Right-Wing Tabloid says Communist not Communist enough – Need to learn to share

Item republished in the UK Daily Telegraph.

It seems that it is the communists fault. If only they would share more and saved so much money. Premier Wen Jiabao needs to be more caring.

From Edward Hadas at Breakingviews.com

Chinese premier Wen needs to think of the greater global good
Wen Jiabao, the Chinese Prime Minster, has told the Financial Times that “it is completely confusing right and wrong” to blame generous lenders for the problems of reckless borrowers.

He is talking about countries not consumers, and his logic puts China on the moral high ground. His stance is unhelpful.
The comments were a riposte to the charge that China should share some of the blame for the financial crisis, having used too much its vast trade surplus – 6pc of GDP in 2008 and the source of $2 trillion in foreign currency reserves – to buy US government debt.
Those accusing China of bad practice, a group which includes new US Treasury Secretary Tim Geithner, say those funds provided the fuel for the credit boom, now turned bust. China has lent foolishly, they say, and should be punished.
Wen has quite a different understanding of good and bad behaviour. In the interview, he compares profligate borrowers, mainly the US, with Zhu Ba Jie, a fallen deity who is part-human and part-pig. The character in the Chinese epic tale Journey to the West is famously gluttonous and refuses to take good advice.
From a purely Chinese perspective, it’s hard to argue with Wen. A consistently cheap renminbi helped create hundreds of millions of jobs, spread skills and virtually eliminate poverty. The government even let the currency rise by 20pc over three years, only stopping the steady revaluation when the crisis hit in 2008.
But maintaining this China-first attitude will make it harder to find a resolution to the financial mess. However the fault is apportioned, everyone is now involved.
China has much to contribute to a solution which will also be to its own benefit: a commitment to move steadily to eliminate the trade surplus, a promise not to dump dollars on the market and an agreement not to take desperate measures to stop the domestic growth rate from falling.
People and nations can be persuaded to sacrifice short-term self-interest for the greater good. Indeed, industrial prosperity and global trade depend on the widespread willingness to share pains and limit gains. Wen – and his counterparts around the world – should keep their eyes on the greater good.

It looks like no matter what China does it cannot win. Please look at Premier Wen’s Davos speech, he outlines what China is doing but he also said China could not rescue the World alone.

For better article please see China Hand and read – China to Obama:

    “Nice T-Bill Auction Ya Got There…Hate to See Anything Happen to It”

Gaza, The case for Middle East Peace – WEF

 

It is rare that you can see history happening. The above webcast meeting does more to explain the cuurent situation than reading 10 000 articles. It is a first class primer on body language. It is over an hour long but  if you have not seen it watch it all the way through.

It begins with Secretary General Ban Ki Moon describing the situation now in Gaza. Then it goes on to Prime Minister Reecip Tayyip Erdogan of Turkey, then there is Secretary General Amre Moussa of the League of Arab States and last but not least was President Shimon Peres of Israel.

I got the impression that PM Erdogan spoke from the heart. He discusses various things, interestingly he slips in a little detail about being kept waiting with his wife coming into Israel from having been in Ramallah. A lot of the details he describes how he has proposed and try to deliver aid to Gaza. The other hot button issue for Erdogan is the treatment of Hamas as a political party. Erdogan has been attacked for his Islamist views and threatened with life bans from Turkish politics because of it.  Erdogan’s bona fides are out there, he has helped Israel in the past and he is helping negotiations with Syria. 

Amri Moussa spoke in English like a true diplomat, this was the first time I have heard him speak and put his point of view across. He sort of warns Israel that they have to make peace this year or else. He made the telling quip that he knew that Peres would speak last and the longest.

Then comes President Shimon Peres. He sounded like he was at Jewish fund raiser, it was almost a rote speech. He pulled out the Hamas charter etc. He did not even try to apologise for keeping the Prime Minister waiting at the border. Peres does reveal the double standard, for Palestine, only Abbas is allowed to speak, but for Israel, Olmert needs the permission of  Knesset.

Erdogan trys for a rebuttal of Peres but is cut short. I do feel that Erdogan should have five minutes but the fix was in, the takeaway message was supposed to be that of Israel. With Erdogan’s walkout, everybody remembers him and then they want to know what he said. (All of this is immaterial in the age of the internet since the meeting can be intensely scrutinised. )

Israel, if you want repair relations with Erdogan then

  • Apologise for the wait
  • Do not keep any Turkish aid to Gaza waiting, expedite if necessary.
  • Release the women and children you hold as a gesture of good faith.

For any Pro-Israelis out there, at the end of the day Israel can do what it likes but time is against it. Don’t  blinded by the rhetoric, watch what your government actuallydoes and decide what you want for your children.

8% – Why Premier Wen Jiabao 温家宝 is my hero

Best New Years News

Premier Wen Jiabao

Premier Wen Jiabao

The best economic news this month has been from Premier Wen Jiabao 温家宝 .In his speech that Premier Wen gave at Davos yesterday 28 Jan 2009, Premier Wen annouced that China’s goal is 8% growth for 2009, he did qualify it by saying it would be difficult but it was achievable. Importantly his strategy is not just based on hoping Walmart will buy stuff but a lot of money will be thrown at improving infrastructure and health for all Chinese people.

Premier Wen is talking about spending 16% of  Chinas 2007 GDP in infrastructure developement. If Prime Minister Rud was to commit to the same thing then in Australia we would be throwing some of the order of  AUD $195 Billion dollars at our infrastructure.

If there is hope for the Australian economy, this is it.

I can’t believe the Australian, the Fairfax press, or the Australian Broadcasting Corporation have not made this one of their major headlines. Do any of these main stream media outlets believe that we will come out the recession by selling houses to each other.

Canberra, We have a problem! Cancel Davos!

It has just been announced that the prime minister will not be going to Davos this year. This has been an almost compulsory “knees up” for the worlds pollies.

Prime minister will not be eating this

Prime minister will not be eating this

The reason given is that the Australian economy is worsening.

I would suspect that there have been some serious cancellations of orders for coal and iron ore. This means all that is left of the Australian economy is selling houses to each other. It could be that the clouds on the horizon are those of a category 4 cyclone. Batten down the hatches and check the batteries.

In looking for background for this story.

Also

“And we’ve had units with sea views dropping back to $325,000 from $350,000.”

Mr Harris said it was a chance to join the market, as management options allowed buyers to earn 11 months of revenue from their paradise then enjoy it for about four weeks a year.

“It’s probably the best way to have a home here and have an income.”

Christie Leet, of PRD Nationwide Whitsundays, said it was the best market he had ever seen.

“I’ve been here for 21 years and it’s the best that I’ve seen as far as affordability goes,” he said.

“The prices are low and the lending interest rates are low as well, which means they have great affordability.

“And there are some very motivated sellers out there – it’s a buyer’s market.”

Mr Harris said the prices wouldn’t go much lower.

“I don’t think we’ll see a lower price at this point,” he said.

“It’s a buyers market and it’s your turn to bargain.”

From the Mackay Mercury Buyers market for Whitsunday views

Yup! – Housing crash has reached the Whitsundays. When real estate agents in that part of the world admit to 10% drop, you know there is blood in the water. Currently the biggest generator of income in this region is from people who work on the coal mines in the Bowen Basin. They can easily reach 6 digit incomes, what is not apparent is that half the income of the miners is the coal bonus. This can be cut at any time slicing $10 k to $25 k from the household income.