Archive for the ‘global’ Category

Australia Stresses “Global Economy,” Asks More From China

March 24, 2009

US Treasury Secretary Timothy Geithner has commended efforts by Prime Minister Kevin Rudd to cushion the economy against the global credit crisis and bolster Australia’s financial system.

Sydney Morning Herald

Mr Rudd is “A+ on these issues”, Mr Geithner said, speaking at a Wall Street Journal conference in Washington overnight. “If we did what he advised, we’d all be in a better place.”

The Federal Government last month said it would spend $42 billion in cash handouts to families and on infrastructure.

The Government also guaranteed bank deposits last year and indicated in January it might establish a fund to lend directly to companies should foreign banks fail to roll over as much as $75 billion of maturing debt.

Mr Rudd, who spoke after Mr Geithner, said US President Barack Obama’s plan to finance as much as $US1 trillion in purchases of illiquid real-estate assets was an important step.

“None of the above works unless it’s globally co-ordinated,” Mr Rudd said.

When asked whether there was a need for a global reserve currency, Mr Rudd said: “The dollar’s position on that score remains unchallenged.”

He also said everyone was waiting for China to “come alive”.

“I detect some modest signs of optimism [about China],” he added.

Mr Rudd also said China must be part of efforts to raise more money for the International Monetary Fund, and that the Asian nation should have voting rights at the fund.

China calls for new reserve currency

March 24, 2009

China’s central bank on Monday proposed replacing the US dollar as the international reserve currency with a new global system controlled by the International Monetary Fund.

By Jamil Anderlini in Beijing
FT

In an essay posted on the People’s Bank of China’s website, Zhou Xiaochuan, the central bank’s governor, said the goal would be to create a reserve currency “that is disconnected from individual nations and is able to remain stable in the long run, thus removing the inherent deficiencies caused by using credit-based national currencies”.

Analysts said the proposal was an indication of Beijing’s fears that actions being taken to save the domestic US economy would have a negative impact on China.

“This is a clear sign that China, as the largest holder of US dollar financial assets, is concerned about the potential inflationary risk of the US Federal Reserve printing money,” said Qu Hongbin, chief China economist for HSBC.

Read the rest:
http://www.ft.com/cms/s/0/785192
5a-17a2-11de-8c9d-0000779fd2ac.html

Related:
http://makeitso57.wordpress.com/2009/03/24/
the-dollar-is-running-out-of-time-china%E2%80
%99s-%E2%80%9Cbernanke%E2%80%9D-ca
lls-for-dumping-the-dollar-new-reserve-c
urrency/

UK to remain in deflation trap until 2012

March 22, 2009

Britain will be mired in a deflation trap for years despite the radical efforts of the Bank of England to pump extra cash into the economy, economists have warned.

By Edmund Conway
The Telegraph (UK)

The forecast, by a team at BNP Paribas, states that prices in Britain will keep falling for at least another two-and-a-half years, as Britain suffers an apparently intractable bout of debt deflation.

The warning comes only days before official figures confirm this Tuesday that the Retail Price Index has dipped into negative territory for the first time in almost half a century.

It also follows a warning from the Bank itself that the UK is now exhibiting early signs of becoming stuck in debt deflation − the combination of falling prices and rising debt burdens that afflicted the US during the Great Depression.

But while many assume the combination of near-zero interest rates and a heavily-devalued pound will help prevent falling prices from becoming entrenched, and may stoke inflation, the BNP Paribas economists said they expected deflation to persist all the way until 2012. Furthermore, the fall in prices would be broad-based across the economy, pushing into the red not only the RPI but also the Consumer Price Index, which the Bank’s Monetary Policy Committee targets

Alan Clarke, UK economist at BNP Paribas, said: “Our revised economic forecasts for the UK are the most pessimistic in the market. We expect GDP to contract by more than 4pc this year and by a further 1pc in 2010. We expect deflation to set in during 2011, even earlier were it not for the VAT hike [which will follow the temporary cut in the tax this year].”

Read the rest:
http://www.telegraph.co.uk/finance/financeto
pics/recession/5028673/UK-to-remain-in-de
flation-trap-until-2012-economists-warn.html

Trade Barriers Could Threaten Global Economy

March 18, 2009

At least 17 of the 20 major nations that vowed at a November summit to avoid protectionist steps that could spark a global trade war have violated that promise, with countries from Russia to the United States to China enacting measures aimed at limiting the flow of imported goods, according to a World Bank report unveiled yesterday. 

By Anthony Faiola
Washington Post Staff Writer

The report underscores a “worrying” trend toward protectionism as countries rush to shield their ailing domestic industries during the global economic crisis. It comes one day after Mexico vowed to slap new restrictions on 90 U.S. products. That action is being taken in retaliation against Washington for canceling a program that allowed Mexican truck drivers the right to transport goods across the United States, illustrating the tit-for-tat responses that experts fear could grow in coming months.

The report comes ahead of an April 2 summit in London in which the heads of state from those 20 industrialized and developing economies will seek to shape a coordinated response to the economic crisis. Their inability to keep their November promises is another indication of how difficult it will be to implement any agreement reached next month on a global scale.

Read the rest:
http://www.washingtonpost.com/wp-dy
n/content/article/2009/03/17/AR200
9031703218.html?hpid=topnews

Where in the World Is Matt Lauer? In The Tank With Obama…

March 13, 2009

Where in the World Is Matt Lauer?  Easy: he’s holed up at the liberal bastion: NBC (National Barack Channel).

He won’t be travelling the world this spring because so many people in the world blame the U.S. for the global recession and even more are starting to worry that Barack Obama can’t make things better soon enough.

Matt can’t go to Rome: he’s pro-abortion and the Pope is there.  Matt can’t go to China, where 20 million migrants are out of jobs and the government fears “social unrest.”  Matt can’t go to Tibet: the Chinese will have a fit.  Even after Barack Obama gave up on human rights abuses in Chinese, their Premier said he’s worried about buying more U.S. Treasuries.  Matt can’t go to Britain: Obama “snubbed” their PM and the Brit media has taken up the Welcome Mat, Matt.

Matt can’t go to Japan after the Japanese got the feeling Obama was getting soft on North Korea.

Matt can’t go to Switzerland.  The Swiss are nervous after scores of new Yanks arrived to avoid paying higher taxes in the U.S. — and because congress wants Switzerland to allow them to find out who these Yanks are….

Matt can’t go to Iraq, Iran, Afghanistan or Pakistan — despite the fact that Obama loves them all, they are too dangerous; filled with guys the Obama Administration won’t name.

Hint: terrorists.

There just are too few places for poor Matt Lauer to go. 

Even Ban Ki-moon, the Secretary General of the U.N. called the U.S. a “deadbeat nation.”

So the trip is cancelled.

Related:
http://www.breitbart.com/article.p
hp?id=D96T995O3&show_article=1

Obama Backs-Off On Human Rights Issues: Economy is That Important

Obama Back Off, Japan Ready To Shoot Down North Korean Missile

 Fleeing Obama’s Taxes in Switzerland

 Pakistan: Circling The Drain?

Obama Throws Britain Under the Bus: Relationship “Reset” and “Regime Change”

http://americaswatchtower.com/2009/03/13/ene
rgy-companies-make-plans-to-move-to-switzerlan
d-to-avoid-obamas-taxes/

Obama’s 52 Mistakes in 52 days:
http://www.fireandreamitchell.com/2009/0
3/13/don-surber-is-being-generous-52-days
-52-obama-mistakes/

http://michellemalkin.com/2009/03/1
3/52-days-52-mistakes/

http://blogs.dailymail.com/donsurber
/2009/03/12/52-days-52-mistakes/

China’s Economic Might, Arrogance Should Cause Caution in the West

March 13, 2009

China has so much cash in reserve that they are funding their own economic stimulus — and with their own money; not borrowed cash.

China is also funding the American economic stimulus by buying American Treasury bills and other debt.

Cinese leaders are gloating to some extent about the stupidity of American leaders who do not have the cash reserves so carefully put aside by China.  Many Chinese leaders also scoff at the tom foolery of most Americans who have such debt ridden lives, with mortgages, credit card debt, a loan for the car and a college loan still outstanding.

But what the Chinese leaders don’t talk about is that few Chinese have cars, nice homes and college degrees….

So Chinese arrogance about American debt is sometimes confused by envy for many things American….

And China has expressed some concern about the spend-crazy Americans.

Premier Wen Jiabao “We have loaned a huge amount of money to the United States,” Wen said at a news conference in Beijing. “Of course, we are concerned about the safety of our assets. To be honest, I’m a little bit worried. I would like for you [a Western reporter] to call on the United States to honor its word and stay a credible nation and ensure the safety of Chinese assets.”

This came at about the same time that United Nations Secretary General Ban Ki-moon called the U.S. a “deadbeat” nation.

Expect China to exert more influence over U.S. economic and foreign policy, just as Barack Obama is claiming the right to dictate policy to banks who took his bailout money.

China holds about $1 trillion in U.S. debt and will likely “buy” about $1 trillion more — especially if Obama and Nancy Pelosi demand another stimulus package.

Chinese arrogance and wealth is unmistakable, pervasive and in some ways very troubling for the West.

China is using its vast wealth and the current global recession as an opportunity to buy up natural resources at bargain prices.  China is building a world-class military complete with a global navy and an aircraft carrier.  And China is not afraid to confront the likes of the U.S. just as it did on the high seas last weekend….

We can expect China to continue to grow and dominate Asia, the Pacific and wherever they choose to go.

This US Navy file photo shows the military Sealift Command ocean ... 
This US Navy file photo shows the military Sealift Command ocean surveillance ship USNS Impeccable (T-AGOS-23). Five Chinese vessels maneuvered dangerously close to a US Navy ship in the South China Sea on Sunday, March 8, 2009, approaching within 25 feet of the unarmed surveillance ship, the Pentagon said.(AFP/NVNS)

Related:
China’s Love/Hate Relationship With The U.S

Obama Wasting America’s Strategic World Power; China Surges Despite Economy
.
Era of Obama, American Weakness Emboldens Russia, China, Iran, North Korea, Terrorists

 Global Economy Weakness Leading To Social Unrest

Stimulus: China Will Fund U.S. Debt But “We Hate You Guys”

http://edition.cnn.com/2009/WORL
D/asiapcf/03/13/china.wen/index.html

Behind the U.S. and China At Sea Incident

Pelosi’s Stimulus II? Lawmakers Propose No Cost, High Employment Energy Package

China Buying Oil, Uranium, Gold, Other Products At Bargain Prices

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

Obama, Geithner: recession requires global action

March 11, 2009

The emphasis on economic stimulus has already been met coolly by many European nations, raising questions whether a gathering of finance chiefs from the Group of 20 rich and developing economies near London this weekend will make much headway battling a deepening downturn.

Read the rest:
http://news.yahoo.com/s/
nm/us_financial_g20

******************

Warning that the global recession is deepening, the Obama administration on Wednesday called on major U.S. allies to do their part and support strong stimulus programs to fight the downturn.

The administration said decisive action was needed by all countries to complement what is being done in the United States. Treasury Secretary Timothy Geithner outlined an ambitious agenda, including a tenfold increase in the size of an emergency fund the International Monetary Fund uses to help countries in trouble to as much as $500 billion.

“We can do a really good job here at home, with a whole host of policies, but if you continue to see deterioration in the world economy, that’s going to set us back,” President Barack Obama said in the Oval Office following a briefing by Geithner.

By JENNIFER LOVEN and MARTIN CRUTSINGER, Associated Press Writers

It’s essential for other major countries to commit to substantial and sustained efforts to bolster their economies in the face of a deepening recession, Geithner later told reporters.

The U.S. challenge highlighted a rift with European nations who are balking at U.S. calls for more stimulus spending, arguing they do not want to pile up huge levels of debt. Some European critics have charged that the U.S. demand for increased stimulus spending was an effort to divert a European call for a major overhaul of regulations governing the financial system to curb the types of excesses in the U.S. that spawned the crisis.

Obama said the U.S. has two goals for the G-20 summit in April: to make sure there is “concerted action around the globe to jump-start the economy” and to achieve consensus on regulatory reform to take place in each country.

However, many European nations have been critical of U.S. calls for increased stimulus spending. At a meeting this week of finance ministers of the 27-nation European Union, officials said they were doing enough already to support the world economy.

Geithner sought to play down any disagreement between the U.S. and Europe.

“I think you will find very broad support to address these objectives,” he said. Geithner will attend talks Friday and Saturday in London with finance officials from the Group of 20 nations.

Those meetings are designed to develop a common agenda for a summit April 2 in London to be attended by Obama and the other leaders of G-20 countries, a group that includes not only the world’s wealthiest nations but also major developing countries such as China, India and Brazil.

Geithner said the U.S. will seek approval to expand a $50 billion fund the IMF maintains to support countries in trouble to as much as $500 billion. The IMF needs much greater resources to be able to provide emergency loans to countries during the current crisis, he said.

Read the rest:
http://news.yahoo.com/s/ap/20090
311/ap_on_bi_ge/obama_geithner

Era of Obama, American Weakness Emboldens Russia, China, Iran, North Korea, Terrorists

March 9, 2009

Like it or not, the era of President Barack Obama and American weakness, real or perceived, has already emboldened many nations with long-term anti-American strategic goals: namely, Russia, China, Iran and North Korea.

Many in the world have already concluded that Brack Obama is soft, for his overtures so far toward the Taliban, Russia, Iran and others.

Related:
Various Views On Obama Foreign Policy: “Just Like Bush” Or Radical Change?

President Obama’s move to close the terrorist prison at Guantánamo Bay, Cuba (Gitmo) was cause for applause in human rights circles and also with terrorists.

On Afghanistan, Peter Begen of the New America Foundation said “It is a longstanding cliché that there is no military solution in Afghanistan, only a political one.”  On President Obama’s idea to hold talks with the Taliban he said, “Doing deals with the Taliban today could further destabilize Afghanistan. ”

And economically, there is no dobt that the U.S. is weakened.

Just today, North Korea threatened war with the United States — a war that would certainly involve Japan and South Korea.  North Korea could not be making such threats and could not even think about testing a long range strategic missile just now unless China consented to this brazen move or at least looked the other way.  China supplies North Korea with almost all of its food, oil, luxury goods and currency.  Without China, North Korea would be impotent and meaningless.

Yet China is acceding to North Korea’s bluster and browbeating of the United States just as China itself is harassing a U.S. Naval vessel in international waters — a violation of international law.

This US Navy file photo shows the military Sealift Command ocean ... 
This US Navy file photo shows the military Sealift Command ocean surveillance ship USNS Impeccable (T-AGOS-23). Five Chinese vessels maneuvered dangerously close to a US Navy ship in the South China Sea on Sunday, March 8, 2009, approaching within 25 feet of the unarmed surveillance ship, the Pentagon said.(AFP/NVNS)

China doesn’t care much for international law and international waters: just ask Japan and Vietnam.  Both those nations have long struggles with China encroaching upon the coasts of Japan and Vietnam as the Chinese super power searches for more oil beneath the sea floor.

China has become the most voracious user of oil and other mineral resources on the planet as it strives to keep its factories busy producing goods for sale overseas.  China is in Afghanistan, protected from the Taliban by U.S. troops, while Chinese companies exploit Afghan copper.  And China just signed a $50 billion (U.S. dollars, cast) agreement to get oil from Russia for ten years.

Last year China was no help when the U.S. wanted access to Myanmar to deliver humanitarian relief supplies to those stricken by the cyclone.  After the crisis passed, China signed a big oil deal with Myanmar.

China wants the U.S. out of its sphere of influence from North Asia to Somalia, and is planning an ocean-going navy to eventualy make that goal a military reality.

China recently opened the largest sea port in the world, in Gwadar, Pakistan — directly astride the sea lanes used to bring out out of the Persian Gulf to Japan, the U.S. and others.

Meanwhile, the U.S. continues to go into debt — to China.

China allows North Korea to antagonize the United States because that is in China’s long term strategic interest — and a weakening U.S. plays into China’s strategy perfectly.

Russia also wants the U.S. out of its area of influencce.  Russia recently paid off Kyrgyzstan, which was helping the American effort in Afghanistan with an air base. Just after Russia gave  Kyrgyzstan its big aid deal, that nation announced the closure of the Manas air base supporting the U.S.

File:ManasAirbase KC135.jpg
A KC-135 Stratotanker sits on the flightline at Manas Air Base, Kyrgyzstan, Thursday, Feb. 23, 2006. Ground crews will have to de-ice the tanker before it can take off on a refueling mission. (U.S. Air Force photo/Staff Sgt. Paul Clifford)

Generous Russian loans to Kyrgyzstan totaling US$2 billion and a non-repayable US$150 million grant, were announced the day before Kyrgyzstan said Manas would be closed and the U.S. Air Force evicted.

The Shanghai Cooperation Organisation had been insisting on the closure of Manas to the U.S. Air Force since 2005.

What the heck is the Shanghai Cooperation Organisation?

The Shanghai Cooperation Organisation (SCO) is an intergovernmental mutual-security organisation which was founded in 2001 by the leaders of China , Kazakhstan, Kyrgyzstan, Russia, Tajikistan, and Uzbekistan.

But the key players of the SCO are Russia and China who don’t want the U.S. or anyone else in the West anywhere near that region of the world, rich in oil and other minerals, that includes Kazakhstan, Kyrgyzstan, Russia, Tajikistan, and Uzbekistan.

China and Russia conducted their largest joint military exercise ever last year.

And finally Iran wants the U.S. out of the Persian Gulf, away from Arab oil, and at arms length from Isreal.

Joshua Gross wrote for the Christian Sciences Monitor today,  “Iran recently launched its first satellite into orbit in what The New York Times called, ‘a shot across the bow of American diplomacy,’ and US President Barack Obama passed along a secret letter to Russian President Dmitry Medvedev in an attempt to enlist the Russians in an international effort to contain Iran’s nuclear program.”

The global economic crisis, which has eliminated something like $50 trillion in world wealth, has hit the United States and NATO very hard, which fuels the beliefe that Mr. Obama and the U.S. are weaker than ever just now.

That’s why Iran and North Korea are talking missiles and nukes, China has chosen just now to harass a U.S. ship, and Russia is gloating like a cat bird that Obama is already pleading for help with Iran from Putin and Medvedev….

John E. Carey
Wakefield Chapel, Virginia
March 9, 2009

Iranian clerics watch the launch of a Shahab-3 ballistic missile ... 
Iranian clerics watch the launch of a Shahab-3 ballistic missile outside Qom in 2006. A top Iranian military commander said that the country has missiles that can reach the nuclear sites of its arch-foe Israel.(AFP/File/null)

Related:
Stimulus: China Will Fund U.S. Debt But “We Hate You Guys”

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

India, China jostle for influence in Indian Ocean

 China Extends Navy’s Anti-Piracy Mission Near Somalia

 China Says Its Navy Expansion “No threat to others”

 Pentagon: Chinese Ships Harassed Unarmed U.S. Navy Craft in International Waters

 North Korea Warns: Shoot Down Our Satellite Will “Prompt Counterstrikes by the Most Powerful Military Means”

Obama’s First Major Foreign Crisis Brewing?

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

Obama says US is losing war in Afghanistan and hints at Taleban talks

Despite Global Economy Downturn, China Still Lending

Russia Sees Obama, U.S., Others As “Weak,” “Naive”

http://michellemalkin.com/2009/03/09/analys
ts-to-obama-there-are-no-taliban-moderates-yo
u-nitwit/

What’s China’s Long Term Global Strategy?

http://jonathanturley.org/2009/03/09/ira
nian-justice-eight-women-face-stoning-dea
ths-for-adultery/

http://spectator.org/archives/2009/03
/09/slickness-with-a-straight-face

CNN on Peter Bergen and Afghanistan:
http://edition.cnn.com/2009/PO
LITICS/03/09/bergen.taliban/index.html

Joshua Gross on Iran:
http://news.yahoo.com/s/csm/20
090309/cm_csm/ygross

$50 Trillion in Global Assets “Lost” in 2008

March 9, 2009

The value of global financial assets including stocks, bonds and currencies probably fell by more than $50 trillion in 2008, equivalent to a year of world gross domestic product, according to an Asian Development Bank report.

By Shamim Adam
Bloomberg

Asia excluding Japan probably lost about $9.6 trillion, while the Latin American region saw the value of financial assets drop by about $2.1 trillion, said Claudio Loser, a former International Monetary Fund director and the author of the report that was commissioned by the ADB. The report didn’t give a breakdown of asset declines in other regions.

“The loss of financial wealth is enormous, and the consequences for the economies of the world will unfortunately commensurate,” said Loser, now the Latin American president of strategic advisory firm Centennial Group Inc.. “There are serious economic and political stumbling blocks that may well cause the recovery to be costly and slow to consolidate.”

Some of the world’s biggest financial companies including Lehman Brothers Holdings Inc. and Merrill Lynch & Co. have collapsed as banks and other financial institutions reported almost $1.2 trillion of losses and writedowns since the start of 2007. Global stock markets lost about $28.7 trillion in 2008, and another $6.6 trillion has been wiped from the value of world equities in 2009.

“Poor macroeconomic and regulatory policies allowed the global economy to exceed its capacity to grow and contributed to a buildup in imbalances across asset and commodity markets,” Loser said. “The previous sense of strength and invulnerability is now gone.”

Global Recession

Read the rest:
http://www.bloomberg.com/apps/news?pid=20
601087&sid=aZ1kcJ7y3LDM&refer=worldwide

What does a trillion $ look like?
http://www.pagetutor.com/trillion/index.html

China Says Its Navy Expansion “No threat to others”

March 9, 2009

China’s plans to add aircraft carriers to its fleet and an historic long-distance mission by its navy are aimed only at protecting the country and its trade interests, senior officials were quoted as saying on Monday.

By Emma Graham-Harrison
Reuters

A long coastline, and high dependence on seaborne trade, meant China needed to have a strong presence at sea, but its growing confidence should not be misread as a “China threat”, the Navy’s deputy chief of staff told the official China Daily.

“Even when the navy has its aircraft carriers one day, our national defence strategy will remain purely defensive,” Major General Zhang Deshun told the paper in a story splashed across its front page.

Beijing has been keen to emphasise its case that its growing economic and political might is not a threat to other nations, even downgrading a doctrine of “peaceful rise” to “peaceful development” over worries the former might sound aggressive.

But long-term plans to add an aircraft carrier to its fleet, and the unprecedented deployment of its navy to fight pirates in waters off Somalia late last year have sparked discussion in the West about Beijing’s ultimate goals.

Zhang said any worries were misplaced.

 File:Destroyer sovremenny.jpg
China’s navy is potent and growing.  Here, a Russian designed Chinese cruiser

Aircraft carriers are “strategically very common” for big countries with long coastlines and the “historic” mission to join an anti-piracy campaign in the waters off Somalia was no different from those of other nations, he added.

Read the rest:
http://in.reuters.com/article/world
News/idINIndia-38412720090309

Related:
Pentagon: Chinese Ships Harassed Unarmed Navy Craft in International Waters 

What’s China’s Long Term Global Strategy?

Speculation grows on China aircraft carrier plans