Tag Archives: China

Business/Economics, International, U.S.

Chinese issue warning over U.S. government debt

“The U.S. economic fundamentals are not strong, plus there is expanding fiscal deficit and declining financial revenue. We are closely tracking the performance of U.S. government bonds and considering a further adjustment based on current conditions.”-Guan Jianzhong, Dagong Global Credit Rating Company

It wasn’t just S & P that reduced the credit rating of the Untied States, Dagong Global Credit Rating company also downgraded the U.S.  That’s important, because it’s a Chinese company, and the Chinese hold most of the U.S. sovereign debt.

Chinese Foreign Ministry spokesman Hong Lei, along with several Chinese bank officials, urged the United States to adopt “responsible policies and measures” to protect the interests of investors (mainly Chinese).  The problem is that if those investors think they’re going to lose money then they’re going to start off loading their U.S. bonds in a big way (they’ve already been selling them off, slowly, for the past three months).


Business/Economics, International, U.S.

Former U.S. official supports my earlier posts, saying Libya is about oil & China

In an earlier posting I warned that the Libyan situation could lead to World War 3.  It’s all about not letting China have Libya’s oil.

Former U.S. Treasury official, Dr. Paul Craig Roberts, admitted to Iranian media, that the so called rebellion in Libya was about oil, and not letting China have it: “In my opinion, what this is about is to eliminate China from the Mediterranean. China has extensive energy investments and construction investments in Libya.”

Roberts says the real reason the United States wants Gaddafi out, is because he refused to join the U.S. created United States African Command, which was created to counter China’s influence in the region: “The U.S. is countering this by organizing the United States African Command (USAC), which Qaddafi refused to join. So that’s the second reason for the Americans to want Qaddafi out.”

Roberts says if NATO succeeds in Libya, Syria and then Iran will be next: “If NATO, which is now the cover for the ‘world community,’ succeeds in overthrowing Qaddafi, the next target will be Syria. Iran is a major target because it is an independent state that is not a puppet of the Western colonialists.”

Roberts warned that this could lead to World War 3.  He compared what the U.S. and U.K. did to Japan before World War 2: “In my opinion, what is going on is comparable to what the U.S. and Britain did to Japan in the 1930s. When they cut Japan off from oil, from rubber, from minerals; that was the origin of World War II in the pacific. And now the Americans and the British are doing the same thing to China.”

There is much more to the interview by Press TV

Business/Economics, International

Iran and Pakistan speed up pipeline development, Germany onboard

The Iran-Pak (or Pak-Iran) Gas pipeline just got a boost from Germany.  A German company signed a deal to lay the new pipeline between Pakistan and Iran.

The German company might be ILF Consulting Engineers, who were hired to do a feasibility study earlier in the month of April.

The pipeline will begin from Iran’s Assalouyeh Energy Zone in the south, run through Pakistan, and could end up in China, depending on future deals with China.  Originally the pipeline was to run to India, but there were issues with the Indian government.

International, Opinion, U.S.

Obama increasing College funding…in China!!!

So you voted for Barack Obama because you’re hoping to go to college, but can’t afford the skyrocketing costs.  You thought Obama was going to help you pay for college?  You’re right, if your going to college in China!

Last week Secretary of State, Hillary Clinton, announced that the U.S. State Department will spend U.S.$3 million on scholarships for study in China.  On top of that First Lady Michelle Obama announced that they have convinced U.S. corporations to help fund U.S.$3.25 million for the “100,000 Strong Initiative”.   Those corporations include Caterpillar, Citigroup and Coca-Cola.

The program is in addition to the usual Fulbright scholarship program.

So now even college students are being shipped off to China!   I guess it makes sense, you know, follow the jobs.

International, U.S.

New Chinese Water Torture, dumping U.S. bonds a little at a time

For the fourth month in a row, China is selling off its U.S. Treasury bonds (U.S. Sovereign debt).  China is the biggest holder of U.S. bonds, but since February, they’ve been getting rid of them, a little at a time.

So far the Chinese have sold U.S.$600 million in U.S. bonds, that’s according to the U.S. Treasury.

Japan has the second biggest holdings of U.S. Treasuries, but there is concern that Japan will sell them off, to help pay for rebuilding after the March 11 disasters.

Business/Economics, International, Opinion, U.S.

Former U.S. official says don’t blame China for U.S. economic problems, yet

“If we didn’t import from China, we’d import from somewhere else.”-Henry Paulson, former U.S. Treasury Secretary

Henry Paulson is saying that if U.S. corporations didn’t have China to ship jobs to, they’d ship off U.S. jobs somewhere else.  He, and others, believe that by shipping off U.S. jobs to other countries, it helps to keep inflation down.

Of course it does, because that means less people working which brings down consumer spending which helps keep inflation down.  Inflation traditionally goes up when the economy is good and people spend more money, which is what is happening in China right now.

There is worry that the fast growing inflation in China could spread to the rest of the world.  For those countries whose economies are in trouble it’s not a good thing: “If China has problems, our problems would be more difficult.”-Henry Paulson

 

International

Food Crisis: World Food prices in “Danger Zone”, creating Mass Poverty

The U.S. based World Bank says international food prices have entered the “danger zone”, and are heading towards the “tipping point”.

World Bank president, Robert Zoellick, blames in on several things.

People in countries where the economies are good, are buying more meat.  The problem is that increasing meat production means more grain crops going to ranchers, instead of food for people.  Crops used for bio-fuels, instead of food,  is also a problem.

Then there’s a supply system problem; it’s taking longer to rebuild stocks of basic food ingredients, once they are used up.  This is made worse by the fact that many countries are facing lower crop production mainly because of climate change (cold wx, flooding and drought).

Add to that oil.  Petroleum is used for fertilizers, pesticides, etc, and that is adding to the cost of food production.

One country, China, is so scared of lack of food that they’re buying up huge tracts of land in Africa for food production.

Zoellick says this is a long term problem, we’re only at the beginning of higher food prices.  Also, while countries with more money to buy food are seeing higher prices, the poorer countries are paying far more for their food.

Zoellick says just since last year the higher prices have pushed 44 million people into poverty.  He predicts another 10% increase in food prices will push another 10 million people into poverty.