - with the hope that it might come out of the restoration process retaining the better qualities of our heritage.
Paul Merrell

US manoeuvre in South China Sea leaves little wiggle room with China | World news | The... - 0 views

  • Barack Obama’s decision to send a US guided missile destroyer into disputed waters off the Spratly islands in the South China Sea on Tuesday has provoked predictable outpourings of rage and veiled threats from Beijing – but nothing, yet, in the way of a military response. The worry now is that the confrontation will catch fire, escalate and spread. Both China, which claims the Spratlys as its own, and the US, which does not recognise Beijing’s sovereignty, have boxed themselves into a rhetorical and tactical corner. With the Pentagon insisting it will repeat and extend such naval patrols at will, and with the People’s Liberation Army Navy determined to stop them, it is feared a head-on collision cannot be far away. China’s heated response to Tuesday’s manoeuvre by the USS Lassen off the Spratlys’ Mischief and Subi reefs, where Beijing is controversially building military airstrips and lighthouses on reclaimed land, left it little wiggle room. The American warship had been tracked and warned off, officials said, adding that what it termed an illegal incursion was a “threat to national sovereignty” and a deliberate provocation that could backfire.
  • Anticipating the US move earlier this month, foreign ministry spokeswoman Hua Chunying said: “China will never allow any country to violate China’s territorial waters and airspace in the South China Sea.” If ever a government has publicly laid down a red line, this is it. And Obama just crossed it. Having personally failed to find a compromise in White House talks with Xi Jinping, China’s president, last month, Obama has upped the ante. As is also the case with Xi, it is now all but impossible to envisage an American climbdown without enormous loss of face and prestige. By deploying a powerful warship, by declining to inform China in advance, and by insisting the US is upholding the universal principle of free navigation in international waters and will do so again whenever and wherever it wishes, Obama has deliberately challenged Beijing to do its worst.
  • China is in dispute over other South China Sea islands and reefs with several countries that are all more or less at one with the US on the issue, including the Philippines, Vietnam and Malaysia. Renewed trouble could flare up in any of these places. One possibility is the Scarborough Shoal, claimed by Manila, where clashes have continued on and off since 2012. Another obvious pressure point is the Senkaku islands (Diaoyu in Chinese) in the East China Sea, claimed by both Japan and China. In 2013 Beijing upped the ante, unilaterally declaring an air exclusion, or identification, zone in the area, which the US promptly breached with B52 bombers. This dispute forms part of the background to the military buildup ordered by Japan’s hawkish prime minister, Shinzo Abe, who set a record £27bn defence budget this year. (China’s military budget is roughly £90bn; that of the US is about £378bn).
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  • Chinese retaliation, when it comes, and it surely must, may not centre specifically on the Spratlys. There are plenty of other potential troublespots and flashpoints where Beijing might seek to give the Americans pause. In prospect is a sort of geopolitical chain reaction. A spokesman, Lu Kang, hinted at this on Tuesday: “China hopes to use peaceful means to resolve all the disputes, but if China has to make a response then the timing, method and tempo of the response will be made in accordance with China’s wishes and needs.”
  • Reacting to the perceived China threat, Abe is extending Okinawa’s defences and getting involved in South China Sea patrols in support of Washington. Japan also strengthened defence and security ties with Britain – a development that now makes David Cameron’s courtship of Beijing seem all the more incongruous. Taiwan is another powder keg that could be ignited by widening US-China confrontation. While Beijing regards Taiwan as a renegade province and seeks its return, the present-day status quo is underwritten by US military might.
  • US-China naval and aerial rivalry could expand even further afield. China is busy building a blue water fleet (a maritime force capable of operating across the deep waters of open oceans) including aircraft carriers, with the aim of challenging US dominance in the eastern Pacific. Chinese naval ships recently showed up off the Aleutian islands during an Obama visit to Alaska, the mineral-rich Arctic being another possible theatre. Meanwhile, regional western allies such as Australia have serious cause for concern that escalating superpower friction could draw them in.
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    The latest Obama idiocy.
Paul Merrell

President Xi's speech to Davos in full | World Economic Forum - 0 views

  • “It was the best of times, it was the worst of times.” These are the words used by the English writer Charles Dickens to describe the world after the Industrial Revolution. Today, we also live in a world of contradictions. On the one hand, with growing material wealth and advances in science and technology, human civilization has developed as never before. On the other hand, frequent regional conflicts, global challenges like terrorism and refugees, as well as poverty, unemployment and widening income gap have all added to the uncertainties of the world. Many people feel bewildered and wonder: What has gone wrong with the world? To answer this question, one must first track the source of the problem. Some blame economic globalization for the chaos in the world. Economic globalization was once viewed as the treasure cave found by Ali Baba in The Arabian Nights, but it has now become the Pandora’s box in the eyes of many. The international community finds itself in a heated debate on economic globalization.
  • Today, I wish to address the global economy in the context of economic globalization. The point I want to make is that many of the problems troubling the world are not caused by economic globalization. For instance, the refugee waves from the Middle East and North Africa in recent years have become a global concern. Several million people have been displaced, and some small children lost their lives while crossing the rough sea. This is indeed heartbreaking. It is war, conflict and regional turbulence that have created this problem, and its solution lies in making peace, promoting reconciliation and restoring stability. The international financial crisis is another example. It is not an inevitable outcome of economic globalization; rather, it is the consequence of excessive chase of profit by financial capital and grave failure of financial regulation. Just blaming economic globalization for the world’s problems is inconsistent with reality, and it will not help solve the problems.
  • But we should also recognize that economic globalization is a double-edged sword. When the global economy is under downward pressure, it is hard to make the cake of global economy bigger. It may even shrink, which will strain the relations between growth and distribution, between capital and labor, and between efficiency and equity. Both developed and developing countries have felt the punch. Voices against globalization have laid bare pitfalls in the process of economic globalization that we need to take seriously. As a line in an old Chinese poem goes, “Honey melons hang on bitter vines; sweet dates grow on thistles and thorns.” In a philosophical sense, nothing is perfect in the world. One would fail to see the full picture if he claims something is perfect because of its merits, or if he views something as useless just because of its defects. It is true that economic globalization has created new problems, but this is no justification to write economic globalization off completely. Rather, we should adapt to and guide economic globalization, cushion its negative impact, and deliver its benefits to all countries and all nations.
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  • Whether you like it or not, the global economy is the big ocean that you cannot escape from. Any attempt to cut off the flow of capital, technologies, products, industries and people between economies, and channel the waters in the ocean back into isolated lakes and creeks is simply not possible. Indeed, it runs counter to the historical trend.
  • First, lack of robust driving forces for global growth makes it difficult to sustain the steady growth of the global economy. The growth of the global economy is now at its slowest pace in seven years. Growth of global trade has been slower than global GDP growth. Short-term policy stimuli are ineffective. Fundamental structural reform is just unfolding. The global economy is now in a period of moving toward new growth drivers, and the role of traditional engines to drive growth has weakened. Despite the emergence of new technologies such as artificial intelligence and 3-D printing, new sources of growth are yet to emerge. A new path for the global economy remains elusive. Second, inadequate global economic governance makes it difficult to adapt to new developments in the global economy. Madame Christine Lagarde recently told me that emerging markets and developing countries already contribute to 80 percent of the growth of the global economy. The global economic landscape has changed profoundly in the past few decades. However, the global governance system has not embraced those new changes and is therefore inadequate in terms of representation and inclusiveness. The global industrial landscape is changing and new industrial chains, value chains and supply chains are taking shape. However, trade and investment rules have not kept pace with these developments, resulting in acute problems such as closed mechanisms and fragmentation of rules.
  • Third, uneven global development makes it difficult to meet people’s expectations for better lives. Dr. Schwab has observed in his book The Fourth Industrial Revolution that this round of industrial revolution will produce extensive and far-reaching impacts such as growing inequality, particularly the possible widening gap between return on capital and return on labor. The richest one percent of the world’s population own more wealth than the remaining 99 percent. Inequality in income distribution and uneven development space are worrying. Over 700 million people in the world are still living in extreme poverty. For many families, to have warm houses, enough food and secure jobs is still a distant dream. This is the biggest challenge facing the world today. It is also what is behind the social turmoil in some countries. All this shows that there are indeed problems with world economic growth, governance and development models, and they must be resolved. The founder of the Red Cross Henry Dunant once said, “Our real enemy is not the neighboring country; it is hunger, poverty, ignorance, superstition and prejudice.” We need to have the vision to dissect these problems; more importantly, we need to have the courage to take actions to address them.
  • First, we should develop a dynamic, innovation-driven growth model. The fundamental issue plaguing the global economy is the lack of driving force for growth.Innovation is the primary force guiding development. Unlike the previous industrial revolutions, the fourth industrial revolution is unfolding at an exponential rather than linear pace. We need to relentlessly pursue innovation. Only with the courage to innovate and reform can we remove bottlenecks blocking global growth and development. With this in mind, G-20 leaders reached an important consensus at the Hangzhou Summit, which is to take innovation as a key driver and foster new driving force of growth for both individual countries and the global economy. We should develop a new development philosophy and rise above the debate about whether there should be more fiscal stimulus or more monetary easing. We should adopt a multipronged approach to address both the symptoms and the underlying problems. We should adopt new policy instruments and advance structural reform to create more space for growth and sustain its momentum. We should develop new growth models and seize opportunities presented by the new round of industrial revolution and digital economy. We should meet the challenges of climate change and aging population. We should address the negative impact of IT application and automation on jobs. When cultivating new industries and new forms models of business models, we should create new jobs and restore confidence and hope to our peoples.
  • Second, we should pursue a well-coordinated and inter-connected approach to develop a model of open and win-win cooperation. Today, mankind has become a close-knit community of shared future. Countries have extensive converging interests and are mutually dependent. All countries enjoy the right to development. At the same time, they should view their own interests in a broader context and refrain from pursuing them at the expense of others. We should commit ourselves to growing an open global economy to share opportunities and interests through opening-up and achieve win-win outcomes. One should not just retreat to the harbor when encountering a storm, for this will never get us to the other shore of the ocean. We must redouble efforts to develop global connectivity to enable all countries to achieve inter-connected growth and share prosperity. We must remain committed to developing global free trade and investment, promote trade and investment liberalization and facilitation through opening-up and say no to protectionism. Pursuing protectionism is like locking oneself in a dark room. While wind and rain may be kept outside, that dark room will also block light and air. No one will emerge as a winner in a trade war.
  • Third, we should develop a model of fair and equitable governance in keeping with the trend of the times. As the Chinese saying goes, people with petty shrewdness attend to trivial matters, while people with vision attend to governance of institutions. There is a growing call from the international community for reforming the global economic governance system, which is a pressing task for us. Only when it adapts to new dynamics in the international economic architecture can the global governance system sustain global growth. Countries, big or small, strong or weak, rich or poor, are all equal members of the international community. As such, they are entitled to participate in decision-making, enjoy rights and fulfill obligations on an equal basis. Emerging markets and developing countries deserve greater representation and voice. The 2010 IMF quota reform has entered into force, and its momentum should be sustained. We should adhere to multilateralism to uphold the authority and efficacy of multilateral institutions. We should honor promises and abide by rules. One should not select or bend rules as he sees fit. The Paris Agreement is a hard-won achievement which is in keeping with the underlying trend of global development. All signatories should stick to it instead of walking away from it as this is a responsibility we must assume for future generations.
  • Fourth, we should develop a balanced, equitable and inclusive development model. As the Chinese saying goes, “A just cause should be pursued for common good.”Development is ultimately for the people. To achieve more balanced development and ensure that the people have equal access to opportunities and share in the benefits of development, it is crucial to have a sound development philosophy and model and make development equitable, effective and balanced.
  • We should foster a culture that values diligence, frugality and enterprise and respects the fruits of hard work of all. Priority should be given to addressing poverty, unemployment, the widening income gap and the concerns of the disadvantaged to promote social equity and justice. It is important to protect the environment while pursuing economic and social progress so as to achieve harmony between man and nature and between man and society. The 2030 Agenda for Sustainable Development should be implemented to realize balanced development across the world. A Chinese adage reads, “Victory is ensured when people pool their strength; success is secured when people put their heads together.” As long as we keep to the goal of building a community of shared future for mankind and work hand in hand to fulfill our responsibilities and overcome difficulties, we will be able to create a better world and deliver better lives for our peoples.
  • This is a path that puts people’s interests first. China follows a people-oriented development philosophy and is committed to bettering the lives of its people. Development is of the people, by the people and for the people. China pursues the goal of common prosperity. We have taken major steps to alleviate poverty and lifted over 700 million people out of poverty, and good progress is being made in our efforts to finish building a society of initial prosperity in all respects. This is a path of pursuing reform and innovation. China has tackled difficulties and met challenges on its way forward through reform. China has demonstrated its courage to take on difficult issues, navigate treacherous rapids and remove institutional hurdles standing in the way of development. These efforts have enabled us to unleash productivity and social vitality. Building on progress of 30-odd years of reform, we have introduced more than 1,200 reform measures over the past four years, injecting powerful impetus into China’s development.
  • This is a path of pursuing common development through opening-up. China is committed to a fundamental policy of opening-up and pursues a win-win opening-up strategy. China’s development is both domestic and external oriented; while developing itself, China also shares more of its development outcomes with other countries and peoples. China’s outstanding development achievements and the vastly improved living standards of the Chinese people are a blessing to both China and the world. Such achievements in development over the past decades owe themselves to the hard work and perseverance of the Chinese people, a quality that has defined the Chinese nation for several thousand years. We Chinese know only too well that there is no such thing as a free lunch in the world. For a big country with over 1.3 billion people, development can be achieved only with the dedication and tireless efforts of its own people. We cannot expect others to deliver development to China, and no one is in a position to do so. When assessing China’s development, one should not only see what benefits the Chinese people have gained, but also how much hard effort they have put in, not just what achievements China has made, but also what contribution China has made to the world. Then one will reach a balanced conclusion about China’s development.
  • Between 1950 and 2016, despite its modest level of development and living standard, China provided more than 400 billion yuan of foreign assistance, undertook over 5,000 foreign assistance projects, including nearly 3,000 complete projects, and held over 11,000 training workshops in China for over 260,000 personnel from other developing countries. Since it launched reform and opening-up, China has attracted over $1.7 trillion of foreign investment and made over $1.2 trillion of direct outbound investment, making huge contribution to global economic development. In the years following the outbreak of the international financial crisis, China contributed to over 30 percent of global growth every year on average. All these figures are among the highest in the world. The figures speak for themselves. China’s development is an opportunity for the world; China has not only benefited from economic globalization but also contributed to it. Rapid growth in China has been a sustained, powerful engine for global economic stability and expansion. The inter-connected development of China and a large number of other countries has made the world economy more balanced. China’s remarkable achievement in poverty reduction has contributed to more inclusive global growth. And China’s continuous progress in reform and opening-up has lent much momentum to an open world economy.
  • Despite a sluggish global economy, China’s economy is expected to grow by 6.7 percent in 2016, still one of the highest in the world. China’s economy is far bigger in size than in the past, and it now generates more output than it did with double-digit growth in the past. Household consumption and the services sector have become the main drivers of growth. In the first three quarters of 2016, added value of the tertiary industry took up 52.8 percent of the GDP and domestic consumption contributed to 71 percent of economic growth. Household income and employment have steadily risen, while per unit GDP energy consumption continues to drop. Our efforts to pursue green development are paying off. The Chinese economy faces downward pressure and many difficulties, including acute mismatch between excess capacity and an upgrading demand structure, lack of internal driving force for growth, accumulation of financial risks, and growing challenges in certain regions. We see these as temporary hardships that occur on the way forward. And the measures we have taken to address these problems are producing good results. We are firm in our resolve to forge ahead. China is the world’s largest developing country with over 1.3 billion people, and their living standards are not yet high. But this reality also means China has enormous potential and space for development. Guided by the vision of innovative, coordinated, green, open and shared development, we will adapt to the new normal, stay ahead of the curve, and make coordinated efforts to maintain steady growth, accelerate reform, adjust economic structure, improve people’s living standards and fend off risks. With these efforts, we aim to achieve medium-high rate of growth and upgrade the economy to higher end of the value chain.
  • — China will foster an enabling and orderly environment for investment. We will expand market access for foreign investors, build high-standard pilot free trade zones, strengthen protection of property rights, and level the playing field to make China’s market more transparent and better regulated. In the coming five years, China is expected to import $8 trillion of goods, attract $600 billion of foreign investment and make $750 billion of outbound investment. Chinese tourists will make 700 million overseas visits. All this will create a bigger market, more capital, more products and more business opportunities for other countries. China’s development will continue to offer opportunities to business communities in other countries. China will keep its door wide open and not close it. An open door allows both other countries to access the Chinese market and China itself to integrate with the world. And we hope that other countries will also keep their door open to Chinese investors and keep the playing field level for us.
  • — China will vigorously foster an external environment of opening-up for common development. We will advance the building of the Free Trade Area of the Asia Pacific and negotiations of the Regional Comprehensive Economic Partnership to form a global network of free trade arrangements. China stands for concluding open, transparent and win-win regional free trade arrangements and opposes forming exclusive groups that are fragmented in nature. China has no intention to boost its trade competitiveness by devaluing the RMB, still less will it launch a currency war. Over three years ago, I put forward the “Belt and Road” initiative. Since then, over 100 countries and international organizations have given warm responses and support to the initiative. More than 40 countries and international organizations have signed cooperation agreements with China, and our circle of friends along the “Belt and Road” is growing bigger. Chinese companies have made over $50 billion of investment and launched a number of major projects in the countries along the routes, spurring the economic development of these countries and creating many local jobs. The “Belt and Road” initiative originated in China, but it has delivered benefits well beyond its borders.
  • Ladies and Gentlemen,Dear Friends, World history shows that the road of human civilization has never been a smooth one, and that mankind has made progress by surmounting difficulties. No difficulty, however daunting, will stop mankind from advancing. When encountering difficulties, we should not complain about ourselves, blame others, lose confidence or run away from responsibilities. We should join hands and rise to the challenge. History is created by the brave. Let us boost confidence, take actions and march arm-in-arm toward a bright future.
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    Very important speech. A must-read (I snipped only portions).
Gary Edwards

Signs That China Is Making A Move Against The U.S. Dollar - America Conservative 2 Cons... - 0 views

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    Two articles about China taking over America appeared today on the American Conservative web site. Incredible stuff. The first deals with the dollar, and how China plans on replacing it. The second article is focused on the Chinese take over of businesss and American assets, including American land. At the heart of both articles is the problem of out of control US DEBT tha tis destroying this country. Intro: "On the global financial stage, China is playing chess while the U.S. is playing checkers, and the Chinese are now accelerating their long-term plan to dethrone the U.S. dollar.  You see, the truth is that China does not plan to allow the U.S. financial system to dominate the world indefinitely.  Right now, China is the number one exporter on the globe and China will have the largest economy on the planet at some point in the coming years.  The Chinese would like to see global currency usage reflect this shift in global economic power.  At the moment, most global trade is conducted in U.S. dollars and more than 60 percent of all global foreign exchange reserves are held in U.S. dollars.  This gives the United States an enormous built-in advantage, but thanks to decades of incredibly bad decisions this advantage is starting to erode.  And due to the recent political instability in Washington D.C., the Chinese sense vulnerability.  China has begun to publicly mock the level of U.S. debt, Chinese officials have publicly threatened to stop buying any more U.S. debt, the Chinese have started to aggressively make currency swap agreements with other major global powers, and China has been accumulating unprecedented amounts of gold.  All of these moves are setting up the moment in the future when China will completely pull the rug out from under the U.S. dollar. Today, the U.S. financial system is the core of the global financial system.  Because nearly everybody uses the U.S. dollar to buy oil and to trade with one another, this cre
Paul Merrell

China stakes claim in Central and Southeast Europe | Business New Europe - 0 views

  • A Chinese agreement to finance a high-speed railway from Belgrade to Bucharest was one of around $10bn worth of investments, mainly in the energy and infrastructure sectors, signed during a China-Central and Eastern Europe summit this week. By funding the railway, Beijing hopes to establish a rapid connection from Greece’s Pireaus Port through the Balkans to the EU member states of Central Europe. Several agreements on the €1.5bn railway, which will be financed by soft loans from state-owned China Exim Bank, were signed between China, Hungary and Serbia on December 17. When the line is operational, the travel time between Belgrade and Budapest will be slashed from the current eight hours to just 2.4 hours. Macedonian counterpart Nikola Gruevski was also in attendance as there are plans to extend the line south to Macedonia and Greece in future. Chinese Prime Minister Li Keqiang, who headed a 200-strong delegation to Belgrade, said he expected the line would benefit both China and the countries of Central and Eastern Europe and the EU, according to a Serbian government statement.
  • Chinese shipping giant Cosco Pacific took over the management rights to half of Piraeus port and is now expanding two container terminals under a 35-year concession agreement, with the aim of turning the Greek port into one of Europe’s top five container ports. However, to take full advantage of Cosco’s investment in Piraeus and its potential to become a gateway to the CEE region, investments into transport links across the Balkans are needed. "We will propose construction of a rapid land and maritime route based on the Budapest-Belgrade railroad and the Greek port of Piraeus to improve regional connectivity," Li told journalists in advance of the summit, South China Morning Post reported. Investments into infrastructure to transport raw materials into China and Chinese manufactured goods to foreign markets is nothing new. Closer to home, Beijing is looking to fund a railway across Central Asia to create a direct rail link between its factories and the massive wholesale bazaars of Kyrgyzstan and Uzbekistan. Further afield, in May 2014, China signed an agreement in Kenya to build a new line from Mombasa to Nairobi that will extend to four other East African states in future.
  • While land rail routes across Eurasia to Europe are also being developed, sea shipping remains the cheapest route from the Far East to Europe, and Piraeus is a convenient entry point to the continent. While growth in the region has been patchy since the recent global economic crisis, in the longer-term the EU member states of Central and Eastern Europe and future entrants from the Balkans are expected to converge with longer-established EU members from Western Europe in terms of spending power. Since 2012, when the first China-CEE summit was held in Warsaw, Chinese attention on the region has steadily increased, with a focus on energy and infrastructure. Aside from the access to new markets, there are further commercial benefits for China, as Chinese companies are selected for lucrative construction contracts on projects funded by Chinese state-owned banks. On December 16, the opening day of the summit, Li told the 16 regional leaders to attend that China would launch a $3bn investment fund for the region.
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  • Also on December 16 Albania signed a deal with Exim Bank on funding for the completion of construction works on the Arber motorway that links the capital Tirana with Macedonia. In the energy sector, Serbian and Chinese officials have signed a loan agreement for the second stage of the Kostolac B thermal power project, which includes the construction of a new 350MW plant and the expansion of the adjacent Drmno open-pit coal mine. The value of the project is expected to be $715mn, of which $608mn will come from a 20-year China Exim Bank loan. In neighbouring Bosnia, Eximbank has signed an agreement with the Bosnian Federation government for a €667.8mn credit to fund construction of the 450MW unit 7 at the thermal power plant Tuzla. China's Gezhouba Group is expected to build the unit.
  • The timing of the summit, amid a sharp falling off of Russia’s influence, may also have helped China extend its influence in the region. With some exceptions, notably Serbia, most of the would-be EU member states in Southeast Europe have opted to join EU and US sanctions against Russia over Ukraine. Tit for tat sanctions imposed by Moscow caused trade between Eastern Europe and Russia to drop, a trend that is likely to continue amid the new economic crisis in Russia. Meanwhile, in a further retrenchment from the region, Russian President Vladimir Putin announced on December 1 that Russia will scrap the planned South Stream pipeline that would have supplies numerous states across the region with gas. China, meanwhile, has no political axe to grind in Eastern Europe, but hopes to take advantage of Russia’s weakness to make further inroads commercially. Poland and other countries in the region are, for example, looking to China as a potential market for food products following the Russian embargo. This would add to already booming trade ties. According to Chinese Commerce Minister Gao Hucheng, trade between China and Eastern Europe may top $60bn in 2014 - five times its 2003 level, AFP reported.
Paul Merrell

As Wall Street Sinks Global Markets, China's Economic Policies Build Independence & Imm... - 0 views

  • The recent economic “correction” in the U.S. markets, which saw stocks drop back down from recent record-highs, has begun to spread to the east, reaching the stock exchanges in Tokyo, Taiwan and Shanghai. While all three of these markets depend, to some extent, on the performance of Wall Street, one is likely to emerge stronger as the U.S. market corrects itself. Many Western economic analysts — such as those at the pillar of U.S. financial journalism, Bloomberg — have continued to predict future financial downturns would be caused by Chinese debt, or the country’s massive “shadow” economy (or, more specifically, low level loans that aren’t tightly regulated by the central government). This latest downturn, however, shows once again that Wall Street is still the primary factor in sinking global markets. China has been faced with — and continued to grow throughout — a previous U.S.-triggered global recession just under a decade ago. While the current condition of the markets is nothing like the end of 2008, there is still the same fear in the West that China is somehow on the brink of catastrophe. Yet China pulled through the Great Recession, despite a huge decrease in demand for Chinese export goods. Beijing presided over GDP growth only falling below 8 percent in the last quarter of 2008 and first of 2009 and made a faster recovery than any Western nation.
  • China is obviously in a position much different now from that of 2008. Now — as a clear competitor with the U.S. in key economic sectors such as cutting-edge technology, and playing a unifying role for a large portion of the global population — Beijing is making even more major domestic economic reforms and preparing to project its new prosperity outward. In order to better understand how China is likely not just to survive any fluctuations in the U.S. market but also to thrive, it is best to understand both how China managed to recover from the last recession faster than any other country and the new economic policies of President Xi Jinping, which will harness the power of the world’s largest planned economy in its march into the future.
Paul Merrell

Trump, Kissinger and Ma playing on a crowded chessboard | Asia Times - 0 views

  • And that brings us once again to Henry Kissinger, the putative dalang — puppet master — of Trump’s foreign policy. As leaked late last year in Germany’s Bild Zeitung newspaper, Kissinger has drafted a plan to officially recognize Crimea as part of Russia and lift the Obama administration’s economic sanctions.
  • The plan fits into Kissinger’s overall strategy — call it a traditional British Balance of Power, or Divide and Rule, approach — of breaking up the Eurasian front (Russia-China-Iran) that constitutes the real “threat” to what Mattis defines as the “established world order.” The strategy consists in seducing the alleged weaker top “threat” (Russia) away from the stronger (China), while keeping on antagonizing/harassing the third and weakest pole, Iran. Kissinger is certainly more sophisticated than predictable US Think Tankland in his attempt to dismember the Shanghai Cooperation Organization, one of key nodes of the Russia-China strategic partnership. The SCO has been on the go for a decade and a half now. Iran, an observer, will soon become a full member, as will India and Pakistan; and Turkey — after the failed coup against Erdogan — is being courted by Moscow. German analyst Peter Spengler adds a juicy teaser — if Kissinger’s “Metternichian approach would include some degree of ‘harmonization’ with Russia, how will a Trump presidency then manage to contain the re-engineered ally Germany?” After all, a key priority for sanctions-averse German industrialists is to vastly expand business with Russia.
  • Kissinger’s strategy essentially tweaks the early 1970s Trilateral Commission, largely advanced by his rival dalang Dr Zbigniew “Grand Chessboard” Brzezinski, according to which geopolitics is to be managed by North America, Western Europe and Japan.
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  • The US deep state plutocracy never sleeps. Admitting both Russia and China, linked by a strategic partnership, as equal stakeholders in the “established world order” is anathema; that would imply the end of US hegemony. And that’s where the top Western would-be dalangs diverge, as they look for the most efficient Divide and Rule opening. Kissinger privileges Russia; Dr Zbig privileges China, painting it as a threat to Russia. Meanwhile, Russian Eurasianists — in frontal opposition to the Atlanticists — visualize the US, China and Russia on an equal geopolitical footing. It will be fascinating to watch how the New Great Game develops in the Central Asian “stans”. That’s a privileged theater in which to see the Russia-China strategic partnership, or division of labor, in action: China goes no holds barred on investment — via One Belt, One Road, aka the New Silk Roads — while Russia remains paramount in politics and security.
  • The bottom line: Moscow feels no existential “threat” from Beijing because for China, Central Asia and the Russian Far East register essentially as economic/investment opportunities along the New Silk Roads.
  • Once again, Kissinger’s strategy will run into a solidified Russia-China strategic partnership — already manifested in Pipelineistan (multibillion-dollar oil and gas projects); security deals; the SCO; cooperation inside BRICS; exchange of cutting-edge military technology; and the progressive interlocking of the New Silk Roads and the Eurasian Economic Union. When the New Silk Roads hit the next level, by the start of the next decade, the Eurasian heartland, as well as the rimland, will be deeply immersed in a connectivity frenzy. Welcome to Mackinder and Spykman revisited — and there’s no “offer” Washington can come up with to make it go away.
  • Into this crucial juncture steps Jack Ma. The Trump-Ma meeting at Trump Tower was niskala disguised as sekala. The House That Ma Built — Alibaba — is no less than the New Great Wall, resisting the assault of behemoth Amazon.com in the ultimate commercial arena of the 21st century: e-commerce. Ma also happens to be very close to Chinese President Xi Jinping. Like an upgraded we-mean-business Deng Xiaoping, Ma proposed, on the record, the creation of 1 million US jobs. That’s an offer Trump cannot possibly refuse. And this after shadow US Secretary of State Jared Kushner had a Chateau Lafite Rothschild-inundated lunch with another Chinese tycoon, Anbang Insurance Group’s Wu Xiahoui, who married Deng’s niece and whose company owns the Waldorf Astoria hotel in Manhattan.
  • Ma’s business firepower should not be underestimated. Alibaba is involved in a massive project to modernize even rural China. He’s the face of Chinese business not only internally but globally. Xi Jinping knows this all too well — who better than Ma as China’s top business ambassador? This is not, as Japanese interests spin it, about the “death” of Made in China; it is about globalized China exporting business and jobs to the West. All of the above points to a very crowded chessboard. Trump will do business and clinch deals with China, while his deep state-tinged cabinet barks the usually explosive national security rhetoric, dalang Kissinger plots a Russia-China split, and Moscow-Beijing secretly concoct concerted moves. Place your bets on who will be the major partner in the Trump, Kissinger and Ma law firm.
Paul Merrell

Washington's B-52 Diplomacy : US flyover in China-Japan island row: Tokyo's position on... - 0 views

  • Washington’s move to fly nuclear-capable bombers over China’s eastern air defense zone as a forceful endorsement of Japan’s claims over disputed islands is both needlessly confrontational and totally counterproductive. The territorial dispute over an uninhabited chain of islands in the East China Sea – referred to as the Senkaku Islands by Japan and the Diaoyu Islands by China – has been a highly contentious issue in Sino-Japanese relations for decades, and the issue has resurfaced in recent times as both sides assert their sovereignty over the area. 
  • See also - China sends war planes to newly declared air zone: China has said all planes transiting the zone must file flight plans and identify themselves, or face "defensive emergency measures". China deploys only aircraft carrier after US sends B-52s over disputed islands: China has deployed its one and only aircraft carrier after two unarmed American B-52 bombers flew over a disputed island chain and through what China insists is restricted airspace. US cautions airlines crossing China air zone: Commercial flights advised to take safety measures when flying over East China Sea as China-Japan row persists. Senkaku islands row reflects broader tensions between China and Japan: Op-Ed: Experts say chances of head-on collision between the world's second and third biggest economies are growing
Paul Merrell

Turmoil in Hong Kong, Terrorism in Xinjiang: America's Covert War on China | Global Res... - 0 views

  • What is more troubling is the greater geopolitical agenda driving both of these seemingly “internal” conflicts – and that they both lead back to a single source beyond China’s borders. With the so-called “Islamic State” (ISIS) now implicated in receiving, training, and employing terrorists from China’s Xinjiang province, and considering the fact that ISIS is the result of an intentional, engineered proxy war the US and its allies are waging in the Middle East, along with the fact that the unrest in Hong Kong is also traced back to Washington and London, presents a narrative of an ongoing confrontation between East and West being fought on the battlefield of fourth generation warfare.
  • If one was asked to name a global-spanning military and intelligence operation opposed to Syria, Iran, Russia, and China, they might say the US Central Intelligence Agency (CIA) and the US Government – and they would be right. But they could also easily answer by saying the “Islamic State” or ISIS/ISIL as it is also known. This is especially true after revelations surfaced that US-backed Uyghur separatists in China’s western-most province of Xinjiang have joined ISIS for training with intentions of leading an armed rebellion against Beijing upon their return. Reuters in their article, “China militants getting IS ‘training’,” would claim: Chinese militants from the western region of Xinjiang have fled from the country to get “terrorist training” from Islamic State group fighters for attacks at home, state media reported on Monday. The report was the first time state-run media had linked militants from Xinjiang, home to ethnic minority Uighur Muslims, to militants of the Islamic State group of radical Sunni Muslims.
  • However, it isn’t just China’s government that claims militants in Xinjiang seek to carve out an independent state in western China – the militants themselves have stated as much, and the United States government fully backs their agenda to do so. Indeed, first and foremost in backing the Xinjiang Uyghur separatists is the United States through the US State Department’s National Endowment for Democracy (NED). For China, the Western region referred to as “Xinjiang/East Turkistan” has its own webpage on NED’s site covering the various fronts funded by the US which include:
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  • The next step Washington appears to be taking in China is an attempts to enhance the menace of terrorists in Xinjiang. In addition to assisting US attempts to destabilize territory in China, ISIS has also threatened to launch a campaign against another US enemy – Russia – this in addition to already directly fighting Hezbollah in Lebanon, the governments of Syria and Iraq, and with ISIS claiming to be behind attacks in Egypt against the military-led government that ousted the West’s Muslim Brotherhood proxies. With both Russia and China now in ISIS’ sights, the global public must begin asking questions as to how and why ISIS just so happens to be arraying itself against all of Washington’s enemies, by-passing all of its allies including Israel, Saudi Arabia, and Qatar, and where exactly they are getting the weapons, cash, intelligence, logistical, and administrative capabilities to do so. So suspicious is ISIS’ appearance, agenda, and actions, many across the world have long-ago concluded they are simply the latest creation of the US and other Western-aligned intelligence agencies, just as Al Qaeda and the Muslim Brotherhood was before them, So loud has this narrative become, establishment newspapers like the New York Times have begun writing columns to tamp down what they are calling “conspiracy theories.”
  • This containment strategy would be updated and detailed in the 2006 Strategic Studies Institute report “String of Pearls: Meeting the Challenge of China’s Rising Power across the Asian Littoral” where it outlines China’s efforts to secure its oil lifeline from the Middle East to its shores in the South China Sea as well as means by which the US can maintain American hegemony throughout the Indian and Pacific Ocean. The premise is that, should Western foreign policy fail to entice China into participating in the “international system” as responsible stakeholders, an increasingly confrontational posture must be taken to contain the rising nation. This includes funding, arming, and backing terrorists and proxy regimes from Africa, across the Middle East, Central Asia, Southeast Asia, and even within China’s territory itself. Documented support of these movements not only include Xinjiang separatists and the leaders of “Occupy Central” in Hong Kong, but also militants and separatists in Baluchistan, Pakistan where the West seeks to disrupt a newly christened Chinese port and pipeline, as well as the machete wielding supporters of Aung San Suu Kyi in Myanmar’s Rakhine state – yet another site the Chinese hope to establish a logistical hub.
  • It is not a coincidence that ISIS is standing in for and fulfilling America’s deepest imperial aspirations from North Africa, across the Middle East, and now inching toward the borders of the West’s two largest competitors, Russia and China. Nor is it a coincidence that “Occupy Central” protesters are parroting verbatim talking points scripted in Washington earlier this year. It is no coincidence that the US State Department’s NED is found involved in every hotspot of instability and conflict both within China’s borders and beyond them. It is a documented conspiracy that is now increasingly seeing the light truth cast upon it. Whether or not that is enough to end the unnecessary barbarism and bloodshed that has resulted from the West’s hegemonic aspirations remains to be seen.
Paul Merrell

China pivots everywhere - RT Op-Edge - 0 views

  • Geopolitically, China has also tweaked its model, but the West, especially the US, has barely noticed it. Essentially, the Beijing leadership finally got fed up with trying to manage a possible reset of the China-US strategic relationship, and be treated as an equal. Exceptionalists don’t do equality. So Beijing came up with its own response to the Obama administration’s political/military “pivot to Asia” – originally announced, and that’s quite significant, at the Pentagon. Thus, in late November 2014, during the Central Foreign Affairs Work Conference in Beijing, President Xi Jinping made an earth-shattering announcement; from now on China would stop treating the US – and the EU – as its main strategic priority. The new focus is on the fellow BRICS group of emerging powers, especially Russia; Asian neighbors; and top nations of the Global South, referred to as “major developing powers” (kuoda fazhanzhong de guojia). This is not as much a Chinese pivot to Asia as a Chinese pivot to selected nations in the Global South. And based on a “new type of international relations centered on ‘win-win’ cooperation” – not the bully-or-bomb exceptionalist approach.
  • China’s new foreign policy and strategic configuration is all the more evident in the courting of Asian neighbors, invited to embark on China’s extremely ambitious twin strategy and the greatest trade/commerce story of the young 21st century: the Silk Road Economic Belt and the 21st Century Maritime Silk Road, in short “Belt and Road initiative,” as it’s known in China, now officially launched with the first $40 billion attributed to a Silk Road Fund. The enormity of the challenge is on a par with Beijing’s ambition: a pan-Eurasia trade/commerce utopia weaved by high-speed rail, fiber optic networks, ports and pipelines, and connecting East Asia, Central Asia, Russia, the Middle East and Europe.
  • Plenty to be excited about then as the Year of the Sheep (or Goat) starts. What’s certain is that the Chinese caravan, much in contrast with the dogs of war - and austerity – pivoting across the West, has already pivoted towards “win-win” pan-Eurasia integration.
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    China is also winding down its holdings of U.S. Treaury bonds. With $1.25 trillion in U.S. debt as of the end of October, China could sink the U.S. economy any time it chooses simply by placing all of its U.S. bonds on the market, then watching the dollar go splat.  http://www.bloomberg.com/news/articles/2014-12-15/china-s-treasury-holdings-decline-to-lowest-since-february-2013 So China has a stick to keep the U.S. at bay. For the rest of the world, China offers carrots by the shipload. But the U.S. has only a stick, no carrots.  B. F. Skinner established beyond question that positive reinforcement is a much stronger motivator than negative reinforcement. Too bad our oligarchs skipped Behavioral Psychology 201.  
Paul Merrell

"De-Dollarization" Continues - China Starts Direct Trade With UK | Zero Hedge - 0 views

  • Following the initial de-dollarization meeting, there has been a slew of anti-dollar moves around the world (including Gazprom's shift of 90% of its clients to non-dollar payments). However, on the heels of the "anti-dollar alliance" discussions yesterday, DW reports that China would start direct trade between the renminbi and the British pound on Thursday. China's Foreign Exchange Trade System (CFETS) confirmed Sterling and yuan would be directly swapped without using the US dollar as an intermediary.   Via DW, China's Foreign Exchange Trade System (CFETS) said Wednesday the Asian nation would start direct trade between the renminbi and the British pound on Thursday.   Sterling and yuan would be directly swapped without using the US dollar as an intermediary, the trade platform noted.   "The move will promote the bilateral trade and investment between China and the United Kingdom and facilitate the use of renminbi and pound in the cross-border trade settlement," CFETS commented.
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    "Following the initial de-dollarization meeting, there has been a slew of anti-dollar moves around the world (including Gazprom's shift of 90% of its clients to non-dollar payments). However, on the heels of the "anti-dollar alliance" discussions yesterday, DW reports that China would start direct trade between the renminbi and the British pound on Thursday. China's Foreign Exchange Trade System (CFETS) confirmed Sterling and yuan would be directly swapped without using the US dollar as an intermediary.   Via DW, China's Foreign Exchange Trade System (CFETS) said Wednesday the Asian nation would start direct trade between the renminbi and the British pound on Thursday.   Sterling and yuan would be directly swapped without using the US dollar as an intermediary, the trade platform noted.   "The move will promote the bilateral trade and investment between China and the United Kingdom and facilitate the use of renminbi and pound in the cross-border trade settlement," CFETS commented.   China has long had direct currency trade with the US and has recently added Japan's yen, the Australian, New Zealand and Canadian dollars, Russia's ruble and the Malaysian ringgit to its options.   Wednesday's announcement came during a visit to the UK by China's Prime Minister Li Keqiang and after the signing of various bilateral business contracts.   Britain for its part has been looking to make London a European hub for overseas yuan trading in competition with Frankfurt and Paris. China's central bank announced Wednesday that a subsidiary of China Construction Bank had been chosen to undertake yuan clearing business in London. Still - there's always Iraq to trade USDs with..."
Paul Merrell

Tomgram: Pepe Escobar, The Tao of Containing China | TomDispatch - 0 views

  • Sun Tzu, the ancient author of The Art of War, must be throwing a rice wine party in his heavenly tomb in the wake of the shirtsleeves California love-in between President Obama and President Xi Jinping. "Know your enemy" was, it seems, the theme of the meeting. Beijing was very much aware of -- and had furiously protested -- Washington’s deep plunge into China’s computer networks over the past 15 years via a secretive NSA unit, the Office of Tailored Access Operations (with the apt acronym TAO). Yet Xi merrily allowed Obama to pontificate on hacking and cyber-theft as if China were alone on such a stage. Enter -- with perfect timing -- Edward Snowden, the spy who came in from Hawaii and who has been holed up in Hong Kong since May 20th. And cut to the wickedly straight-faced, no-commentary-needed take on Obama’s hacker army by Xinhua, the Chinese Communist Party’s official press service. With America’s dark-side-of-the-moon surveillance programs like Prism suddenly in the global spotlight, the Chinese, long blistered by Washington’s charges about hacking American corporate and military websites, were polite enough. They didn’t even bother to mention that Prism was just another node in the Pentagon’s Joint Vision 2020 dream of “full spectrum dominance.” By revealing the existence of Prism (and other related surveillance programs), Snowden handed Beijing a roast duck banquet of a motive for sticking with cyber-surveillance. Especially after Snowden, a few days later, doubled down by unveiling what Xi, of course, already knew -- that the National Security Agency had for years been relentlessly hacking both Hong Kong and mainland Chinese computer networks.
  • But the ultimate shark fin’s soup on China’s recent banquet card was an editorial in the Communist Party-controlled Global Times.  “Snowden,” it acknowledged, “is a ‘card’ that China never expected,” adding that “China is neither adept at nor used to playing it.” Its recommendation: use the recent leaks “as evidence to negotiate with the U.S.” It also offered a warning that “public opinion will turn against China’s central government and the Hong Kong SAR [Special Administrative Region] government if they choose to send [Snowden] back.” With a set of cyber-campaigns -- from cyber-enabled economic theft and espionage to the possibility of future state-sanctioned cyber-attacks -- evolving in the shadows, it’s hard to spin the sunny “new type of great power relationship” President Xi suggested for the U.S. and China at the recent summit. It’s the (State) Economy, Stupid The unfolding Snowden cyber-saga effectively drowned out the Obama administration’s interest in learning more about Xi’s immensely ambitious plans for reconfiguring the Chinese economy -- and how to capture a piece of that future economic pie for American business. Essential to those plans is an astonishing investment of $6.4 trillion by China’s leadership in a drive to “urbanize” the economy yet further by 2020.
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    Lengthy political analysis by the sterling Pepe Escobar on China/U.S. relations and Chinese President Xi Jinping's goals for the future of China during his period of national leadership. He leads with the impact of the NSA scandal, but goes on to paint a far more detailed picture of China's role in international policy, economic progress, and economic plans being executed. This is a must-read for China-watchers. As always, Pepe provides a lively read.
Paul Merrell

Russia Gets Very Serious on De-dollarizing | nsnbc international - 0 views

  • Russia is about to take another major step towards liberating the Ruble from the Dollar System. Its Finance Ministry just revealed it is considering issuing Russian state debt in Chinese Yuan. That would be an elegant way to decouple from the dependence and blackmail pressures from the US Treasury financial terrorism operations while at the same time strengthening the bonds between China and Russia–Washington’s worst geopolitical nightmare.
  • Russian Deputy Minister of Finance, Sergei Storchak, announced that his ministry is making a careful study of what would be required to issue Russian bonds denominated in Chinese Yuan. The latest news is part of a long-term strategy between Russia and China that goes at the heart of American hegemony—the role of the dollar as the leading world central bank reserve currency. The dollar is used in some 60% of central bank reserves today. The second largest is the Euro. Now clearly China is carefully moving, as the world’s largest trading nation, to create its Renminbi or Chinese Yuan as another major reserve currency. That has huge geopolitical implications. So long as the US dollar is leading reserve currency, the world must de facto buy US dollar Treasury bonds for its reserves. That has allowed Washington to have budget deficits since 1971 when the dollar left the gold exchange standard. In effect, China, Japan, Russia, Germany—all trade surplus countries, finance Washington’s deficits that allow her to make wars around the world. It is a paradox that Russia and China at least, are determined to end as soon as possible.
  • What all this indicates is that Russia and China are carefully planning a long-term strategy of getting out from dependence on the US currency, something that, as the US sanctions last year revealed, make both countries vulnerable to US currency wars of devastating impact. China has just been accepted “in principle” by the Group of 7 finance ministers to have its yuan included in the International Monetary Fund basket of currencies making up IMF Special Drawing Rights. Today only US dollar, Euro and Japanese Yen are included in the basket. Including the yuan would be a huge step towards making the yuan a recognized international reserve currency, and at the same time would weaken the dollar share. China’s foreign reserves consist overwhelmingly of US dollar claims, mainly US Treasury bonds, which is a strategic weakness, because in case of war these can be frozen, as Iran knows too well. It is imperative for China to increase the gold content of the reserves and to diversify the rest into other currencies. China has also agreed with Russia to unify the new Silk Road high-speed rail project with Russia and Russia’s Eurasian Economic Union. At the same time Beijing has announced it is creating a huge $16 billion fund to develop gold mines along the rail route linking Russia and China and Central Asia. That suggests plans to greatly build up gold as central bank reserve share. China’s central bank has greatly increased its gold holdings in recent years, though whether it is now greater than the alleged Federal Reserve gold holdings of 8000 tons is not yet public. It is expected China must reveal its gold reserves on being formally accepted into the IMF SDR basket perhaps later this year.
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  • Last year, 2014, Song Xin, president of the China Gold Association stated, “We need to establish our gold bank as soon as possible…It can further help us acquire reserves and give us more say and control in the gold market.” A gold sector fund involving countries along the Silk Road has been set up in northwest China’s Xi’an City this May, led by Shanghai Gold Exchange (SGE), part of China’s national bank, PBOC. China is the world’s largest gold producer. Among the 65 countries along the routes of the Silk Road Economic Belt, there are numerous Asian countries identified as important reserve bases and consumers of gold. Xinhua reports that 60 countries have invested in the fund, which will facilitate central banks of member states to increase their holdings of gold. Dr. Diedrick Goedhuys, former economic adviser to the Reserve Bank of South Africa in an interview told me, “I want to emphasize the unique quality of gold, when viewed as a financial asset, of being an asset that is no-one’s liability. A treasury bond, for instance, is an asset in my hands, but a liability, or debt to be repaid, in the books of the treasury. Gold is a pure asset. The Chinese gold mining plan is of vast importance. It’s a long-term plan; it may take ten years before it has a significant effect.”
Paul Merrell

China Commits $20 Billion to Venezuela at First Latin America-China Forum in Beijing | ... - 0 views

  • Venezuelan President Maduro announced that China has agreed to invest 20 billion dollars in Venezuela following the China- Community of Latin American and Caribbean States (CELAC) meeting in Beijing. Venezuelan officials hope that increased Chinese investment will offset some of the shortfalls in the Venezuelan economy due to decade-low oil prices.
  • Xi Jinping, the Chinese President, opened  the First China-CELAC Forum by pledging US$250 billion in new investment in Latin America over the next decade. CELAC was formed in 2011 with the goal of consolidating regional integration and reducing the influence of the United States in Latin America. Speaking to Latin America’s shift away from the United States and towards China, President Maduro stated “This is a vital point. I told President [Xi Jinping] over dinner last night: there is unique opportunity in this moment in history we’re living through.” Following the meeting in Beijing President Maduro told the Venezuelan News Agency “we rounded up more than $20 billion in investment.” But the Guardiannewspaper reported that “it remains unclear whether the sum represents a fresh arrangement or is part of pre-existing oil-for-loans deals.”
  • China has already awarded US$50 billion of credit to Venezuela since 2007, most of which is paid through oil shipments. Venezuela ships 524,000 barrels of crude oil and derivatives to China per day, nearly half of which goes toward paying existing loans. This amount is expected to increase to one million barrelsper dayin the next year.
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  • Speaking to Venezuela´s growing relationship with China, Venezuelan Vice president Jorge Arreaza stated “China is a great potential, and it is not imperialist. It is a great potential that wants for all of us to have a repectable and dignified living standards.”
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    Looks like China will Help Venezuela weather the U.S./Saudi econnomic warfare waged through depression of oil prices.  
Paul Merrell

​Russia may join forces with China to compete with US, European satnavs - RT ... - 0 views

  • Russia and China are eyeing a number of joint high-tech projects, ranging from creation of a new long-range passenger plane to joining forces on a satellite navigation system to compete with American GPS and European Galileo. The range of prospects was outlined on Friday by Russian Deputy Prime Minister Dmitry Rogozin, who met Chinese Vice-Premier Wang Yang in Siberian Novosibirsk. Rogozin said Russia would develop cooperation with BRICS members in defiance of any possible Western sanctions. “Our technological partnership should be directed at the countries that are close to us in mentality and which in general constitute an emerging geopolitical force that we could rely on in opposing the monopolar world. Those are BRICS countries first and foremost,” he said.
  • Rogozin set examples of several joint projects Russia has or may have with China. The most concrete is the project for a new long-range wide-hull airliner with an estimated development cost of $7-8 billion. Russia and China have already signed a memorandum on it in May. Another aviation project the countries may pursuit is the modernization of Mil Mi-26 heavy transport helicopter. The aircraft design would be altered for smaller weight, but without compromising its capacity too much. The new helicopter would be able to carry up to 15 tons of cargo as opposed to 20 tons of the original.
  • If both pilot projects do well, Russia and China may form a permanent cooperation consortium similar to Europe’s Airbus, Rogozin said. China and Russia may also find synergy in space by making their respective satellite navigation systems, Glonass and Beidou, more compatible, the Russian official said. “We see good prospect in cooperation between the Russian Glonass system and the Chinese navigation system,” he said. “Our system is more suitable for northern, polar latitudes. The Chinese system is more southern. Their complementariness would result in a biggest and most powerful competitor to any navigation system." Rogozin’s shot was aimed at both American GPS, which was the focus of a recent fallout between Russia and the US, and the European Galileo. He also commented on Russia’s downgrade of the work of ground stations of the Differential GPS network based in the Russian territory. This week’s move was Moscow’s response to Washington’s failure to allow deployment of similar Glonass stations in America.
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    So Russia and China aim to take down Boeing and Airbus. And it seems as though the BRICS nations may get their own global positioning system by integrating Russian and Chinese satnavs. While Russia and China progress rapidly for earned economic leadership of the world, the U.S. sinks billions intoa new super-aircraft carrier and lets its civilian infrastructure -- vital to economic recovery if were was any serious plan to recover -- disintegrate into obsolete rust. But Obama tells us that the U.S. economy is not in decline.That's why China becomes the world's largest economy this year, no doubt. 
Paul Merrell

Embassy of Cuba in NZ Newsletter - No.4 31st January 2015 | Scoop News - 0 views

  • Agreement China-CELAC a ‘Costa Rican achievement’ — Correa Ecuador president Rafael Correa has said that the Celac agreement with China, was probably the greatest achievement of Costa Rica during its presidency, adding that among the main achievements was reaching concrete agreements with China in the bilateral forum recently held there.In an interview with several local television channels, the Ecuadorian president said that for its size, China can be considered as a region, and deepening the relationship would be beneficial for the Celac countries.Beijing was the “principal financier of the world” and to achieve agreements to finance projects aimed at the development of Latin America and the Caribbean Project was “a great success,” he said.Correa, now pro tempore president of the regional bloc, said that at the current stage of development of the region, what was needed was financing.“We no longer need,” he said, “the alms like those given by NGOs who come to construct little schools, because we can do that.“What we need is science, technology, technology transfer to help us create our human talent, and China can give those to us,” he added.
  • Correa considered it was a complementary relationship between equals, given that China needs energy, oil and food, which could be obtained from Latin American and Caribbean countries.Four priority areas were identified for the work of the new presidency: reducing extreme poverty, establishment of a new international financial architecture, development of science and technology, and road, productive and energy infrastructure.
  • Cuba and China strengthen economic relations Cuba and China have signed five new agreements — in agriculture, telecoms, trade, finances, industry and transportation — confirming both countries’ interest in strengthening and expanding their economic relations.This was the result of the 27th Intergovernmental Commission Cuba-China held last week which also made official the postponement of the starting date of payment of the credit given by China through the Economic and Technical Cooperation agreement.
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  • Both parties agreed to carry out a special session in four months to examine the bilateral economic agenda and the processes of implementation of the signed documents.The 27th Intergovernmental Commission also reviewed 29 cooperation and economic agreements signed during the visit of Chinese President, Xi Jinping on July 22 last year.The documents dealt with the concession of a line of credit for the construction of the multipurpose terminal in the port of Santiago de Cuba, in the eastern region of the island, among other facilities.Deputy minister of foreign trade and investment Ileana Nuñez said the agreements would attract more revenues to sectors like tourism, mining and construction.She underlined the favourable conditions and level of mutual relations, which grow, deepen and expand the interest of more Chinese investors.China is the second biggest trading partner of Cuba and Cuba is China´s major partner in the Caribbean, while Cuban tobacco and marine products gain ground in Asia.Assistant trade minister of China Zhang Xiangchen ratified their intention to honour commitments and strengthen economic and trade relations with Cuba.The trade relationship of both nations exceeded 1.4 billion dollars in 2013 and after signing the latest agreements, it could increase by 26 percent, according to official estimates.
Paul Merrell

Wall Street: The Trump-China missing link - RT Op-Edge - 0 views

  • The yuan is about to enter the IMF’s basket of reserve currencies this coming Saturday - alongside the US dollar, pound, euro and yen. This is no less than a geoeconomic earthquake. Not only does this represent yet another step in China’s irresistible path towards economic primacy; the Chinese currency’s inclusion in the Special Drawing Rights (SDR) basket will also lead central banks and hyper-wealthy funds – especially from the US – to increasingly buy more Chinese assets.At the first US presidential debate, Donald Trump took no prisoners, criticizing China’s currency manipulation. This is what he said:“You look at what China’s doing to our country in terms of making our product, they’re devaluing their currency and there’s nobody in our government to fight them… They’re using our country as a piggy bank to rebuild China, and many other countries are doing the same thing.”
  • Well, China is not “making our product”; the manufacturing process is Made in China – then exported to the US. Most of the profits benefit US corporations – everything from design, licensing and royalties to advertising, financing and retail margins. If the mantras manage to spell out a partial truth - the US has lost manufacturing jobs to China, China is the “factory of the world” – they don't spell out the hidden truth that those who profit are essentially major corporations.China does not “devalue their currency”; the People’s Bank of China periodically adjusts the yuan according to a very narrow band. The major practitioners of quantitative easing (QE) are actually the US, as well as Japan and the European Central Bank (ECB). And the currency of global consumer goods manufacturing continues to be the US dollar, not the yuan.
  • Beijing also is not “using our country as a piggy bank to rebuild China.” This is all about balance of payments. What US consumers spend on Made in China products – many of them delocalized by US corporations – is pumped back to the US as capital inflows that keep interest rates down and help to support the Empire of Chaos’s global hegemony.
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  • For all his incapacity to formulate thoughts above the language skills of a third grader, Trump has been piling up astonishing proposals that resonate wildly, way beyond the “basket of deplorables” spectrum.
  • Trump’s attention span is notoriously minimalist. If his advisers managed to imprint – tweet? - a few one-liners on his brain, he would be able to explain to US public opinion how the US-China game is really played, something that all relevant parties in both nations know by heart.And the – crucial - missing link in the whole game is Wall Street.This is how it works.
  • The bottom line is that to recover US manufacturing jobs – as Trump has been forcefully promising – he will have to stare down the whole Wall Street finance oligarchy.So no wonder these oligarchs – responsible for shipping all those US manufacturing jobs to Asia and lavishly profiting from bailouts to the 'Too Big To Fail' racket – hate him with all their golden-plated guts.
  • He is against Cold War 2.0 and the pivot to Asia, when he says “wouldn’t it be nice to get along with Russia and China for a change?”He no less than pre-empted WWIII when he said he would be against a US nuclear first-strike.He totally abhors global “free trade” – from NAFTA to TPP and TTIP - because it has “hollowed out the lives of American workers”, as US corporations (under Wall Street’s “incentive”) delocalize and then import back into the US tariff-free.
  • Trump was even open to nationalizing Wall Street banks after the 2008 financial crisis.
  • So we’re faced with the ultimate surrealist spectacle of a billionaire denouncing corporate globalization, which has been responsible for stripping the US lower middle classes of countless, decent blue-collar jobs and social benefits – not to mention turning them into hostages of rotting public infrastructure. And all that with absolutely no one among the US establishment condemning the most astonishing wealth transfer to the 0.0001% in history.If in the next two presidential debates Trump points to the crucial missing link in the whole plot – Wall Street - he might as well lock on as a surefire winner.
Gary Edwards

U.S. Debt - How Much China Owns - 0 views

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    So who owns all that U.S. debt? About 32 cents for every dollar of U.S. debt, or $4.6 trillion, is owned by the federal government in trust funds, for Social Security and other programs such as retirement accounts, according to the U.S. Department of Treasury. China and U.S. Debt The largest portion of U.S. debt, 68 cents for every dollar or about $10 trillion, is owned by individual investors, corporations, state and local governments and, yes, even foreign governments such as China that hold Treasury bills, notes and bonds. Foreign governments hold about 46 percent of all U.S. debt held by the public, more than $4.5 trillion. The largest foreign holder of U.S. debt is China, which owns more about $1.2 trillion in bills, notes and bonds, according to the Treasury. In total, China owns about 8 percent of publicly held U.S. debt. Of all the holders of U.S. debt China is the third-largest, behind only the Social Security Trust Fund's holdings of nearly $3 trillion and the Federal Reserve's nearly $2 trillion holdings in Treasury investments, purchased as part of its quantitative easing program to boost the economy.   The truth is the bulk of the $14.3 trillion U.S. debt - $9.8 trillion in all - is owned by the American people and its government.
Gary Edwards

Disaster Averted? Not! The Back Story on the Debt Limit | Experts' Corner | Big Think - 0 views

  • You see, it is an extremely important but little known fact that China's currency peg -- the #1 trade cheat the Dragon uses to vacuum jobs out of the USA -- actually compels them to loan us money no matter how loudly they insist that that they have a choice of investments. It works like this: American's proclivity to take both the wages from our Democratic stimulus job and the checks from our Republican tax refunds down to Wal-Mart for another cart full of Chinese products, not only creates more jobs in Guangzhou than it does Milwaukee but also leaves China bursting with US dollars. The Chinese government then soaks up a lot of those bucks from companies like Huawei by selling short term, high yield bonds that pay back in Yuan. They then march those dollars right back to the US treasury. In fact, they pay MORE to get the dollars out of private hands in China than they earn on the increasingly risky bet they are making in US debt! At this point you should be thinking, "WTF?"
  • If China's firms were allowed to trade their dollars for Chinese Yuan on the foreign exchanges, the dollar would fall against the Yuan and undermine China's unfair 40% advantage against every American (and European and Asian) product. If they trade those bucks for some other currency, like the Euro, the dollar is still being sold and it still falls, plus China's growth draws a them right back in searching to buy Yuan, which would then rise. If China purchases products or commodities on the open markets, those dollars would still be exchanged, the greenback would drop to competitive levels, the Yuan would rise to its real purchasing power and Americans would go back to work making things.
  • Wishing to avoid that horror of horrors at all costs, the Boys from Beijing must hold their noses and throw another billion good dollars after bad into the pit of the US treasury.
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  • Like Frodo's ring of power, the dollar can only be destroyed where it was created.
  • So when the President and the Congress reluctantly shake hands over this deal to avert disaster, understand that they have in great part only agreed to fuel the fire that has been burning down America's jobs factory for years, and thereby undermining government revenues and creating the apparent need for constant stimulus. 
  • So far, borrowing is the only way these folks of wee little imagination can see to sustain both the President's exorbitant level of spending and the Republican's stubborn pledge against tax increases.
  • The obvious solutions eludes them, which is either to stop borrowing from communist criminals and borrow at higher interest rates from Americans, or slap a significant tariff on China until they drop their currency peg and illegal trade barriers
  • The last decade of ultra low-interest rates, government stimulus efforts, and engagement with Communist China have clearly been an unmitigated disaster for the US economy.
  • Is anyone in DC listening?
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    Excellent article written by Peter Navarro and Greg Autry, authors of "Death by China: Confronting the Dragon -- A Global Call to Action". The authors explain why China MUST continue to buy US Treasuries regardless of the low rate of return and extremely high risk of default or ravage by inflation through the destruction of the dollar.  Very interesting.  But the game China is playing really looks unsustainable. The one thing the authors don't touch is the role International Banksters and their New World Corporations have played in this assault on American propserity.  I guess i have to get the book!   One last point; having worked for a Chinese Corporation desiring to enter the USA-European information technology markets, i don't doubt for a moment that Autry and Navarro have this exactly right.  We are at war, with Chicomms providing the shock troops for this latest Bankster - Bankster Corp assault on our liberty.
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