Tag Archives: boom

Bitcoin Boom? US fears digital currency may hit dollar demand

The US is becoming increasingly concerned over virtual currencies, launching broad investigations into Bitcoin and the likes. The online currency has won official recognition with a US federal judge ruling it is real money. A Texas man, being tried for laundering billions of dollars using the Bitcoin system, challenged the court by saying bitcoins were virtual and couldn’t be the basis for a fraud charge. He failed. RT’s Peter Oliver went to meet those who have no doubt bitcoin has real value.

Courtesy: – RT

China’s ‘Cake Theory’

‘Cake Theory’ Has Chinese Eating Up Political Debate

by Louisa Lim

What goes on inside China’s leadership is usually played out behind the closed oxblood doors of the compound where the top leaders live. This year, though, a political debate has sprung out in the open — and it has leaders and constituents considering how to move forward politically.

This ideological debate comes as China gears up for a once-in-a-decade political transition. The country’s future top leaders seem almost certain, with Xi Jinping in line for president and Li Keqiang on track for premier. Horse-trading is under way for other leadership positions, however, sparking a debate that could define China’s future.

The Chongqing Model: Equal Slices

In recent months, the streets of the city of Chongqing have been ringing with song. These are not spontaneous outbreaks; they’re government-mandated sessions, requiring employees to “sing the red,” patriotic songs praising China.

This is a leftist vision of China’s future, with powerful echoes of its Maoist past.

It’s the brainchild of Bo Xilai, Chongqing’s party secretary and the son of a revolutionary elder, Bo Yibo, one of the “eight immortals” of Communist China. Bo Xilai has taken a three-pronged approach by “smashing the black,” or attacking corruption and organized crime, with what some say is a disregard for the rule of law. His approach also includes putting in place measures to help those left behind by China’s economic boom.

“The government intervenes to correct the shortcomings of the market economy,” says Yang Fan, a conservative-leaning scholar at China University of Political Science and Law and co-author of a book about the Chongqing model.

“There are projects to improve people’s livelihood by letting migrant workers come to the city, by building them cheap rental places and allowing them to sell their land to come to the city,” he says.

This is where it comes to what’s been dubbed “cake theory.” If the cake is China’s economy, the Chongqing model concentrates on dividing the cake more equally.

The Market-Driven Guangdong Model

The competing vision, based in the province of Guangdong, focuses on making the cake bigger first, not dividing it. In economic terms, the Guangdong model is a more market-driven approach, pushing forward development ahead of addressing inequality.

“The Guangdong model aims to solve the concerns of the middle class,” says Qiu Feng, a liberal academic from the Unirule Institute of Economics. “It’s about building society and rule of law. It wants to give the middle class institutionalized channels to take part in the political process. Its basic thought is co-opting the middle class.”

He says the “Happy Guangdong” approach is aimed not at those left behind, but at those who have profited from the economic boom.

Guangdong’s party secretary, Wang Yang, has criticized the Chongqing model, saying people need to study and review Communist Party history, “rather than just singing of its brilliance.” In political terms, he’s throwing down the gauntlet at his rival, Bo Xilai.

Finding A Way Forward

Both these politicians are fighting for a place — and influence — inside the holiest of holies: the Politburo Standing Committee. This comes against a background of criticism of the current leadership from a surprising quarter.

“The bureaucracy is corrupt. Power has been marketized. Governance has been industrialized,” says Zhang Musheng, a consummate insider. “Local governments are becoming riddled with gangsters.”

Zhang’s father was secretary to China’s Premier Zhou Enlai. This makes him what’s known as a “princeling.” He’s attended a number of meetings held by children of former leaders, where criticism of the current leadership has been aired.

Despite their grievances, they came to one conclusion.

“China’s such a complicated society. Right now, it can’t leave the Communist Party. So the Communist Party must reform and improve,” Zhang says. “Although it’s criticized, right now there is no social force which can replace the Communist Party.”

Those are the key questions: how to reform or even if the Communist Party can reach consensus over which model it follows. ….

Read more » NPR

Turkey takes over the Arab Spring

– By Pepe Escobar

Finally. Crystal clear. Someone finally said it – what the whole world, except Washington and Tel Aviv, knows in its collective heart; the recognition of a Palestinian state is “not an option but an obligation”.

It did wonders that the man who said it was Turkish Prime Minister Recep Tayyip Erdogan, in Cairo, at the Arab League, in front of all Arab foreign ministers and with virtually the whole Arab world glued to satellite networks scrutinizing his every word.

The current Erdogan Arab Spring tour – as it was billed by the Turkish press – comprising Egypt, Tunisia and Libya, has already rocketed him to the status of a geopolitical cross between U2’s Bono and Barcelona’s superstar Argentine footballer Lionel Messi.

Erdogan received a rock/soccer star welcome at Cairo’s airport – complete with “Hero Erdogan” banners brandished by the Muslim Brotherhood. He even addressed the crowd in Arabic (from “Greetings to the Egyptian youth and people, how are you?” to “Peace be upon you”).

Erdogan repeatedly stressed, “Egypt and Turkey are hand-in-hand.” But it’s the subtext that is even more incendiary. While Israel’s former good friends Egypt and Turkey are now hand-in-hand, Israel is left isolated facing a wall. There could not be a more earth-shattering development in the Levant – unheard of since the Camp David peace accords between Israel and Egypt in 1978.

A model campaigner

Erdogan’s tour is a realpolitik master class. He’s positioning Turkey as the forefront supporter of the Palestinian cause. He’s also positioning Turkey at the core of the Arab Spring – as a supporter and as an inspirational model, even though there have been no full-fledged revolutions so far. He’s emphasizing solid Turkish-Arab unity – for instance planning a strategic cooperation council between Egypt and Turkey.

Plus the whole thing makes good business sense. Erdogan’s caravan includes six ministers and nearly 200 Turkish businessmen – bent on investing heavily all across northern Africa. In Egypt, they may not match the billions of dollars already committed by the House of Saud to the military junta led by Air Marshall Mohammed Tantawi. But in 2010, Turkish trade with the Middle East and North Africa was already at $30 billion, representing 27% of Turkish exports. Over 250 Turkish companies have already invested $1.5 billion in Egypt.

Crucially, Erdogan told Egyptian TV channel Dream, “Do not be wary of secularism. I hope there will be a secular state in Egypt.” Erdogan was subtly referring to Turkey’s secular constitution; and at the same time he was very careful to remind Egyptians that secularism is compatible with Islam.

The current Turkish model is enormously popular among the Egyptian street, featuring a moderate Islamic party (the Justice and Development Party – AKP) in power; a secular constitution; the military – albeit strong – back in the barracks; and an ongoing economic boom (Turkey was the world’s fastest growing economy in the first half of 2001). [1]

This model is not exactly what the regressive House of Saud wants. They would prefer a heavily Islamist government controlled by the most conservative factions of the Muslim Brotherhood. Worse; as far as Libya is concerned, the House of Saud would love to have a friendly emirate, or at least a government peppered with Islamic fundamentalists.

Erdogan also stressed that the “aggressiveness” of Israel “threatens the future of the Israeli people”. That’s music for the Arab street. Palestinian President Mahmoud Abbas met Erdogan in Cairo – and confirmed he’ll go ahead with Palestine’s bid to be fully recognized as a state by the United Nations Security Council later this month. ….

Read more → Asia Times