Ruble Challenges US Dollar Hegemony.

Russia’s Petro-Ruble Challenges US Dollar Hegemony. China Seeks Development of Eurasian Trade
China will re-open the old Silk Road as a new trading route linking Germany, Russia and China

By Peter Koenig, Global Research

Russia has just dropped another bombshell, announcing not only the de-coupling of its trade from the dollar, but also that its hydrocarbon trade will in the future be carried out in rubles and local currencies of its trading partners – no longer in dollars – see Voice of Russia Russia’s trade in hydrocarbons amounts to about a trillion dollars per year. Other countries, especially the BRICS and BRCIS-associates (BRICSA) may soon follow suit and join forces with Russia, abandoning the ‘petro-dollar’ as trading unit for oil and gas. This could amount to tens of trillions in loss for demand of petro-dollars per year (US GDP about 17 trillion dollars – December 2013) – leaving an important dent in the US economy would be an understatement.
Added to this is the declaration today by Russia’s Press TV – China will re-open the old Silk Road as a new trading route linking Germany, Russia and China, allowing to connect and develop new markets along the road, especially in Central Asia, where this new project will bring economic and political stability, and in Western China provinces, where “New Areas” of development will be created. The first one will be the Lanzhou New Area in China’s Northwestern Gansu Province, one of China’s poorest regions.

“During his visit to Duisburg, Chinese President Xi Jinping made a master stroke of economic diplomacy that runs directly counter to the Washington neo-conservative faction’s effort to bring a new confrontation between NATO and Russia.” (press TV, April 6, 2014)

“Using the role of Duisburg as the world’s largest inland harbor, an historic transportation hub of Europe and of Germany’s Ruhr steel industry center, he proposed that Germany and China cooperate on building a new “economic Silk Road” linking China and Europe. The implications for economic growth across Eurasia are staggering.”

Read more » Global Research
http://www.globalresearch.ca/russias-petro-ruble-challenges-us-dollar-hegemony-china-seeks-development-of-eurasian-trade/5377086

The Pakistan-China Corridor

A new project will give Pakistan the tools of globalization. Will it use them?

By Christopher Ernest Barber

Historian Daniel Headrick made the crucial connection between means and ends in the projection of global influence. For instance, Headrick argued that the Suez Canal, which opened in 1869, acted a tool of empire for the great powers of the nineteenth century. The building of a canal through the Sinai Peninsula not only  made trade and empire in Asia faster by avoiding the Cape of Good Hope, but more economical too. This was particularly the case for the world’s superpower, Great Britain. For Britain, the Suez was an important strategic consideration in its imperial outlook, making the transport of goods, officials and soldiers to Bombay and other key colonial hubs easier and affordable. At the same time, the canal aided the wider globalization process of the nineteenth century, which opened Asia up to the advent of Western adventure capitalists with exploitation and domination never far from the surface. The Suez Canal acted as a “tool of empire,” as Headrick put it, and in a small but important way, the world became that much more global—all to the benefit of those Western nations that could harness of the power of the sea.

Headrick’s argument turns on a profound if easily overlooked point: those with easy access to the sea-lanes of the world invariably have the tools for global power and trade. Even today, the laws of economic scale dictate that air and rail, while important in their own right, will always be poor cousins to the efficiency and capacity of container ships and waterborne trade.

Despite the fact that the free trade zone port of Gwadar in Pakistan’s southwestern province of Balochistan has been an unprofitable enterprise with operational control now in Chinese hands, its potential remains. If anything, the development of the deep ocean port and an associated international airport, as well as the creation of a transport corridor connecting Gwadar to China’s easternmost province of Xinjiang, is a game changer for the Central Asian region. In Beijing this February, President Mamnoon Hussain and Chinese President Xi Jinping signed a series of agreements designed to breathe life to the corridor project. In the coming years, the once sleepy fishing enclave of Gwadar will become a staging ground for the geopolitical reorganization of the region.

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Obama meets Dalai Lama, defies China

by AFP

WASHINGTON: US President Barack Obama welcomed Tibet’s exiled spiritual leader the Dalai Lama to the White House Friday, defying China, which said the meeting would “seriously impair” ties between the two countries.

The encounter took place in the Map Room on the ground floor of the president’s residence and not the Oval Office, which Obama usually uses to meet foreign leaders and visiting dignitaries.

“The president is currently meeting w/His Holiness the @DalaiLama in his capacity as an internationally respected religious & cultural leader,” the US National Security Council said on Twitter.

Read more » DAWN
http://www.dawn.com/news/1088564/obama-meets-dalai-lama-defies-china

E6 Electric Car Launched Officially in China – Can Do 300 Miles per Charge

Chinese auto-maker BYD in collaboration with the famous US investor Warren Buffett, has officially released its first all-electric car that will be available to private buyers.

The vehicle’s 75 kW motor gives it a range of nearly 300 km on a single charge in urban conditions. BYD also said on its website that the BYD e6 is equipped with an iron battery that can be fully recharged in about 40 minutes.

The electric car is capable of reaching a top speed of 140 km/h. Unlike ordinary oil-consuming vehicles, the e6 can save its owner about 75 percent of the energy cost.

BYD Auto was founded in 2003, being a part of the rechargeable battery maker,the BYD Co Ltd. Some reports said that in 2010 the sales were estimated at 519,800 units and the production capacity at 700,000 units. In December 2008, Warren Buffet has allocated $230 million to buy a 10 percent stake in BYD.

So the Chinese CAN build a car that’s about the price of a Nissan Leaf and the range of a Tesla Model S. Then why don’t the others follow? Is it some kind of a strategy for we aren’t yet prepared to get in electric cars? Or what?

Courtesy: GreenOptimistic
http://www.greenoptimistic.com/2011/10/27/byd-e6-china-launch/#.UwYw0YXWY2A

China has tested an ICBM hypersonic warhead.

Will China’s new supersonic warhead bust US missile shield?

China has tested an ICBM hypersonic warhead. It follows from the test results that China may deploy its ICBMs with these kinds of warheads in the foreseeable future, says an expert with the Centre for Analysis of Strategies and Technologies, Vassily Kashin.

The testing of the ICBM hypersonic warhead is the first practical achievement of a large-scale programme to create hypersonic weapons, a programme that China is translating into life. China has been engaged in developing hypersonic cruise vehicles for several years. In July 2012, the Chinese media reported the commissioning in China of a unique high-speed wind tunnel capable of testing model aircraft at speeds of up to Mach 9. Now China has reported the flight test of a hypersonic cruise vehicle. The basic questions that arise in this context are how the new technology will influence the Chinese nuclear strategy and what other hypersonic weapon projects China is carrying out.

Read more: http://voiceofrussia.com/2014_01_15/Will-Chinas-new-supersonic-warhead-bust-US-missile-shield-1589/

China commits $6.5b for Pakistani nuclear project

Project to have two reactors with a capacity of 1,100 megawatts each I Construction to be completed by 2019

By: Reuters

ISLAMABAD – China has committed $6.5 billion to finance the construction of a major nuclear power project in Karachi as it seeks to strengthen ties with its strategic partner, Pakistani officials said.

Read more » Reuters
http://www.nation.com.pk/islamabad/25-Dec-2013/china-commits-6-5b-for-pakistani-nuclear-project

Why China Is Wary Of India?

by John Lee

In a recent security conference in Washington, a Chinese delegate caused an awkward silence among the congenial group at a post-event drinks session when he stated that India was “an undisciplined country where the plague and leprosy still exist. How a big, dirty country like that can rise so quickly amazed us”.

It is this Chinese sentiment of disdain and also grudging admiration that explains much of Beijing’s attitude towards New Delhi. Indeed, one needs to go beyond strategic and military competition to understand the depth of rivalry between Asia’s two rising giants.

China shares land borders with 14 countries. Over the past 30 years, it has made concerted attempts to improve relationships with all of them by settling border disputes. In the case of Russia, China granted significant concessions in order to improve its relationship with Moscow. But the one exception is India.

Outstanding disputes such as the one over the Switzerland-sized area of Arunachal Pradesh continue to bedevil relations. China’s militarisation of the Tibetan plateau — including placing a third of its nuclear arsenal in that region — is a direct challenge to Indian sensibilities. Indeed, India is the only country not formally covered by China’s ‘no first use’ nuclear policy.

Add to these the growing naval rivalry in the Indian Ocean that is driven by resource competition and insecurity and we have what Chinese leaders openly admit to be a “very difficult relationship” with India. These factors point to the persistence of the India-China rivalry.

But they do not fully explain why Beijing has made little effort to work towards settlement of these disputes with New Delhi, as it has with its other land-based neighbours. A more complete explanation needs to take into account the non-material factors behind China’s strategic rivalry with India.

The first factor is one of shock and surprise at India’s continued rise. Until the late 1990s, people at the highest levels in China were dismissing India’s prospects. It was only early this century that China abandoned viewing India through the lens of the 1962 war when Indian forces were decimated and New Delhi humiliated. Because Indian national scars and weaknesses are there for all to see, little is hidden or explained away. China met India’s re-emergence initially with disbelief, then with disdain, and now with wariness. Beijing does not react calmly to strategic surprises and its gruff response to Indian ambitions in Asia is evidence that Beijing is yet to determine a grand strategic response to India’s re-emergence.

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Saudis hint at building ties with other powers after US shock

By Angus McDowall

RIYADH: Saudi Arabia seems to have few viable options for pursuing a more independent and forthright foreign policy, despite its deep unease about the West’s tentative rapprochement with Iran.

Upset with the United States, senior Saudis have hinted at a range of possibilities, from building strategic relations with other world powers to pushing a tougher line against Iranian allies in the Arab world and, if world powers fail to foil Tehran’s nuclear ambitions, even seeking its own atomic bomb.

But alternative powers are hard even to contemplate for a nation that has been a staunch US ally for decades. Russia is on the opposite side to Riyadh over the Syrian war and China’s military clout remains modest compared with the United States.

Robert Jordan, US ambassador to Riyadh from 2001-03, said there would be limits to any Saudi alliances with other powers.

“There is no country in the world more capable of providing the protection of their oil fields, and their economy, than the US, and the Saudis are aware of that. We’re not going to see them jump out of that orbit,” he said in an interview.

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Defying China, U.S. bombers fly into East China Sea zone

By Phil Stewart and David Alexander | Reuters

WASHINGTON (Reuters) – Two unarmed U.S. B-52 bombers on a training mission flew over disputed islands in the East China Sea without informing Beijing, defying China’s declaration of a new airspace defense zone and raising the stakes in a territorial standoff.

The flight did not prompt a response from China, the Pentagon said, and the White House urged Beijing on Tuesday to resolve its dispute with Japan over the islands diplomatically, without resorting to “threats or inflammatory language.”

China published coordinates for an East China Sea Air Defense Identification Zone over the weekend and warned it would take “defensive emergency measures” against aircraft that failed to identify themselves properly in the airspace.

The zone covers the skies over islands at the heart of a territorial dispute that China has with close U.S. ally Japan.

“The policy announced by the Chinese over the weekend is unnecessarily inflammatory,” White House spokesman Josh Earnest told reporters in California, where President Barack Obama is traveling.

“These are the kinds of differences that should not be addressed with threats or inflammatory language, but rather can and should be resolved diplomatically,” he said.

Two U.S. B-52 bombers carried out the flight, part of a long-planned exercise, on Monday night EST, a U.S. military official said.

The lumbering bombers appeared to send a message that the United States was not trying to hide its intentions and showed that China, so far at least, was unable or unwilling to defend the zone.

Read more » Reuters
http://ca.news.yahoo.com/u-aircraft-fly-over-east-china-sea-without-172248256.html

China: Growing Strikes, Corruption and Debt are Harbingers of coming Revolution

Written by Daniel Morley and Congyue Dai

Six months into China’s new Politburo Standing Committee under Xi Jinping’s Presidency, it has become abundantly clear that the next ten years under his rule will not resemble the relative social stability and rapid growth of the past ten years. The cart will not keep on rolling down the same path. Xi Jinping and the Chinese Communist Party stand at a crossroads, facing that classic dilemma of all ruling classes – either to open up to democratic reform or clamp down on growing dissent?

Underneath the bland, controlled and seemingly unchanging edifice of Hu Jintao’s Presidency China has been anything but unchanging. Millions have joined what is by far the world’s largest proletariat and started producing more and more commodities. Of particular interest to Marxists is the rebirth of the Chinese labour movement which is growing in confidence and organisation day by day. This fact is of infinitely greater significance in determining the new regime’s approach to reforming itself than the pleas of enlightened liberals.

According to China Labour Bulletin (CLB), the three months from June to August 2013 saw 183 strikes, 7% up from the previous three months and more than double the amount in the same period in 2012!

Read more » http://www.marxist.com/china-strikes-corruption-debt-harbinger-of-revolution.htm?fb_action_ids=739718982710238&fb_action_types=og.likes&fb_source=other_multiline&action_object_map={%22739718982710238%22%3A159396910938122}&action_type_map={%22739718982710238%22%3A%22og.likes%22}&action_ref_map=[]

Oligarchs — new dictators of the 21st century

BY Christian Caryl

WASHINGTON: Earlier this month, the investment bank Credit Suisse published its annual survey of global wealth. The bank’s report is filled with illuminating findings, but one in particular caught my eye. It has to do with the distribution of assets in Russia, where, as the report notes, a mere 110 people own a mind-boggling 35 per cent of the country’s entire wealth. At the same time, 93.7pc of Russians are worth $10,000 or less.

As the report notes, this makes Russia the country with the greatest wealth disparities in the world. Americans, who are now increasingly concerned about deepening inequality in their own country, might seek some consolation from this dismal conclusion. Even under present circumstances, wealth in the United States is still spread a lot more evenly than that. Things could be worse, right?

Well, maybe. But I see little cause for jubilation. Russia is merely the most extreme case of a worldwide trend that potentially represents one of the greatest threats that democracy faces today: the spread of oligarchy.

The problem isn’t just that some people in today’s world are fabulously rich. It’s that disproportionate wealth increasingly goes along with disproportionate power. Russia, again, offers a textbook example of the dangers. Back in the 1990s, a handful of politically well-connected business tycoons managed to profit from their close relations with Boris Yeltsin’s Kremlin by taking advantage of the privatisation of the country’s industrial jewels — above all its vast oil wealth. Those magnates weren’t shy about exploiting their economic power to political ends. They bankrolled Yeltsin’s re-election as president in 1996, controlled ministerial appointments, and dictated government policy. No wonder these businessmen-cum-politicians were soon dubbed the “oligarchs.” (”Oligarchy” is Greek for “government of the few.”)

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India Ready To Launch First Mars Mission

By Ryan W. Neal, International Business Times

India has begun a countdown towards the launch of its first spacecraft bound for Mars. The Indian Space Research Organization will launch a Mars Orbiter Mission probe named Mangalyaan in the next few weeks.

Mangalyaan recently arrived at the Satish Dhawan Space Center in Sriharikota and will be loaded onto a launch vehicle that is just about ready for takeoff. Mangalyaan will orbit Mars and take photographs of the Martian surface and search for signs of methane in the Mars atmosphere. An array of senors aboard Mangalyaan will explore morphology and mineralogy of the Mars surface.

The Indian mission to Mars has a launch window between Oct. 28 and Nov. 19, which will get Mangalyaan to Mars in September 2014. It will orbit Mars for about six to 10 months.

If successful, India will become just the fourth nation to reach mars, along with the former Soviet Union, Europe and the US. Japan and China have both attempted Mars missions and failed.

The mission will cap off a successful year for ISRO. In 2013, India debuted environmental and communications satellites and a successful unmanned mission to the moon.

Mangalyaan will be joined by NASA’s Mars Atmosphere and Volatile EvolutioN (MAVEN) orbital probe. Representatives of NASA told Space.com that having a diverse set of vantage points and sensors will contribute to a more complete understanding of the Martian geology and climate.

Courtesy: http://socialreader.com/me/content/U6xgl

China’s Official Press Agency Calls For New Reserve Currency, And New World Order

by Tyler Durden

We assume it is a coincidence that on the day in which we demonstrate China’s relentless appetite for gold, driven by what we and many others believe is the country’s desire to have a call option on a gold-backed reserve currency when the time comes, just posted in China’s official press agency, Xinhua, is an op-ed by writer Liu Chang in which he decries the “US fiscal failure which warrants a de-Americanized world” and flatly states that the world should consider a new reserve currency “that is to be created to replace the dominant U.S. dollar, so that the international community could permanently stay away from the spillover of the intensifying domestic political turmoil in the United States.”

Of course, if China were serious, and if the world were to voluntarily engage in such a (r)evolutionary reserve currency transition ….

Read more » Zerohege,com
http://www.zerohedge.com/news/2013-10-13/chinas-official-press-agency-calls-new-reserve-currency

China is waiting for Sindhiz

This is for all Sindhi Graduates: China is waiting for Sindhi

Please Follow these steps from 1ST DECEMBER 2013.. If you are graduate and hold M.Sc/BS Degree in any discipline you can join any University for Masters and Ph.D in china by applying in a Fully Funded Scholarship of Chinese Scholarship council.. You have to adopt following procedure:

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Remember bogus U.S. excuses for Iraq war before attacking Syria: China’s Xinhua

(Reuters) – An attack on Syria would be dangerous and irresponsible, and the world should remember the Iraq war was started by U.S. allegations of weapons of mass destruction which turned out to be false, China’s official Xinhua news agency said on Tuesday.

Read more » Reuters
http://www.reuters.com/article/2013/08/27/us-syria-crisis-china-idUSBRE97Q09420130827

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More » First Post
http://m.firstpost.com/world/remember-bogus-u-s-excuses-for-iraq-war-before-attacking-syria-chinas-xinhua-1065437.html

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Via – Above news adopted from facebook

New rail line from China to Germany

Responding to rising trade volumes, Zhengzhou, a business and logistic center in Central China, has started rail service to Hamburg, Germany.

The train takes 18 days to make the 10,214-kilometer trip, but that’s more than twice as fast as maritime transport. It can also effectively save 80 percent of the cost compared with air shipments, and it’s about $489 cheaper on average compared with road transportation, which is a major incentive for the Eurasian Land Bridge, also dubbed New Silk Road.

The route reaches Germany via Kazakhstan, Russia, Belarus and Poland. Zhengzhou International Inland Port Development Co Ltd is responsible for cooperating with  rail companies in each country.

Read more » CHINA DAILY
http://usa.chinadaily.com.cn/epaper/2013-07/19/content_16800881.htm

Hauling New Treasure Along the Silk Road

By

AZAMAT KULYENOV, a 26-year-old train driver, slid the black-knobbed throttle forward, and the 1,800-ton express freight train, nearly a half-mile long, began rolling west across the vast, deserted grasslands of eastern Kazakhstan, leaving the Chinese border behind.

Dispatchers in the Kazakh border town of Dostyk gave this train priority over all other traffic, including passenger trains. Specially trained guards rode on board. Later in the trip, as the train traveled across desolate Eurasian steppes, guards toting AK-47 military assault rifles boarded the locomotive to keep watch for bandits who might try to drive alongside and rob the train. Sometimes, the guards would even sit on top of the steel shipping containers.

The train roughly follows the fabled Silk Road, the ancient route linking China and Europe that was used to transport spices, gems and, of course, silks before falling into disuse six centuries ago. Now the overland route is being resurrected for a new precious cargo: several million laptop computers and accessories made each year in China and bound for customers in European cities like London, Paris, Berlin and Rome.

Hewlett-Packard, the Silicon Valley electronics company, has pioneered the revival of a route famous in the West since the Roman Empire. For the last two years, the company has shipped laptops and accessories to stores in Europe with increasing frequency aboard express trains that cross Central Asia at a clip of 50 miles an hour. Initially an experiment run in summer months, H.P. is now dispatching trains on the nearly 7,000-mile route at least once a week, and up to three times a week when demand warrants. H.P. plans to ship by rail throughout the coming winter, having taken elaborate measures to protect the cargo from temperatures that can drop to 40 degrees below zero.

Though the route still accounts for just a small fraction of manufacturers’ overall shipments from China to Europe, other companies are starting to follow H.P.’s example. Chinese authorities announced on Wednesday the first of six long freight trains this year from Zhengzhou, a manufacturing center in central China, to Hamburg, Germany, following much the same route across western China, Kazakhstan, Russia, Belarus and Poland as the H.P. trains. The authorities said they planned 50 trains on the route next year, hauling $1 billion worth of goods; the first train this month is carrying $1.5 million worth of tires, shoes and clothes, while the trains are to bring back German electronics, construction machinery, vehicles, auto parts and medical equipment.

DHL announced on June 20 that it had begun weekly express freight train service from Chengdu in western China across Kazakhstan and ultimately to Poland. Some of H.P.’s rivals in the electronics industry are in various stages of starting to use the route for exports from China, freight executives said.

The Silk Road was never a single route, but a web of paths taken by caravans of camels and horses that began around 120 B.C., when Xi’an in west-central China — best known for its terra cotta warriors — was China’s capital. The caravans started across the deserts of western China, traveled through the mountain ranges along China’s western borders with what are now Kazakhstan and Kyrgyzstan and then journeyed across the sparsely populated steppes of Central Asia to the Caspian Sea and beyond.

These routes flourished through the Dark Ages and the early medieval period in Europe. But as maritime navigation expanded in the 1300s and 1400s, and as China’s political center shifted east to Beijing, China’s economic activity also moved toward the coast.

Today, the economic geography is changing again. Labor costs in China’s eastern cities have surged in the last decade, so manufacturers are trying to reduce costs by moving production west to the nation’s interior. Trucking products from the new inland factories to coastal ports is costly and slow. High oil prices have made airfreight exorbitantly expensive and prompted the world’s container shipping lines to reduce sharply the speed of their vessels.

Slow steaming cuts oil consumption, but the resulting delays have infuriated shippers of high-value electronics goods like H.P’s. Such delays drive up their costs and make it harder to respond quickly to changes in consumer demand in distant markets.

Read more » The New York Times
http://www.nytimes.com/2013/07/21/business/global/hauling-new-treasure-along-the-silk-road.html?smid=fb-share&_r=0

The relentless crisis — Lal Khan

Occupy Islamabad LahoreThe huge bubbles of speculative investment in housing, InfoTech, petroleum products and others sectors have now burst

After the 2008 crash of the world economy, there was an unprecedented turbulence in the world markets and economies. In the advanced capitalist economies most regimes, social-democratic or conservative, carried through severe austerity and cuts that started the process of dismantling the welfare state, mainly in Europe. All those gains achieved through intense struggle by the working classes of these countries were being reversed. Still the US and European economies could not come out of the recession after five years of brutal recipes to put the burden of the crisis of capitalism onto the shoulders of the working masses. There is a seething revulsion against the ruling classes. A popular catchphrase doing the rounds in Europe say it all: “Bankers are slightly less popular than paedophiles and serial killers.”

The BRICS (Brazil, Russia, India, China and South Africa) countries, the so-called emerging economies that were expected to give a new lease of life to capitalism with high growth rates, have failed to do so. Their growth rates shrank and the nature of the socioeconomic development in these countries, where the tasks of the bourgeois revolution have not been accomplished, have resulted in severe social contradictions that have now begun to explode on the political plane. Instability, uncertainty and disillusionment are now stalking these lands. The eruption of mass revolts from Turkey to Brazil are thus not accidental. They reflect a growing discontent and a sense of revulsion amongst the masses who are being inflicted by the severe trauma of this crisis that is crushing their livelihood.

It seems as if happiness has become elusive for the ordinary people in the advanced capitalist countries, not to speak of the oppressed working classes of the underdeveloped world.

After the Second World War, even if the revolutions were defeated in several European countries mainly due to the betrayals of the leaders of the Social Democratic and Communist parties, yet the upswing enabled these traditional leaders of the mass organisations to carry out reforms. Reforms are always introduced from above to stop revolution from below, but at least at that stage capitalism in the developed countries had the capacity to create a social welfare state. In Britain, education became free and the Labour Party introduced a health system where even foreign visitors could get treatment at a minimal cost.

People had hope for a better future and that created a blissful atmosphere and relatively prosperous societies. Now that optimism in life in Europe seems to have evaporated. People have lost hope in a future that promises only a grim life. A social malaise has set in. It is astonishing that this situation has developed in the aftermath of the collapse of the USSR, Eastern European Socialism and the capitalist restoration in China. After these events the bourgeoisie gained access to a huge market of more than two billion. At that time in the end of the 1980s and the beginning of the 1990s, there was euphoria amongst the strategists of capital. The bourgeoisie on a world scale were dizzy with success. Yet it has turned out to be a hoax.

Dialectally it turned into its opposite and today we see capitalism mired in its most severe crisis, unprecedented in its 200-years history. This exposes the historical redundancy and the organic sickness of capitalism. Even with such a massive expansion of the market, it has failed to develop society and improve the living standards of the working class even in the advanced countries. The growth we saw in the last 20 to 30 years was through a greater labour intensive mechanism where all or most members of the household were working, many workers working overtime and of course, a gigantic expansion of credit.

The huge bubbles of speculative investment in housing, InfoTech, petroleum products and others sectors have now burst. But what triggered the crash of 2008 was the overextension of credit that accumulated in the corporate sector and through personal loans in the previous three decades. The banking default in 2007 led to the sovereign default in 2010. Ever since the economies of most European countries and the US have been reeling from a chronic crisis with no end in sight.

According to the Financial Times, it could take at least 20 years to solve the European crisis! It goes on to say, “Europe raises the spectre of an ungovernable world.” The usually boastful The Economist had to concede, “The way to recovery is long and dark.” If these most staunch strategists and spokespersons of capitalism are in such gloom, the reality of this system’s recovery must be much starker.

In the immediate aftermath of the 2008 crash, there was a sense of shock amongst the workers of the advanced capitalist countries. However, as various regimes embarked upon severe austerity programmes, retaliation began to emerge from the workers and the youth. The revolution in Tunisia that ignited the Arab revolution in the spring of 2011 took its inspiration from the mass demonstrations and protests in France in the autumn of 2010. The lightning strikes of the students in Britain in December of that year also had a huge impact on the youth, especially in Egypt. After the Arab Spring we saw the European summer with mass protests not seen in two decades in most countries of Europe. Then we saw the American Autumn with the sudden rise of the Occupy Wall Street Movement in the US with huge implications worldwide.

These movements also had important repercussions on the political plane. After 19 general strikes we saw the collapse of the traditional political party of the workers in Greece, PASOK. The meteoric rise of SYRIZA in Greece also shows that the working classes at a certain point can overcome the burden of their traditions and move ahead to a more radical solution.

Read more » Daily Times
http://dailytimes.com.pk/default.asp?page=20137\21\story_21-7-2013_pg3_5

Good news, bad news — Mir Mohammad Ali Talpur

The establishment understands quite well that without turning Gwadar and large parts of Balochistan into a joint Chinese-Pakistani cantonment, they will not be able to move an inch

Passengers are relaxed in a cruising airliner all dreaming of their cherished destination and the pleasurable environment they would be in when suddenly the captain’s anxious voice breaks the calm. He says, “Ladies and gentlemen due to unavoidable circumstances a change of plans has been necessitated and we have been diverted to an uninhabited island. However, there is good news and bad news; which do you want first?” All demanded the bad news first. He said, “The bad news is that there is nothing to eat there except horse dung but the good news is that there is plenty of it.”

The situation in Pakistan is not much different; there are horse dung islands instead of promised destinations and, above all, the good news is always that there is more of bad news. There are unending atrocities against the Baloch, loot of their resources, injustices against Sindhis, carnages against Hazaras, intensification of attacks against Shias, discrimination against Hindus and Christians, persecution of Ahmadis, neglect of displaced persons in Khyber Pakhtunkhwa and Dera Bugti. The list is far from complete and the establishment continually not only adds to it but also increases the perniciousness of prevailing problems.

In the first five months of this year 84 people were disappeared, whereas 79 disfigured bodies were recovered from different parts of Balochistan; the toll of the dead is over 700. Whilst unabated atrocities, abductions and dumping of the Baloch persist, the establishment prepares to further antagonise them with the so-called economic projects essentially detrimental to Baloch interests because of the demographic changes and increased economic injustices these will entail and naturally be a prelude to increased state atrocities against them who naturally will resist to preserve their rights.

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Simple arithmetic — Mir Mohammad Ali Talpur

The establishment and its intellectuals’ priority has never been the rights of the Baloch and Sindhis

The envisaged Gwadar-Khunjrab-Kashgar railway and oil pipeline, for which a feasibility report was completed by Chinese engineers before Chinese Premier Wen Jiabao’s 2010 visit to Pakistan, bodes evil for the Baloch people’s rights. This is but a part of the larger strategy aimed at ensuring that Balochistan becomes the Tibet and Xinjiang of Pakistan. Masood Khan, Pakistan’s Ambassador to China, had then stated, “We support China’s policy on Tibet, Xinjiang and human rights.” China-Pakistan relations are based on mutual support for human rights violations.

This is amply proved by the fact that during the 23rd regular session of the United Nations Human Rights Council’s general debate in Geneva on June 7, 2013, when Balochistan’s representative to the UN Mehran Marri spoke about Pakistan’s continuing human rights abuses and recent farcical elections in Balochistan, the Pakistani delegate objected, and was supported by the Chinese and Cuban delegates. However, much to their chagrin, the US and UK representatives taking strong exception to their objections, supported Marri and called on the session chair to allow him to complete his statement and be allowed on record. Ironically, the Cuban representative said it was unacceptable for an NGO, conveniently forgetting that they too were once an NGO (pun intended), to attack the territorial integrity and independence of a sovereign state.

The continuing Afghan influx has already changed the demographic balance in parts of Balochistan. This proposed railway will help Pakistan usher in engineered demographic changes to turn the Baloch into a minority in their own land. The recently installed extremely pliable government in Quetta — whose titular chief minister cannot even name a cabinet without Nawaz Sharif’s consent — fully supports these sham mega-projects to bring about required demographic changes. The systematic engineered demographic changes combined with the brutal killings of Baloch activists and ordinary people suspected of sympathies with the Sarmachars (insurgents) are the two-pronged attacks that the Pakistani establishment has unleashed on the Baloch people. The demography issue is a life and death issue as the Baloch people’s destiny hinges on it and the resistance they can muster.

The Pashtuns too are suffering because of the harebrained dreams of strategic depth, which the deep state refuses to abandon in the hope of becoming the arbiter of Afghanistan’s fate and the hope to keep India on the back foot with its non-state actors. This ludicrous policy also sustains sectarian terror.

Sindhis have had the worst of both worlds and are rapidly turning into a minority in Sindh. Once again demands for shifting Biharis there are being made. This does not mean that they have not been coming in slowly, steadily and surreptitiously; where even mechanics can get blue passports at a price, getting an NIC is not a big deal. Thousands of Afghans refugees are bona fide citizens of Sindh; an Afghan colony is slowly taking shape near Bhit Shah and may well become a Sohrab Goth.

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US, UK support for Baloch leader shocks Pakistan, allies at UN

By: Murtaza Ali Shah

LONDON: Britain and America shocked Pakistan and its allies at the 23rd regular session of the United Nations Human Rights Council’s general debate in Geneva on 7 June when the two countries clearly supported nationalist leader Mehran Marri, Balochistan’s representative to the UN, who spoke against the recent elections and alleged that Pakistan was committing rights abuses in Balochistan.

Pakistan is likely to lodge protest with both the countries for taking a hostile position towards Pakistan by intervening on behalf of Mehran Marri who alleged that the recent elections exposed the “farce that the Pakistani establishment wanted to present as democracy”. The support by the two powerful countries to a Baloch separatist leader will give strength to the view of those who suspect that there are elements within the US and the UK who have sympathies for Baloch nationalist factions for their own regional and strategic objectives.

Marri, the youngest son of Karachi-based veteran leader Nawab Khair Baksh Marri, said that the Baloch didn’t take part in the election “charade” as participating the elections would have legitimised the “injustices against the Baloch people since 7th March 1948 when Pakistan forcibly annexed Balochistan”.

Mehran Marri told the session that one of the provincial assembly member was elected with 544 votes, on a 1.18 percent voters turnout. Pakistani delegate objected to the remarks made by Marri and said that Pakistan is fully conscious of its obligations to protects the human rights of its citizens.

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Baloch need to struggle within Pakistan, says chief minister

By Anwar Iqbal

“Democracy is the only option for Baloch nationalists,” says Balochistan’s new chief minister Dr Abdul Malik Baloch. “We need to connect with national democratic forces to achieve our objectives. We need to work within Pakistan. We have no other option.”

In an interview to Dawn.com, Dr Malik said that a move by US Congressman Dana Rohrabacher to create a separate state for Balochs will further confuse the Baloch struggle for their rights.

“In the past, we were told the revolution will come from Moscow. Now we are told it will come from Moscow. I disagree with such suggestions. We need to struggle for our rights within Pakistan. We need to work with other democratic forces in the country.”

He said that relations with neighboring states, particularly India, Iran and Afghanistan have a direct impact on the situation in Balochistan.

“Our institutions need to sit together and work out a new foreign policy if we want peace, particularly in Balochistan.”

The sectarian violence, he said, was directly linked to the Iran-Saudi conflict and “we need to device a balanced approach to prevent these two countries from fighting their war on our turf.

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PAKISTAN – Chinese bank to provide funds for hydropower project

LAHORE: The EXIM Bank of China has signed an agreement with the government of Pakistan to provide $448 million for the strategically important 969MW Neelum-Jhelum Hydropower Project.

The agreement, a significant development in the efforts to obtain funds for the remaining work on the project, was signed last week during Chinese Prime Minister Li Keqiang’s visit to Pakistan.

The project is being constructed on River Neelum in Azad Jammu and Kashmir. Besides generating much-needed low-cost hydel electricity to help mitigate power shortages, the project will also enable Pakistan to establish its priority rights on the river waters.

Wapda is striving to complete the project by 2016 according to its construction schedule.

At present, construction work at different sites of the project is moving forward satisfactorily. Of the combined 67-kilometre tunnels, 34.24km long tunnels (51 per cent) have so far been excavated. Work on excavation of under-ground powerhouse has been completed by 75.24 per cent, on transformers hall by 96.33 per cent and on de-sander of the project by 95 per cent.

Construction of Nauseri Bridge over River Neelum and second stage diversion of the river have been completed.

After completion, the project will contribute 5.15 billion units of cheap electricity to the national grid every year. Annual benefits of the project have been estimated at about Rs45 billion.

Courtesy: DAWN
http://dawn.com/2013/05/29/chinese-bank-to-provide-funds-for-hydropower-project/

View from McLeod Road: Why the Sino-Pak alliance is economically worthless

In the 12-year period between July 2000 and June 2012, net foreign investment in Pakistan amounted to about $29 billion, of that, just $0.8 billion came from China

KARACHI: Pakistan’s leaders love using laughably outrageous metaphors in describing the country’s relationship with China, yet the truth is that this so-called alliance means almost nothing positive for the Pakistani economy.

All of Islamabad – indeed all of Pakistan – appears to be bending over backwards in laying out the red carpet to welcome Chinese Premier Li Keqiang. But the fact of the matter is that China will give Pakistan almost nothing, and this two-day trip is really only being made by the Chinese premier to avoid slapping Islamabad in the face completely, after having made his first trip abroad a three-day visit to India, in a key signal about the real shifts in Chinese foreign policy.

Pakistanis love to proclaim China as our “all-weather friend. In his last visit to China, former Prime Minister Yusuf Raza Gilani described the relationship ashigher than mountains, deeper than oceans, stronger than steel and sweeter than honey.”

On this trip, Premier Li described the relationship as “a tree, now exuberant with abundant fruits”.

This was not him being poetic. It was delivering a message that nobody in Pakistan seems to have gotten: that China’s ties with Pakistan are not some eternal alliance of friends, but a strictly utilitarian relationship in which Beijing uses Islamabad occasionally to scare the living daylights out of the United States and India to get what it wants in its negotiations with Washington and New Delhi, and then abandons Pakistan once that transaction is completed.

A look at the numbers suggests that the Islamabad-Beijing relationship has had very little benefit for Pakistan as whole.

In the 12-year period between July 2000 and June 2012, net foreign investment in Pakistan amounted to about $29 billion, according to the State Bank of Pakistan. Of that, just $0.8 billion came from China, and nearly all of that was China Mobile’s investment in Zong.

China’s investment in Pakistan is less than that of tiny Netherlands, which invested $1.4 billion during that time. The supposed “Great Satan” – the United States – invested the most in Pakistan: $7.7 billion, or more than a quarter of all foreign investment in the country. There is only one major Chinese company with actual investments in Pakistan: China Mobile. The number of major US companies investing in Pakistan? More than 30.

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With Wary Eye on the U.S., China Courts India

On the back of this week’s visit, both Prime Minister Singh and Premier Li are due to visit each others respective rivals. Next week, Singh is headed to Japan, which is engaged in an increasingly edgy dispute with China over a group of islets in the seas between them. Li goes to Pakistan, where he is to sign agreements to develop the Chinese-managed Gwadar port. India has often been nervous about Chinese agreements with its neighbors that are not strictly military but could be leveraged in a conflict.

By REUTERS

NEW DELHI — Chinese Premier Li Keqiang, smiling and effusive, was out to smooth ruffled feathers in India this week, promising to ease tensions and increase trade between Asia’s fastest growing economies in his first trip overseas since taking office.

“China will make your dream come true,” Li told a banquet hall filled with Chinese and Indian business executives in the financial capital of Mumbai as he wound up his visit on Tuesday.

China’s overtures, which come amid worries in Beijing that it is being encircled by the United States and its allies, however met with a cool response.

India has been shaken by a recent border spat with China and is cautious about Beijing’s friendship with rival Pakistan, where Li flies on Wednesday. New Delhi is also concerned about a ballooning trade deficit with China and a flood of cheap Chinese-made goods undercutting local manufacturers.

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Six JF-17′s to escort Chinese PM into Pakistan

By APP
ISLAMABAD: Six JF-17 Thunder fighters of the Pakistan Air Force will escort the aircraft of Chinese Premier Li Keqiang as it enters Pakistani air space on Wednesday, at the start of his two-day State visit.The JF-17s — a symbol of deep Sino-Pakistan friendship – will guide the special Air China Boeing 747 aircraft of the Chinese dignitary to the Nur Khan Air Base, where a 21-gun salute will herald his arrival.

Read more » The Express Tribune
http://tribune.com.pk/story/552333/six-jf-17s-to-escort-chinese-pm-into-pakistan/

Pakistan adopts Chinese rival GPS satellite system

BEIJING – Pakistan is set to become the fifth Asian country to use China’s domestic satellite navigation system which was launched as a rival to the US global positioning system, a report said Saturday.

The Beidou, or Compass, system started providing services to civilians in the region in December and is expected to provide global coverage by 2020. It also has military applications.

Thailand, China, Laos and Brunei already use the Chinese system, which currently consists of 16 operational satellites, with 30 more due to join the system, according to English-language China Daily.

Huang Lei, international business director of BDStar Navigation, which promotes Beidou, told the newspaper that the company would build a network of stations in Pakistan to enhance the location accuracy of Beidou. He said building the network would cost tens of millions of dollars.

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Israel to Assad: air strikes did not aim to help Syria rebels

By Dan Williams

JERUSALEM : (Reuters) – Israel sought to persuade Syrian President Bashar al-Assad on Monday that recent air strikes around Damascus did not aim to weaken him in the face of a two-year rebellion, and played down the prospects of an escalation.

“There are no winds of war,” Yair Golan, the general commanding Israeli forces on the Syrian and Lebanese fronts, told reporters while out jogging with troops.

“Do you see tension? There is no tension. Do I look tense to you?” he said, according to the Maariv NRG news website.

Intelligence sources said Israel attacked Iranian-supplied missiles stored near the Syrian capital on Friday and Sunday as they awaited transport to Assad’s Lebanese guerrilla ally Hezbollah.

Israel has repeatedly warned it will not let high-tech weaponry get to Iranian-backed Hezbollah, with which it fought an inconclusive war in 2006.

Damascus accused Israel of belligerence meant to support outgunned anti-Assad rebels. The air strikes were tantamount to a “declaration of war”, it said, and threatened unspecified retaliation.

Veteran Israeli lawmaker Tzachi Hanegbi, a confidant of Prime Minister Benjamin Netanyahu, said on Monday that Israel did not want to clash with Assad.

Interviewed on Israel Radio, Hanegbi said the Netanyahu government aimed to avoid “an increase in tension with Syria by making clear that if there is activity, it is only against Hezbollah, not against the Syrian regime”.

Israel is reluctant to take sides in Syria’s civil war for fear its actions would boost Islamists who are even more hostile to it than the Assad family, which has maintained a stable stand off with the Jewish state for decades.

Hanegbi said Israel had not formally acknowledged carrying out the raids in an effort to allow Assad to save face, adding that Netanyahu began a scheduled week-long trip to China on Sunday to signal the sense of business as usual.

The Israel prime minister did not comment about Syria during a visit to Shanghai on Monday.

“DIPLOMATIC CHANNELS”

Yedioth Ahronoth, Israel’s biggest-selling newspaper, said the Netanyahu government had informed Assad through diplomatic channels that it did not intend to meddle in Syria’s civil war.

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Our troops didn’t provoke border tension: China

BEIJING: Sticking to its stand that Chinese troops have not caused any “provocation” by violating the Line of Actual Control (LAC) in Ladakh, China on Thursday said the incident will not affect bilateral ties or disrupt peace at the borders as both sides are trying to resolve it in a friendly manner.

“I do not agree with your allegation that it is the Chinese side that has caused the provocation between the border troops,” Chinese foreign ministry spokesperson Hua Chunying said while replying to questions about the intrusion of Chinese troops at the Depsang Valley in Ladakh.

“China’s troops have never crossed the (LAC) line. China and India are neighbours and the boundary is not demarcated yet.

“It is inevitable for problems to prop up in border areas. When there is a problem it should be resolved through friendly consultations though existing mechanisms and channels,” she said.

“We believe this incident can also be handled and will not affect the peace and stability of the border areas as well as the normal development of China and India relations,” she said.

Urging the media to be patient, she said, “We also believe that the two sides continue to solve the issue in a friendly manner and we will not let the issue affect border peace and security and normal development of China-India relations”.

“We hope relevant media can keep patience and create favourable conditions for the two countries to solve this issue through friendly consultations,” she said.

The spokesperson said the situation on the Sino-Indian border is peaceful and stable.

“Just want to tell you that the current situation in the border area is peaceful and stable. Both China and India have the willingness to solve the dispute through peaceful negotiations and consultations.

“In the past three days I have repeatedly stressed China’s point and now I would like to reiterate that Chinese troops have always acted in strict compliance to relevant treaty and protocol between the two countries regarding the protection of security of the areas around the LAC,” she said.

China is committed to peace and security of the border areas as well as the negotiated settlement of the boundary issue left over from history, she said.

Asked about reports that the Chinese troops were insisting on Indian army to remove certain fortifications in that area, she said “since I am not in the frontier, so I do not know the latest development of the situation…Both China and India have the willingness to solve the dispute through peaceful negotiations and consultations”.

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Chinese Troops Set Up Post 10km Inside Ladakh – India Times

By IndiaTimes

NEW DELHI: In yet another deep incursion into Indian territory, Chinese troops apparently made inroads into the Daulat Beg Oldi (DBO) sector of eastern Ladakh and erected a tented post there this week.

Indian Army officials were, however, not too perturbed about the incursion, holding that it was a common occurrence. “In that area, patrols do have a face-off every now and then due to differing perceptions of where the Line of Actual Control lies. We resolve it through existing consultative border mechanisms,” said a senior officer.

As per reports, a platoon-strength contingent of about 50 troops of the People’s Liberation Army (PLA) came 10 km inside Indian territory in Burthe in the DBO sector, which is at an altitude of about 17,000 feet, on the night of April 15.

Troops from Indo-Tibetan Border Police(ITBP), which mans that stretch of the border, have also established a camp approximately 300 metres opposite the location, the sources said.

ITBP has asked for a flag meeting with the Chinese side but there has been no response till now.

The Ladakh Scouts, an infantry regiment of the Indian Army that specializes in mountain warfare, has also moved towards the area where the situation was described as tense.

DBO, located in northernmost Ladakh, is an historic camp site and located on an ancient trade route connecting Ladakh to Yarkand in Xinjiang, China. IAF has in recent years activated advanced landing grounds at DBO and two other places in eastern Ladakh as part of the policy to build military infrastructure along the LAC, in a belated move to counter strategic moves by China in the region.

Courtesy: India Times
http://www.indiatimes.com/news/india/chinese-troops-set-up-post-10km-inside-ladakh-73150.html

The Rise of China’s Reformers?

Change You Can Believe In

By Evan A. Feigenbaum and Damien Ma

Most observers are gloomy about the prospects for serious economic reform in China. But they ignore a central lesson of recent Chinese history: reform is possible when the right mix of conditions comes together at the right time. And the very circumstances that facilitated the last major burst of economic reform in the 1990s are largely present today.

Read more » Foreign Affairs
http://www.foreignaffairs.com/articles/139295/evan-a-feigenbaum-and-damien-ma/the-rise-of-chinas-reformers?cid=soc-twitter-in-snapshots-the_rise_of_chinas_reformers-041813

Via – Twitter

Democracy Military Style

By

The army chief, General Ashfaq Pervaiz Kayani, recently invited a team of journalists for a briefing, ostensibly to dispel rumours about the military standing in the way of the next elections. But alongside, he took the opportunity to seriously question the capacity of the politicians to handle affairs of the state, particularly their inability to resettle Swat after the army operation, the Hazara killings in Balochistan and the issue of terrorism in the country. The general also took a dig at the Chief Election Commissioner, Fakhruddin G. Ibrahim for failing to recognise the COAS after a two-hour-long meeting with him. The incident was clearly intended as a comment on the mental capacity of the CEC.

The meeting generated a lot of excitement. Some prominent journalists immediately eulogised the military commander’s sincerity in letting democracy thrive in the country. How serious the general is about democracy, however, remains to be seen. What this dialogue portends for the future of politics and the security of Pakistanis is a moot point.

If it were another country, the meeting would not even have taken place, let alone been reported on. One would like to remind the good general that in decent states, people usually do not remember the face or even the name of the army chief. And more importantly, the army chief calling journalists for a private, ‘chamber orchestra’ kind of meeting is a fairly sinister tool for intervention in politics. This is one of the many methods for derailing the democratic process. It started with General Musharraf, who was extremely fond of talking and would very often invite journalists and academics to “enlighten” them with his perspective on various national issues. General Kayani operates differently. He invites journalists and, reportedly, he sits there strategically dropping pearls of wisdom to set the tone for a debate. He launches an idea and then goes quiet. The moments of silence are filled allegedly by some of the “planted” minions in the meetings who then give interpretations of what they believe are Kayani’s thoughts. He offers no comments; he only runs rings of cigarette smoke around his captive audience.

Interestingly, he is not the only one who meets with journalists. The ISPR and the ISI have always had their own lines of communication with the media. This is not to trade any secrets, but to create a certain discourse that helps boost the army’s image vis-à-vis the politicians.’

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Chinese company places dome on Pakistan’s Chasma 3 Nuclear Reactor

The first of two reactors being constructed in the Punjab region of Pakistan by Chinese companies has passed a significant milestone with the emplacement of its dome.

The operation to fit the dome was completed on 6 March, China’s State Nuclear Power Technology Company (SNPTC) reported. Two 340 MWe pressurised water reactors (PWRs) are under construction at the site, which has China Zhongyuan Engineering as the general contractor and China Nuclear Industry No.5 Construction Company as installer. The reactor design was provided by the Shanghai Nuclear Engineering and Research Design Institute.

Chashma 3 and Chashma 4 are expected to begin commercial operation in 2016 and 2017 respectively, although SNPTC said that the unit 3 dome lift was carried out ahead of schedule. The new units will add to the generation already provided by Chashma 1 and 2 – 300 MWe PWRs also supplied by China. Only one other power reactor operates in the country, a 125 MWe pressurised heavy water reactor at Karachi (Kanupp). All units are owned and operated by the state-owned Pakistan Atomic Energy Commission.

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