No Dollars Accepted for Payment?

RJ Note: Combine this story with the news of the new world order at the recent G20 meeting. Yep, this ought to give everyone the shivers.

The demise of the dollar

In a graphic illustration of the new world order, Arab states have launched secret moves with
China, Russia and France to stop using the US currency for oil trading

By Robert Fisk

In the most profound financial change in recent Middle East history, Gulf Arabs are planning – along with China, Russia, Japan and France – to end dollar dealings for oil, moving instead to a basket of currencies including the Japanese yen and Chinese yuan, the euro, gold and a new, unified currency planned for nations in the Gulf Co-operation Council, including Saudi Arabia, Abu Dhabi, Kuwait and Qatar.

Secret meetings have already been held....http://www.independent.co.uk/news/business/news/the-demise-of-the-dollar-1798175.html

G-20 Advances New World Order, Media Admit
Alex Newman

26 September 2009
Almost as if a global memo had been sent out, headlines of major media outlets across the planet announced the unfolding of the coming “New World Order” — with a smaller role for the United States and freedom. A correspondingly larger role will be reserved for tyrannical governments like China and global economic management by international institutions, the news reports explained.

Even U.S. government-funded media outlets like Radio Free Europe/Radio Liberty used the term in an article headlined, “‘New World Order’ Emerging At G-20 Summit.” The article began: “A new world order is emerging.....http://www.thenewamerican.com/index.php/economy/commentary-mainmenu-43/1969-g20-advances-new-world-order-media-admit

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Does China's Growing Overseas Investments Signal a Global Power Shift?

RJ Note: Interesting story from Emory University--- Thought you'd be interested in reading it as well.

On July 20, Chinese Premier Wen Jiabao announced that the country intended to invest some of its record-breaking $2 trillion foreign exchange reserve to accelerate China’s overseas investments in natural resources and resource-extraction companies.

Although Chinese officials have refused to specify how much of their reserve they plan to reinvest, and some experts cite practical reasons China’s foreign currency reserve should be kept intact, on September 1 the country’s state-controlled lender, China Development Bank, formed a $5.1 billion investment fund that will be used in part to help Chinese companies acquire essential natural resources abroad.

Regardless of the ultimate dollar value of China’s overseas investment plans, professors at Emory University and its Goizueta Business School see these moves as the latest signs that China is increasingly in the driver’s seat of the world economy.

The tactical move Wen announced is part a larger strategic shift that China is making to transform itself from an export-driven economy and toward an economy fueled mostly by Chinese consumers, according to Jagdish Sheth, a chaired professor of marketing at Emory University's Goizueta Business School and author of the book Chindia Rising: How China and India Will Benefit Your Business (Tata-McGraw Hill, 2007).

Building a huge consumer market in China makes good strategic sense, Sheth says—and it’s similar to a shift the U.S. economy made in the late 19th century.

But why would a strong domestic economy entail buying commodities and assets outside China? The reason is that unlike the U.S., which had abundant resources but needed technology to harvest them, China has technology but limited resources. “In order to achieve its vision, its biggest challenge is going to be access to natural resources, including agricultural resources,” Sheth says. “China has great human talent, but it does not have sufficient natural resources within its own geographical boundaries,” he says.

Wen’s announcement is far from the first sign of the country’s plans to diversify the economy. Over the past six years, China’s overseas investments have risen geometrically, from $143 million in 2002 to $40.7 billion in 2008, according to Chinese government statistics, and up over 63% in 2007 alone.

In search of energy and other natural resources, the Chinese have been reshaping the face of Africa. Some authorities estimate that there are now more than 750,000 Chinese expatriates at work throughout the continent, many involved in developing mines and oil fields. Now they are reportedly looking farther afield, particularly to natural resources and resource companies in South America.

Although China has been criticized for its involvement with unsavory regimes such as the government of Sudan, Robert Ahdieh, a professor at Emory School of Law who has a specialty in international trade law, doesn’t see an ideological agenda involved in these investments. The Chinese are in such places, he says, mainly because assets in more stable and desirable spots were bought up long ago by Western companies. “The Chinese didn’t randomly say we only want to buy oil from rogue states,” he explains. “It’s just that the rogue states are the only ones on the table.”

Why the obsession with commodities? China’s reasoning, Ahdieh believes, is that getting hold of commodities in 10 years’ time could be difficult if India and China continue to grow as quickly as they have lately. “If their growth rates and industrialization pace continue, the level of demand for commodities is going to look very different in 10 and 20 years than it does today,” Ahdieh says.

The decision to cut down its foreign exchange reserve might seem like an internal matter for China, but it has significant implications for the U.S. In June, China, currently the largest holder of U.S. Treasury securities, reduced its holdings of U.S. Treasury debt by 3.1%, the largest percentage drop in eight years, according to Reuters and a Treasury Department report issued on August 17. In addition to the clear hint that China’s leaders may be tiring of the dubious privilege of serving as America’s largest creditor, the presence of a new competitor in the scramble for natural resources heightens geopolitical rivalries in an arena once dominated primarily by U.S. and European companies.

If China were to reduce its foreign exchange reserve, it could have a huge impact on federal borrowing costs and interest rates generally, since many of China’s foreign exchange assets are thought to be kept in U.S. Treasury bonds. (China does not divulge the exact breakdown of its foreign currency stockpiles.) “At the worst, if they really stopped buying they could throw America into a recession because they are now a major purchaser of the Treasury securities we have to sell in order to finance the government deficit,” explains Jeffrey Rosensweig, a professor of international finance at Goizueta and director of Emory’s Global Perspectives Program.

But Rosensweig and other professors don’t anticipate China making this move, except perhaps in a gradual way over time. It’s not in China’s interest to see the dollar go down or to see its best customers out of work, says Rosensweig.

“They may move some of the money they hold in foreign exchange reserves into some of those investments, but I don’t expect them to move a very significant part of it,” agrees Narasimhan Jegadeesh, a chaired professor of finance at Goizueta.

Levent Bulut, a visiting assistant professor of economics at Emory, is also of the mind that China will instead “gradually try to invest in profitable areas in the real market, in the real economy.”

The question remains if the Chinese can’t get away with a large-scale diversification right away, what is the meaning of Wen’s announcement? Rosensweig says we should read Wen’s announcement partly as a warning to the U.S., “reminding us that we’re now in a very vulnerable position. We can no longer just call the tune and lord it over other economies; part of it is saying, `you better respect us, because we could break you.’”

At the moment, it may be only a threat. Although the Chinese seem stuck in what both Chinese and American economists call “the dollar trap,” Emory scholars don’t appear optimistic that they will stay in that trap for good. When they finally escape, Americans could have a major adjustment ahead.

Although the U.S. has dealt with competition before, such as with Germany and Japan, Sheth argues that the competition with China will be different. “The scale economy of the domestic market China has is much larger and that gives it enormous advantages, both in making products but also in sourcing raw materials because you become such a big buyer,” he says.

The volumes demanded by a market of 1.3 billion could create a “Wal-Mart effect,” in Sheth’s view, in which China becomes the dominant buyer of a number of commodities, giving it a built-in cost advantage over other markets.

If that happens, Israeli business strategist Eli Goldratt has quipped, in ten years, the U.S. will have moved from the world’s number one power to “an island of 300 million, six weeks from China.”

Sheth argues that the rise of China to economic superpower isn’t at all far-fetched. Already, the U.S.’s position in the world has changed profoundly, he says. “Think about it—ten years ago, who would have ever imagined that China would become the biggest lender to America?”

While some critics point to the many challenges China faces—the need to feed and employ an enormous population; a government that lacks an electoral mandate; huge gaps between rich and poor—others see, as does Sheth, a country that has made precious few missteps on its way to economic power and is unlikely to start now. “In my view, they’ve done everything right,” Sheth says.

On the other hand, U.S. policy has few defenders among the faculty, some of whom see a much less important future ahead for the U.S.

“It’s our own bloody fault,” says Rosensweig. “We’ve run deficits for so long and had to borrow to finance them, and our own people have not saved enough to buy the bonds themselves—we’ve dug ourselves a debt trap.”

Sheth sees one problem that looms even larger: “The biggest problem in America is we are in a denial stage. We still don’t accept where the world is going and adapt accordingly.”

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Groom's Tireless Search For 'Something Old' Gives His Bride New Joy

RJ Note: Sometimes a smile is just the perfect reflection into the past. Enjoy.

(ARA) - Lt. Greg Martin wanted to give his fiancee the storybook wedding of her dreams. But he had a slight problem. She was in California planning their big day while he was on the other side of the world, stationed in Iraq. Being so far away made it even more difficult for him to hear the disappointment in her voice when she told him she couldn’t find something she had her heart set on for their big day.

"Years ago, my fiancee Shannon saw this cake topper she really liked in a department store that she thought would be perfect for her wedding day," says Martin. "It’s called ‘Swept Away’, and after I proposed Shannon remembered it and said the name was so fitting because I swept her away."

Unfortunately, the manufacturer of the topper, Lenox China, had discontinued it. Martin’s fiancee and her mother searched numerous stores and even got into bidding wars online, but couldn’t find the treasured piece. Martin started his own Internet search which led him to Replacements, Ltd., touted as the world’s largest supplier of old and new china, silver, crystal and collectibles. Unfortunately, Replacements had sold out of the cake topper as well. Little did a disappointed Martin know, his search had far from ended.

"My entire team was so touched by Greg’s story, how he was away serving our country and wanted so much to surprise his fiancee that we made it our mission to find that cake topper," says Martha Newman, Internet services manager for Replacements, Ltd.

Replacements has long helped those like Martin looking for patterns that are no longer in production. In fact, the company’s bridal registry offers hope to those brides looking to complete heirloom patterns lovingly passed down as wedding gifts from generation to generation.

"Even though we sell active patterns, nearly 79 percent of our bridal registry sales are generated from discontinued and heirloom patterns," says Donna Braswell-Bray, who oversees Replacements’ bridal program. "We’re one of the few places brides can turn to in finding patterns that are no longer being made, whether the manufacturer discontinued them last year or over a hundred years ago. In fact most manufacturers and department stores even refer customers to us for patterns they no longer carry."

What’s more, if a bride doesn’t know the pattern name or who made it, Replacements research department will help track down that information through the company’s free pattern identification service. Replacements receives up to 3,000 requests weekly from people looking to identify patterns they’ve inherited or whose name they simply can’t remember.

As for Martin’s dilemma, Replacements’ buying services team launched a nationwide search and finally found the highly sought after cake topper.

"Many of us were in tears, we were clapping and just so overwhelmed," says Newman. "We were so excited to let him know we were able to make this wish come true."

Replacements shipped the cake topper directly to Martin’s fiancee, and he called her so they could open it together over the phone. “I wish I could have been there to see her reaction and her big smile,” says Martin. "Needless to say Shannon was stunned and very excited to get the cake topper she wanted so much. I can’t believe they were able to help me find exactly what she wanted to make our wedding day perfect!"

To learn more about the company’s bridal registry and free pattern identification service, visit www.replacements.com.

Courtesy of ARAcontent

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China to Emerge as Fourth Largest Western Drug Consumer by 2012

RJ Note: Now, isn't this a kick?

24-7 -- We have recently released a new research report, "China Healthcare Sector Analysis", that says, western drugs are gaining popularity in China on account of their high efficacy and better results. The market size of western drugs in the country stood at US$ 15.5 Billion last year, and it is expected to surge at a CAGR of 14.4% by end of 2012, making China the world's fourth largest pharmaceutical market after the US, Japan and Germany.

The report identifies that rising aging population (above 65 years) in China is one of the key factors boosting sales of western drugs. In 2007, 104 Million people, constituting nearly 8% of the total population, in the country were above 65 years of age and this number is expected to rise to 322 Million, more than the entire present population of the US, by 2050. With growing aging population, the prevalence of various chronic diseases like arthritis, cardiovascular and diabetes is also anticipated to increase strongly in the country. This will give rise to enhanced need for western drugs.

Furthermore, the healthcare expenditure on a person, aged 65 years or above, is estimated to be higher by 3-6 times from what a person aged between 35 and 44 years spent. Thus, rising proportion of aging population is projected to create a strong demand for drugs in China.

"China Healthcare Sector Analysis" provides in-depth analysis on the factors that define the structure and composition of healthcare market in China. It also provides detailed statistical and analytical view on various parameters of the market, including demographics, macroeconomic indicators, disease profile, healthcare services market, pharmaceutical market, medical device market, key drivers and restraints. It also gives quality information to clients that enable them to plan their market strategies and assess opportunities in the Chinese healthcare sector.

The report also gives forecast on various segments of the Chinese healthcare industry, such as healthcare expenditure, traditional Chinese medicines market, medical devices market and medical devices market by segment.

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Will China Become the No. 1 Superpower?

RJ Note: As the world is watching the Olympics in China, this story really is food for thought. Where do you weigh in on the subject?

By Robert Roy Britt, LiveScience Managing Editor

As the world focuses on China during the Olympics and keeps a watchful eye on Russia's military moves in Georgia, there is an underlying expectation — and for some, fear — that China is poised to become the world's new No. 1 superpower. In fact, a good number of people in many countries believe the torch has already been passed......

Read the story.

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China stops the rain...

Well, maybe China stops the rain... Isn't there a song that has the words "who'll stop the rain" in it? Somehow I don't think the Chinese will succeed in stopping the rain for the Olympics.

I saw a bit on TV a few months ago about the Chinese building an open-air stadium for the Olympics. This is monsoon or the rainy season in China so many thought it was not a very good idea to subject the athletes and crowds to the rain.

However, China decided they would master the rain and stop it from raining over the stadium.

(Can't you just picture an army holding hoses aimed at clouds trying to fill up with so much water that they'll disperse the rain before it hits the stadium? ;-)

I was just talking to a friend about today being 8-8-08, supposedly the luckiest day of the year to the Chinese, thus it is the day they chose to start the Olympics. It reminded me of the story on the rain so I thought I'd wander around and see if I could find out how successful they had been.

My impression from the initial story was that those working on stopping the rain had been told they would succeed, but none of the scientists seemed overly confident when talking to the interviewers.

They have spent a lot of money and time trying to control weather. I can't even begin to imagine how many variables there must be to consider when trying to stop a cloud that is heavy-laden with water from dumping it whenever it wants.

They now have 53,000 working to stop the rain (no, the comma is not in the wrong place, that really is 53 thousand). From the stories I've skimmed, it looks like they may not have succeeded. Does this mean off with their heads? Hmm...

Here's a few stories I found about it with a bit at the end on pollution in China:

March 08 article:
Weather Engineering in China
How the Chinese plan to modify the weather in Beijing during the Olympics, using supercomputers and artillery.
By Mark Williams
To prevent rain over the roofless 91,000-seat Olympic stadium that Beijing natives have nicknamed the Bird's Nest, the city's branch of the national Weather Modification Office--itself a department of the larger China Meteorological Administration--has prepared a three-stage program for the 2008 Olympics this August... http://www.technologyreview.com/Infotech/20463/?a=f

August 8th (today) article in Guardian (UK)
China takes battle to the heavens in search of the sun
It sounds like Star Trek but 53,000 really are employed to change the weather
http://www.guardian.co.uk/sport/2008/aug/08/olympics20081

Cloud Seeding: Changing Weather
Gareth Deighan, Sky News Online
In the weeks and months leading up to the Olympics, China has been firing rockets and cannons into the sky in preparation.
http://news.sky.com/skynews/Home/World-News/Beijing-Olympics-China-Uses-Cloud-Seeding-To-Try-To-Change-Weather/Article/200808115073313?lpos=World%2BNews_2&lid=ARTICLE_15073313_Beijing%2BOlympics%253A%2BChina%2BUses%2BCloud%2BSeeding%2BTo%2BTry%2BTo%2BChange%2BWeather

8/7/08
No time to be under a cloud
Hitting every detail, China says it may control tomorrow's weather
http://www.boston.com/sports/other_sports/olympics/articles/2008/08/07/no_time_to_be_under_a_cloud/

8/8/08
BEIJING 2008: RAIN AND SMOG THREATEN OPENING CEREMONY
(AGI) - Beijing, Aug 8 - Smog and rain threaten today's opening ceremony of the Olympic Games of Beijing 2008. Chinese authorities have done much to fight the pollution, only half the usual number of cars on the road, many plants closed. But the air quality still is at the safety limits. Nevertheless, a few hours from the start of the ceremony the organisation has reassured everybody. Then there is the bad weather...http://www.agi.it/world/news/200808080931-cro-ren0004-art.html

Rain Likely at Beijing Olympics’ Opening Ceremony
The China Meteorological Administration (CMA) is predicting a 40 percent chance of rain the day of the Olympics’ opening ceremony. The CMA is also warning that hurricanes could interrupt sporting events held in other cities during the Games. http://en.epochtimes.com/n2/china/rain-olympics-opening-ceremony-2342.html

Here's another little tidbit I found in Sky News Online regarding the pollution:

China Pollution Levels
Sky News has been testing the level of air pollution in Beijing ahead of the Olympic Games and comparing it to UK cities. The results are:
Beijing
333 micrograms per metre cubed
London
56 μg/m3
Glasgow
42 μg/m3
Manchester
29 μg/m3
The UK figures are the latest available from Defra.