Monday, July 25, 2005


Reuters in China
By Elaine Meinel Supkis

Pandas have been in the news. One ambled into a Chinese city and got up in a tree and had to be traquilized and brought to a Panda Sanctuary. Another panda in an American zoo had babies successfully. Taiwan is in an uproar over the free panda offer from mainland China. The party in power thinks it is a panda's nose under the tent while the opposition parties think pandas are cute.

Meanwhile, economic events grind on.

From Xinhuanews:
China's fiscal revenues grew by 14.6 percent year-on-year during the first half of this year to 1.639 trillion yuan (about 202.3 billion US dollars), the Ministry of Finance said Sunday.

Budget spending at central and local levels totaled 1.242 trillion yuan (153.3 billion US dollars) during the January-June period, up 15 percent, the ministry said.

Central fiscal spending was up 1.5 percent, but central fiscal revenues rose 10.1 percent, while fiscal spending by local governments jumped by 20.9 percent and local fiscal revenues grew by 21 percent.
Don't we wish we had these numbers! As we well know, the fragile prosperity we now enjoy is due entirely and totally to our piling debt upon debts. The NYT has another big article about how all businesses are dumping pensions as fast as possible because they proportedly can't afford them anymore.

Headlines are about AFL-CIO breaking apart. The Teamsters and others are leaving, wiping their bloody hands and dropping their knives. You know, it all started with them backing the Republicans and sitting idle while Reagan killed Rooseveltian reforms. They have backed GOP people consistently since that time. Blythly, they and many of their membership, has voted for conservativism because they had a great thing going for a while, namely, unions that were really hereditary fiefdoms whereby the people of only certain small ethnic family groups were protected while all others especially blacks, were locked out.

They became very reactionary, fighting a rearguard action for privilages and benefits held by only a few.

The large new union that organizes hotel workers is leaving, too, for different reasons. They are radicalized and want more action. They are very much on the liberal side of the scale.

Meanwhile, back in China:From Marketwatch:
Trade-related anger has been running high on Capitol Hill, but may have been eased a bit by China's decision to let the yuan appreciate slightly against the U.S. dollar.

Assurances that China was set to ease the peg between the yuan and the dollar had already prompted Sens. Charles Schumer, D-N.Y., and Lindsey Graham, R-S.C., to delay a vote on legislation that would impose 27.5% punitive tariffs on Chinese goods until the end of the current legislative session....
Psychologists have noted that when using Skinnerian reward training on animals, if you give a periodic, small reward, it works much better than consistent, large rewards. This is why slot machines exist. If they were more reliable and less frivolous, people wouldn't be attracted to them.

So the pittance dropped into our mouths doth satisfy the hungering beast!

Now on to Unocal: the fight rages. The mighty shareholders, those who actually bankroll the joint, are up in arms over political attempts by Chevron at cutting a cheaper deal by making it hard for China to put in their bid. Instead of bidding higher, they use lobbyists and political operatives to attack the Chinese bid and try to make it a done deal for themselves. Cheating the shareholders.

They are striking back. From Marketwatch:
A major shareholder of Unocal Corp. has urged the company's board to reconsider its endorsement of a takeover bid by Chevron Corp. over a higher offer by a Chinese state-owned oil company, saying the board may be breaking the law if it enters into a deal that forbids it from obtaining higher offers.

In a July 20 letter to Unocal's board, P. Schoenfeld Asset Management LLC, which holds more than 1 million shares of oil and gas producer Unocal, wrote that the oil company has a responsibility to its shareholders to lobby the federal government for approval of Chinese oil company CNOOC Ltd.'s bid.

"It is a violation of bedrock Delaware law for fiduciaries to enter into agreements that bar them from obtaining materially higher offers," according to a letter by the New York firm that was released Sunday. "It is your duty to maximize value for stockholders."
Heh. Classic capitalism. Note who the statists here are! Ain't the communist Chinese.

Once again, the NYT struggles to explain everything while concealing a great deal. If you read between the lines, it is rather amusing. From the NYT:
William A. Reinsch, an avowed free trader, welcomes China's rising stature in the international economy. After all, he is the president of the National Foreign Trade Council, an organization founded in 1914 to promote an "open world trading system." Indeed, when he was a senior trade official in the Clinton administration, Mr. Reinsch was chided by some security analysts who said he was being soft on China by placing matters of commerce ahead of national security.

A Chinese soldier checked an oil tank in the Qinghai province last year. China considered, but then rejected, the idea of teaming with an American company in a bid to acquire Unocal.

But even Mr. Reinsch is uneasy about China's attempt to buy Unocal, a midsize American oil company. The outcome of the takeover contest for Unocal is uncertain, and last week its board embraced an improved offer from Chevron. Yet Cnooc, a government-backed Chinese oil company, still has the higher offer - and it could up the ante. the ante.
Why must the "up the ante" when Chevron hasn't yet met their bid? Huh? Is this the new way of conducting bidding wars?
In China, there are also two camps - the security hawks and the economic modernists, according to China analysts. The modernists see China joining the United States as the second great economic power of the 21st century, and the two nations sharing the gains from increased trade ties and global growth. The hawks regard that view as naïve, and fret that American policy is to remain the world's only superpower and to curb China's rise. So China's response, the hawks say, is to try to erode United States hegemony and reduce America's power to hold China down.
This entire paragraph shows how stupid the analysis of China can be. Does anyone think a general in China gets to blab whatever he wishes and this isn't orchestrated by the Central Committee? Eh? Wot?

Does anyone, absolutely anyone in the Central Committee not to mention at much lower levels, want China to be the second great economic power? My, aren't we seriously underestimating the desires and dreams of others! "We're number one!" we scream. Then we crawl back to the Chinese with our begging bowls, pleading for money, for stuff. Yeah, right.

This childish analysis is due entirely to the need of the writer for the Times to toady up to American pretensions. Unable to ruffle feathers, the same silly soothing lullabyes are sung.
Both faces of China have been evident recently. Two weeks ago, a senior Chinese military official, Maj. Gen. Zhu Chenghu, said China should use nuclear weapons against the United States if the American military intervenes in any conflict over Taiwan. Then, bowing to pressure from the United States and other trading partners, China announced last Thursday that it would no longer peg its currency tightly to the dollar. It is a measured step, and it will not do much to moderate China's huge trade surplus with the United States anytime soon. But the move is a sign of flexibility and accommodation.
We are seriously doomed if we believe any of this stuff! China didn't "bow to pressure". Au contraire! They launched their new financial WMD when it was good and ready. They coupled this with many seemingly unrelated things. One of which was the Great Test: to see if America really was going to allow real capitalism for the first time, at home. Or was it all fake.

Well, it increasingly looks like our capitalism is fake. We may go about the planet, buying whatever we want, but no one else is allowed to do this. Suddenly, the game if rigged. This proof of our two faced attitude is being forcibly shown via the news across the planet. Isn't it hilarious that the communist Chinese are better capitalists than we? Hahaha.

Cnooc and its advisers misread the political environment in Washington. Fu Chengyu, the Cnooc chairman who earned a graduate degree from the University of Southern California, has said he was surprised by the intensity of political criticism. Cnooc's path would have been smoother if it had joined with an American oil company as a partner in its bid, an option that was considered briefly but rejected, according to a person close to the company.

The idea, the person said, would have been that the American company would acquire Unocal's assets in the United States, while Cnooc took the main prize in the deal - Unocal's offshore natural gas fields in Asia and its expertise in offshore exploration and production. The gas reserves and skill are considered strategic to China's goal of moving away from coal and generating 20 percent of the nation's electricity from natural gas by 2020. "It would have been better to have not made this big move a head-on attack, to have linked up with an American partner so the deal would have been less threatening and less a lightning rod for China politics in the United States," the person said.
Oh, the sneaky round eyed, big nosed Americans! This is the nub of the matter! The Chinese capitalists are cutting the American ruling class leeches out of the deal! If only they enlist some corrupt, traitorous Americans who are already stinking rich, into the deal, then it will sail past all the howling, raging ruling elitists who are pissed that the Chinese can outbid them on a level playing field!

Again, the writers misunderstand our opponents! They pretend the Chinese don't understand how the game is played, poor dears, and we will instruct them!

Word of warning: they have understood how the game is played for years and years. They studied their foe very closely. And I explained to them in detail how the ruling class works and how they will sell their own nation down the river for a 10% cut of the deal. The Chinese know the history of the Bush family and how they made oodles of money supporting the Nazi war machine after WWII began in ernest. And how the Federal government had to forcibly stop them even after Germany declared war on America!

This level of betrayal was richly rewarded. Look who runs our joint today!

The Chinese watched with fascination as Ronnie Reagan scooted off to Tokyo a mere two weeks after leaving office to collect his $2.5 million in bribes. They saw how the news media went silent or actually lied about this matter and Reagan wasn't hung by the neck or shot in the back of the head in a stadium as a warning to not betray America to foreign powers. The Chinese openly bribe the Bushes and watch as the press either ignores or minimizes or excuses or even celebrates this. They smile wickedly as they manipulate our nest of traitors.

They know exactly what they are doing. They are embarrassing the USA in front of the whole world, showing everyone that our free trade stuff is all lies. We just want to have unfair trade whereby we print up money and hand it over for goods while China soaks up all our inflation by buying our government bonds.

But these bonds are very important tools! This is how they gain leverage over us. And this leverage matters even as we haughtily inform them that if we declare bankruptcy, they can't collect! Well, guess what, everyone...they can collect. And the enforcer won't be nice and go away if we slam the door in his face. He is much more akin to the Mafia debt collectors.

This is why the Central Committee permitted a general to talk openly about how they will nuke America.

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