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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (21058)	1/11/2005 3:05:20 PM
From: RealMuLan	Respond to of 116555

[This is a very long article]--"US Defaults On 40% Of Its Trillion Dollar Foreign Debt" Jan 8, 2005 THE NAKED HEGEMON Part 1: Why the emperor has no clothes By Andre Gunder Frank Uncle Sam has reneged and defaulted on up to 40% of its trillion-dollar foreign debt, and nobody has said a word except for a line in The Economist. In plain English that means Uncle Sam runs a worldwide confidence racket with his self-made dollar based on the confidence that he has elicited and received from others around the world, and he is a also a deadbeat in that he does not honor and return the money he has received. How much of our dollar stake we have lost depends on how much we originally paid for it. Uncle Sam let his dollar fall, or rather through his deliberate political economic policies drove it down, by 40%, from 80 cents to the euro to 133 cents. The dollar is down by a similar factor against the yen, yuan and other currencies. And it is still declining, indeed is apt to plummet altogether. ... mparent7777.blog-city.com

To: RealMuLan who wrote (21058)	1/11/2005 6:32:40 PM
From: gregor_us	Read Replies (1) \| Respond to of 116555

Gang Up on China Day: Evans Echoes/Shades Issing. Looks like Washington has convinced Europe to blame China, Japan, and Asia for a while, for not carrying more of the weight of the USD's downward adjustment. But hey, it was good of "Don" to throw his hat in the ring also, today. ______________________________________________ Evans Criticizes China's Economic Management, Warns of Backlash Jan. 11 (Bloomberg) -- China risks inciting a backlash from U.S. lawmakers and businesses because of policies subsidizing state-run companies, curbing imports and pegging its currency to the dollar, U.S. Commerce Secretary Donald Evans said today. ``When China's leaders fail to produce results on the points of friction in our trading relationship, their failure only empowers those critics within the U.S. political system,'' Evans will tell the American Chamber of Commerce in Beijing at about 8 a.m. local time, according to a text of the speech. The U.S. blames that failure for China's record trade surplus in 2003, which is forecast to have grown to more than $150 billion in 2004. U.S. lawmakers have introduced a number of measures already to restrict imports and help businesses hurt by Chinese imports, including manufacturers, which shed 2.7 million jobs since 2001. In his speech, Evans will criticize Chinese leaders for blaming a U.S. savings' deficit for the trade gap. ``Misguided comments like these only serve to exacerbate trade tensions within the U.S. and make finding meaningful solutions more difficult,'' Evans will say. Evans, wrapping up four years as President George W. Bush's envoy to the business community, has been leading the effort to get China to crack down on the piracy of intellectual property and curb government loans and subsidies to exporters. In his speech, he will list four items China must address in order to ``play a key role'' in the global economy: Ending its currency peg, dropping retail-sales restrictions, curbing state-run bank lending and providing a more transparent rule of law. ``We need to see demonstrated results from the Chinese leadership,'' the text of the speech read. Four Points The U.S. blames China's failure to fully address those issues for the record trade gaps in 2003 and 2004. About 1.5 million jobs were lost from 1989 through 2003 as China's trade surplus climbed from $6 billion to $124 billion, according to a report for the congressionally chartered U.S.- China Economic Security Review Commission. That rate accelerated since China joined the World Trade Organization in 2001. U.S. companies and lawmakers complain that China's policy of pegging the yuan at 8.28 to the dollar for the past decade give its companies an unfair advantage by lowering the price of their exports. Evans reiterated Bush administration demands that China end the peg and let the yuan float in the market. ``The administration has urged China at every opportunity to move as soon as possible to a flexible, market-based exchange rate,'' the text of the speech read. ``We will continue to encourage them to do so and we will actively assist the Chinese.'' Retail and Banking The Bush administration also wants U.S. companies to be able to take advantage of China's recent opening of the retail and wholesale sale sectors. As part of that process, U.S. companies such as Avon Products Inc. and Amway Corp. want China to allow them to sell directly to consumers there again. ``We are especially concerned that China's forthcoming direct selling regulations will undercut the opening of this sector to U.S. companies,'' Evans said. China must also end the practice of directing loans from state-owned banks to state-run textile, machinery and other companies, Evans said. ``Underpinning all of the needed reforms in China is the need to adopt a stronger and more transparent rule of law,'' Evans concluded. ``China has made substantial progress in this area but more reform and additional resources for enforcement are necessary.''