Indebted to China

Someone said that China is now the U.S.'s unofficial banker. They hold more U.S. Treasury bills than any other country. People who work at think tanks must be worried about this, though they are not saying anything - at least not in public. What would happen if the Chinese decided to cash in their Tbills? It has been said that when you make a bank your partner, the bank cannot afford to see you go bankrupt. They will therefore not cash all their bills at once. Perhaps they will opt for 100 billion at a time? The Chinese also converted all of their bills to one-year notes - from thirty year notes. I would not pretend to know why they did that. This topless woman does not know either.

Freedom or money?

Did you hear about the Gallup poll conducted in 165 countries? It asked the people whether they would like to live in another country if they had the chance. 10% of Asians said they would. 38% of Africans said the same thing. The countries of choice were the U.S., Canada, Spain, Saudi Arabia, France, Germany, Australia, and Britain. Were these people thinking about freedom and democracy or just prosperity? It is very normal for people to want to do well and to be given the chance to prosper. One wonders why most political leaders refuse to acknowledge that. For instance, this topless woman just wants to be left alone. She's not really bothering anyone.

Detroit is lost

From yesterday’s news: “DETROIT (Reuters) - To understand why critics say the market-based tax foreclosure system is failing in Detroit, drive up Desoto Street near the city's geographic center. The street is a mix of older ranch-style homes, new construction financed by a local church and wide-open green spaces where homes have been demolished or burned down. Fifteen vacant lots on the street were listed in the October auction by Wayne County officials after owners failed to pay taxes for the past three years. None of the lots sold at the minimum bid of $500. Americans have grown used to the idea that Detroit -- a one-time industrial powerhouse -- is a dying city with unemployment of 28 percent.” It seems Detroit’s residents were somehow not motivated to keep the good times rolling. Most of the upper middle class left and the employers of the middle and lower class went bankrupt. Even this topless woman left. So who pays the taxes now?

Who is the victim here?

From a news story: “TEGUCIGALPA (Reuters) – Honduran soldiers and riot police surrounded the Brazilian embassy, where ousted President Manuel Zelaya was sheltering on Wednesday, in what could turn into a long standoff and deepen the country's crisis. Hundreds of security forces, some in ski masks and toting automatic weapons, cordoned off a large area around the embassy building in Tegucigalpa where Zelaya holed up with his family and a group of about 40 supporters. Brazil's government said it would guarantee his protection inside its embassy and called on the U.N. Security Council to discuss Central America's worst political crisis in decades. De facto leader Roberto Micheletti said Zelaya could stay in the embassy "for five to 10 years" if he wanted, hinting that the administration is preparing for a long conflict.“ After almost one month, they are still talking. By now, the Brazilian Embassy must be tired of sheltering the ex-President. You know what they say about visitors and fish – they stink after three days. Someone somewhere knows the truth behind the ouster. I know I don't and neither does this topless woman.

Democracy

This is why I think Democracy isn't necessarily the greatest thing since the year 1200: Guatemala is a democracy, Iran is a democracy, Iraq is a democracy, Mexico is a democracy, the United States is a democracy, Venezuela is a democracy, Panama is a democracy, Italy is a democracy, India is a democracy, Turkey is a democracy, Russia is a democracy, and any number of African nations are democracies. The corruption and lack of justice and dignity are everywhere to be found in these democracies. Democracy guarantees nothing. It is just a smoke screen for wily and astute men who like to beguile and control people. Please. Is there an alternative?

China again

From a Yahoo! News story: “BEIJING – China is calling for a new global currency to replace the dominant dollar, showing a growing assertiveness on revamping the world economy ahead of next week's London summit on the financial crisis. The surprise proposal by Beijing's central bank governor reflects unease about its vast holdings of U.S. government bonds and adds to Chinese pressure to overhaul a global financial system dominated by the dollar and Western governments. The world economic crisis shows the "inherent vulnerabilities and systemic risks in the existing international monetary system," Gov. Zhou Xiaochuan said in an essay released Monday by the bank. He recommended creating a currency made up a basket of global currencies and controlled by the International Monetary Fund and said it would help "to achieve the objective of safeguarding global economic and financial stability." Zhou did not mention the dollar by name. But in an unusual step, the essay was published in both Chinese and English, making clear it was meant for a foreign audience.” I told you so.

Kasparov arrest

If you follow the news, you already know about this, but in case you don't and in case you care, here it is:

“At least 100 people were arrested Sunday at opposition protests in two major Russian cities organized by Kremlin critic and former world chess champion Garry Kasparov, police and witnesses said. Dozens were detained and forced into police buses at Triumfalnaya Square in central Moscow, where Kasparov and other activists had planned to hold an unsanctioned "Dissenter's March," an AFP journalist said. The arrests came a day after Kasparov and fellow government critics launched a new opposition group, Solidarity, and vowed to "dismantle" the regime of Prime Minister Vladimir Putin. Several hundred yards away on Pushkin Square an AFP photographer saw about 15 elderly people who said they were retired military officers being detained by police as they prepared to head for the march. "Around 90 people were detained," police spokesman Viktor Biryukov told AFP, adding they may face administrative measures, a term that usually means fines. The detained activists included writer Eduard Limonov, founder of the National Bolshevik Party, a banned radical group, his aide Alexander Averin told AFP by telephone from a bus where they were being held. It was not immediately clear what happened to Kasparov. Hundreds of police filled the area around Triumfalnaya Square ahead of the planned demonstration, surrounding it with trucks and metal barriers. Kasparov and his allies had vowed to hold the Dissenter's March there to protest what they view as Putin's undemocratic policies, despite not receiving police permission. Ahead of the arrests, a spokesman for the Moscow police told the Interfax news agency that authorities would be "tough but lawful" in dealing with the unsanctioned protest. The retired officers were detained as they prepared to head toward the Dissenter's March, an AFP photographer said. Kasparov's website reported that they included retired general Alexei Fomin, head of a group called the Union of Soviet Officers, which had gathered to mark the anniversary of the Decembrist uprising of 1825, a revolt led by officers against Tsar Nicholas I. About 10 people were detained at a parallel Dissenter's March held in Saint Petersburg, an AFP journalist witnessed. Some 300 people gathered in the northern city to chant slogans including "No to the Amendments," referring to proposed constitutional amendments that would extend presidential terms from four years to six. "What is happening in this country is a catastrophe," said Alexander, an engineer who attended the protest. Sunday also saw a police-sanctioned protest of about 100 people in central Moscow organized by The Right Cause, a liberal party created last month with Kremlin approval after a merger of three other parties." It is so easy to dissent when you have nothing to lose; in Russia, you cannot disagree with the government without expecting to be detained, possibly arrested, possibly fined, and possibly beat up. Ciao.

Transparency

Pay no attention to the markets. The markets will be just fine - I don't want to repeat myself so much. In less than a year, everyone will be better off. The adjustments will have washed away all the dirty financial grime. The thing you should be paying attention to is the proposal to eliminate cash as an instrument for barter. The Europeans no longer trust the U.S., even if they act like they do. Keep your eyes on the November meeting of the G20. Your credit card will be your new ID. All of this in the name of financial transparency. Get a second opinion if you feel the need.

Democratic Convention

Well, the convention is in full swing - I'm sure you're keeping up with it. All the speeches sound like they were made in heaven. I played for a fancy dinner of a group of lawyers one time - a string quartet it was. Everyone looked great in their suits and power ties and lavish dresses. The speeches came before we played so we heard them all. We didn't mind, we were getting paid by the hour. All the things said sounded so high minded and idealistic I was mesmerized. Then I remembered they were just words. The distance between words and deeds is great - very great. I wonder if politicians believe anything they say - maybe they just like the limelight. Who really knows?