Friday, January 20, 2006

Iran Moves Financial Assets Out of Europe And To China

By Elaine Meinel Supkis

Iran moves swiftly to rearrange currency and asset markets in preparation for confrontation with America. We aren't going to win this particular fight.

From the BBC:
Iran has started moving its foreign exchange reserves out of Europe in a bid to shield the country from the threat of sanctions, reports suggest.
Iran's central bank governor said the country had begun withdrawing assets from European banks, the Iranian Students News Agency reported.
Most wars begin as financial rearrangements. In this case, Iran has a very powerful sponsor who is helping them along. The BBC won't say who it is but I know who it most likely is: China.

China is playing a very delicate game of Go, one smart move after another. Here is their busy week so far: From Xinhua net:
Saudi Arabian Ambassador designate to China Saleh Alhegeian said here Friday that King Abdullah bin Abdul-Aziz's forthcoming China tour will be a visit worth expecting.
In 2005, the two-way trade volume rocketed 59 percent year on year to 14.5 billion U.S. dollars, about five times that of 2000.

Saleh said the visit will become a new milestone in developing the friendly relations between China and Saudi Arabia.

As two important nations in the world, China and Saudi Arabia will open new areas of cooperation and continue to strengthen exchanges in diplomacy, economy and trade, said Saleh.

"The closer contacts and cooperation between the two countries will surely exert a great influence on international society," he added.
Note how many Muslims China is killing in the Middle East. Zero.

And China is busy in Europe, as always, too. From Xinhua net:
Chinese President Hu Jintao told visiting Greek Prime Minister Costas Karamanlis Friday that China-Greece relations are in the "best" period of time since the two countries forged diplomatic ties 33 years ago.
"We are willing to join hands with Greece to expand bilateral pragmatic cooperation in various fields, and promote further development of Sino-Greek all-round strategic partnership." Hu said.

Noting Greece-China relations progressed quite well, Karamanlis said Greece sticks to the one-China policy and opposes "Taiwan Independence".
Frantically building bridges, the Chinese now roam the planet, plunking down their stones as they move systematically from place to place.

At home, they fret about the monumental task at hand, dealing with a long legacy of poverty in the peasant class, the fruits of capitalism have, like in many other countries, laid waste to the countryside due to pollution, loss of young hands to work the fields and inflation.

From Xinhua net:
China is striving to become a dairy production power in the world in 20 years through larger investment and technology upgrading.

Liu Yanhua, vice minister of Science and Technology, said here Friday, "In the past five years, the country has invested 150 million yuan (18.5 million U.S. dollars) in developing key technologies in the dairy industry."
We had price supports here in America for the small dairy farmer, placed in the Great Depression when money was tight, this has been removed and in my own community, we went from 20 active farms to exactly 1 that is about to fold, too. The flat world model we are adhering to is killing us.

For example, I have bees. The price of honey has collapsed because of imports and worse, diseases from mites are killing hives and to replentish is expensive except last year, when my last hive was long dead, wild bees flew in and recolonized it for free and so far, are doing fine. But I used to get more for my wool, my honey, my eggs. All depressed by imports and this is ravaging all farmers across the planet, it is all so strange to deal with. Like factory workers, we are being chased from pillar to post.

Finally, the old yuan kidding me news. From Xinhua net:
People's Bank of China Assistant Governor Ma Delun said the market is determining the yuan's exchange rate, rejecting U.S. criticism that the government keeps the currency artificially weak to spur exports, the Bloomberg reported.

Ma said currency policy wasn't to blame for the U.S. trade deficit. "Workers' pay in China is 1/33rd of that of a U.S. worker," Ma said in an interview in Shanghai on Jan. 18. "The U.S. has to accept this global reallocation of industries."

Senators Charles Schumer, a New York Democrat, and Lindsey Graham, a South Carolina Republican, are sponsoring legislation in Congress that would impose tariffs on imports from China unless the yuan is allowed to appreciate more rapidly.

The U.S. government estimates the trade deficit with China widened to $185 billion in the first 11 months of 2005, up 25.4 percent from a year earlier. Treasury Secretary John Snow said on Jan. 6 that he's "not at all satisfied" with China's currency policy.

The yuan's value has risen 0.5 percent against the dollar since a decade-old peg ended in July, compared with a 3.4 percent jump in Korea's won and 4.8 percent advance in Thailand's baht.
OK, countries that are not running huge trade surpluses with the world and who don't own lots of American currency and IOUs are rising in value while the two countries running the biggest world surpluses and owning the most American money are declining or barely blipping in value?


This is too funny. The world's top currency can't be the one that is driving deep into debt. This is obvious now that the system is totally broken and is a failure and our attempts at fixing it by going to war against only oil pumping nations is a failure, too, and bin Laden is going to laugh himself to death. Gads.

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