Leslie Gelb, president emeritus of the prestigious American think tank Council of Foreign Relations wrote last week that the Barack Obama administration has quietly “altered its plans to move some US security resources from an unthreatened Europe to an uncertain Asia… administration leaders realized they had gratuitously offended European allies and gratuitously provided Beijing’s hawks with ammunition to argue that America was formally and openly instituting a policy of containing China. The Obama team’s minds were surely jolted when so many privately expressed unhappiness about the provocative public pivot.”
Gelb commended this rethink on the Pentagon’s so-called “pivot” to Asia because in any case “if the US were to be in trouble or require help, it is unimaginable that India, Vietnam, Saudi Arabia, Brazil, Turkey, or whatever country would actively back Washington with money and arms. The US can count on only the Europe Plus group.”
One caveat to Gelb’s argument is about the capacity of Europe Plus to come to the the rescue of the US in a near future. Another caveat could be that if the US is in serious trouble today and needs back-up with money, its rescuer would be most likely China.
An exclusive Reuters report suggests that the Obama administration is putting China as its “money manager” in a privileged status. China will be the only country that can sidestep Wall Street and lend directly to the US Treasury! Howzaat?
The Obama administration apparently rewrote financial rules whereby China’s Central Bank can go straight to the US Treasury and buy government bonds in a unique proceedure ignoring the Wall Street middlemen so that the confidentiality of the transactions will remain strictly between Washington and Beijing and, furthermore, Beijing won’t have to pay commission to the Wall Street banks! Even Japan doesn’t enjoy such a privileged status.
Now, how do you “contain” the goose that lays the golden egg? Aren’t we all duffers who were sold out on the US’ “pivot” to Asia? Hmm. This Obama is a smart man. The Reuters story is here.
I don’t see this as an American triumph, but rather an indication of the rising power of the Chinese in the American economy and political arena. Giving them a direct means to participate in the US bond auction, saves them money and makes their moves opaque. They surely aren’t required participate if not so moved. I see this as a concession to them, probably as a quid pro quo for some unknown favor. Perhaps for the agreement that they don’t participate in non SWIFT banking exchange, but then again who knows?
—The cave-in thesis seems to support the premise that “the chinese economy is run by the rothchilds”?! ;( whatever that means)
Top 5 Indian litany
1. Tibet. the water basin
“… What exactly is the problem that Indians have with China? …”
Perhaps only the old territorial disputes. http://en.wikipedia.org/wiki/Sino-Indian_border_dispute
Why can’t we look at it from another perspective? Obama’s pivot to Asia is openly billed as an concerted attempt to threaten and contain China. Wen Jiabao’s response could be and is regarded by many in China and elsewhere in Asia as a cave in to USA’s pressure. One final question: It is illogical to me to hear Indians openly expressing hostility to China. What exactly is the problem that Indians have with China?
The banking-cartel, couched as the fed, may be the true monster, that looses some fat, due to such a move.
While I agree it is a smart move to keep China appeased while furthering its own interests, as the article points out, it gives too much into the hands of the Chinese.
China, the monster is growing due to the enormous trade surplus. What this move does is make it more convenient for the trade imbalance to widen and therefore make China even more monstrous.