August 13, 2007
No holds on China
Image source: bbc.co.uk
Read an excellent piece this morning on one of my favourite topics; the future of US hegemony. Basically, the article paints a very grim picture for the US on account of the fiscal recklessness of successive governments (none more so than the Bush administration) and how this has ensured that China has the US by the short and curlies. China effectively finances the US budget deficit, and while the US has typically displayed a very sanguine attitude to this, it has now reached a point (about USD900 billion to be precise) where the stability of the US economy is now utterly dependent upon the whims of the Chinese. It could – as it has been hinted by leading Communist Party officials – dump its holding of US government bonds, not only placing a constraint on future US government spending, but also impacting upon US domestic interest rates and the forex value of the greenback. Thankfully, it is not in the interests of the Chinese to engage in such sabotage because its fortunes rest on a stable world economy. However, it is pure folly on the part of Washington if it thinks it can impose trade sanctions on China to force a yuan revaluation. One thing is for sure, the US is suffering from a chronic case of imperial overreach. It is in tatters militarily, its deficits are getting bigger, and its moral authority is at an all time low.
August 12, 2007
The Weathermakers (Chinese style)
Image source: treehugger.com
I was astonished to learn the other day (see clip from BBC news) that the Chinese government plans to fire rockets into clouds to induce rainfall immediately prior to the Olympics in Beijing next year to help clear the air of pollution, and to avoid having any rain during the opening ceremony. These guys don't let a little thing like nature get in the way of anything. The Three Gorges Dam, the road to Everest base camp, and now rainmaking to clear pollution. A recent report in The Hindu reveals that this has been going on for years, the Weather Modification Department under the Chinese Academy of Meteorological Sciences benefitting from a sizeable budget. Firing chemicals into the atmosphere does not seem to be an issue (surprise, surprise), nor does the fact the US and the Europeans gave up this practice several decades ago given there were questionmarks over its effectiveness.
August 09, 2007
How not to produce biofuels
Image source: www.chronicle.com
Now the Bush administration has woken up to the fact it has to reduce its dependence on oil (probably due to the geopolitical scene in the Middle East rather than a concern for climate change ... but never mind), it has become very gung ho about biofuel generated from corn. As this BBC news report (RealPlayer required) points out, however, this creates new problems. While corn has been grown in the midwest for generations, the farmers are currently rubbing their hands together with glee as corn prices have doubled recently on account of the heightened demand. Naturally enough, they are planting more to take advantage of the new market conditions but this means less land to grow other stuff. In short, switching to biofuels is likely to raise the price of agricultural produce. This is likely to be a challenge for local politicians in time as their constituents protest about food prices. More worrying is what impact the new enthusiasm for producing biofuels will have in less developed countries. The answer may be second generation biofuels, which allows energy to be generated from waste (e.g. straw, wood, plastic bags and even human sewage) rather than the virgin product.
August 03, 2007
ASEAN turns the screw on Burma
Burmese Foreign Minister, Nyan Win
Image source: www.reuters.com
There was a huge break with tradition this week when ASEAN foreign ministers agreed to set up a human rights body. The issue has been creating friction within the 10-member group, threatening to divert attention from their usual preoccupation with economic integration. According to Reuters, an insider revealed that Malaysia, Indonesia, Singapore, Thailand, the Philippines and Brunei -- the six older members of ASEAN -- persuaded Burma, Laos, Cambodia and Vietnam to accept the deal. Needless to say, Burma had opposed the idea, while the other three nations had asked for more time. The time-honoured consensus approach which has characterised ASEAN's 40-year history ensured these differences were swept under the carpet, to arrive at an 'in principle' agreement. This might not seem a big deal, but this does constitute a major step forward and a sign that the more advanced nations within ASEAN are losing their patience with the military junta in Burma. The softly-softly strategy has clearly failed and now it is time to step up a gear because the increasingly bizarre behaviour of the Burmese government is becoming an embarrassment.