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Politics : Foreign Affairs Discussion Group -- Ignore unavailable to you. Want to Upgrade?

To: Ruffian who wrote (251458)	12/14/2007 7:56:10 AM
From: SARMAN	Respond to of 281500

ROFL, how stupid can you get Ruff? If you had two cents worth of brains you would not post the article. But alas, you lack it.

To: Ruffian who wrote (251458)	12/14/2007 7:59:33 AM
From: SARMAN	Respond to of 281500

Message 24133312

To: Ruffian who wrote (251458)	12/14/2007 8:01:15 AM
From: SARMAN	Read Replies (1) \| Respond to of 281500

Greenspan: Recession odds growing on slowing economy NEW YORK (Reuters) - The odds of a recession in the United States are "clearly rising" due to the slowing rate of economic growth, former Federal Reserve Chairman Alan Greenspan said in an interview with National Public Radio. ADVERTISEMENT "We are getting close to stall speed ... and we are far more vulnerable at levels where growth is so slow than we would be otherwise," he said. A transcript of the interview, to be aired on Friday, was made available on Thursday. Asked about the possibility of recession, the former Fed chief said: "It's too soon to say, but the odds are clearly rising." Earlier on Thursday, Greenspan said he raised his view of chances of a U.S. recession to 50 percent from 30 percent, according to CNBC television. The U.S. economy grew 4.9 percent in the third quarter in real terms, but is expected to slow sharply in coming quarters. (Reporting by Tamawa Kadoya; editing by Leslie Adler)

To: Ruffian who wrote (251458)	12/14/2007 8:05:06 AM
From: SARMAN	Read Replies (2) \| Respond to of 281500

China tells US 'get house in order' over currency, food safety By Glenn Somerville and Eadie Chen Reuters via The New Zealand Herald 11:21AM Thursday December 13, 2007 XIANGHE - An assertive China fended off US pressure over currency policy and food safety on Wednesday and told Washington to put its own house in order rather than blame Beijing for its economic problems. The jousting, during a high-level "strategic economic dialogue" near Beijing, underscored the growing complexity of a relationship that US Treasury Secretary Henry Paulson said was now central to maintaining global economic prosperity. Paulson, who called the first of two days of talks "lively but friendly", urged China to let its currency rise faster to curb inflation, now at an 11-year high of 6.9 per cent. "China's leaders have voiced concerns about China's macroeconomic stability, in particular mounting inflation, growing asset bubbles and possible overheating. A more flexible exchange rate policy is especially important to China now, given these risks," Paulson said. China's central bank let the yuan rise as high as 7.3647 per dollar on Wednesday, the strongest level since the currency was unpegged from the dollar in July 2005. The yuan has gained 12.4 per cent against the dollar in total since then. Vice-Commerce Minister Chen Deming dug in his heels against a faster rise, saying China's economy could not afford it. Turning the tables on the United States, Chen criticised the recent decline in the dollar, which he said was pushing up oil and other resource prices and eroding the value of US assets held by countries such as China. "What I'm worrying about now is the weakening dollar and its potential impact on global growth," Chen said. Central bank chief Zhou Xiaochuan also spoke out for a strong dollar and said he was concerned that loose US monetary policy could flood the global economy with cash and buffet China's markets in the process. The news appearances by Chen, Zhou and others appeared to be an attempt by Beijing to win the battle of public opinion. High-ranking Chinese officials usually keep a lower profile at such conferences. Vice-Premier Wu Yi , known as China's "Iron Lady", also came out swinging. With several bills wending their way through the US, Congress aimed at getting Beijing to speed up the yuan's rise, she warned Paulson that business ties would be severely undermined if the measures became law. "Obviously, to resort to trade protectionism and blame another country for the structural problems in the US economy is the wrong approach which would only harm the interest of the US itself," Wu said. The talks began on a prickly note after Washington, alarmed by a string of recalls of toys and other China-made goods, put the safety of food and other imports at the top of the agenda. "I need to point out frankly that the United States should also assume its due share of responsibility for improving product quality and food safety," Wu said as the delegations faced one another in a tightly guarded government resort outside Beijing. She accused US interest groups of stirring up trouble and said: "We must oppose attempts to politicise trade issues." Paulson said he was worried about a rise in economic nationalism and protectionist sentiment in both countries. "Neither China nor the United States can protect our way to further prosperity. We must resist attempts to reduce transparency or increase regulatory obstacles in order to protect domestic industries," he said in his opening remarks. Trade tensions were on the boil and both countries needed to take action: "Whereas trade was once largely a source of stability in US-China relations, it has recently become a source of tension, and not only because of safety concerns." China's surging inflation rate prompted Paulson to make the case that a stronger currency was in China's own interest because it would reduce import costs and let the central bank raise interest rates more freely. Instead, with the yuan on a tight leash, China was "missing a tool" for managing economic affairs. "I made the point that monetary policy can be an effective tool and monetary policy can be more effective if there's a currency that is more reflective of underlying fundamentals," Paulson later told a small group of reporters. "China has sped up the rate of appreciation over the past year and there is no evidence this has harmed them," he added. China's economy grew 11.5 per cent in the first three quarters of the year, the fastest pace in more than a decade. - REUTERS nzherald.co.nz