Former BIS Chief Economist Warns “More Dangers Now Than In 2007”

Bloomberg

 

Having warned in the past that “the system is dangerously unacnhored,” former chief economist of the Bank for International Settlements, William White, told Bloomberg TV overnight that the current situation “looks very similar to 2008,” adding that OECD sees “more dangers” today than in 2007. Continue reading

America’s Weapons: “The Dollar and the Drone”

 

It was said that “the guinea and the gallows” were the true instruments of British imperial power.

The guinea represented the coined wealth of Great Britain.

The gallows represented its… constabulary zeal in policing restless natives.

This is the 21st century of course… a time of enlightenment.

Today’s instruments of imperial power are no longer the guinea and the gallows.

No. Today’s instruments of imperial power are “the dollar and the drone.” Continue reading

Struggle over the Arctic

BERLIN (Own report) – According to a German military officer, China’s economic activities in Greenland and Iceland could cause future wars. If the People’s Republic should “establish” itself in the Arctic – as a “great power alien to the region” – this would “instigate military conflicts,” according to a recent semi-official publication. To prove his point, the author, a reserve officer of the Bundeswehr, refers to China’s mining investments in Greenland and Beijing’s alleged plans to settle systematically Chinese specialists in the region. The “ethnic form of influence” expressed in this plan and the People’s Republic’s commitment to protect the “sovereign rights of the indigenous population” constitute a “declaration of war on the West,” the author writes. With regard to Iceland, the officer particularly criticizes the construction of a harbor in the Northeast of the island state, which is allegedly financed by a Chinese company. If the People’s Republic is thus creating a “regional central hub” for raw materials extracted from the Arctic, it would be in “favorable geopolitical starting blocks” vis-à-vis the “European Atlantic states,” the author explains, speaking already of a “gradual Chinese land grab” at the polar circle.

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India, China troops in high-altitude clash: Officials

The latest incident comes amid an ongoing dispute between the two sides over a strategic Himalayan plateau thousands of kilometres away where hundreds of Indian and Chinese soldiers have been facing off against each other for more than two months AFP/Diptendu DUTTA

 

SRINAGAR: Indian and Chinese troops clashed briefly on a disputed area of land in the Himalayas, officials said on Wednesday (Aug 16), exacerbating tensions during a months-long stand-off between the two armies.

Chinese troops threw stones at Indian soldiers near Pangong Lake, a major tourist attraction in the picturesque mountain region of Ladakh on Tuesday, an Indian defence official said.

He said Chinese soldiers had twice tried to enter the Indian territory but had been pushed back. Continue reading

Historic Shift in Geopolitical Alignments: India and Pakistan Join Shanghai Cooperation Organization (SCO)

 

On June 9, both India and Pakistan became simultaneously members of the Shanghai Cooperation Organization (SCO), a Eurasian economic, political and mutual security organization largely dominated by China and Russia. 

While the SCO with headquarters in Beijing is not officially a “military alliance”, it nonetheless serves as a geopolitical and strategic “counterweight” to US-NATO and its allies. It also plays a significant role in the development of  Eurasian trade, e.g. in support of China’s Belt and Road initiative, oil and gas pipeline corridors linking SCO member states, etc.

In the course of the last few years, the SCO has extended its cooperation in military affairs and intelligence. War games were held under the auspices of the SCO.

The members of  the SCO include China, Kazakhstan, Kyrgyzstan, Russia, Tajikistan and Uzbekistan. Pakistan and India are now full members since June 9, 2017. Iran is an Observer Member slated to shortly become a full member.

The SCO now encompasses an extensive region which now comprises approximately half of the World’s population. Continue reading

China Threatens India Over Border: “Leave Chinese Land Or Face War”

 

While the world’s eyes are focused on Syria, Russia, Ukraine, and North Korea; there is another – much more tense – fight between two nuclear powers that is getting far too little attention. The world’s two most populous nations, China and India, have been engaged in a border dispute for decades but in recent months it has flared once again with a Chinese Ministry of Defense official now warning explicitly that Indian troops must leave the contested Doklam area if they do not want war.

The latest standoff started more than a month ago after Chinese troops started building a road on a remote plateau, which is disputed by China and Bhutan.  Indian troops countered by moving to the flashpoint zone to halt the work, with China accusing them of violating its territorial sovereignty and calling for their immediate withdrawal. Continue reading

Aussie ‘War On Cash’ Tsar: “Consumers Are Part Of The Problem”

 

Australia’s Black Economy Taskforce has come up with a list of 35 “consumer-focused” proposals to crack down on cash. The taskforce blames consumers for holding cash and for not getting receipts.

Michael Andrew, the head of the taskforce, proposes nanochips in $50 and $100 notes so the government knows where the cash is, and suggests that cash should expire after a designated period of time.

Andrew believes “consumers are part of the problem”. He wants to punish people who pay in cash and don’t get a receipt. Continue reading

China and India Locked in ‘Eyeball-to-Eyeball’ Border Standoff

 

China and India, two nuclear-armed powers with a combined population of 2.7 billion, have been in an “eyeball-to-eyeball” military stand-off over territory in Bhutan, a kingdom in a remote area of the Himalayas, since mid-June. The flare-up, one of the most serious since China won a border war in 1962, comes as the two rising powers jostle for regional influence. The current dispute is near a three-way junction between Bhutan, China’s Tibet and India’s Sikkim.

1. Why is the area important?

All land-based military and commercial traffic between India’s northeastern provinces and the rest of the country travels through the narrow strip of land known as the Siliguri Corridor — also sometimes referred to as the Chicken’s neck. The Doklam Plateau — where troops are currently facing off — overlooks the corridor, which India defense strategists fear could be vulnerable to Chinese attack in case of a conflict. Continue reading

Japan’s Shifting Power Alliances

 

I’ve just wrapped up a long trip to Japan. And I’ve taken away one lesson from all of my conversations, speeches and research: The rise of nationalism in the U.S. will cause massive shifts in global trade alliances.

One of the main beneficiaries will be Japan. Now, Japan might not be on your radar, day-to-day, but it’s about to play a very important role in the world of Donald Trump.

Here’s what I mean… Continue reading

China Ready for ‘War’ with India, holds Live-Fire Drills Near Border

Image courtesy of War on the Rocks

 

The ruling Communist Party of China has issued a stern warning to neighboring India, with which it is engaged in a bitter border dispute that has recently seen Chinese live-fire drills and media speculation of extensive Indian military casualties denied by both sides.

After accusing Indian troops of crossing over the disputed Sikkim border last month, Chinese Communist Party outlet Global Times published a commentary Tuesday urging restraint by both belligerents, but warning that China was prepared to engage India in a battle for the contested land. The piece chalked up the conflict to a greater competition for economic and political dominance between the two leading Asian powers and said that Beijing would amass troops and armaments at the border in anticipation for what could turn into an all-out war. Continue reading

China sends troops to military base in Djibouti, widening reach across Indian Ocean

Soldiers of China’s People’s Liberation Army stand on a ship sailing off from a military port in Zhanjiang, Guangdong province, on Monday. Photo: Reuters

 

Beijing says facility needed for anti-piracy operations but rivals expected to be alarmed

China has taken a decisive step ­towards establishing a maritime force that can reach across the ­Indian Ocean with its first ­deployment of troops to its ­military facility in Djibouti on the Horn of Africa.

China has presented the ­facility as a support base to run anti-piracy operations in waters along Africa’s east coast as well as peacekeeping and ­humanitarian missions in the region.

But given it sits at the shipping choke point of the Gulf of Aden which opens to the Suez Canal and beyond, China’s ­regional neighbours including Japan, ­India and Vietnam were likely to view the deployment with alarm, mainland experts said.

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China’s maritime Strategic Realignment

A simplified view of the PLAN maritime lines of communication between its major naval bases in southern China and its newly established oversees bases. The major island bases in the South China Sea are omitted from this map, but should be considered in gaining an accurate picture of Chinese maritime defense posture.

 

Introduction

China has begun construction of the first Type 075 Landing Helicopter Dock (LHD) at the Shanghai based Hudong Zhonghua Shipbuilding Company. Construction most likely started in January or February of this year, with some satellite imagery and digital photos appearing online of at least one pre-fabricated hull cell. The Type 075 will be the largest amphibious warfare vessel in the Peoples’ Liberation Army Navy (PLAN), with similar displacement and dimensions as the U.S. Navy Wasp Class LHD. The PLA has also made it known through non-official channels that the force plans to expand the current PLA Marine Corps from 20,000 personnel to 100,000. As China completes preparations for its new military base in Djibouti, located in the strategic Horn of Africa, it has also continued its substantial investment in developing the port of Gwadar, Pakistan. Not only will Gwadar become a key logistics hub as part of the China-Pakistan Economic Corridor (CPEC) and the “One Belt, One Road” trade initiative, but will also be a key naval base in providing security for China’s maritime trade in the region. Continue reading

Cash Is Falling Out of Fashion – Will It Disappear Forever?

 

On June 27, the ATM turns 50. Former US Federal Reserve Chairman Paul Volcker once described it as the “only useful innovation in banking.” But today, the cash that ATMs dispense may be on the endangered list.

Cash is being displaced in so many ways that it’s hard to keep track. There are credit cards and electronic payments; apps such as Venmo, PayPal and Square Cash; mobile payments services; cryptocurrencies that operate outside the purview of central banks; and localized offerings such as Kenya’s mPesa, India’s Paytm and Bangladesh’s bKash. These innovations are encouraging cashlessness across communities worldwide.

It’s reasonable to expect cash to follow the path of other goods that have been replaced by digital alternatives, such as photos, music, and movies. Will cash – and the ATMs that dispense it – experience a “Blockbuster” moment and disappear from our neighborhoods? Continue reading

Leading the Multipolar Revolution: How Russia and China Are Creating a New World Order

The replacement for the American global hegemony is all there. The alternative global infrastructure is built and only a switch needs to be flipped on. The only questions remaining are when and how America will be replaced as a global leader.

 

Leading the Multipolar Revolution: How Russia and China Are Creating a New World Order

 

The last thirty days have shown another kind of world that is engaging in cooperation, dialogue and diplomatic efforts to resolve important issues. The meeting of the members of the Belt and Road Initiative laid the foundations for a physical and electronic connectivity among Eurasian countries, making it the backbone of sustainable and renewable trade development based on mutual cooperation. A few weeks later, the Shanghai Cooperation Organization meeting in Astana outlined the necessary conditions for the success of the Chinese project, such as securing large areas of the Eurasian block and improving dialogue and trust among member states. The following AIIB (Asian Infrastructure Investment Bank) meeting in ROK will layout the economical necessities to finance and sustain the BRI projects.

The Shanghai Cooperation Organization (SCO) and the Chinese Belt and Road Initiative (BRI) have many common features, and in many ways seem complementary. The SCO is an organization that focuses heavily on economic, political and security issues in the region, while the BRI is a collection of infrastructure projects that incorporates three-fifths of the globe and is driven by Beijing’s economic might. In this context, the Eurasian block continues to develop the following initiatives to support both the BRI and SCO mega-projects. The Collective Security Treaty Organization (CTSO) is a Moscow-based organization focusing mainly on the fight against terrorism, while the Asian Infrastructure Investment Bank (AIIB) is a Beijing-based investment bank that is responsible for generating important funding for Beijing’s long-term initiatives along its maritime routes (ports and canals) and overland routes (road, bridges, railways, pipelines, industries, airports). The synergies between these initiatives find yet another point of convergence in the Eurasian Economic Union (EEU). Together, the SCO, BRI, CTSO, AIIB, and EEU provide a compelling indication of the direction in which humanity is headed, which is to say towards integration, cooperation and peaceful development through diplomacy. Continue reading

Pentagon report highlights Chinese submarine buildup

China’s first domestically built aircraft carrier is seen during its launch ceremony in Dalian. Photo: Reuters/Stringer

 

The large-scale buildup of China’s naval forces is the most visible part of a major rearmament campaign that has been under way for more than a decade. But Chinese development of modern and increasingly quiet submarines poses one of the more serious strategic challenges for the United States and other nations concerned about Beijing’s growing hegemony in Asia.

The increasing size of the People’s Liberation Army Navy fleet of surface vessels captures most international attention, based on the sheer numbers and advanced weapons on an array of new warships. Continue reading