Posts Tagged ‘China’

Bits And Bobs And BVDs

Tuesday, May 8th, 2012

Another underwear bomber: another ridiculous story of a plot that went nowhere, apparently designed to make DOD/CIA/TSA budget requests foolproof.

Hillary hits a snag in India: no, the Indians will not be supporting the US boycott of Iranian oil, and no, the Chinese won’t either.

Gay marriage: what’s worse, not stating what you believe or pretending that your cowardice will change once Arne Duncan weighs in?

Greece and France: Contagion will continue, as will pointless austerity. Elections no longer seem to matter in Euroland, unless they’re approved by the Bundesbank.

Gorilla says: “So far, a weak of very minor irritations and politics as usual!”


Possibly Big News

Monday, March 12th, 2012

China may at last be moving to allow free trade in its currency.

If so, this will be a big story that should have a very positive impact on global economic growth.

The yuan has been undervalued for many years and the need for China to encourage greater domestic demand will go a long way towards improving global trade imbalances.

Gorilla says: “We can only hope Germany gets the message, too!”


Quote Of The Day

Friday, October 28th, 2011

French Finance Minister Francois Baroin: “The reality is that China is the third largest shareholder in the International Monetary Fund, and if China via the IMF wants to participate – not by saving Greece or the euro – but by participating in investment, that is a gesture of confidence”.

Gorilla translates: “Who knew the ECB would be relocating from Frankfurt to Beijing?”


More Pentagon Foolishness

Thursday, August 25th, 2011

China: a “modern military” by 2020, sayeth the Pentagon!!!

And of course, they’re spending roughly 10% of what we waste on defense to achieve this modernity, so we must spend even more!!!

It’s utter nonsense of the first order. We could reduce the Defense Department’s budget by 50% and still be spending far more than anyone else in the world.

Gorilla says: “Being a threat apparently is always cheaper than pretending to be threatened!!!”


Chinese Inflation

Tuesday, August 9th, 2011

Now running at 6.5%, despite various interest rate and reserve requirement increases.

And the Chinese, like everyone else, are behaving stupidly.

What’s needed is a substantial rise in the value of the yuan, on the order of 25%.

This would spread the impact of inflation within China by making imports more expensive.

This would also redress the serious global trade imbalances, caused in part by China’s pursuing a mercantilist trade policy.

And this would make the slumping US and Euroland economies more productive.

But the Chinese fear their own people, so the muddle through approach continues, to the detriment of all.

Gorilla says: “Communists, capitalists, we’re all idiots at the moment!”


Not Whipping Inflation Now

Monday, June 27th, 2011

The Chinese now say they’ll probably miss their 4% inflation target, despite many rises in interest rates and reserve requirements…

The problem, as ever, is the currency.

What’s needed is an appreciation on the order of 25-30%, which would allow the country to more evenly distribute and control inflation throughout the economy.

Instead, the Chinese continue to favor exporters in what is an unsustainable policy of currency manipulation.

The fear is social upheaval, threatening the authorities, when in fact social upheaval is inevitable under the current approach.

Gorilla says: “If only we could convince our own central banks to inflate like the Chinese!!!”


Stabilizing The Wrong Currency

Thursday, March 17th, 2011

The yen’s been rising, who knows why (is everyone shorting?)

So the G7 does its bit for depreciation!

Gorilla says: “And the yuan is just a yawn?”


Curiously Chinese

Monday, March 14th, 2011

The Chinese government wants:

1) Political reform, so long as it doesn’t have any negative impact on the current system and those who run it.

2) More compensation for the parents of Chinese students killed in the New Zealand earthquake.

Gorilla does the translation: “Paying off the parents, now that the students are no longer a political threat!”


How Freedom Of The Press Works In China

Tuesday, March 8th, 2011

In two words: it doesn’t!

China remains a medieval dictatorship, no different than Saudi Arabia, or Iran, or Russia, or North Korea.

Gorilla says: “And reporting the truth about China will continue, whether they like it or not!”


Almost an Eighth!

Friday, March 4th, 2011

The Chinese annual defense budget, that is, in comparison to the Pentagon’s annual budget!

Should we be worried about this? No, not at all!!!

If the Chinese want to piss away lots of money on national security, that’s their business. It’s one of the few things we Americans know how to do!

But undoubtedly voices will be raised in DC, Tokyo, Seoul and Moscow, all clamoring for yet more firepower against “this regional threat”.

Gorilla says: “For what the Chinese spend, we could give every unemployed American a check for $3,640, and still lose two pointless wars!!!”