Friday, May 27, 2005

CHINESE ROULETTE

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Take a good look. These three bank gov. are manipulating currency just like Greenspan....heh. Note their happy faces.

Speculators speculating on the status of the relative value of currencies are all agog watching China. On line, right wing and liberal economic forums bloviate about this, churning information that has been decapitated from reality.

Meanwhile, the Chinese continue to play the game their way.
China's central bank chief and a trio of top government economists lined up on Friday to urge a cautious approach to economic reforms, defying increasingly urgent U.S. demands for a swift revaluation of the currency. U.S. Treasury Secretary John Snow told Congress on Thursday he was confident that China would change the yuan's decade-old peg of near 8.3 per dollar within the next six months.

"We've got their attention and they're gonna move," Snow told law-makers, many of whom agree with U.S. manufacturers that the peg unfairly undervalues the yuan by perhaps 30 percent.

But Zhang Yansheng of the powerful National Development and Reform Commission said a lot of work was still needed in areas such as currency, taxation and foreign trade policy in order to minimise the impact of yuan reform on China's economy.
We certainly have the attention of the Chinese! And they know they have Bush by the balls. The ballooning real estate bubble interests them.
Almost 13 percent of real estate investment in China comes from overseas, and 20 percent of local residence buyers are either foreigners or compatriots from other cities or countries, according to a report on Shanghai's finances just released by China's central bank.

In Shanghai, where housing prices have been rising amazingly fast in the past two years, the average price in urban and suburban regions has exceeded 10,000 yuan (some 1,200 US dollars) per square meter.

Some overseas investors, expecting RMB/yuan appreciation, have bought dozens of apartments in China's coastal cities, including Shanghai, according to the State Administration of Foreign Exchange. Many local Chinese have joined in on the speculation, hoping to profit from a jump in housing prices.
I find two things interesting here: foreign money is fueling a balloon in real estate in China and it is also fueling one in America. And the Chinese official newspaper openly talks about this unlike the studied cluelessness exhibited nearely universally in American media.

The Chinese speculators read the news and act accordingly.
Affected by the recent anticipated adjustments in the RMB, quite a few Shanghainese residents lean towards getting rid of the U.S. dollars they own. In April this year, many Shanghainese banks have experienced the pressure of rising volume of foreign currency transactions. Many banks reflected that near end of April and beginning of May, residents' forex transactions amounts were up 30% or more over last year. Certain individual banks even reported single day currency transactions amounting to several hundred thousand U.S. dollars.
Americans always thought they are crafty wheeler-dealers. The real rulers like to make money on derivatives and speculation that is not dangerous to them because they are "in the know" and unlike the sheep they fleece, they know they manipulate things outrageously and they have the preknowledge thanks to dinner parties and going to the right clubs and riding on the same corporate jets and owning the hearts and minds of influencial politicians and Federal agents.

So everything is under control...not! Alas, they handed the keys to this "get rich quick" heaven to the Chinese communists who now are "in the know" and can "wheel and deal" events to their own pleasure. This is why America's rulers are now united in screaming at the Chinese to do what they need done, now, or else.

Or else...what?

While our rich run around, tearing out their hair, the Chinese continue to move forwards. They embraced Uzbekistan just as we decided to condemn the dictator there, thus endangering our troops stationed there to prop him up of all things, the allegations of degrading the Koran prove to be true, not false, and even though this startling admission from the Pentagon is top news overseas, it is strangely (not) muted here at home. The average American still thinks the reports are all bunk.

Thank you, media whores. You did a whiz bang job for Rove, didn't you?

China is on the move again, this is truly amazing news. Which is why you don't see it in America:
The armies of India and China plan to hold unprecedented joint counter-terrorism and peacekeeping training programmes, the Indian army chief said on Thursday.

General Joginder Jaswant Singh said the plans had been discussed with visiting Chinese chief of general staff, General Liang Guanglie, who began a six-day tour on Monday.

Military ties between the two Asian giants have vastly improved and their soldiers have gone on joint mountaineering expeditions, played volleyball matches, exchanged gifts and shared meals on the frontier, Singh said.

"The momentum given by the leaders of our two countries is being enhanced further by the two militaries," he told reporters, referring to the upswing in diplomatic ties between the world's two most populous countries.

"On the roadmap of military-to-military cooperation in the future (are) exercises where both countries could carry out together to counter terrorism or on U.N. missions," he said on the sidelines of a defence technology conference in New Delhi.
As our alliances fray at the edges, China is strengthening its hand for the coming confrontation with Japan which is heating up already.

And speaking of Japanese imperialism...
Japanese officials are investigating claims that two men living in jungle in the Philippines are Japanese soldiers left behind after World War II.
Bonzai and all that.
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