Asia 'will retaliate' over Wolfowitz

[donsu]

http://www.money.telegraph.co.uk/money/main.jhtml?xml=/money/2005/04/03/cnwbank03.xml&menuId=242&sSheet=/money/2005/04/03/ixfrontcity.html


The appointment of Paul Wolfowitz, the US deputy defence secretary, as president of the World Bank will provoke 'significant negative reactions' from governments of powerful emerging economies, according to an influential executive at the world's largest bond fund manager.

Mohamed El-Erian, a managing director at Pacific Investment Management Company (Pimco), fears a "possible backlash" for the "complete lack of consultation with Asian countries, for instance", and points out that the purchase of US treasury bills by China's central bank is one of the main ways America finances its trade deficit.

-snip-

"If Asia decides to do its own thing, the implications will be felt in the US and UK too in terms of higher interest rates, lower consumption and fewer jobs," he said.

He claimed that China will be "particularly annoyed" by reports that one of Europe's conditions for accepting Wolfowitz was that a European be installed as World Bank vice president.
-snip-
----------------------------

:)

[ayeshahaqqiqa]

1. Someone is shaking the table

upon which Bush built his house of cards. Do you think our economy will collapse this summer or in the fall?

[NMDemDist2]

2. the decline will start with the summer gas prices

look for a bleak Christmas

[cliss]

4. You could be right.

I've read a few threads that predict that oil will skyrocket to $100.00 per barrel. When that happens, our economy will very quickly slow down, to adjust to this shock. Lots of companies will go out of business, in particular trucking companies.

I also read that an oil refinery in Venezuela was shut down because of a power outage (?) (Hugo?). It will take almost a week until it's up and running again. We are desperately dependent on Chavez's oil.

Things could get ugly even sooner.

[Pachamama]

6. Hugo's been watching what Kenny Boy & Enron did to us in the West back in

2000....Can you blame him? Bush Co wants to assasinate him or at the very least overthrough and destabilize Venezuela and Chavez is giving Busg the big middle finger wave...sadly all of us will bare the brunt of it...and one wonders why the Boy King was so so eager to build up that "strategic oil reserve"...:eyes:

[Muddy Waters Guitar]

13. Yeah, poor Hugo is squarely in the neocons' crosshairs

Despite being a democratically elected leader with extensive popular support (as shown in a recent referendum), Chavez's crime is that he's not the *right* type of democratic leader, i.e. one who cravenly kowtows to neocon world domination fantasies. Therefore he must go. I sure hope Hugo's bodyguards have been trained to check under automobile hoods and, survey the windows for snipers before those morning walks...

[Pachamama]

5. If you look back at my posts, I said 6-9 months back in December - so I'll

stick with my prediction and say August/September....my husband and I have been selling off our properties (even though in some cases having to pay Capital Gains - but hey, its a super tax friendly time w/ Bush in the White House!) and we are downsizing on the house, locking in to a low fixed interest rate and selling off our stock, moving our 401K into safer less risky investments and also meanwhile buying property in Canada and moving cash out of the US. We also are looking into being able to go solar and we are looking into buying our first "new" car in over 8 years, a HYBRID. We figure that way, wnhen things tank here and energy prices go through the roof (or are scarce), we will have those preparations in place.

Things are going to get real bad folks....like nothing this country has seen before, worse than in the Great Depression...I seriously believe that...

[aquart]

10. No matter how pissed China is...

Their prosperity is built on us. They hold our bonds, they have our factories, they sell their goods to us.

We crash, it's possible they crash. They've begun arranging deals with other countries, but the switch may take longer than a year....so while we may hurt, they won't destroy us....BUT....

When we can't afford the goods they make......there won't be any reason left not to crash us.

Bush and his idiot cronies NEVER understood the economic interlocking that was holding us up, and preventing major wars between the trading powers. They only see things in terms of military might. Swaggering assholes.

[Muddy Waters Guitar]

14. Yeah-- China is already reducing that exposure rapidly

They're quietly shifting their reserve assets into Euros, gold... and OIL. China's exchanging its existing dollar reserves for useful commodities and Euros at a steady clip, while balking at continuing to finance the $2 billion a day that the US accumulates on the deficit. You're right, it'll take about a year or so, but China before long will have shifted the bulk of its assets to Euros and shifted the greenback problem to Saudi Arabia by building up massive oil reserves, refocusing its trade on Europe and South America. They've milked us for all we're worth to spur their growth, and they're sick and tired of underwriting our profligacy, so now they'll look elsewhere. That will be when the crash hits-- when they don't need us anymore, they'll stop holding back the noose that Dubya has fashioned for our economy here. And Japan and South Korea won't be picking up the slack.

[aquart]

3. He's saying "will." Not "may." Not "is."

That's interesting. And really pushy. Either someone from China told him what to say, or he's risking getting their back up. But, why won't he say that's how they feel NOW? Why put it in the future? What are our options not to prevent this future?

My first reaction to the Wolfowitz appointment was that the World Bank was about to find itself irrelevant. If Bush won't make serious good faith efforts, nobody is going to bother with him. He's already got his people on record saying our Social Security bonds ain't worth spit, no reason he won't default on the rest of our obligations. At any rate, he's allowed the dollar to sink so much that it may never recover, which is another way of trashing our obligations.

Yep, this was the first signal that the World Bank and the mighty dollar are no longer factors in world economics.

[PearliePoo2]

7. my understanding

of economics is really limited, but I have to wonder why our
idiot-in-thief would want to take us down this road. What's to be gained by the Neo-cons for the falling dollar and record deficits???
Why would anyone see our economy "tanking" as a good thing?
Help me out here, anyone?

[ret5hd]

8. i forget who said it, but...

someone once said "a depression is when property returns to its rightful owners".

maybe that answers your question.

[ldf]

11. the super rich

won't be hurt.

they will come in and bottom feed, accumulating even more, in fewer hands.

[w4rma]

15. Richard Mellon Scaife, I believe, said that. (nt)

[ret5hd]

16. boy, that would fit...

there have been few lower than him. Disgusting.

[johnaries]

9. They want to "force" the issue so there will be public outcry

and support for their ultimate plan for reform:
http://www.newamericancentury.org/globalmar1298.htm

[peacetalksforall]

12. Serfdom and slavery.

Oil and water =

ceo's -- unions
kings -- voices of dissent
secrecy-- open societies

Everything we hold sacred is involved in the why? Why would they mess with our precious vote, our jobs, our Constitution and Bill of Rights? Our ideals of home owning and giving our children a safe place to play and learn and get an education so that they can be more successful (than us)? Getting along and being tolerant of neighbors? Wisdom of legislation and evolving wisdom to legislate as a result of clarity and generosity based on a treasure chest of religious and spiritual beliefs?. A judicial and police force that works for us? Jury of peers?

Everything we have is under attack. It isn't just the economy. But, if they hit at money, logic, and communication, they win.

Here is is in my simple way of approaching it...so far:

Dwindling money means working harder.
Working harder means knowing less.
Working harder and knowing less means inability to communicate and easier to control and a cheaper work force.

Can we say that never before in our history has our enemy been a giant cabal of politicians, banking, military brass, corporations, especially their media corporations who are exquisitely structured and organized to take us down for their profit.

It is PROFIT AND CONTROL and protecting the future of profit for a few by drastically affecting our work, knowledge, and ability to learn and communicate and by not letting our vote count.

It is a destruction of democracy since our two hundred year old hallmark was our ability to throw out those who don't work for us with our vote.