Archive for the ‘dollars’ Category

Russia, “Desperate For Cash,” Sells Oil to China In “Very Bad Deal”

March 8, 2009

“Russia, just a few months ago a very oil rich nation, just made a very bad deal to raise $25 billion in cash from China by giving them oil for 10 years.  It is a very bad deal and shows how bad the world economy has become.”

That according to Newt Gingrich on NBC’s “Meet the Press” Sunday March 8.

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From the People’s Daily

China will further promote cooperation and exchanges with Russia this year as the two countries embrace the 60th anniversary of their establishment of diplomatic ties, said China’s Foreign Minister Yang Jiechi here Saturday.

China will fully carry out practical cooperation with Russia in various fields, including energy and science and technology, he told a press conference on the sidelines of an annual parliament session.

The two sides’ recent agreement on the construction of a crude oil pipeline project, a long-term crude oil trading deal and a financing scheme was a “mutually beneficial and win-win result”, said Yang.

The agreement signed in February allowed China to lend 25 billion U.S. dollars to Russia in an exchange for a 20-year oil supply starting from 2011 with a total volume of 300 million tons.

“China and Russia have come a long way in the past 13 years since the Sino-Russian Strategic Partnership of Cooperation was established,” said Yang. “A lot of achievements have been made in recent years particularly.”

He urged the two countries, both major countries and permanent members of the United Nations Security Council, to join hands to promote world multi-polarity and greater democracy in international order.

Gas flares off under heavy snowfall at a liquefied natural gas ... 
Gas flares off under heavy snowfall at a liquefied natural gas (LNG) plant on Sakhalin island outside the town Korsakovi Russia.(AFP/File/Natalia Kolesnikova)

“We should make greater contribution to promoting world peace, stability and development,” said Yang.

He also pledged to enhance high-level exchanges and mutual visits between the two countries and boost people-to-people interaction through such activities as the Year of the Russian Language in China that falls this year.

Source:Xinhua

Related:

Recession on track to be longest in postwar period

 Russia Reclaiming Raw Materials Like Oil, Coal

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The Next Big War Will Be Over Commodities

By John E. Carey
2008

Last Month President Bush went to Saudi Arabia to ask his friends there to increase oil production. The White House believed that by increasing supply, the price of gasoline per gallon at your friendly service station would drop. The president was rebuffed.

This month the United States urged upon the other large users of oil in the world community to join the “produce more” bandwagon.”

China, Japan, India and South Korea went along with the U.S. plan.

Cabinet ministers from the five countries, which account for more than half the world’s consumption of energy, agreed that the sharp surge in oil prices was a menace to the world economy, and that more petroleum should be produced to meet rising demand.

The five consumer countries, meeting in Japan before an energy conference of the Group of Eight industrialized nations plus Russia on June 8, 2008, argued that the unprecedented prices were against the interests of both producers and consumers, and imposed a “heavy burden” on developing countries.

The Organization of Petroleum Exporting Countries current president, Chakib Khelil, said that the cartel will make no new decision on production levels until OPEC’s September 9, 2008 meeting in Vienna.

So in just a few weeks time, we witnessed the President of the United States pleading for more production and the senior energy ministers from the U.S., China, India, Japan and South Korea joining in a chorus.

We at Peace and Freedom believe that when the engine of the free market jumps the tracks and supply and demand are ignored; one had better get ready for bad blood.

Then we have food. In the Philippines the people took to the streets demanding more rice. In Egypt, the people took to the streets demanding more bread. And some bad blood developed between Thailand, the world’s leading rice exporter, and Vietnam, perhaps the second most important rice exporter.

It seems the Vietnamese had underbid the Thais on contracts to export rice. The Vietnamese saw this as good business. The Thais viewed it as theft. Never mind that Thai rice is of higher quality and thus cists more.

China recently announced that it had “overbuilt” its industry and removed too much farmland from production. China now is instituting new regulations to preserve farmland and it is mapping a strategy to import more food.

Ethanol and other bio fuels seemed like a great idea to help add to U.S. oil stocks. But when all that corn disappeared into your fuel tank, the price of all corn went up. And corn not only feeds people but it is a huge source of livestock feed. So the price of pork and beef and all that other livestock that makes its way to the dinner table went up.

And food and fuels have never been in such demand. Never mind the huge increases in global population; with the combined populations of India and China eight times that of the U.S.

The world, believe it or not, is becoming more “middle class.” That means more people want gas burning cars which suck up a lot of fuel and add to global pollution. These new “middle class” folks also want a higher protein diet.

If one eats rice or corn or other grains the costs are somewhat manageable. But it takes four times more grain (and sometimes as much as six times) to put meat on pork or cattle before human beings eat that meat. So the high protein diet has a huge cost. It sucks up a lot more grain that human grain eaters ever would and it means the eaters need more dollars, rupees euros, yen or other denominations to buy every meal.

Bacon and eggs are more expensive, say, than the traditional rice bowl.

Finally, all these goodies, usually called commodities, are moving around the globe.

The Associated Press had an excellent article by Gavin Rabinowitz out on June 7.

India, China jostle for influence in Indian Ocean

 

Mr. Rabinowitz pointed out that looking south from Sri Lanka “just over the horizon runs one of the world’s great trade arteries, the shipping lanes where thousands of vessels carry oil from the Middle East and raw materials to Asia, returning with television sets, toys and sneakers for European consumers.”

That shipping lane is a possible flashpoint between India and China. Add in Japan, which gets just about all of its oil by that sea lane. And don’t forget the U.S. and the U.S. Navy. Those boys don’t want to see that sea lane interrupted by war, terrorism, piracy or any other form of bad blood.

So the bottom line, from our small window of the world is this: The next big war could well be over “commodities.”

We’ve used food and oil here as the most obvious examples of commodities worth fighting for. But it could be over uranium, tin, gold or who knows what. Even fresh water.

California is already starting to limit development due to water shortages. Australia is in the midst of a multi-year drought which has crippled Aussie grain production. And over use of fertilizers and pesticides in China and Vietnam have poisoned much of the ground water.

The next big war could well be over commodities.

Welcome to the new millennium.

Related:
China’s thirst for copper could hold key to Afghanistan’s future

Philippines Enacts Law Claiming Islands also Claimed by China, Others

Biggest Beneficiary of U.S. Economic Stimulus?

January 30, 2009

Name one state, agency or program that will get more than $300 Billion from the $800+ Billion economic stimulus.

That would be China.  Nothing and nobody comes close.

China will reap over $300 Billion just by fincnacing the stimulus.  That will be U.S. dollars flowing from Americans to China as interest on the loan.

We’d be be better off borrowing from our credit cards.

A bank employee counts US dollar bank notes. The euro fell sharply ...

When America borrows, who pays?  First, I guess, and correct me if I’m wrong, China lends the money to the U.S.

China already “owns” as of October, 652.9 billion dollars in US Treasury bonds.

And China won’t just get the money: China will gain further in its already pervasive importance in the world.

And China may call the shots.

Just today, China said it didn’t like the “Buy American” provisions in the economic stimulus.

What else doesn’t China like?

When one country owes another country so much money, over $1 Trillion, what will happen?  We don’t know, because this has never happened before.

Like a Mafia, Boss, China will own the United States.  And, if real estate trends are any guide, China will also buy up any remaining valuable U.S. soil.

China will have all the money.  And in some places, money is power.

In the business deal called the economic stimulus, I’d rather be Chinese than American….

John E. Carey
Wakefield Chapel, Virginia

A Chinese customer shows off a handfull of hundred-yuan notes ...

The latest irritants to China from America are a “buy American” provision attached to White House-backed stimulus legislation moving through Congress and criticism of China’s currency policies by Vice President Joe Biden and Treasury Secretary Timothy Geithner….See:
China Starts to Set Limits On Its Biggest Borrower: Barack Obama and The U.S.

Related:
Economic Stimulus About “Soul of America”

China Discovers Compensation for Pain, Agony; But Don’t Expect Much

January 26, 2009

Unemployed: China will help out.  Loved ones lost in the earthquake?  China will pay.  Kids killed by poisoned milk: not to worry.

China’s Prime Minister Wen Jiabao just visited survivors of last May’s earthquake which devastated large parts of Sichuan province last year to help them celebrate the Lunar New Year or Spring Festival.

Many Chinese lost family members, children and friends in the earthquake, along with their homes, jobs and towns.

Related:
China Premier’s gifts to Europe come with price-tags

Wen cooked spicey Chinese stew and handed out money to some earthquake victims.  The cooking was done in a government tent shelter.

Above: Prime Minister Wen Jiabao in Sichuan Province, in a photo distributed by the official Chinese news agency. Yao Dawei/Xinhua, via Reuters

China’s state run media said about 75 million earthquake victims got the equivalent of $15.00 to help them celebrate the New Year.  Per family.

Isn’t this called “papering over” trouble?
.
China’s state-run Xinhua news agency also announced on Monday that the government is to help train as many as one million jobless college graduates over the next three years.

Graduates will also be offered small loans to help them start their own businesses.

Let’s hope it’s more than fifteen bucks.

Experts say there are more than 20 million newly unemployed people in China, many of them migrants.  China is worried that unemployment will cause social unrest.

But analysts say the education and job-start programs show the government’s increasing concern with rising unemployment.

Tomorrow Mr. Wen travels to Europe to pass out goodies.

There hasn’t been an earthquake in Europe unless you count the global economic melt-down.

Lets hope fifteen U.S. dollars doesn’t buy China any loyalty in Paris, London and elsewhere.  Oh, excuse us, Paris is not on Mr. Wen’s itinerary….

President Sarkozy’s love of the Dalai Lama cost him at least $15.00….and China’s love….

Related from the BBC:
http://news.bbc.co.uk/2/hi/asia-pacific/7850726.stm

China celebrates New Year:
http://news.yahoo.com/s/ap/20090126/ap_o
n_re_as/as_china_new_year_2

http://www.france24.com/en/20090125-
global-crisis-dampens-china-new-year-
celebrations

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The China Dairy Industry Association has claimed that 90 percent families of the victims in the country’s tainted milk scandal have been compensated.

Without disclosing the compensation amount, the association said that families of 262,662 children who were sickened after drinking the melamine-contaminated milk products had signed compensation agreements and accepted compensation, the chinaview.com reports.

Out of the families of six dead children and 891 other infants, all except two had accepted compensation, the association said. However, families of 23,651 sickened children have yet to be reached mainly because of wrong or untrue registration of names, it added.

There are only a handful of families of sickened children who want to realize their rights and interests by filing lawsuits and did not accept compensation, it said.

The Chinese Health Ministry has confirmed deaths of six infants who died after consuming contaminated milk products, whereas 296,000 infants suffered kidney stones and other urinary problems.

In a letter sent to victims last month, Sanlu Group which was at the center of the scandal along with 21 other dairy companies, offered 200,000 yuan for families whose children died and 30,000 yuan for serious cases such as kidney stones and acute kidney failure. The less severe case victims got 2,000 yuan as damage.

The dairy companies have also set up a fund to pay the medical liabilities of the sickened children until they reach the age of 18.Read the rest from ANI and New Karala:
http://www.newkerala.com/topstory-fu
llnews-81131.html

Related:
http://www.npr.org/templates/story/sto
ry.php?storyId=99002599