Posts Tagged ‘China’

Manipulating The Food Basket

Tuesday, February 15th, 2011

Yes, it’s the Chinese again, changing their statistical basis of inflation to de-emphasize the rising cost of food.

And it’s this sort of manipulation that makes it impossible to gather, let alone analyze, reliable statistics from the Chinese authorities.

There’s no doubt that inflation is rising rapidly in China, just as there’s no doubt that the obvious solution, letting the currency appreciate by at least 20%, is politically untenable, even for a dictatorship.

Gorilla says: “All this fiddling does not make for a happy symphony!”

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Rabbit Test

Wednesday, February 2nd, 2011

Time for China to whip inflation now, says its Premier!!!

And of course the easiest way to do this in the Year Of The Rabbit would be to let the currency appreciate by 20-30%.

Alas, beggar thy neighbor and support thy exporter are the only slogans that count in Beijing.

Gorilla says: “Hippity, hoppity, chaos on its way!”

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Knowing Your Onions

Monday, January 10th, 2011

And engaging in the usual trade protectionism, now disguised as a triumph of anti-smuggling!

It must be Euroland!

Seems some Poles are working with the Chinese to smuggle in garlic disguised as onions, so as to save money on tariffs!

Rather than lower the tariffs, possibly putting Euroland producers out of business (the Chinese supply more than 90% of the garlic sold in the US, for example) or encouraging non-Chinese producers in poorer countries to get going with garlic exports, the EU congratulates itself on keeping the barriers to entry high!

Gorilla says: “It’s no wonder that ag subsidies are 60% of the budget in Brussels!”

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Or They Could…

Monday, December 27th, 2010

Simply allow the yuan to rise by 20-30%, but that seems politically unfeasible for a dictatorship dependent on mercantilism and beggar thy neighbor!

Gorilla says: “Chinese inflation is this year’s Beijing duck!”

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The Clowns Of December

Tuesday, December 7th, 2010

The Nobel Peace Prize is going to a Chinese dissident and the Chinese are not happy!

Joining them in their freedom hating paranoia are the following countries, two of whom the US is spending vast national treasure and blood on so as to promote “freedom”:

Russia, Kazakhstan, Colombia, Tunisia, Saudi Arabia, Pakistan, Serbia, Iraq, Iran, Vietnam, Afghanistan, Venezuela, the Philippines, Egypt, Sudan, Ukraine, Cuba and Morocco.

Gorilla says: “Time for us to stop supporting such ineffectual clowns!”

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13 Days And Waddya Get?

Monday, December 6th, 2010

Another “who cares?” from China!

And this time the Chinese are right: nobody’s going to war over North Korea.

And as usual, the Chinese want to play both sides against the middle.

What’s not clear is what the US thinks the middle is when it comes to North Korea.

Pyongyang, like Tehran, is not a serious threat to anyone, and, despite all the posturing, there’s little appetite in DC for another pointless regional war.

But we’ve backed ourselves into a no-win position by insisting that these fifth-rate failing regimes are an existential threat to America.

Gorilla says: “Our President’s too busy soothing unruly child billionaires!”

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Disconnected From Reality

Thursday, September 16th, 2010

US poverty rate: highest since 1994!

China currency manipulation: no doubt about it (Germans, too!)!

So what’s being done?

Poverty? Zero!!!

It appears our leaders think that poverty is a problem of “the other”, which specifically means blacks and browns and gays and non-mommy track women and scientists, but more generally means any American with whom you don’t share empathy, a PAC, or a pension plan: indebted homeowners, the unemployed, nonprofessionals, etc. etc. etc.

China currency manipulation? Off to the G-20!!!

There are few groups of nations in the world who get together more and do less than the G-20, only the G-8 rivals for empty rhetoric, empty promises, and empty “reform”.

Those disconnected from everyday reality are essentially a series of jokes without a punchline.

Gorilla says: “Laugh, clowns, laugh, that’s all you’re offering!!!”

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Assault Of The Earth

Monday, August 30th, 2010

The Chinese are, surprise, surprise!, restricting rare earth metal exports and favoring sales to Chinese companies.

Not exactly a shock from a country that provides 97% of the world’s current supply.

And of course Beijing’s excuse is, wait for it!, a desire not to add to environmental destruction through more mining!

Meanwhile, the US, Japan, and other countries have to decide whether to start up their own rare earth mining and engage in the sort of stockpiling/retaliation schemes and WTO nose thumbing that is the hallmark of Chinese trade policy.

Gorilla says: “We’re all Chilean miners now!”

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Nuclear War This Weekend?

Saturday, July 24th, 2010

North Korea isn’t too happy about South Korean-American military exercises this weekend, and threatens to use its “nuclear deterrent” if they go forward…

Putting aside whether this threat is genuine (the guess here is that it’s not), the problem with North Korea is that it’s only a threat to South Korea, and nobody’s going to war over that.

So what’s the point of all these military pr exercises?

To demonstrate we’re serious about something, although it’s not clear what.

To show the Chinese we mean business, although they’ve correctly concluded our bilateral relationship is far more important than anything we say or do about fifth-rate regional irritants.

To put the brakes on anyone in Washington getting too zealous about cutting the defense budget, presumably we need all those ships and planes to defend ourselves against the collective might of North Korea, Iran, and the Taliban.

Once the sabers have stopped rattling, we’ll again confront the same issue: do we or do we not wish to engage in serious, bilateral diplomacy with these very minor rogue states and insurgency movements?

In Afghanistan, we clearly want a deal with the Taliban, but can’t be seen to be negotiating. So we allow Karzai to make sympathetic outreach noises and the UN to undertake very drawn out talks with the principals.

In Iran, we can’t be seen to be negotiating directly because that won’t play well on the local news in an election year. So it’s another round of sanctions and lots of huffing and puffing.

In North Korea, we could negotiate directly, but we also want to play the Chinese off against our Asian allies for some as yet undetermined benefit (aka “the Jack Spratleys strategem”).

Gorilla says: “Pretending to care is always easier than pretending to dare!”

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The New Credit Sheriff

Tuesday, July 13th, 2010

China’s got a new credit ratings agency, and the grades are a bit different!

Top sovereign credit, AAA?

Norway, Denmark, Switzerland, Singapore, Australia, New Zealand

Nearly there, AA+?

China, Germany, Netherlands, Canada

AA or below?

United States, France, Britain, Italy, Malaysia

Stating the bleeding obvious:

“The reason for the global financial crisis and debt crisis in Europe is that the current international credit rating system does not correctly reveal the debtor’s repayment ability,” said Guan Jianzhong, Dagong’s chairman.

Gorilla says: “We’re all Chinese subprime now!”

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