The Neo Conservative Black

 By

Sampson I.Onwuka

 

One of the difficult and trying arguments in popular African American networks is what happened to Black Banks or African American financial constitutions. I have come to understand that this is taken as a coloration of the institution and many people not at ease with it. The idea of Black banking may be forced through a round robin of interest, for instance a Heritage bank or Black interest should occupy the frontal exposition of most introspective on African America – however connected to Indian blood – should reflect its weight of expectation and possible curve. Perhaps a Kwanzaa Bank may be a way to go, but what does it all mean for the rest of the Society to build a Kwanzaa Business tapping from new systems of studies and cultural filiation to revived interest in the propagation of Black Cultures. White people has a lot to do with it, perhaps Latino others, but especially White women should be looked at from polar ends of new challenges of being African Americans. It has always been the center of black experience – at least in America – that Africa Women may be considered responsible for keeping the flame up until lately, but they are not without blame in shifting the new generation from the center and the caucus. 

 

What is the definition of Black Business one might ask, and here we take a second look at the operational dynamics of African American business men and women in many works of life and determine that a Black business is any business began first and foremost by African Americans and their relative kind, maintained with the purest intent at profit; either in concert with African American or without them – solely for interest of generating highest possible dividend for those who harbor implicit faith in such an enterprise, thirdly, that it was invested with direct see of a peculiar neighborhoods with majority of the crème of employment entirely if not particularly devoted to black employees. Of course the idea that wins the rest of us, including Rainbow Coalition, Pan Africanist, Black Arcana, Arcata Africana, Black fraternities and Sororities is one ultimate philosophy ‘total good for the total community beginning and ending with our kind’.

 

The question is what exactly is Black in business respect of sense of American enterprises and whether or not these new group of black elites preaching African American businesses are trying merely trying to put a new barge on the old and broken Negro community circle? Many of the remaining societies of African Americans have equally made comments that they have in their blood lines extending coloration of the active milieu of races and ethnicity, that in fact some of the colorful of these groups point that they have no hints of African and Black in them and harbor no angst against any group including these African Americans. The public view from these important dialogue takes a heightened and new meaning when the story from all corners of its interpretive circles extends to other departures in South America and in Caribbean. Sadly, the age that may have allowed the consternation of these stories belong to History, perhaps and with reason, the age of Civil Struggle where a littoral of Blacks were busy scoring for a chance to freely vote and so vote decide the outcomes of their society. Once upon a time in the history of these movement and its efforts to mitigate forces against these in all classes of respect and decorum, we are privileged as Americans to witness the rise and sustenance of the long serving and Nobel prize deserving NAACP, though entirely concerned with political and legal banter affecting a special case of people, it has more than once embraced the financial frontiers of these African Americans and their colorful in-between.

 

There are no struggles as we speak, there are no in-between if half of these themes are taken into consideration, there are shocking lack of go-betweens measuring the outlines of the US constitutions enjoyed by a special kind against the special privileges which for reasons of their own are no longer at ease in US. Is it then an end of Black in kindly sense of the word, for what we know nearly all products manufactured by the beautiful elan of the darker hue has more than seen the better of the day in the canopy of others. We can come to an end or beginning of these tales-tells, by painting a new and vital estimates of the new attitude to businesses which is characteristic of businesses owned and managed by Africa American and for Black.

 

Haven an open watering hole on idea and investment possibility in US is a Global initiative that should take from America what is learned from the last 200 years to other places in the world. In Russia, we may have not seen any such thing as Black Community – at least in very recent times – and in China there are few and far between. But Asia taken collectively has enough black sparing, and these groups are not minorities in Asia but part of the main stream. It will be difficult and inappropriate to consider these people without historical links to Africa as Afro-Asiatic, although world history gives the impression from Africa through the era of European expansion, Black presence in Asia does refer to this people and the incident is not so recent. It is possible many of their ancestral roots to be African, a lot of black Asians, and many of them have a long history coming from through Africa, but their color is not synonymous with Africa as much color is synonymous with America, Asia and Europe. In some dispatch, Africa is correlative to Asia. Plainly writing, Africa and Asia has a colored history and it include white skin and not albinos. It is wrong and incomplete to assert that Black should be considered a people, the word Black is really original to Baltic; Black or Barbarian in Europe South of the Border. The word Berber for Barbarians refer to a group of nomads who made it into Europe over the long swat of world history and worked mainly on precious metals, spice and medications, but are originally from Africa like the Nomad from East Numidia for Africans. In business, the color black worn mast by the Venetians, Italians (Genoa) – eventually Medici, Jews and Amadis of Gaul, separated them from whites worn mast by European countries under the assistance of Templars. So Black and White have their distinct histories which like Red and White flags have their histories in Russia or China, but the influence of religion created additional problems for this separatist group and in separate formats of world’s history, the Catholic and Christian reforms saw purgation in all classes of this respect. Long story short, the skin color of certain Africans, certain Asiatic, certain Europeans such as the Turks, and in recent times Afro-South Americans, Afro-North Americans, is derived in comparison to the rest these established color variants. The story takes a different form when compared with business routes, routes of interest that connect Europe and the Baltic to this part of the world.

 

Black Enterprises; In the Black; A history of African Americans on Wall Street by Gregory S. Bell, though a cursory glance at the books is quite demanding, but it’s definitely on a higher pedestal to James A. Anderson ‘Black Enterprises’. For obvious reasons that a book of such as Anderson ‘Black Enterprises’ is not generally a book of all seasons, a separate treaty from Gregory S. Bells that attempted to examine the frontiers of Black business in New York and some of the challenges that these few seeds of the block end up facing.  For a man such as James A. Anderson who prides himself as the leading expert in Blacks in Business, Wall Street and Investing, the book is half the apple. I shall indicate that writing any reason of the Blacks in economic community of these United States or in the general business of the world, usually takes time. Here in this case with Anderson’s ‘Black Enterprises’; Guide to Investing, there is a lot of information that may prove important to new people in investing in the U.S, and in the categories that may be called International, the book throws good light on general possibilities associated with Black business investing. For instance, we may not have mastered the difference between a closed end investing category of the international and open end investing category. But from this man’s book, we learn that one "Closed end hold a portfolio of investments and rise and fall according to market conditions. They have a limited number of shares, and trade like stocks in the New York Stock Exchange."

 

The Black Wolf of Wall Street by H.R George in entertaining and provides its historical reindeer in the context of Black Wall Street. The story a solo black performance is perhaps an education for a Neo Con, for as much as we know that American history is riddled with Blacks making it to the top, there are cases of rises and falls in the business. Joseph Jett and the Kidder-Peabody is another example and his story resonates with concerns over allegations of misplaced finances, some of which were proven inaccurate but sent him tumbling from the office. But the history of Wall Street alone is a long career in the history of these United States, especially the roles that both the Dutch from Spain and from Netherlands including members of the Royal Company will play in New York and in parts of Pennsylvania before the 1600 events of Virginia and the English Royal Company. Of course, the founding ancestors of Wall Street do not historically include Rodriguez, believed to have died in the South, but obviously led his way into Dutch company that were mainly Jewish and Marrano, many of whom settled in the Caribbean, some of whom were part of the Royal Dutch following their excretion from Spain including the families of Teixeira and Baruch Spinoza. Their role in slave trade is not so clear, but between the land working gentry that were gifted the rights to protect Spanish and Portuguese interest simultaneously in North America and South America, is both the active presence of Moorish Europe – many of them black and brown and became part of the native American tribes – but not all, and the Jews from Spain and Portugal – not all, some of these Jews like members of Dutch party were Conversos, helped Spain and Portugal to redeem soldiers who surrendered during the Alhambra days through hard labor leading to a culture of dependency and eventually creating the case of human importation from unprotected continents of Africa and Asia. Slave trade was an outcome of these processes and with it is the culture of superiority which was achieved through these middle men. Yes, these groups of others including other Africans aided in creating and perpetuating slave trade and the culture that governed attitude of business and commerce relies on this scenario. 

 

Black businesses may have stifled over those years, may have led to theory that all blacks in Caribbean came from Africa directly or descended from Africans, whereas many of them came through Spain and Portugal, some of them have Arabic and Jewish bloods, yes there are those who may even contain shreds of mainstream European Blood.  But for Wall Street and the trading with the rest of the world, the first of these statement and theory came from elsewhere, that the current and historic site of New York Wall Street was where the Dutch and Stuyvesant dug in to protect themselves against the Manhattan Natives, where they also bought and sold gins, wines, logs of wood, clothes (fur), guns and gun powder. Then the Tobacco plantation eventually took over so also the issue of inland penetration of business before the advent of slave trade. The first of these business men and women came with the Dutch and a certain Christenssesen, but the first direct contact with the natives was done by Rodriguez, who was called the “Black rascal” with all the fitting descriptions of him, perhaps from St. Lawrence where Black Sailors; Estevan Gomez, Mathew De Costa established and reestablished contact simultaneously, and brownies such as Verrazano and Cartier from the French helped in their ways to transform what was left now as St. Lawrence into a Fur trapping center which may or may not have started with Afro-Europeans such as Estevan Gomez and Abuna Marcos (St. Marcos, a friar and Coptic; most probably Egyptian by origin given his name), both with connection to North Africa where for instance in Morocco presumed home of Gomez or his patronage roots is so named for fur trading and trapping. The contact between these black sailors and natives is a deciding factor in the later years of American business or can be measured that the role of the French in American business industries and fur trade where La Salle and Chaplin are well known, that their deciding influences in Canada and above the Natives in New York and Pennsylvania and parts of New Jersey leading to the new areas called Ohio and along the Ohio river and Michigan are littered with very French influences and so called Natives. The surprise that has shocked a lot of people is how Ohio with no real connection to slave trade was able to contain the many number of blacks and Indians. Apparently there are stories from Canada and elsewhere such as France that history did not treat very well. For if we look at the age of Civil strife and struggles and see how the changes in some of its laws… 

 

There are stories about these Black Business men and women, some of whom from Africa who got involved in community development and when the attention was given to them, they absconded after receiving the deals and other enhances. There are cares of African Americans in Business, not just in business in U.S but elsewhere such as the Caribbean and as soon as the business went awry these people packed and left. There is a well-known history of the fracas between Marcus Garvey and W.E.B DuBois concerning the investment of African American churches and some people with money and a result of the competition between Garvey and DuBois, the rubber plantation investment in Liberia became a total disaster. It is now known or at least suggested that Dubois may have had a hand in Garvey’s disastrous business enterprises although there were others working for the then FBI under Edgar Hoover, some of whom engineered the downing of Marcus Garvey and some of whom did not respond to his captivity in Switzerland or thereabout and in the end, Black Investors lost a large portion of their business.

 

There will be Paul Cuffee, Orlando Equiano, Martin Delany, and others, but Rodriguez leads Wall Street to New York and in extensor, US, in particular New York Wall Street where of Blacks in Wall Street for history sake mirrors the idea of one Wolf among lions, or one black mane among the White Bears, the many will drown you and will win out.

In the past, Africa did business with peoples of world, Asia did business with people of world, and so did Europe who like the Americans may be an experiment that is quite old. The ideology of black is prolonged defeat setting from permanent class of Europeans and not Africans called gypsies. Gypsies by their name refers to Egypt and they spoke a language in post Islamic Europe that is comparable to Cyrillic with determined values from the Greek byzantine who ended their later years in Russia. Parts of Russian language can be compared to a late version of Greek as if Russia is similar to Greek, as if Russia restructured current Greek. These languages are laced from Byzantine, and it is here that a comparison with Coptic and other Nestorian derived and preserved languages can be compared. Coptic and Greek show remarkable relationship that the late redaction that Coptic is similar to Gallic as these two are similar with the Gothic. In fact a link between Coptic and other North African languages has been compared with serious limits of success with Gothic and are considered part of the same of origins. From the network of isoglosses of human disappearing languages without re-entering Asia through Africa, the whole evolution of people and language alternate and it becomes difficult to call one group for instance blacks, which for some of us was intend as a historical reconnoiter between a faceless identity and meaning, and the reality of a Super State with more than one share of this story. As such Africa America seem a green look at a possibility, Afro-Asiatic is also a definition of a possibility, and more than these possibilities is the rated interest of having natives who are called Indians as part of a Heritage that ends and begins with those who own the place. What is even Africa, we are better off calling ourselves a different name, no different or less enduring than Israelites, ‘the redeem of the lord’, whose history of African sojourn make exodus an African history and Israel in all its enduring histories part of comparative mythology that is attributable to Africa. What is Africa, it was a small island (province) in what was usually Tunisia, which the Romans occupied for a while which greatly extended to reasonable part of Tunisia, although historians will like to further extend it to limits of 1st Cataract it was hardly ever the case. Both the conflicts of Julius Caesar, against Egypt and for Cleopatra who is called Egypt, and the final days of Aksum during the reign of Ezana, may explain the lasting impact of Rome and Latin on Egypt and through Byzantine, but the fractured North Africa including groups of olive and mangrove traders in Libya and parts of Cyrenaica will place others further east under the many rulers and one era of female leaders in Ethiopia and Sabaean, Candace (Kandac), adds difficulty in presenting Africa as an extension of Rome – which is not – or a province or provinces occupied by Rome to be called Africa. It never was. The continent draw its blood from something entirely different, so we may mislead on our drive-in to reduce Rome to a child of Africa history through Persia (which it is and was, given Etruscans and Samnites who were land owners of what is Rome, were removed from power during a 7th BC (3rd BC) peasant revolution in Rome leading to a long chain civil and military intifada between Samna siding Etruscans against Rome who were eventually sided by Greek). The majority of world history during Rome and its new age were perhaps conditioned by the impact of Christianity. Christianity from the old Africa Chapels and Temples at Karnak and in Thebes, used in mythology of Osiris and cults of the dead were transferred to Christianity first as a national religion in Egypt then other parts of Africa. It torched on the Red and White Monastery from old Karnak Temple and Kom Ombo, whose buildings became through business and trade – the particularly the White and Red Monasteries -  were prototypes for Saint Sophie in Byzantine built by Africans with their signatures all over the buildings to the buildings that arrived in Rome. It may seem that Rome had it all from the beginning, but this is not the case with their buildings and architecture, even at the height of Augustus, Rome was a little better than other Cities but had the fortitude to provide it with sewages and well treated roads of marvel. But the first major buildings in Rome were historically enacted in the 4^TH Century CE, almost a century following the visions of Emperor Constantine II and his conversion to Christianity. The Architectural transition from Karnak to Byzantine, from white and red monasteries at Bayou (Africa), known for its tapestry depicting the evolution of history over a period of time through the use of thinly manufactured gold thread on the most enduring garment and for wall painting and murals, are articles of history that was perfected a century later in Middle East and by Cistern Chapel in Bishakur of Sassanid, are building prototypes with emphasis on the nymphs or nereids, whose faces emerge historically from the guardian nefis on the altar pieces of Egyptian obelisk; the theme of ark of God and of Israel, removed one step from the art of devotion and the analogies of the later day angelology.

We consider from older times until now, that a toy and cast between humans in imitation of worship and spirits exist, almost like the possessing art, no longer at ease with the humans. We may consider that the acts of having several Egyptian obelisk and artifacts inside Sinai suggest that these areas were no doubt mining districts for Egypt, they were parvenus for goods entering into Asia and from Asia into Africa.  But the building prototypes for Karnak were extensively used in Byzantine and re-used elsewhere and to the best of our knowledge Rome inherited Byzantine tradition of Architecture and the Goths who were both Muslims and Christians executed the best examples of ancient ways. It is part commerce, part trade that that are favored in Byzantine and then in Rome, that Vitruvius who is claimed to be father of Architecture is perhaps not complaining, whereas the best building still known to man were wrought at least 3 thousand before Augustus.

 

Pharaoh Snefu, Khufu – who argue is the same as Cheops, used pastel and liquid chalk and material to make what the Greeks called “Cheesecake” buildings or the Pyramids which glow White at night or from a distance - at least in these classic or pre-classic ages, white after so much has been done. So also the best theater plays, but like some British somewhat mentioned Adam Smith as the father of Economics. Architecture in historical context of commerce started entered into Syria which remained fragmented due to the conflicts between newly resurrected interests in later times. But connecting a continent to a province was really a historical putative of error but through the pens of Romans who spoke of Africa, it was applied later to mean the continent. Ethiopia, Egypt, Libya, Cush (Kushan), Chad, all disappeared, to a point that today we even speak on Near East which is a cultural reaction to Black history including Egypt which extended up to Sudan – meaning south border of Egypt. Africa, instead of Black land which is colored by history to refer to Fertile Crescent without mentioning Atlas in Morocco and the tribes of Anti-Atlas (Berbers) who could be called Black lands, Africa is a definition of many histories and cultures of the world. Between Morocco and Spain is a few hundred miles of lands and it will play itself out in the later years when religion takes hold. African history should be a kind of future regarding best application of process towards useful and meaning ends.      

 

Considering what now transpires as Black business or economics, the books of interest such as, the American Millstone; the examination of a nation’s Permanent under-class by Ovie Carter (1975), where he examined the lives of Blacks in Chicago and the hard choice between Welfare and underprivileged minimum wage jobs with increasingly diminishing hours, Carter worked his miracle in translating some of the hardship experienced by these people in Chicago, especially the individual families who struggle through tuition and new training meeting for the City and the State of Chicago. Such books are to be written on continues basis since conditions of African Americans in any part of the world, would serve as an example for others elsewhere – especially Black economics. Soul on Ice by Eldridge Cleaver (1968) narrates account of his wishful revolutions in Mississippi and disgust in the wake of the conflicts in Mississippi, well noted for mature emotions although injured from his how town experience and speaks little of economic transformation, yet the book is an awakening classic on the problems black faced and were facing since Martin Luther and the economic way forward. The book wallows on emotions but gives the impressions of active business interest in respect communities was one way out of the situation. African Americans in Mississippi do not even know they are taken advantage of and in his words; they needed to be reminded from time to time.  Black Metropolis by St Clair Drake and Horace Clayton (1945) in a great account of Urban life and its considered, Soul of Black Folks by W.E.B Dubois (1903), Robert J. Yancy’s ‘Federal Government Policies and Black Enterprises’, Carl R. Osthaus ‘Freedman, Philanthropy and Fraud’,…and other books reflecting the rise of the Freedman Bank and it collapse. The Black Wall Street by Jay Jay Wilson and similar specie book by Hannibal B Johnson. Walter B. Weare ‘Black Business in the New South; A social history of the N.C mutual life insurance life” (1993) it’s an interesting narrate, Booker T. Washington ‘Durham, North Carolina, A City of Negro Enterprises, W. E. B Dubois “Up building of Black Durham.” Madame Chavers Wright ‘The Guarantee’, discusses the trials and triumphs of ‘The Douglass National Bank’ instituted in 1921, considering how the Banks managed to survive the Great Depression, that the Bank and its associates primarily focused on Black Businesses and ensured returns on their investment, through structured cloth industries and factories which made cloths for women. The Bank got actively involved in small business administration, and made systematic demands on the working American Population such as the Black Chicagoans and the Black Milwaukee. That there was toughness she mentioned does not fail to incorporate.

 

 

Juliet E.K Walker History of Black Business (1998) is a historical accounting of some of the major business and ventures originating from African Americans from the beginning to very recent enterprising. Like I mentioned, the book is good for the information it offers to the reader especially when there is not enough information of Black and black business and how they have performed over the years. It helps to form an estimate of the struggles facing Blacks in this day and age, why there are new reasons to interpret these problems from purely 24 Hr. business world, and why above all, we can be confident in separating African America business from other forms of business and re-opening the gap between Africa, Caribbean and America. This book highlighted some of the Black business abroad – which are far and few between – narrates the earliest deals between Pepsi and Joe Lewis, explains the root of brand name and brand names, why some of them disappeared and why others hung on for some time and then disappeared.  The Book has no interesting new ideas and offers nothing new, it separates old from the new in general chronology format. On importation, she mentioned George Schuyler that "There must be many things that the Haitians import which a Negro-owned company could supply. Soaps, Perfumed, and Cotton cloths comes immediately to mind. We already have the cosmetic factories (Walker, Poro, Apex, etc).  She cited that in terms of International Business, that Blacks have not done very well, that saving for the occasional names such as James Samuel 'Malta Boon' (James Samuel Lynch Fykes Jr - Business in Malta, Island - "Chez Jim" and of some coloration with the Black of Wall Street and Jones Brothers, the future frontiers for black businesses is not shockingly absent. The Cultural Revolution of the Americans Civil war is one of the best….There was also Jacgmar I and Jacgmar II of Mexico owned by Jones Brothers from Chicago and the business was eventually acquired for other reasons. The other expeditionary permeation of the two was also Simmons Royalty Company that charged 2% of mineral resources.

Debt and Decline of Crude oil prices Dec. 19th, 2014

By

Sampson Iroabuchi Onwuka

How does it end and when does the BID for Crude oil begin? Looking at the shoddy details of Crude oil and the expectations that crude oil is likely to drop to $40 it’s is an institutional investors’ dream. But the idea that a peak oil in June at $115 for Brent has a staying power reaching to $150. This is not the case, $150 per barrel is not nearly the case and Brent has a chance of returning on high by 2015, perhaps not a $150 a barrel given US defensive and dynamic weighting on Social Security. The debacle that has visited the market took many traders by surprise and they were surprise to see market end at a very low rate this year, whipping out all of the gains in some EU industries this year alone. US market is equally affected, at least by the extra profit it earns by this time of the year which now stagnates, perhaps due to the release of excess capacity by OPEC which is struggling with amount and not rate OPEC is still threatening to consider its supply when the prices drop to $40, but this timing may not come since at $50 Crude oil is perhaps a good buy but at $57 and at December 15th, 2014, we are not sure when this buy will exactly begin. We may look at the incident in many of world and how they are shaping the end of Crude oil shedding or the cause of it, from (1) Russia, the Economic Sanctions by NATO, EU and US is red face on its International Complex. Russian Banks signaled in October that when crude oil prices fall below $60 they will intervene. As such it seems that Russia is not immune to the problems of crude oil and energy has taken new and direct forms in the United States in the World. The crisis of 1998 that saw contraction reaching into Asia are still reasonably fresh, but then as well now, we may regard the role of India and China as very important, large for (2) China, whose presence in Global market is well known and everywhere seen, above all, but the instability in Russia that is facing crisis and China that are dealing with inflation calls for a new translation, does not translate into the forces mitigating against the Crude oil market. We have also forgotten some efforts made by China in reducing their dependency on Crude Oil, while they were making business contacts with Nigeria off-shore drilling oil, China was trying to acquire Unocal, attempted to also buy a section of Russian STU, the two deals where restrained saving a new partnership in Gas in Russia which finally came through a few years ago. But in Africa, Chinese are Uganda, in Angola, in Ghana, in Kenya, and in Sudan, all with duplicated Crude oil refinery equipment. Over time, there will be less reliance on these areas for Crude Oil since with happy face China is really sabotaging these industries.     

Obviously, having OPEC release its spare and excess capacity at a rate not exactly seen before may be their way of dealing with US interest rate which has remained low for a long time. But this is only speculative since a Karen Ward of HSBC has indicated that Saudi Arabia may be better off with a reasonable priced crude oil to balance the budget. Reading through a popular Oil.NET popular sources by Steven Austin, he arranged some of the reasons why there are short falls in Crude oil prices, that ISIL disrupted production of Crude oil in Iraq, which some expert interpreted a spike on Crude oil prices, but Austin mention that people following the local news would have seen that “IS controls the central region of Iraq and eastern parts of Syria. All of Iraq's oil is in the Shia-populated southern Basra region of Iraq and the Kurdish region in the north of Iraq. IS has imposed a rule of terror across vast tracts of desert in the only region of Iraq that has little oil.” These meant that they were selling the coveted Crude Oil to whoever wanted to buy and did so without undue attention to the market. In reality, the short falls in Crude oil may have alerted OPEC countries including Nigeria and Venezuela and to some extent Libya to cut down on their number of production, but the effects can from somewhere else. There is however a second factor which Steve Austin mentioned that may have influenced the consumptive behavior of world markets especially those of US, that in 2005, US was still importing 60% of Crude oil, but since Obama and US dependency on foreign crude oil and gas has fallen to 30%. There are new and newer planned production hot spot in Alaska and North Dakota, and Wyoming has also re-opened for drilling. These ventures, especially the plans to begin Alaska’s Crude Oil, took Saudi Arabia that acted against the future trend of these dependence on foreign crude oil. We leave it as it appears that OPEC is not totally in control of its resources and some crude oil is reaching the world markets through other windows not necessarily under the canopy of Saudi Arabia. 

II

Part of the reasons why there is such a drop in US interest rate is perhaps to discourage the flooding of US market with sovereign wealth, an argument, it is also a relapse into an investment for the future from outside given the shocking gap in US overall individual savings. US Feds are not helping, they are privately owned with enough matching currency from the US Government, how much faith the US economy has on it’s relative to the performances of the Banks. But with the Feds buying as much they have from the Federal Government; Bonds, etc., they deny private placement on US securities which are not usually advisable when they exceed a 2 year. 30 year bellwether are usually left to the Federal Reserve or some big financial institution to handle. The problem with FEDs and big financial institutions is that they like the US treasuries are the generally keep of foreign Sovereign Wealth, that is a Country like Nigeria can invest in the US Federal Reserve through its crude oil market with a less than 1.5% profit over the next 30 years or thereabout. The other issue which many nations are not aware of is that the money is received in cash and is paid in the same amount when the securities expires. As such Nigerian Sovereign Wealth in US at $60 billion are only applied to debt owed by Nigeria to business registered through FDIC and others. Of course, in the life of these bonds and investment which the Feds are chief players, a lot of money switch hands between Europe and the United States, between United States and Asia such China and Japan who are the Americans largest IOU credit countries. With half the resources at the disposal of US Banks they essentially guarantee the life of the FEDS through their business interest in the United States. Left to the rest of the world and the institutions that can make any meaningful contribution, the major issue that are taken into context is the rate of debt repay which the Nations based on standard Crude oil or similar cash crop must meet in order to balance their budget at home and return of investment through debt which is difficult when Crude oil are refineries involved fall below market and expected rate. For instance, when Nigeria and any other International economies in the world buy into a business with a turnkey solution in Nigeria, for instance, the building of dams and electrical power stations in most remote places in Nigeria, either as an IMF industry or a business concierge, they inherit a debt when the Crude oil is perhaps selling at $70 and $80 a barrel and with US interest rate low are able to service their loans. But these international countries such as Nigeria could experience serious problems of repay when US interest rate begins to climb as it is due for 2015. Yet, the major event preceding these events are the failure of US to meet and balance budget without shifting its grounds on trade deficit. US trade deficit with low crude oil pricing is possible and may shift to surpluses as opposed to high price of crude oil.

Karen Ward ‘HSBC’ Senior Economist (Oct. 22 2014) ‘Economic of Falling Crude oil prices’ argues that short falls in Crude Oil prices may help countries such as

“In Saudi Arabia, for example, a $20 a barrel oil price would have balanced the budget in 2003 but in 2015 we estimate it will require $90 to cover its increased spending. Bahrain’s and Iran’s breakeven oil price is likely to be above $130 a barrel next year. Indeed, below $90, only the UAE, Kuwait and Qatar Cwould have budget surpluses in 2015.”

 “With no other ready sources of income, and spending commitments difficult to reshape, the deterioration in fiscal performance that comes with sustained declines in oil prices is sharp. At $70, for example, we estimate that Saudi Arabia’s budget shortfall would approach 10% of GDP next year; at $50, the deficit could exceed 15%.”

“However, the regional producers, which together account for more than 30% of global oil supply and, critically, 80% of OPEC output, have generated such large surpluses over the past decade that they have the balance-sheet strength to deal with lower-than-expected oil income.”

 

 

III

 

But at this period in the trade fare, we look at what happens to Nigeria and International Oil Rich countries when crude oil falls to $50 a barrel. With increases in interest rate and fund rate given the 1.1 trillion loans which are not service loans or loans to create money, we see an America that may have added a I trillion to its debt on one hand, but may be balancing its budget and trade deficit to somewhere below 2% from somewhere in 9%. In the first two quarters of early 2015, there are possibly signs that US may be hitting a surplus, which makes the argument lame and clear, that perhaps, US stock market is not without buying interest especially the Crude Oil. I take it that countries such as Nigeria and say Mexico, part of the new kids on the block – may become new kids on the chopping block should they scale their interest rate to US given the gaps in economic maturity, and far from what is happening in West Africa with Nigeria as Satellite, it may have a later day solution from the hands of Concentric Circles. A concentric economic circle involves a corporation between several countries in the world that share similar economic outputs.

 

Let us reverse the mention of the BRICS countries is what is now happening to Crude oil which is subordinate to International guarantees and to BRIC countries, that for instance the free market entreaties of Russia or its return to prime time, then China remaining free from International contamination and so also India, Brazil and South Africa. These nations are not strong consumption economies in spite of their size, that if look at the role of AIG in these countries parallel to what is available in the New group of MINT, which show life and dying attitude if not taken seriously. Of course, Indonesia like Mexico may not suffer from the problems that the BRICS may be bound to in the International market, but we can be sure that their lack of satellite placement and lack of comparative scaling for interest rate and rate of FDI is depended on how well it does with US. But Mexico is not US, and relapsing into US which torching on Canada or far away countries such as South Africa or Egypt or very cogent and realized bases, may be ridden to the permeable elements of inflation which are exported with a rise in US interest rate, that Mexico currencies will face the same faith in suffered in the past given its stand-alone structure to the US. With a structure measured through similar progressive countries such as Brazil or South Africa or perhaps Indonesia or to a large extent Turkey, it will scale down its bifurcation to US and will add more green to US invested interest when it came share its inflationary pressure through an International market, for instance the MINT countries, Mexico, Indonesia, Nigeria and Turkey, that even to the extent of having similar currency may help to save them from a combined famine which an International market will experience under a rising US. The first signs of some problems with 2015 is the shortfalls in Indonesian and rupiah selling at 1.9% below its market    will bring to the table the problems of next year poised for interest rate. Carefully looking at the price Obama’s estimates are troubling, not that he is doing anything from his head, but going as late as 1970 when US was in this kind of situation, or middle rate as 1979, when crude oil prices reached a new premium, thing gradually fall apart as we entered in the earliest 80’s.     

 

Indonesia, Turkey, China, Japan, Taiwan, Malaysia are element of business families that have graced the venturesome business partnership with Nigeria, all of these countries is the delineating years of Nigerian military administration itself a consequence and continuing evidence of a country or a nation in disarray or a showing of instability, from 70-75, 83-91, forcing Nigerian into long list of indebtedness tied to Oil companies and their spurious deals with OPEC oil International, whose final coming and repay scythe was a damage to the currency of these Nigerians. Today we may speak of a new co-operative indicia of MINT Coined by Jim ; composing of Mexico, Indonesia, Nigeria and Turkey, a grouping that alarmed the best of us since we are certain that Nigeria is only half awake from almost two decades of military dictatorship. If these four countries aspire stability especially through the currency, which is very important it may be meeting to scale their interest rate along the participating countries with perhaps a side note on Crude Oil. These countries commercially generate over 1 trillion dollars in GNP with Mexico nearing 1.7 trillion year to year, several hundred million behind Texas alone not adding California with over 2.3 trillion GDP. Nigerian from the list is lowest performing economy with only a few international measure of structural development to compare with Turkey and to some extent Mexico and Indonesia, where as Indonesia is clearly the largest market in the four in spite of its numbers. Mexico that is luckiest of all them suffers from similar high fate and ending, for if put the balkanization of Mexico Peso in the 1980’s and 90’s, we become weary if the new signs of depreciation will continue and for how long. Mexican Peso selling at 14.4 to 1 dollar is already showing signs of decay from just a decade and half since the inception of the new currency. It looks like the correlation of Mexican peso to dollars was a function of the export market, with US being the Chief ends of these exports. The issue of cost labor proved too quick an advantage but in receding years from 1993, the currency has gradually slipped to original challenges.

 

Bill Barnhart Market Report in 1995, reflected on a parallel quote from the Dec. 4, 1985, by Wall Street Journal: that Mexico “Today, instead of being a model for other nations, Mexico is a lesson in how at similar to Russia today that is offering over 17% interest rate is call for cash, leading peoples of the world including Mexicans to checker their savings and buy into the US. The damage is important, for to some Mexicans, the mistakes on the past may not be repeated in 2015. But this is not the case. As long as US interest rate remain this expensive at less 1% meaning don’t bother we flooding the market too quickly, Mexico may be save, to a point that a return rate through Crude Oil guarantee sustained supply of dollars, but with short falls on Crude oil, we can be certain that Mexico can’t keep up with servicing its Peso. Part of the reason is lack of international anchor and the reputation that Mexico enjoins. With interest rate taking a hike in US – at least up to 2% we may begin to see visible problems with the Peso and when it reaches a barrier of no return it mainly becomes too expensive to do business in Mexico with hundreds of peso to the dollar.

Money Market Interest Rates and Mortgage Rates, 1980–2002 |  

Apparently, supply as the economist Says mentioned could create its own demands, means that the erosion of the peso’s significance in the global macro was reduced to a banter with the states. With US trade deficit at all-time low and only one state, Texas, generating more money than Mexico combined, the real problems therefore is what the quality of the Mexican markets, which without international baskets, has no more meaning that the actions from prices as from US which is poised to raise its rate. I will bait any Mexican or Chicano that if US pushes up 2% interest, additional US capital will move from Mexico into US, it will create a negative balance sheet, a problem of inflation and the Peso in 16 months from here on, will dip 20 pesos for a dollar. Here is the conundrum, that as much as US is the Sun of world markets and satellites countries such as China who cannot really blame take their rest in the US and its economic sheltering, the human quality once an item quite severe with cross-border economics, not has little meaning saving through prices. In essence, the more we have countries in the world including the BRICS, create an economic conditioning that represses Foreign Direct Investment, the more into US for a kind of value which generate real income very fast. However when crisis come as they look in December of 2014, it could be driven by other reasons and things in the process, but in all, it could be driven by the lack of other sun states in the Global macro. That is to suggest that the depression of a Nigerian Naira, an Indonesian Rupiah, Turkish Lirah (who are accused of supporting IS by buying crude oil through them), and Mexican peso, will continue to decline unless interest rate its low and low for a very long time in US. Even at that, the cost of expansion, whose failures in Mexico was well received elsewhere means that the peso has no anchor anywhere else.     

 

Yet Nigeria is half a trillion in GNP with a few negligible sparing from other West African countries who account for a large percentage of new investment. In the long run, Nigeria may offer growth opportunity to West Africans, but they will continue buy Naira with US hard saved currency to offset, some of the shedding of the Naira. But it is their role as a regional economic headgear to demonstrate market direction in West Africa which should dominate the outlook of Business in nearer future. Some of the new investment in Nigeria also came through Europe, and here we can say that, EU moving back to its sources and dollars re-migrating to US when it does not need to, devalues the stock market and further forces interesting parties to escort their currency out of Nigeria. It takes toll of its value system and not really US’s fault, it makes it seem that US is avoiding loses whereas Nigeria like progressive International Country such as Mexico, or Indonesia, did not take advantage of low interest rate which China essentially buried itself into. In all compulsive understanding on how a process of that kind is resolved, we compare the problems of anchor and bifurcation to US and a primitive example of assuring a future for Mexico. Since 1994 it does not need to, it had opportunity then and now to enter new economic horizons which a MINT if their interest rates are scalable and a meeting surplus of the member countries are evident, then it may have crowd investment did not need to interfere with its future estimate as with the US market.

 

Whereas these Countries in comparative relationship with other groups of growing economy offer assortment of market and business interest, particularly in the areas of crude oil and in the area of paired resources especially for Mexico with both the opulence and resources to hold to their new found optimism in a shadow of new world market order. The argument is not that Nigeria cannot belong to this group given the structural weight of their industries, they have a shining example in Turkey but in terms of the penetration of businesses it is Indonesia, with Indonesia ahead of Philippines with higher mid-income earners and population exceeding 150 million (170 million), and these countries such as the Philippians and Indonesia are both English speaking countries which these days is just a normative and may be useful in delivering the market with comparable rate in resources between these countries and parts of them that speak French……

 

In respect to Mexico, it has a pairing through oil, a communication problem of history and language – that for Nigerians some idea easily Mexican in meaning is quite a mouth foul – and in respect to language, Spanish speakers or Latin Americans are almost unheard off. But these are temporary issue given their experience in dealing with US and Canada. But in form and in need, the scale of preference should place Mexican interest in Africa on a playing field such as Angola, not that Mexico need less penetration of its oil field, but in compact with OPEC which Mexico is not nearly part of, its presence in Africa gives a breathing space and may in the end save it from sinking further down with inflation since 1993 on its new currencies.

 

Whether or not Nigeria belongs with this MINT group is not a financial article, it is however important to point out that the country has a long history and the current new development in Nigeria is hardly the brighter days which for many economist is somewhere between the 70’s after the end of civil wars and sometime in the 80’s when the military returned to office. The economic progress in Nigeria and in the 80’s are still visible including factories which were built by Nigerians with some sparing from those left by the English and Dutch in the 60’s. These factories due to civil strife in the country fell into disrepute putting some dumb-ass clog in the wheels of the economic progress following a population that was expanding exponentially. The only remedy was the exchange rate which gave return of interest and investment to Nigerian business groups, all of these could not last given the increase in prices in doing business in Nigeria and West Africa, and with the Dutch system of matching Nigerian Debt to Oil Companies who fumbled military experts in Nigeria into signing documents left Nigeria indebted with cash call furnishing from banks that entered Nigeria through oil companies creating more and more problems for the exchange rate and in the end, the currency spread was so wide that Nigeria was called an economic crisis. It took long and practiced intents of newly elected Nigerians to gradually grind these forces to a halt, including the extra-ordinary effort by the Ngozi Okonji-Iweala, who asked through World Bank that the debt should be pardoned.

 

But in terms of material resources of South Africa and their highly indulgent attitude to business which is meeting for Asia Tigers, more responsible and complete given their levity to Europe and American opulence, their nomination into the BRIC as equal to BRICS is good and bad news, mostly good news since it savors South African entrenched mineral resources in the conceived and deceptive nudging of China who introduced South Africa to the BRIC and for the fact they have a better meme to settle against these Nigerians, their role was expanded. There are no degrees of possibilities for these countries to deal with South Africa, although South Africa is not Nigeria is attitude to business, it has healthy and very experienced traditional business environment that are not far behind any nation on earth including building nuclear energies, but are trapped along the lines of 1% super rich, poorer south Africans now in power, and are smaller markets compared to Nigeria. South Africa is truly a BRIC, it can manufacture anything for European and US industries and responsible for some of new line of green light in Nigeria and Ghana.  

 

There are several reasons behind the possibility of the breakdown in business relationship between Nigeria and these countries, especially Japan and Taiwan in the inception of Nigerian Electrical Power Authority (NEPA) and comparative quality of these co-operative countries in the 70”s to Nigeria. Their currency rates were much higher than it eventually became a few years later. In the earlier possibly imaginations of Nigeria struggling under the canopy of West African economies, it looks like the success of even the nearest Franco neighbors; Cameroun, Togo, Benin, and Niger, all surrounding Nigeria, including distant Gabon, found market Nigeria for their products making its way from France and production economies in the World. These the growth in West African countries is so zero that the gap now enjoyed between some Asia Tigers and Nigeria is not saved by the breaching of these gaps by South Africa. We may look for the reasons why there was such breakdown of business relationship between China and Nigeria in direct and active business co-existence in terms of the every other business of interest other primary government  arrangement, or for Taiwan its mouthpiece for long, to have been a problem derived from all…

 

It must be said that Nigeria from its earlier years has always stressed the importance of its currency, and from those earlier years until fairly recently, it has tried its hands with various means of managing its currency including the occasional attempt at reprinting its notes to stem the tide of laundry. Some of these measures seem to have worked their miracles but not all the time, and presently, we are dealing with some problems which deserve the attention of all our well-wishers. But in the currency cut throat business and its 'Currency War' of nations, no country can better advice Nigerians than Nigerians. It is obvious and large by the extent of buying indulgent charisma of re-telling of what happens to a green basket from mature can as they turn yellowish with time maturing into the brown baskets from cane. If you are lucky in getting to experience the transition evident in the general life of a green basket since the usual process is that it leads to something and perhaps an end. Africa history especially these new nations are perhaps not that different.

 

                                                               

                                                                    Miscellaneous

 

 

People driven by necessity would do what’s necessary to meet demands. But here, as we have argued, mineral and hard resources for Nigerian market are no foreign, and can be located in strange abundance in Nigeria which now mentions that the reasons why there was problem is the poor showing of Nigerian market in the world. Even with new industries in Cement for instance opening up in many parts of the country it is not enough at all to effectively meet demands even at a very high price. What a potential for consumption that Nigeria has for world markets, which for its reason and the reasons for new African frontiers since the Colonial eras if not through the slave trade era, that a country may look the promise of offering a market to goods reaching Africa or good manufactured from anywhere in Africa including South Africa. It may seem that the lack of standard shipyards are problems encountered in many part of the world, that Nigeria could better resolve with some attitude of how begin their help-yourself projects, projects that will co-inside with opportunities to dump on Nigerian markets as long their turn key investment with direct yield from debt investment categories. It leads here that the rate at which this could be realized will have do away with military past, for sure, many African countries, especially West African would find it comforting to re-issue their own overnight lending with Crude oil as basis for conversion to Nigerian currency, that as much as currency can flow from US, China, and Europe, where Africans, Nigerians (Nigerian Americans) in particular work for in odd jobs far below their rated certiorari can look at Crude oil as a banter in world markets, in channeling the amount of currency that could migrate to Africa. US penetration of Nigeria is counted through currency sent through Banks and Western Union, the currency is by itself a commodity – no different from any other product – that if migrates from one areas of the border another, it dictates the market where it essentially sees the light of translation and  exchange. In such cases, the idea of price as a function of the market or price of a function of a currency rate is give new meaning, that the currency wars between any foreign denomination against a local one when a banter such as Crude oil for Nigerian case or a banter such as common market item is no longer at ease.

 

The currency when not accounted for mitigates the local currencies leading for instance more Mexicans Pesos to redeem itself from other in-flock material currency or money laundered from Asia, US and Europe. Here for explicating deist, the idea of money laundering includes money simply not accounted for, whereas trade-deficit is a shift from equilibrium and the degree of that shift from the acceptable concept of x, y, z, which matters in names of black market and in names of shadow banking, that must be held to remain in the balance with the local exchange route unless there is a mitigation……  

 

Once more justifying some action chiefly motivated by money is placing a latch on the door made of papers. It is hardly the case that we may question some of the assumptions in the businesses of these foreigners in Africa or others in Asia and in Europe, or in reverse, people who visit some parts of world for private interest have their reasons for doing so. What we may argue is that the business interest and styles may differ, people may differ but generating income and benefit is sine qua non of co-existence, that efforts of any group of nations or continents in any part of world towards a future should be held together along the lines of the economic co-operatives, adding the protections of Commerce from rapacious attitude of the general public. It is here that the word I for disequilibrium and thou for attempt at economic equilibrium leads us to compare to what extent, say a new market with a helpful serving premise in West Africa could help generate an unforeseeable stability that necessary for growth in the Continent of Africa or how the regional franchise of their demand and supply market is buttressed elsewhere – either in some parts of the deeper SEA (South East Asia) or with some capacity enabled by reason that what may be achieved through scalability of Interest rate in North America or in Europe. Reading through Europe pamphlets for regional belter weight for African economic environment and business society, we cannot fail to have noticed that part of the heavily edited pamphlet is proof of their capacity to farm the region as part of the older exercised economic practices of extending European goods through trade fair and money function that they are scaled through overnight lending. It may seem that these pamphlet toeing the lines of IMF infrastructure and privatization schemes leading to single currency which by itself is non sequester and entirely flawed if not hurtful to world markets – going by any measure of economic theories – are so devised to enable both continents continue good businesses which is not the required business format for financial satellite systems for Africa and its third world economies, that opposing such pamphlet may be suggesting an opposition to some hints of financial colonialism which can be argued as the indirect motivation to seek new avenues. But this is not the case, the idea of region balance sheet for Africa and for several parts of world is no only faulty in its inception, it perpetuates the wrong notions of economic triumph which is legal tender can inaugurate and to a large extent, the pamphlets and their leading think-through are not sufficient in enabling the requisite changes necessary in Africa in general, or to be specific, in regions of Africa that require their own economic satellite. It looks from all standpoint that new emphasis on African markets and their exchange and buying power should be tolerated in many sensitive areas of economic business such as those of ECOWAS and some other good countries in Southern Africa led by South Africa. Perhaps the idea as a rotunda or watering hole should place Egypt as part of the landscape in the North, for if we compare the roles of Morocco and Egypt, we are at once at the torching stones Asia and decided interest from North Africa. It is all in gum thinking that it seems, that Nigerians in West Africa are neither concerned about the structure of businesses in Africa or structure of business in the world, that they are primarily concerned with survival making Nigeria by default a highly consumptive economy where other Africans with enough penetration capacity find their products and produce shipped even from South Africa or flown daily through air, ravished and consumed in matter of days and weeks. In the past, there are 34 airports in Nigeria, but in recent years many of them were forced to fold, largely for problems of maintenance and engineering which the balkanization of their local currency more than made difficult. No doubt Ghana barely surviving in West Africa do not account for the lack of materials in Ghana, their industrial revolution – making necessary products easily available or manufacturing meeting and beating estimate over a long period of time – has not taken full mobility. Worse than Ghana is Nigeria that can only generally boast of major structural changes besides the buildings which themselves were forced to erect due to very high demands of housing. It is longing to consider that a place such as Lagos as some observers have said were built by Nigerians – at least in the last half a century, lodging some of the numbers available or comparable to other active cities in world.  But like some of the countries that are grouped as MINT, these countries do have a major city that experiences and benefits from the most recent Government endeavors such a Mexico City that have a expansion leading to 17 million people, that is a fifth of all Mexicans live in Mexico City, which also means a reverting to partial equilibrium of a certain measure, which in the end could suggest that the problems of these MINT such as Mexico and Nigeria is the problem of equilibrium. Uneven development with emphasis on one or two areas of business or nexus point in these economies, such as Lagos Nigeria with about 17 million and with buildings reaching into the Island, may mislead an observer on the economic prowess of the nations. Perhaps he or she would travel to Abuja and see another vast expansion of population comparable to Austin in growth in the last 20 years, Abuja moved from 100 thousand people to 1.1 million and more in less 20 years, all in spite of heavy cost used to welter the attention on the capital. Such evidence is opulence in Port Harcourt, Rivers State and in parts of Ibadan in Oyo, give in and out on what population can do any economy and there is need for anchor.

 

The intent of nation builders has never been to forge a state that live forever or have a people too familiar with longevity of State such as Egypt and in mimesis Rome, speak of the Foundations that will last 10 thousand years. Perhaps Egypt and its claim to history reaching 100 thousand years, leaves much to be studied and desired concerning the evolution of a super-power and whether or not it is possible to gauge the age of this super power state from the corridors of politics or religion. Rome is not Egypt, rank far below Phoenician which they destroyed in Cartage, rank lower than Babylon, and in so far as the dominions of Persia and Assyria, Rome belong up there but nowhere formidable. Macedonians have a titled history that compares with Rome, their penetration into deeper areas of the world was compared mainly to Mongols and their Genghis Khan. In rear light of more recent stories, neither the French who no new comers to world business or the English or the Dutch approached the territorial integrity of these nations before them, including the long winded audacity of Islam who not only brought religion to their areas of world but also their business. If Syria is considered of all of the neighboring states to be link to Asia and Africa and Europe, attempts at taking Syria occupied leaders of all meaning going as far as Jordan and Egyptians whose obelisk are still found in several parts of that Peninsula. When the Mongols arrived in parts of Syria, they were not bringing religion to these cultures and people, they were interested in business and what the area could generate for them. When the Nestorians took their possession and religions to Turkey and into China, the religion survived but more than the religion, it was the Silk Road to China that remained the connecting point between China and the rest of the world. The comparison between Egypt as a super state separated from the problems of the Middle East or at least meddled of slovenly into it, it makes for the augment that the Amana letters where the Amurru and sheep hoards paint a picture of Egypt and pharaoh whose help were solicited, for troubles in these areas. Religion, people, politics and money are all part of the same struggle and require some measure of discipline to have access to what it could offer. Penetration to some parts of the world and Asia is a matter to be discussed along the corridors of US policy in Syria, especially the long and tedious relationship between Russia and the Arabs.

 

David Livingston traveling through parts of Africa believed that the future of Africa was to be revived through Christianity and Commerce, he wasn’t kidding, Livingston may have condemned East Africa but he was passed on a gentle man missionary, and even in our generation, some people consider this man who actions nearly mitigated against a whole generation of Africans are a saint. It is an understanding that emotions play into money but for all corners of world business and I for one, have tried to argue, people can only resist the advantage of price only for so long. If there was in Africa – even at the age of Slave trade – a market or a national economic fronting that was similar to what was available in Europe, the movement of resources would have shifted from Europe and the Americans or Asia to this area of importance in Africa. Lack of stable African markets is one of the abiding reasons why Slave trade endured, for if there was a stable African economy, these war Moorish wars in Spain and the course of redemption through labor under the Charles V, would not have materialized into Slave trade or so long. It was convenience of trafficking people for money to a place that was outside their means and ability that gave slave trade a whole century and half, and when the end came for slave trade and for renegade European soldiers who took interest in Gold in East Africa and diamonds in South Africa, that a new and more confounding problems of easing European market through rapacious African wealth took moral significance.

 

 

 

 

 

A Review of Joseph E. Stiglitz Article ‘China Century’ (Vanity Fair January 2015)

By

Sampson Iroabuchi M. Onwuka

A Review of Joseph E. Stiglitz Article ‘China Century’ (Vanity Fair January 2015)

Professor Joseph E. Stiglitz opens his essay in (Vanity Fair, Jan. 2015) with a laconic 18th Century English rondo, (1) “When the history of 2014 is written, it will take note of a large fact that has received little attention: 2014 was the last year in which the United States could claim to be the world’s largest economic power. China enters 2015 in the top position, where it will likely remain for a very long time, if not forever. In doing so, it returns to the position it held through most of human history.” China he said will likely remain in ‘top position’ ‘for a long time’, ‘if not forever.’ We suggest that this point is more of a punch line than a main focus, a hyperbole perhaps, but rendered in Economics is a combination too far. Looking at the basic outlines of his essay and how he roved from statistics showing that China has superseded USA in GDP, he moves into an argument about the politics of Washington, which based on our knowledge of his opposition to Washington Consensus may be suggesting that he was perhaps right. His essays are hints of justifying the rise of China, a case in point that can be taken on a face level in other to understand that Beijing Consensus.   

This forever may or may have started in 1999, but it will be too difficult to deny in 2014 that the last 15 years or the roaring 2000’s has not being a Chinese Decade. Since their inception into the World Trade Organization in 1999 and the coming of Europe as of a Formative Union or the ECB, China as an Old Giant has more than played a leading role in world markets. How well the forgotten Empire holds the belt is a question of strategy they plan to use in shifting from Communist economy to free and open market economy. As we should acknowledge by now, that all political institutions is a step towards free and open economy. It is perhaps exemplified by capitalist economy, but form all account of history, it is not exactly the same as free market, does not mean that open and regional based economy of the world is also a step towards this reality. The question that has occupied the minds of people is when will a new force capable of rivaling the United States will emerge? And what would the world be expecting from this power house? Never perhaps in the last 2o years would be said and argued that the force, buried for decades under the pile political militia was China of mainland Asia. The reality of their aspirations could in fact be said to have matured, for when the world woke to a China that surpassed the United States, it seem like a quite storm with greater marvel to perform with constant revisions of its exchange rate.

In 1999, nearly at the eve of the European Union (probably the greatest single economic mistake since Britain attempted after the First World War to return to the Pre-War Standard), an article by the US Secretary of Labor appeared of the Economist, where she argued against the role of government in directing the economic affairs of a Nation. According to her response to OECD titled ’Government Steering the Economy’, that two disadvantages of government intervention is that “one is that government is not omniscient despite all of those clever economists, it lacks the knowledge to steer and control the economy it pretends. The other is that, like any large organization, it is inflexible. Once a course has been set, it is hard to change.”

I cannot disagree with Stiglitz on his tutored analysis of the Chinese Century, which should be taken seriously in spite of its gaps and actual grappling with reality, head to tail with US, China has more people than the US, tail to head Chinese population ratio to US is three times the Americans if not four. Why do we parry a China who only lately after long and exhausted currency rotation and Government spending and world isolation now meets us at the market place with both hands full of it. It is not clear how to proceed on this matter, for if argument about clashing reaches a new level of political indication, we may let on but doesn’t seem like the chain of relation between new and old empires yielding to the new is suggestive that China is a new World Order. Among the top Banks which now occupy a healthy spot on the world biggest banks include (a) Industrial and Commercial Bank of China (ICBC) with net 3, 181. 884, followed by (2) HSBC Holdings (UK) with net 2, 758.447 and then (3), China Construction Bank Corporation (China) with 2, 602.536 in trillion terms. Occupying (7) and (8) are Agricultural Bank of China worth 2, 470. 432 and Bank of China with net worth 2, 435.485…. The US banks that once dominated the markets including Bank of America came in 12^th with 2, 149.851 trillion dollars, J.P Morgan Chase and Co, (6^th) with 2, 496.900 net worth, and Citigroup Inc. (US) occupying (14^th) boosted their worth with a slight increase of 1, 894.376.00. It is remarkable that in less than a decade, Chinese Banks or even one China Bank is worth more than Barclays, let alone Royal Bank of Switzerland, or in this case, 4 Chinese Banks fairly and easily rank ahead of RBS. How could it all have happened? Perhaps the cultural age of China gave way to the Industrial reality and as they should from home front to global market, the world saw explosion of growth that they have never seen since the Muslims and their Islam turned the world – most of it – as their footstool.  

That analysis concerning how a new force emerges is macroeconomics and general to a fault. But then we may consider the transition strategy between Turkey and France and the reversals suffered by the French in Russia robbing them of that first place among the Eagles, we may see that the reasons for such action may have opened the way for Britain to militarily enhance their leadership position in the world. It was finally achieved through a final act and signature victory over the French, performed with fanfare at Waterloo. Since Waterloo or beginning at Waterloo, the rise of Britain – particularly England was well underway. We may not suggest that the shocks suffered by England and through English people in the WWI and WWII, prepared simultaneously the way for America. The greatness of America in terms of its cultural entity and industrial power began with local revolution, culminating in the Civil War. What we have learned from this age was applied in several forms and throughout the country with such septicity that 1900 would perhaps be called the final birth of the American might. Like China or should it like Russia, US was even among the most powerful nation by 1850, while they were not military tested saving for reactionary wars against Indians and the European interest and forces, Americans were feared for their productive ability since they manufactured nearly all the initial cheap materials at this period in the world, but later and with greater magic they yielded to the culture of perfection made most clearly with IBM machine a century later.

Now as then, the new forces of change beckons on the world and China emerges are a competent Champion and as Asia’s diorama lynch pin for economic progress, seem to have passed through much the same period of internal restructure and reproving to a period of rapid and nearly cheap alternative. This period like the most recent examples of Russia and United States, transition to a period of active and prolific production, changes somewhat and may be challenged by perfection and sensitive A class material which has enabled China transition from cheap alternative to equally with purpose be an alternative that allows China to revile the rest of the world. We have not forgotten what China went through and either should China forget that their expectation of justifying the years in isolation is solely and automatically reverting to this first class position. They are manufacturing first class student at Harvard and University of interest in the world. Shanghai is still number leading mathematics PICA/PACA rated in the world. There are fewer countries in the world with as many Chinese engineers are there are workers. But this is not only a case for their first class position; their human capital alone is better used elsewhere.


Let’s face it that out knowledge of manufacturing from production is serious, our knowledge of industries and growth of industries in is quite demanding in Economics, that a separation between these two requires the experts in the discipline to explain or some kind of an end point of its final products to explain. This end point in employment which production and not manufacturing is primary. It leads us to consider the role of unemployment in normalizing inflation which is here shifted or exported to foreign market through compulsory return of workers once considered unemployed or under-employed. It seems easy and perhaps easier to suggest that the use of Chinese 10% compulsory unemployment towards distributive practice () of continued employment as a trick to constantly recycle free from meeting an equilibrium and then a stagnation like the one suffered in Russia through 60’s and 70 and are perhaps approaching the same thing, China achieves this gap with an 8-10% compulsory unemployment mitigating equilibrium in local market -  whereas I on my independent account believe equilibrium is really not possible perhaps in free market conditions – for with China and an economy dogged by price control and a central planning committee, this equilibrium is ideally possible, possible as with the use of dummy variable and advanced mathematic computation in economics.

To have an economy for instance where everybody is working with intent at achieving direct and equal balance of trade – a communist market illusion, more political than economic -, working with the total intent at micro-netting an estimated gross from a final product, is an economy that will fully satisfy its demand local demand bracket, has no need for others and only itself, such a poison to itself even like a Russia where demand and supply within demand supply, such a market with its predetermined legal tender and without effective foreign export market should not be trusted. Such a market if be Russia, China, or any BRICS with little opulence to world market in spite of the excesses of FDI leads from permanent money dozing and dousing on its Russian and China numbers to a new market totally different. Russia was a strong market afraid of something, exposure given the levitating energy it would seem to be drawing or have drawn from other places of the world.  Such a market may also suffer from a second problem, the problem that China is concealing and should allow to face, is the ‘natural treatment’ of free market through competition and alternate choices arises, where the local formative energies of a balance of budget arises, balance of trade triumphs, trade commission that will protect free market emerges, individual and private disequilibrium which only the choice function even for public utility can assure.

Why production is important in the survival of a nation it is the ability of the Government to create employment or labor through its allocation procedure that makes the difference and remains for Communist economy a tool for determining the growth of the economy. But the underlining fact of production is that it can used by the government and its influenced labor complex, it is dependent on the direct activity of the Government, like the primary levels of Philips Curve and NAIRU (a name mathematical fundamental to quantity of money and real term employment, can serve as a legal tender and replace the Nigerian Naira. There are several things that can go right and wrong with a first level of unemployment numbers but attaching NAIRU to money and to legal tender measures its relative conscious expenditure to availability and total quantity) which suffers an increasing quantity when a barrier is reached, shift from labor and production to full employment and expenditure the propensity to spend or save, ends up creating inflation. It is the second stage of NAIRU that governs the correlation between inflation and price, where inflation becomes equal to price.

Productive frontiers are one the major economic drive-ins in the world. When there are cases of depression economy or recession, any country in crisis usually turn to expansion especially in the form well known today as monetary expansion for aggregate demands. These are items associated with production capacity which encourages employment and from the appreciation in employment, there is a long term change in the behavior of fixed income earners (Friedman), and the tendency to spend usually gravitate towards inflation. To show that this form of economic practice is not confined to Capitalist economy as a way of explaining its purpose in Communist China, we begin by reminding ourselves that price and manufacturing go hand and globe, that in terms of inflation which is usually self-generated but not ultimately endogenous, it is common sense to place the arguments of Hyman Minsky concerning the role of central bank in creating this inflationary pressures. In other words, between production and manufacturing is a cadre of interest rate lending, that feeders the cost of final products which in spite of the variance of market action and activity, tend to move upwards than downwards. This particular niche in the market (not niche market) is a careful analytical procedure that means that a certain form of production should be avoided to micro-manage the issue of excess returns of profit, though necessary for growth in the economy, may also be instrumental to its failure over time. Once more, we look at the argument made by Milton Friedman that long term wages do not always correlate profit.

As such in the arguments of Minsky, there should be a way of offloading the inflation which are sometimes unavoidable, by looking at the external market and balance of trade or trade deficit. Largely, the problem of ‘Unstable Economy’ is due to what he called ‘slave’ attitude of the Federal Reserve System in dealing and putting with actions of the Banks, whereas the interest rates set aside by the Banks do not always account for overall national GDP. Why his arguments are plausible and to some extent accurate, it reflects the actions of the Communist party and neo-Communist China in excessing production pro economy, which does with issue of quantity of money – nearly akin to a Mises economy and the Austrian School that accept that Savings was essentially part of the investment and account for their overall GDP, but by having a kind of central body which helps the growth of the market it sets itself to close to central planning body, a communist body similar to Socialist but ethereally different from Socialism. We there suggest that having a set a premium for the price of production of goods is not without the future market for exporting to other demand and supply outside say a China, the rest of the would be revert to this productive curve of the Communist or central planned economy that the profit or growth of these economy aside the human capital is a set of mathematically determined equations and price theory that nets a predetermined profit without the inflation which accompanies the function of any market. A Made in China proto-type is usually set to offset a competition, but what it is really doing is shift inflation from China or Communist economy to the rest of the world. As such, we may make due with commitment showered on this process by how much money is perhaps flowing from different parts of the world to China and Chinese Banks. In the 70’s there was hardly any such resources, in the 80’s when Americans and the British took advantage of the uncertainty in China market to channel their resources, China experienced a major bulge in the Banking and finances, with some of the investors thinking perhaps of asset bubbles and a penetration of the yet to be discovered market. What was known and perhaps taken for granted was the cultural severity of China and its disciplined commitment of being the first economy which is 15-25 years from now - given the current facts. We cannot only make insinuations about Minsky as a man advising a proto-type that it practiced in Unionized economy and in China today, but his fault, according some of the assumptions in the quantity money theory, is that production hubs are different from each other, correlating a country’s export potential to say a US usually allows it to earn more, but getting from the value which this US of A can bring to a bifurcated nation, usually takes a different length of time. One of the more demanding changes that can take in the economy is the transition from production hub to economy powerhouse, which begins with enlarging the A game of this host nations, especially through allowing the free market determine the value of the currency and the strength of the economy, something A China may have to do if in entertains any hopes of being among the eagles. Here, China as a consumptive economy is delayed by the exchange rate, determined in part by the IOU greenbacks re-entering the US through the Hong Kong market, determined in part by the expense driven expansion of the central planning committee and above all by allowing the Global economy determine its actual value misplaced perhaps under the current climate of the condition.

 Money system or the History of Monetary Policy considered a ‘black box’ of Economic theory by Samuelson and was praised by many experts for empirical resource and use of statistics. Its premised argument differ on the levels of the expert, but looking it from books also written Milton Friedman and Anan Schwartz, you escape the book with some basic understanding that price and bond markets divide on the role of the Federal Government, that a general theme on Riemann Integral, as X approaches Y and distracts from X, each capable of leading each other but not exactly meaning. In between the Bond/Price integral is the quantity of money and role of Government, which as some argue may stating really do not matter as long moral obligations is not betrayed. How this happens and when it happens is the basic themes about destabilizing power of the Federal spending and actions of the Banks.

Most countries in the world cannot exercise this option in economic theory largely for the role of inflation (the DNA of Economics) which comes with any version of full employment whereas wages and prices are argued by communist and central governing authorities to be negligible if ratio/rations parallel the needs of a system dynamic. However long and visceral the description of work- based rational of money is concerned, that is final product by Karl Marx is a kind of money, mitigated on by Irving Fisher who called it interest rate, it does appear that price which is inflation belong entirely with open market and consumer economies of the world, real economies which is constituted by both active inflation and interest rate, production on one side and manufacturing on the hand, the latter a product of a market; consumer economy, which China and Russia is not . 

It looks like the primary problems of a communist economy is inflation, which they can avoid through a propensity to equilibrium by constantly recycling the propensity through compulsory unemployment, at least I have argued, an 8-10 percent of the total balance sheet.  But in terms of price determined by market, the role of manufacturing is far more paramount then the role of production. It does not mean that these two forces exist in isolation given the surplus theory where a primary concern of a capitalist economy is the need to balance budget and close the gaps on trade deficit. Consumer economy is based on existing market function and through price, which differentiate from employment consumer economy. Inflation from manufacturing by chasing a different market….

Arguable, the Chinese currency is still satellite for the United States for practical reasons that it is not yet an independent economy, and like Euro that chose to be a satellite to US than compete as a sun which the French, German, and to some degree Italians were before the EU, China pegging its worth to US re-plays son and father relationship, where America is the father or mother here or at least a laity uncle. By age, and in the years that China played the ‘signifying monkey’ to the rest Asia and then the world, China is higher pecking order, but there was no such United States in those days, as such the role that America enjoins today is the role that is not new in Asia and through Asia; China like previous empire has been there and more than twice. It still leaves with the lessons of the past or the past makes for us; the path is the language of ‘Consumer economy’ for no magic exist for the rise of US than the consideration of a new market order from production to dictating the market to deregulation and setting their own standards, and an economy that as much part of its ability to produce as it is a market economy determined by price and manufacturing. Evidently speaking, it is only America that can regard itself as a Super Economy, that part of the reason why this needs to be said is that it comforts the rest of world that there is assurance with confidence in current global market, both of the words ‘assurance’ and ‘confidence’ look alike, may also sound alike, but compared much closely and from original intent of the author, some assurance in practice if not markets is all driving by meeting a baiting standards and surpassing, speaks to what happens when there is market estimate at say an NYSE and the traders preach on one thing and by the end of year actually achieve it.

Confidence is a question of history from tried and tested experience, for instance what is the confidence Chinese numbers are accurate and true? The only response to this practice of confidence is that Chinese are sometimes full of their characters, yet there are more than one too many instances that their numbers came from elsewhere. In real life, anyone can lie to avoid social conditional of some sort, but nearly no body that it matters in world market is a zero-sum game since anybody make up their corrective measures on what really sells and how their profits are derived including Newman and Simons sacrificing effects, only in my view necessary when the standards are the same for all cases of economic respect.        

It is not the role of the Government to decide the economic future of any society that Government may intervene but the problem is that when mistakes occur in the course of running any country and in the decision making process, there is a long bias associated with it. For all trades which the rest of world has more than indulged since the Brent Wood, the impact of organizations such as the OECD (Organization for Economic Corporation and Development), EEPA (Employment and ECONOMIC Policy Administration), NAFTA (North Atlantic Free Trade Agreement), GATT (The General Assembly on Trade and Tariff) – which comparable to NAFTA, ECM (European Common Market), NAB (National Association of Business), and older organizations such as IMF (Internal Monetary Funds)and (WTO) World Trade Organization and to some extent ECOWAS, has mainly forwarded world market in one direction, has delineated the scalability of the functional markets, and has more than awarded interested parties with the unfair trans-border advantage.  These organization which emphasis bilateral agreement between governments take on added meaning when the comparative advantage of Supply end economy is set a function of its demands.  There is a second theme here on Bretton Woods since the outfit that compose the house on which IMF is built is this Bretton Wood. It looks like IMF (International Monetary Funds) also inherited all the proposals on building economic theorem, comingled by recent Robert Mundel and Harry Johnson about a transitioning from a dictator economy or centralized economy not unlike the Communist economy with all brightness for future years, downcast on state and national monopoly and enterprises, shift from these government control to private control; the privatization scheme, to decentralizing the economy, leading to the opening up of the local market to all the agents of free markets and market systems. The last stage is the more insufferable and may be advised against the burgeoning strength of a new China that as much the world need new consumer economies and that China should de-regulate some of its rules, it may not attempt this overnight. The transition into a real economy is necessary for China mounting this mantle. It is not clear how the world would still take China, yet my advice to their pack of wealth and money masters and mistresses, whose jobs has superseded individual expectations and wealth accumulation is looking at the what happens when you target of an 8-10% growth is served by a recycle of the 10% re-employed, yet in constant mark to market  demarcation between the an exchange rate such a US dollar to Chinese RMB, of even 1; 13 from beginning reaching to what is today, shows that the profit margins do not truly reflect the mathematical equivalence of estimable 10% growth, meaning that China is extensively overproduced, a condition that will become available if and when it shifts from current exchange rate to something less steep to US. There are ways to encourage a healthy redactor to Chinese 2000’s, a redox from recycling is one, placing enough emphasis on energy is important especially the deals with Russia’s gas and petroleum, but neglecting the spurious advise of a Buffet to move the exchange rate upwards or keep it as is for a reasonable period, it’s enough to encourage a new definition of economic and capitalist depended market. 

These kind of economic environment has never in its history produced any fair or respectable business lead it has manufactured casualties by creating standards that are only within the grasps of multinational corporations. This in-turn flood Open Market Systems such as the U.S (technically the only real market) with Hot Money, Human trafficking (Natashas), drugs, bugs, persons of Interest, and merchants of death.  The border between Mexico and the United States during the NAFTA accords is a well-studied and cited example, the extent to which human beings will be willing to go to partake in greener pastures, all of which is not said to reflect the velocity of currency between an always struggling Mexican Economy within the Shadow of U.S market. The example is removed from the formal economic problems facing Mexico, that the advantage of playing Satellite to super state is from the beginning an error. The rest of world from Europe – especially Eastern Europe whose depth of poverty is only recently public – to Asia; both the big elephants of India and China, to all extent Japan and the other Tigers, are resolving the fate of their currency around with Interest pegged to the United States dollars, jettisoning on the local adjustments fitting for International Markets, and hoping through the bifurcating to keep the productive tag to consumption a case of U.S versus the world.

When he mentions that it is not without reasons…

(2) “The world economy is not a zero-sum game, where China’s growth must necessarily come at the expense of ours. In fact, its growth is complementary to ours. If it grows faster, it will buy more of our goods, and we will prosper. There has always, to be sure, been a little hype in such claims—just ask workers who have lost their manufacturing jobs to China. But that reality has as much to do with our own economic policies at home as it does with the rise of some other country.”

(3) “Second, if we ponder the rise of China and then take actions based on the idea that the world economy is indeed a zero-sum game—and that we therefore need to boost our share and reduce China’s—we will erode our soft power even further. This would be exactly the wrong kind of wake-up call….

This is total opposition to Washington Consensus.

Stiglitz, (4) “A new global political and economic order is emerging, the result of new economic realities. We cannot change these economic realities. But if we respond to them in the wrong way, we risk a backlash that will result in either a dysfunctional global system or a global order that is distinctly not what we would have wanted.”

These economies which defy all the ‘principles of economies’ will not exactly function at least with a view at profit without the background of a trading business partner from a consumer based market economy. Social economy exist to some advantage by its pairing with other economies of the world, does not mean that only form market considered optimum for common market economy is capitalist, it makes a separate case that there is working progress in terms of all markets and all system dynamics, that they are primarily concerned in providing as much access as possible to the market place, that markets pursue this destiny as a matter of consequence. The argument is meaningful if we add that the role of economist is to explore the limits of profits and price advantage that accompanies a change in business dynamics from one form to another, of for disequilibrium or company and individual a based transition, it is estimate of the total profit from total amount of investment when new products are manufactured from old. The fall of Berlin Walls and the inception of East European countries in the world market unveiled the depth of losses associated with an economic Iron Curtain.

For all the intent of argument, it leads to several view point and considering the fall of Russia as a complex of its economic Paradox, such an economy, projects outward strength – it is government controlled – it bleeds from poor domestic restructure, anemic of its recipe. The issue of intrinsic value being the value placed on price over product tend to suggest that returns are more powerful than investment which cannot be said to be any different from investment preferred over returns, both lateral approach useful when we playoff long-term goals against short-term goals, or Government macro-based economic indexing from dues ridden to changes in private operational markets; bond as affected by bank stocks.

The failures of Communist economies to close ‘Vega’ adjusted gaps between the Stock and Bonds as driven by the market direction and procured by the leadership factor of the first and future market, is not without doubt the reasons for the general collapse achieved in the first place that brought down the Communist Russia in the 1990’s, a generation that was not prepared for the pressures were unleashed to the challenges of a New Standards. 

“Since investment is the backbone of productivity, the productivity gain in the United States is much smaller than in Germany and Japan.” “Huge federal deficits and debt kept the interest rates higher in the United States than in Germany and Japan. As a result, American companies were at a disadvantage in borrowing for investment vis-à-vis their competitors.” (1) Manufacturing (2) construction (3) retail….

Russia then and now has little operational room for growth. It was never a leader economy; it was a reactionary economy entirely dependent on a structure that existed with or without purpose in Europe and in US and it was accustomed to its own devices it led nowhere but downwards like old company without external challenges. If Eastern Europe from the ink of Bernanke’s student support that prices at a pre-arranged showing is allowed to reproduce its own curve in the open market, the host market lack the stress and strain to adjust to the external pressures or open competition. The movement of Government owned companies to privatization as scheme perpetuated by the IMF running against the challenges of Europe in post Marshall Plan of the 50’s, there are hints that the involvement of these strategies now injured with the region single market could benefit some of these former European economies.

The debt gaps from Eastern European gives and in out on why the issue of domestic strength raised by Porter may not easily be achieved without Government policy and Government control, may not be achieved without tampering from external market but nowhere confined to Government consensus such as Washington’s, and not entirely opposed to Beijing Consensus who cannot occupy the leadership position of world markets given the level of their overall transition to capitalism; money for money sake, profit determined by the markets or exchange of goods or price as function of the markets. Inflation and inflationary pressure accompany heavy Foreign Direct Investment, the total amount of foreign currencies entering a new capitalizing market usually break the back of small and pedestal local rate of return, it manufactures reasons why there the bigger and more powerful economy leaning on the boundary or trans-border economy achieves new challenges and with the Shadow banking ever present with special privileges, there is a shift to Real Estate buttressed by the inflation adjusted Government Bond. Banks empower a healthy bicameral.      

 (5) “Consider the so-called Trans-Pacific Partnership, a proposed free-trade agreement among the U.S., Japan, and several other Asian countries—which excludes China altogether. It is seen by many as a way to tighten the links between the U.S. and certain Asian countries, at the expense of links with China. There is a vast and dynamic Asia supply chain, with goods moving around the region during different stages of production; the Trans-Pacific Partnership looks like an attempt to cut China out of this supply chain.” But this not the case, nowhere confined to the case and to a large extent….

The Moratorium for International financing initiated by Henry Kramer of Stein school of Business, which told from the pages of Obama Banks and the financial regulations from 2008 financial collapse, is angst against the shadow financial practice of leading investors to end of economic investment, with investment from Internal Specie Banks such as IMF and the World Bank which are directly owned as if private owned by multinational bank corporation. American Banks until lately were not reasons too clear stipulated by the New Deal on the 30’ and of 42’s, would authorize American Banks to participate in International lending without penetration of these U.S banks. Although these banks evaded these Seagull Act, some of their actions were public reasons for world be investors to take canvass on the landscape of American Business practices. What was common to Japan, to Europe following the formative IMF was permissible in the Americans. But until lately, these practices have remained the corner stone of many economic nations, especially in the aftermath of Bretton Woods.

Stiglitz (6) “Yet another example: when China, together with France and other countries—supported by an International Commission of Experts appointed by the president of the U.N., which I chaired—suggested that we finish the work that Keynes had started at Bretton Woods, by creating an international reserve currency, the U.S. blocked the effort.” 

Glass and Steagull is one the reasons why the Bretton Wood accords did not go far enough into US, especially the role America played in rebuilding Europe after WWII. The Marshall Plans for Europe which was partial equilibrium or what Kenneth Galbraith under John F. Kennedy would consider ‘special interest’ zones, essentially a page from Harvard School of Economic than Chicago, regarding a late and reversed version of Pareto optima. A special interest zone was effectively used by Deng Xiaoping following the analysis of the Russian Communist Collapse and the advice from his mainly Harvard trained economists, both from Asia and from United States. Of course, the short story is that Communist China emphasized Shenzhen region and Shanghai as a way to defray the problems of purpose in the central planning committee. But many of the problems associated with Special Interest zones is that they are usually the central focus of the economic empowerment and development, hence they receive the highest attention, betraying the CPI equilibrium format and  of course the problem of panic when a tipping point is reached.  To have an international basket at this point may be difficult to maintain since the forces at work are driven by International Standards. China without marking distinctions does not respect any Bretton Woods accord, or would have respected it.

If we compare China from its earliest days as an experimenter in Communism, it looks to suggest that they and Russia were part of the principle reasons why International basket failed. To iron out an International currency basket we need all the participating economic communities to account for their products and their currency. We need them to work with specific International Standard to effectively insure free market play in the overall market of the World. Communism didn’t respect this financial consciousness, could not have, hence, the impact of China in breaking World Standards and Markets should not be awarded. China hedged their local expansion and transition through inflation, relied heavily on supply chains with entrenched monopoly creating a false progress by failing to expand elsewhere, are seeking to penetrate the markets around the world, and through Industrial Unions, are hoping to tag the Renminbi to Greenbacks via Taiwan. All Asian miracles suffer the same sickness as if the ‘ends’ no longer justifies the ‘means’, that the adjustments to supply economics which is left to Government is in effect a poaching of International markets. From U.S historical rear-view, we may compare the historical atlas of the Depression Age and the problems that U.S was by circumstances of the era forced to deal it. The problems of NRA and the efforts created by the organization towards standardizing the business codes which replaced the parity of the goodwill Government spending, is to a large extent no different from Government sponsored projects in many parts of Asia markets.

In some sense, China is some experiment largely for the precautions against toeing the lines of Japanese miracle, which placed enormous and almost singular faith on U.S market. The China miracle is not without the advantage that US market offers, for sure, China has avoided the holes in the evolution of Japan as a market world power. The only difference between Japan’s productive measures which superseded the 70’s and the 80’s and Japan as a world class economic hub, the shortfall in Japan’s future market expectations from the 1990’s, till the moment that it is no longer the brighter Asian technological spot or Japan taken that seriously given its interest rated force implied to the rest of world, as its shift from local manufacturing to financing, from production and employment where a natural level of unemployment occurs, to production in the context of X, Y, Z, where exports from Japan approaching equilibrium forces it to take in products from other parts of the world. Japan is still straddling between a production hubs to manufacturing hub, the latter is limited to inflationary considerations of parallel markets with US and its bifurcation directly amount of products hitting the Americans or the Europe.  

In my estimate and a historian of higher latitude than Keynes, I could point that over-emphasize in any one key area of total consumption economy is perhaps a leading reason for its decline and fall. Inflation may be a DNA for the studies in Economies, but the sugar complexes for inflation is not really supply of money as per Friedman and Fisher, it is placing too much emphasis on a system dynamic within the CPI, that is generating more attention than necessary. In the words of Stiglltz, he added that    

(8)“And a final example: the U.S. has sought to deter China’s efforts to channel more assistance to developing countries through newly created multilateral institutions in which China would have a large, perhaps dominant role.”

These citation is affirmative of the Professor Stiglitz’s opposition to Washington Consensus, which places an executive summary of his argument somewhere between International basket and Global market as the basis on economic transformation of any country, which also lend some idea to where he stands with China away from well stated demarcation between the Capitalism and Communism. In this case, the markets have long replaced their overall productive interest and the question is how these groups achieve their final visions in the world. Perhaps the man opposition to Washington Consensus is a form re-view of what Washington should be doing, perhaps Washington Consensus was very different from Monroe Doctrine, perhaps it was not respected in Washington or elsewhere.

In a sense, there are material reasons why U.S has inveighed against the financial subduction, it is in the interest of the least dispassionate observer to take in the gaps in undue financial practices, a point which a certain Paul Weyrich in his call for Moral Majority, his Political Council and the Heritage Foundation will raise towards the Transparency of some of the Banks practices, especially Banks which unlike U.S, are government owned.

The Heritage Foundation and the older organization such the Council for Foreign Relations may have prodded the famous argument made by John Williamson in 1989 termed as a Washington Consensus which (1) ‘imposed fiscal discipline’ (2) ‘reform taxation’ (3) ‘liberalize interest rates’ (4) spending on health and education (5) security property rights (6) privatize State-run subsidies  (itself the corner stone of all the doctrines since it torches on the SAP; Structural Adjustment Programs, popular in many third world) (7) ‘deregulation of the market’ (another issue of dissent between the SEA; ‘South East Asia’ and West) (8) ‘adapting to the competitive exchange rate’ or more to so, permitting world markets to determine the price of local currency (9) ‘remove barriers to trade’ (10) and remove barriers to Foreign Direct Investment. These doctrines are not new but seem to reflect the barring limits of a State Sponsored economy whose true value cannot be called a ‘function of the market’ and therefore represents a false growth and economy and in 2014 at least, it can be argued as a crash of the free markets system with much world essentially parasite to these West Economies particularly United States.    

The excuse for comments of this nature is set to appeal to the economic school of discipline that opposes government intervention, and the foremost institution called the Chicago School did not mean to deter the government from participating in the affairs of the any economy, rather it forbids the general tendency of the government towards control of its market through spending. This where China is, especially in the new accounting standards available and mainly used in China, or what they call Chinese numbers and not characters. A Chinese number is temporary market condition and formatting, that is mainly used and accounted for by Chinese and for Chinese, including the spurious problems of digital money, that is money paid directly into State Owned Bank accounts to individual names and merit. But who doesn’t like the Chinese, a permanent cog in the furniture of human beings. If we toe the arguments of Stiglitz here, we can see that he may or may not have lived in China for any long spells of active time, does not mean he has not lived in Asia especially Japan. Both the Chinese and Japanese are nothing compared to Indians, the latter is slow very Indian but a lesser patriot than Chinese and Japanese, the former lazier. They hardly work in China it is something you learn gradually but there is action beyond your comparable imagination. Compared to the Chinese we find in downtown New York the difference is night and day, and most of the Chinese that suffer themselves to hit the Americans are usually those not politically or militarily connected. In proper light, the comingled themes of China as a world power in market is reasonable, but as an economic world power is in my view and from experience not exactly accurate. The poverty rate in China is a third world category, believe in this story that there are more Chinese people starving than are Africans, but of course people starve in India or Asia generally than they do in Africa. This does not mean that the people are not productive, does not mean that the production frontier is not in their favor especially when there are cases of production to be made about China than manufacturing indexing and its price theory which put them in spite of the new numbers put China above the United States.

We seem to connect some of the assumptions about the conversion rate of 5 Chinese Renmibi to US dollar is a drive-in for the sudden surge in market value in China. Why the road in business than leads from exchange rate to the damage house of business in a third world, always leads from a damage house to prosperity through exchange rate. The only difference is the production curve of the economy or the production frontier on the country at the receiving of the exchange rate prairie. China magnifies its agenda from the visions it has for the new world and for over a century, this faith is not misplaced given the position of the new numbers. With more of the Chines currency approaching a 4 ratio convertible barrier, they may have removed themselves from the problems of moderation to a new reality of being the most productive economy in 2014, usually a telling sign of a quick and silent revolution that may lead in a decade or a quarter of century from here-on to economic powerhouse.

There are lots to be admired about the productive power and disciplined process which is their chief secret, but the cultural revolution that gave birth to this new China is a revolution that more than adequate share of administration of process and government that will take at least 25 years to end. Being a production hob does not mean an economic power house, (1) most countries in the world do not trade with the Yuan, a possible that could change anytime (2), Single currency as not measured as part of total export market, is some of the reasons why there are problems of grasping between what a production house and hob such as China is, that it dependent on returns on prices in entirely differently economic environment hence a matter of manufacturing, is a pacesetter for economic exchange via a new money order which the Yuan will introduce.

Nothing best a country’s unified ability that the Production Frontier that allows it to play a bigger role in its estimate of global view, nothing in the world of business that divides and conquers a people that the new demands of market free from external oddities of everyday super power presence. Unlike the 80’s and the quarrels over a Washington D.C and its America that has done more than many of its past empires to spread development around. The damages done to Africa did not begin with America or did it end it until Obama. Sudan for instance was a waste basket on murdering stampede, where immigrants with Islamic devoted background were chanting that God gave them Africa, re-entered Sudan or South of Egypt and has exercised murderous ramparts in what is still Darfur. Washington D.C played a lip service to this development in Darfur, like Britain which ruined a lot of African countries over Crude oil, placed Gadhafi in power over the natives who ruled Libya and controlled with interest much of the Crude oil from Libya until President Obama was elected. In Egypt, the story is not that different, Mubarak remained in power longer than necessary and only attrition was asked to leave office especially when President Obama denied him the support asking him to make his transitioning. In Congo, there was said to have been a civil war between some expatriates and the Congo military which lasted for decades, the first light of settling the problem came through an ex-Nigerian President Obasanjo, but the whole division remained in place until Obama whose lack of support for the expatriates discouraged further assault on the natives.  But at the buck and sheen on the process of conflict in Congo is the whole sale pricing of Congo’s most priced assets.

Millions of lives where crucified in the names of military expedition with world breathing terror on the neck of even neighboring African States such as Mozambique, Tanzania, Botswana, and Rwanda; where at the instigation of two French expatriates – perhaps robbed of some of their treasured resources or forced out of it by military, took down a presidential jet that led two tribes suspecting each other into long and bloody massacre in 1994. Over 1 million of these people died in fewer than 2 days. Somalia for many years remained the clutter and enemy state said to be opposed to United States, and in Angola there was disquiet in almost every political era beginning with Crude oil discovery, the UNITA Rebel forces in Uganda were a problem in Africa until the election of Barack Obama. Almost a year in office all these headaches came to a grinding ends. These circumstances of politics and political is not a summary of the defective prowess of Washington Consensus, but it mirrors the debt between an overall position of a state and their reactionary tendencies to the rest of world, from the individual issues between US and places such as Venezuela, Cuba, and Mexica to an extent, that these areas were considered problem areas and the US Government made their cases for and against these South American States, that eventually decision to oppose the United States lived a short death with Barack Obama.

Since his office, these United States has not quarreled with these neighbors and some of the cracks in the relationship with middle east has long been repaired, saving the problem with Palestinian and Israel and the Syria as a bottom fork of Russia presence in that part of world. It was the British that instituted the current Syrian house, the British that helped to stabilize the house of Saud who took their mantle of leadership from the natives who many would believe live in these areas. Here’s the point, at no point in the history of America has American been any richer in their possessions than now, at no point in the history of the Americans have enjoyed the size of influence we have now where America is the only Super State for nearly two decades. At no point in the history of America that the current Economic rewards any bigger and better than what we have. At no point have we seen American Banks and Insurance companies commonly operate in several parts of the world than these decades past.

No country could say that it was directly responsible for saving Europe, one, twice and more than three times, forgiven debt and resources from Marshall Plans to the very recent debt cancellation of American monetary exposure to Europe. Over a trillion in 2012 was written off from mark to market American financial credit market. US single handedly delivered Greeks from their debts, lavishing over 2 trillion dollars when all parts of the non-performing EU markets such as Portugal and Spain were also pardoned of their Debt. In fact, the buckle of world relationship was so much that the country has to borrow more and for the first time, extended and now recovered from a promise they have maid. In latterly days of Lehman Saga which the Professor hinted on, there was no a billions every day – A Billion Dollar worth of Securities – leaving the US to China every day through the OTC. It does appear the interesting position of the Washington Consensus which though opposed by Professor Stigltz is depended on those in power and the merit of the executive psychology.

For no case would separate Washington D.C from what is Beijing Consensus that the problems of DARFUR, which then and now divides and bridges Sudan, for here, in one area, the Chinese and the zootomic India fresh from buying away parts of Tanzania with world’s greatest land real estate where no longer content on dictating to Tanzania – An African Country – were now interested with China in removing the natives from Oil Rich areas of Sudan in other to migrate small sources of energy back to China of Yesterday. George Clooney had some clue on what happened in DARFUR but the debt of the problems and why American needed a new leader summarized America from a different era. We take this theory of Consensus with new beginning as If from the old, that the theory of China being more moderate in several parts of the World is perhaps not correct, they are and some historians of the Vietnam will tell partly driven by their ideologies but largely newer from views that are no longer at ease with China today, yet stuffed with the past is a new reality which they have not acknowledged. That new reality is arriving, since now they lead the world as the most productive economy, 

The Washington Consensus which is now under fire, perhaps from Professor Joseph E. Stieglitz  

If we choose to compare the privileged authors of this period for instance Naill Ferguson and his ‘Ascent of Money’ is no doubt a theme from Alan Metz ‘History of the Federal Reserve’, where in the very last pages he struggled to mention that the Ascent of Money was a reflection of phases of Capitalist economy with its setbacks and triumphs.  Books on the ‘Olive and the Lexus’ by Friedman were not doubt coveted from a similar book treating the same topic but unlike Andrew Sorkin’s ‘Too Big to Fail’ which feathered Paul Volckers’ ‘Too Big to Fail’, the elaborate conception of a state sponsored Bank and the idea that some banks were too big to fail is not a principle that is compatible with US in the 70’s with rich oil success or the triumph of the big corporation in Third World economies where in the names of Foreign Direct Investment, countries such as Venezuela, Mexico, Brazil, Argentina, Nigeria were overtaken by  Shell Corporation with the indirect backing of IMF.  The final product of Bank or creation of Banks too big to fail place several head shots on IMF, making it difficult for Bretton Wood to last – that is assuming we have a relevance to the new ideologies of China.

It is here that Joseph Stieglitz opposition to Washington Consensus is essentially elaborate for his argument these financial institution acting in the names of Structural Adjustment programs or International association such as the GATT – mainly associated with Japan – paper out these third world economies who in the names of Progress privatize their Third tier market to the detriment of both the local economies and the Foreign Investors that are sometimes deliberately over-weighted on struggling markets. It is natural course of world market to experience periods of losses and profits, and it is an old theory that for every concave in the graph of any a dynamic system, there is perhaps a convex someplace else. 

II

Considering the wealth of history available to the better ends of Europe at the close of the 19^th century, where Prussia succeeded in defeating France in 1870 and the persecution that followed including the direct injury to the subdued minority in Prussia and eventually Germany, it is not surprising that German at the beginning of th20th century produced the difficult economic theories of Karl Marx and Frederick Engels, and the varying schools of economics in names of Austrian School, all of which carefully emerged as a cultural reaction to the problems of Government intervention, to a degree that the salutation of Communism by Marx prophetic premise of the future of workers uniting with no prospects of losses than their ‘chains’ does not betray the impact of Patronage economy and receiving peonage, on no other count but those of profit to one group and losses of another. It will be in Russia and in some sever parts of dilapidated Turkish realm that the reversals on what considered Capitalism would take its roots and from these angels it is not wrong to suggest that the role of Government in deciding the economic fate of any nation is…not.

But this theory about the losses and gains and the trade through a recycle of unemployment and inflation is probably not true. What means the conceptions of Marx on Communism as a form of economist practice could not be apply in real market circumstance, for the basic themes of haves and have not(s) which parade his Das Kapital was not an accurate diagnostic common market, and theory applied to its time was not only false but it was also misconceived economic theory. It is not wrong that those who are find the Das Kapital appealing were tellingly from lower ebb of the Society, some of the Chief proponents included Lenin and Stalin were actioners of little economic opulence, were variously tried in the attempt to redeem themselves from the perpetuated authority of their royalty and came to accept revolution as the only bullet out of the box.

It is not to suggest that Karl Marx was not accomplished theoretician and we are not expected to play folly to pressing problems of his Jewish people reduced to Ghetto and the messianic hopes of a better years which saw some meaning in relieving the Government the powers to decide the Market, yet in the difficult vise of the limits of his application, his was then and now a political revolution with no place for money and market. The ethereal fact that losses and profit combine to outfit a common market is not true, the claim which some Economist still repeat that concavity of one its convexity of another is not true, at best the realized attempt to underscore to the failures of Russian Communist exercises by Chinese Students is in spite of its originality quite original to Russia and Soviet Union that losses can be offset through a compulsory unemployment and losses in the local market can be trade-off through expediting the demands of one society by securing what they needed most, the most important needs of a province if truly established is expected to differ with some alternate province in the State.

It was the State that determines this range of demand and measures the limits of expectations in achieving the least possible for one province or the most for another as opposed to its expense. The Generality of distribution – no theater for price distribution and Savings theory – falls short of exactly promoting that the in real time economic conditions losses and profits essentially apply, but only to some extent as they apply to the Broad Index but on a whole, the nature of wealth of nations is one that is comfortable with the growth year on year. It is possible to grow your business with as much losses and profit, single digit only to the limits of participation but on the whole several well managed companies over a period of time do not shed that others will earn, they earn and growth simultaneously.

Here the premise of losses is applied only to a single banter and appeals to individual conceptions of one market which crushed under the difficult weight of ruling class is set to escape the obstacles by the dreams of a perfect union of Government and market which does not exist saving for oversight.

The Chinese Communist revolutions were done by poor people and general uneducated class but a different meaning under the leadership of enlightened but misdirect leaders….From Marx it is the final product from the effort of a first rate worker that determines the quality of a product. He is not blind to the forces of market is forcing price movement but this to him would be secondary or essentially an alternate system which should not replace the quality of a product through the hands of a worker. The Lenin-Marxist theories that were preached till late in the 70’s Nikita Khrushchev and by his General Sectaries in early part of 80’s by backing the formative GOK died a sudden death with the rise of Labor Unions in several parts of World.

The imperative of having Marshal Tito of Yugoslavia promote a loose orthodox Communism held a different meaning when applied to the impact that Unions will later have in Yugoslavia, hold a ‘Global spatial’ meaning in interpreting the problems of economic structure with the impact of the Unions who become so tall in a local or domestic market that engage under the pretenses of cheaper alternatives, strange and foreign markets where the transfer of capital was no longer a consideration among the subverted class, but the transfer of a worker’s product from one region to another determines the wealth basis of a nearly super rich. What many regard as the end of the Reagan administration or the Reagan economics as a period of symbolic American strength and end of the Cold war, was in many ways the beginning of new forms of economic activity, metered by the structure of workers Unions – AFL-CIO (American Federation of Labor and Congress of Industrial Organization) which had its moments after the end of World War II, Working in concert NRO, etc, were able to finance international referendum that empowered cross-border trades, cross-border transfer of Industries and factories, and in the end gave new birth and new meaning to the chain of causality leading and facing America in 2014. It is NAFTA of Salinas as buttressed by Henry Kissinger and Cyrus Garvey (?), Salinas adapting the prospects of the NAFTA under the garb of Tito, yet swelling on its living verdure the trunk of socialism with one eye on America Industries and the second on the limits of public intelligence.

These extremes of Industrial accounting;  in separating the Domestic themes of say a founding father; Alexander Hamilton and his Reports on Manufacturing, the division wrought by the cheap products from oppressed and enslaved South and the problems of prosperity on the backs of a Ricardo and the lavish theory of Comparative Advantage.

In this opening indictment of the wealth of error involved with NAFTA – itself a prosthesis of GATT, is that it took American Politicians of highest acumen – Gephardt, Gore, Bradley, Clinton(s), and Bush of ‘Bipartisan Oligarchy’ of the late 80’s through to 90’s to affirm the understudied Doctrines of NAFTA. For all we care about the 1993 organization of the treaty, we may or may not forget the efforts put in by far reaching New York Council men and women who in the persons of Sal Albanese to mention opposed the Treaty noting that it serves several purposes much of which was essentially negative. The transfer of American Industries to Mexico was a lease of life which fated the 1994 disasters in Mexico which led to a million workers losing their Job in combined oil crisis and companies shut downs due to Tariff and embargo commission and in petered outcomes gave impetus to Hunt Commission.

The equal measure of this transfer may have taken a new meaning from the attempts to undo the damages of NAFTA but more than the damages, it is the role of the Union Workers who held monopoly over the life and fortunes of its members and in New York more than anywhere else, the imbroglio of Sweeney who earned a few strips in defending workers in the earlier incarnation of the 70’s, remained a clog in the wheels that opposed NAFTA and in the end signed on a treaty that did not add the merits of Comparative Advantage with Mexico Debts (100 Billion at 1993) and the conversion rate of almost a 3, 000 pesos to a dollar. It was a fraud from beginning to the end, the end was no nowhere confined to Mexico since Italy, Spain and other near Second but really third World Europe of East and the West manicured existence and False Economy with cheap and undesirable exchange rate.            

There is something of the relationship between these remedies and the growth of US market which in many areas are challenged by the BRIC nations. There is nothing to deny that even Americans are not aware of the huge responsibility that the future holds for their country or are they physically prepared to engage the rest of the developing nations of the world. The problem US is facing with 'rising cost' of Energy and natural resources such as grains, metals, lumber and Interference from International conflicts and growth of small sector are problems which poor and sometimes mischievous economic practices are forcing on the nation. 

Europe in terms of the International world markets and International banking Standards such as Basel III, are so well trimmed that the even minor economic growth within the West of Europe is not essentially open to new comers let alone others from different ends of the earth. Here’s the conundrum, the poverty rate in Eastern Europe alone is quite comparable to what is available in many third world markets. It is possible to suggest that there are economic reasons why Europe has to censure the attention is getting from Asia, for if these Tariffs and organizations lower the standards as required by world markets, Europe may suffer additional shedding of the Economic maturity preeminent in 2014. Such process limits Europe as a truly International Open markets, and like Asia – who deliberately manipulate their economy and operate all shades of Shadow Banking (Moon-Walking) reverts to U.S and to some degree the British who are not free from the trims of international currency manipulation. We compare Canada to U.S, it is limits of its bearing vintage, at least, Canada is toeing a similar line of practice but it is a small market benefiting the larger franchise of World Market than India many times the size.  

But in the age increasingly defined by the productive aspiration is perhaps better rehearsed from shocking lack of consumption economies which are the problems in 2014. It may be equally difficult to escape the limits of Chinese success given the first fact that 80’s could in of itself be called a Japanese decade. But these period of moderation which the 6% combined conversion of Chinese to US is set in such a way as to project the strength of the Chinese Economy and its future role in the world, is a future whose learning curve is primarily due to U.S Debt to China and also the faith – which in the case holds no pretenses on the conception of US as the Major economy power in the world – would be estimated to play out when one economy ties itself too close to a more primary economy.  The success and decline of Japanese Economy, which now like China is in moderation, is due to the open market policies of the United States whose enviable economic policies is bankrupt in Japan.

We may not fail to establish the fact that the creation of Euro as a decoupling effect through overnight Chicago, was not understudied before introduction, that the main problems associated with such…is the underlining market structure which bank lending possible. In 2014 unlike the decades following the removal of U.S dollars from gold Standard in 1971, there are fewer and fewer Open Market Economies in the world, and there is no denying that the New Economy of Global markets was not enhance by the U.S actions in 1971. A comparative study of Japanese Automotive Industries and the overnight rise of its electronic productions may seem to suggest that it coincided with the larger roles of the Banks and the Federal Reserve following the removal of U.S dollars from Gold Standard. The debt of United States to much of the world as consequence of this singular act is essentially out of the charts.

The results are no less evident, for how could any economic society imagine the profits enjoyed by Japan and recent times, India and China, were obtained through the market or capital processes traditionally common to all markets. Perhaps a new definition of the markets are required, but to the extent that no type of economy can thrive without a Capitalist free market, it leaves us little or no room to beggar assumption that all political economics which is not Capitalist – however defined – is merely a process towards a free market. Barely two decades ago could we discuss possibility of Asia economy as miracle, that it was lacking in principle power house banks and had problems with foreign Investment Banks. but less than a 20 years when at least in our current experience and memory, Banks did not function in China except by diction from the seating Chairman, leaves us a thing of wonder if not beauty that in 2014, China has managed to manufacture 4 (four) of the leading 10 major Banks in the world.

In fact two of the top three banks in the World are from nowhere the biggest bank in the world and are China owned. The surprise is largely unclear given the….

Perhaps we should we worthy of the strange and long tales about the Chinese development Banks, how much they were worth even in the 1998 when for the best of us who were fortunate to hear Chinese Engineering graduate at City College CUNY, invited their students to China and to a future that could profit. These Banks were worth Billions, but not tens of Billions until the Amalgamation of several Key Chinese Banks. One of the most traditional Banks in China that was bound to its transformations as a manufacturing hub is China Development Bank. Its feature and its role in helping to transform Chinese resources from raw to manufacturing is intricately bound to the evolution of Communist State and also its transition from Communist State to Neo-Communism, practiced with lessons from the rise and collapse of Russia and the shrinking of Japan following an explosive decade of the 80s.   

But these period of moderation which the 6% combined conversion of Chinese to US is set in such a way as to project the strength of the Chinese Economy and its future role in the world, is a future whose learning curve is primarily due to U.S Debt to China and also the faith – which in the case holds no pretenses on the conception of US as the Major economy power in the world – would be estimated to play out when one economy ties itself too close to a more primary economy. 

The success and decline of Japanese Economy, which now like China is in moderation, is due to the open market policies of the United States whose enviable economic policies is bankrupt in Japan. We may not fail to establish the fact that the creation of Euro as a decoupling effect through overnight Chicago, was not understudied before introduction, that the main problems associated with such enterprise is the underlining market structure which make bank lending possible depends in part on return rate, that an IOU to China was a strategic placement of operation that enables a relationship between China and US to exist in the future.  

In 2014 unlike the decades following the removal of U.S dollars from gold Standard in 1971, there are fewer and fewer Open Market Economies in the world, and there is no denying that the New Economy of Global markets was not enhance by the U.S actions in 1971. A comparative study of Japanese Automotive Industries and the overnight rise of its electronic productions may seem to suggest that it coincided with the larger roles of the Banks and the Federal Reserve following the removal of U.S dollars from Gold Standard in 1971. The debt of United States to much of the world as consequence of this singular act is essentially out of the charts. The triumphs of China over its local problems coincided with the fall of Russia in the 70’s, and with arrival of Xiaoping, there was a new and awakened power in the East. The manifestation of China as a power in the world entered its own Tiger on the eve of EU introduction of a super single currency.

 It needs be compared from the past that a look at the resolutions of Russia during and after the Bolshevik resolutions, points a China there was in disrepute, rotten to its quick by the British preliterate ideologue and their proliferate French that barred each other’s way but with understanding suckered China into a local and under-developed market. With the rise of Russia, especially under Stalin, was a China riddled with uncertainties between Kuomintang and the Ming or Red Party led by Chairman Mao. The drug ragged Shanghai and the double functions of Du Yueh Sheng, the total collapse of Shanghai under finance minister and premier T.V Song and head of states Chiang-Kai-shek and his elder and younger sisters; Ai-ling and Mei Song summarizes determination under Chairman Mao and eventually Hua Guofeng who opened China to the rest of world.      

 But new sensation that China is besting invokes the past triumphs of powerful states, who in the last 50 years has seen Russia rise and in debacle – a debacle further complicated by the new measures of President Putin in separating Russia from certain areas of the world market. It was not a best way to replicate on a world sanctions, the better approach was to challenge the procedure in court, collectively as the United Nations, G-20, BRICS economic block, the MINT and individual members of the signatory in Courts of appeal of their individual nations. Such long process will meet the sanctions half way, enough to redeem what is left of sanction. Russia did not do this, yet there will already struggling from the total collapse of the long and powerful empire which they inherited from the Turks and ruled with their help.

The Japanese would be the next great wave whose export power and production hub transformed Japan and in fact Asia into one of the world’s leading technology areas. Japan came very close to overtaking the US in 1980-1982, but failed just by whiskers largely for the role of a SIC (V) Insurance Company called these days AIG. The spread of AIG into Asia; Philippines, Japan and China, was so charismatic that it may breathe easy on my comparative separation of quantity of money as a physical property and the use of digital cash-less technology not exactly like the Cards. Japan’s rise heralded its decline. Its reasons why so different from Russia ascending and descent, that new falcon on the block that would surpass America was said by Robert Mundel not to be easily available. In limelight of the actions performed against third world economies with more than a share of Tiger money to buttress, for instance money derived from cash crop may have found its way to the hands of those in power, may have found it way as a form of default and above all, it looks like the saying is equally correct that the idea behind regional formation of currency may have been based on John Nash’s ‘Governing Dynamics’ which from his essays, seem to dovetail on the fact that in chain of ….in other to release the forces held by the

But the difference is that U.S was expected to protect its local interest by ‘evolution’ its own market without relapsing into any major would markets as opposed to the political ‘revolution’ of Communist East and Russia which then and now has the backing of the Government. Russia is a giant in with old spades, has no meaning for New World economy, can be argued to be counter-weight for the U.S economy at least up to the late 70’s, but in the arrears of the ensuing years since the end of World Wars, has gradually cleaved its wing in Shadows and in recent no more than a shadow of its past. Perhaps the greatest impact of the Euro is that the forced the Eastern corridors into the Global Macro, that the blanket weight of a communist challenged Russia in Eastern Europe was no proving mark for a First tier market, and in spite of Ukraine in this Age, we are no longer at the mercy of GLOBULUS.

   

1. Between the popular fronts of economic governments and the attempts by South East Asia especially Japan to adapt to new frontiers on economic principles are realities that are impossible to measure without the dimly lighted U.S economy. Some of the Grand Strategies of Meiji Government after the disaster of Hiroshima, popularly led by Yoshida who was also admired by the larger Liberal International Markets, is set with view of appropriating the benefits of world markets for the Good of Japan, including loans to companies on interest with Foreign Penetration. This Strategy particularly favored by the mining industries encouraged the direct acquisition of foreign companies through state sponsored monetary channels. The result of these was the rise of a nation that emphasized production but defended its territory by limiting the penetration of foreign investment through means and ways that is now and then a Toyota riddle.  The Tokyo riddle is no doubt similar with Russia Paradox itself the theme of a book by Sewreyen Bialer (Soviet Paradox; 1986), with the view of external expansion which held the Communist Nation from the 1949 through the 1983, to an extent that the massive expansion of these two giants, a front for the reality that China will brace, lead to some poor Internal regulation or true measure of internal return creating a decline that was not well known till the lost 90’s decade of Japan. However we place the expansion of Japan in the 80's, its consequent moderation or decline of overnight sensations could not be called an accident. We are looking at the impact economic crusades had on the world, beginning perhaps its periods of expansion, should be able to confirm that following an extra-ordinary expansion of any market is the fait accompli of a decline or perhaps a periods of moderation and attempt at balancing or market been able to correct itself...., For reasons that are quoted elsewhere and explicated by risk managers and experts, there are no elements of surprises if the strain on Communist China to deepen, with or without due inflationary pressure, no surprises when it fractures at its some point and no surprises leading to a decade of moderation. Unlike the 80's, there are more countries in the world whose market policies are mainly driven by supply side, unlike the past market conditions are strained, and fewer consumptive markets exist, unlike Japan, China is a billion market with sparing investment capacity.
2. But this is not take case, the issue is the market expectations at some point, to the extent to which the rest of well to do world is seeking abortive means of generating impressions of economic progress but are left furlough when now unlike the healthy American State in the late 60’s and 70’s, is a State that is struggling with its own problems. In one way or another, there are fewer and fewer states that toe the older liberal world markets whose existence would be said to ensure the sensation of these new economic blocks.

The US debt is well of 50 trillion dollars as at 2012 and but the Nation somehow manages to hang in there as the number one country in the world with 15 trillion dollars GDP, followed closely by the China with up to 8 trillion dollar GDP at 2012. But the facts that US are facing a stiff competition from the BRICS for instance suggest that the world is expanding almost as simultaneously as the United States that these nations should share the burdens associated with a liberal economy. In the years preceding the arrival of Deng Xiaoping as Chinese premier it is on record that China owed the rest of world almost nothing, that since the 80’s when BEOING finally mounted Chinese first Airplane Plant in an old abandoned warehouse, and Chinese Debt has climbed. But if we compare China to US in terms of Debt to Earnings, China is perhaps a higher pedestal than US. Given the prevailing economic communities of BRIC Nations such as Brazil and China, and going from the spectacle of Leading Economic Indicators (LEI) of the world, it is easy to however break the ice that indicative national economic environment of these nations for instance the prospective list on stock exchange, hardly justify the economic weights projected. China is quite an example and in so far as the BRICS, is as good they come.

We are not to subtract the Community of hopefuls on China from real time economies of the world, but Chinese economic policies and degree of transparency still disappoint. No country that pampers itself as a worthy challenge of major economies of the world should box itself to a corner or arbitrarily operate in shadow. The relevance of China to the rest of world may dominate world market opinions for a very long time and be determined by its moderation to the disciplines of World Market systems which are really System Dynamics. Cloud Computing….

We can assume that given the amount of industries available in the States versus the Chinese, should try out patience but there is an argument to be made about the return to Shenzhen. India is worthy of consideration as any would expect, but it still wears the goggle of Third World Economy given the wider population to feed. In US, we are spectators of the dangling issue of Social Security and the attempt at reforming Medicare and Medicaid with Obamacare.

The role of Obama Care in trying to wrestle the problems of inflation in US and reduce the issue of US debt may discovered in the pages of the Paul Krugman’s ‘The Conscience of a Liberal’ where in pages 224 through 242, particularly 242 where he mentioned that employers and Insurance companies ‘mitigate’ the Welfare of their employees by choosing who to insure. It was pointless to mention that those without hope of surviving on a long term basis and not adequately insured are left for the dead, or left to shift from individual pay as you go to US managed Welfare constitution and these people account for the worst Welfare cases. Krugman’s ‘Conscience of a Liberal’ is arguably his best book, which was recognized by international committee leading to his Noble Prize. Krugman’s anti-IMF and World Bank position is not different from the Joseph Stieglitz opposition to Washington Consensus but he managed this from the problems of 2008 financial collapse which neither him or even Robert Shiller can actually claim to have written significantly about it. For a fact the ‘Great Unraveling’ would to have been taken from a page in Richard Parker's ‘John Kenneth Galbraith; His Life, His Politics, His Economics’ where the delivered the unraveling leading to the problems of government intervention removed from the intentions of the original thinkers.