Showing posts with label USA. Show all posts
Showing posts with label USA. Show all posts

Wednesday, January 28, 2009


The New York Times




January 29, 2009

Report on Russia Missiles Suggests Gesture to U.S.

MOSCOW — A Russian news report on Wednesday that Russia is putting off its plan to deploy missiles near the Polish border raised speculation that the Kremlin is seeking ways to lower tensions with the United States now that a new administration has taken office.

The report, on the Interfax news agency, was attributed to an unidentified Russian defense official, and when contacted later in the day, other Russian foreign and defense officials in Moscow would not confirm or comment on it.

Interfax quoted the unnamed defense official as saying that, “These plans have been suspended,” referring to the Kremlin’s proposal to base Iskander missiles in the western region of Kaliningrad and direct them toward Europe.

The unnamed official was quoted as saying the Russian government had taken the step because Washington is not “pushing ahead” with the Bush administration’s proposal to deploy an anti-missile system in Poland and the Czech republic to defend against what the administration had said was a threat from countries like Iran.

Asked about the Interfax report, NATO said through a spokesman that if confirmed, “It would be a positive step.”

The Kremlin has sharply criticized the Bush anti-missile system, contending that it was aimed at Russia. Bush officials had sought to soothe Russian concerns, but ´the issue had damaged relations between the two countries.

While the official quoted by Interfax said the United States was not going forward with the antimissile plan, the Obama administration is in fact only reviewing the plan, and has not publicly rejected it.

And it would seem unlikely that the Kremlin would offer the concession of shelving the missile plan without first obtaining a promise from the Obama administration that the American plan had been canceled.

While the Kremlin remained silent about the issue on Wednesday, Itar-Tass, the government-run news agency, quoted an unnamed senior defense official as saying that any such reports in the Russian media about the Kremlin pulling back were “pure fiction, total nonsense.”

The unnamed official suggested it would be a mistake for the Russians to withdraw their threat unilaterally while the issue was still playing out.

In an interview with Bloomberg News on Monday, Prime Minister Vladimir V. Putin indicated that he was hopeful that the Obama administration would reject the Bush plan.

“We have heard signals concerning anti-missile defense, and we know that people close to Mr. Obama say they should not hurry and the issue demands further analyses,” Mr. Putin said. “We are glad to hear such statements. Beyond that, our proposal on developing those systems is still on the agenda.”

President Obama and Russia’s president, Dmitri A. Medvedev, spoke on the phone on Monday. The Kremlin said in a statement that the two leaders discussed “their intention to focus their efforts on renewing the potential of Russian-American relations, and on resolving issues in a constructive way.”


 
Wow - what is this world coming to?    :)   Gestures to the Greater Middle East and now peaceful gestures between US and Russia?   This must piss-off the military industrial complex no-doubt.   But I guess with one of the greatest financial crises ever facing the country - we can only show that much machismo towards the world, eh?    

Friday, January 23, 2009

The Global "Adverse Feedback Loop"

from www.bloomberg.com

Roubini, Edwards Predict Slump in S&P 500 on China (Update3)
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By Michael Patterson and Adam Haigh

Jan. 23 (Bloomberg) -- Stocks will retreat around the world because of shrinking demand from China as growth in the third- biggest economy slows, said Nouriel Roubini, the New York University professor who predicted last year’s financial crisis.

Global equities will fall 20 percent from current levels as China, which contributed 19.5 percent to total growth in 2007, contends with its slowest expansion in seven years, he said. Wall Street strategists predict the Standard & Poor’s 500 Index will rise 29 percent this year from the closing level yesterday.

Roubini, an economics professor at NYU’s Stern School of Business, said China already is in a “recession” despite government data showing a 6.8 percent fourth-quarter growth rate, as power output drops and manufacturing shrinks.

“Demand is falling in China, they’re over-invested in capacity and there’s a global supply glut,” Roubini, 50, said in a telephone interview. “It has very, very important implications.”
Roubini’s view is shared by Societe Generale SA global strategist Albert Edwards, who was correct in forecasting in March 2007 that a U.S. contraction would spur a bear market in equities. Edwards says the China slowdown will reduce earnings at industrial, energy and raw-materials companies, worsening a selloff in emerging and developed-market stocks that may send the S&P 500 down 40 percent to 500.

Emperor’s Clothes
“People should be thinking really hard about this rather than sticking their heads in the sand,” said Edwards, a London- based strategist and member of the top-ranked global investment strategy team in Thomson Extel’s surveys the past three years. “We’re just pointing out when the emperor doesn’t have any clothes on.”

The consensus among eight strategists surveyed by Bloomberg this week is for the index to end the year at 1,066. The S&P 500 fell 1.5 percent yesterday to 827.50, and futures on the index dropped 2.2 percent as of 4:32 a.m. in New York.

Data at China’s National Bureau of Statistics is gathered in a “scientific and realistic method,” Ma Jiantang, the agency’s director, said at a briefing in Beijing yesterday in response to a question about the accuracy of government figures. Zhang Yingxiang, a spokeswoman for the statistics bureau, declined further comment when contacted by phone today.

China Stocks Fall
China’s economy grew 9 percent for all of 2008 after a 13 percent expansion in the previous year, the fastest in the world. China’s CSI 300 Index fell 0.6 percent at the close in Shanghai, the biggest drop in eight days. Commodity producers led declines after Aluminum Corp. of China Ltd. and Yunnan Copper Industry Co. reported lower profit.

Economists at JPMorgan Chase & Co., Citigroup Inc., the World Bank and the International Monetary Fund all predict China will grow at least 7 percent this year, while investors Jim Rogers and Mark Mobius are buying Chinese shares on expectations the government will bolster economic growth with interest-rate cuts and fiscal stimulus. The IMF said China’s contribution to global growth increased to 19.5 percent in 2007 from 17.2 percent in the previous year.

China, which has $1.9 trillion set aside in the world’s largest reserves, plans to spend at least 4 trillion yuan on bridges, housing and tax breaks to boost the economy. Chinese President Hu Jintao has pledged further measures to maintain stable growth in the face of “serious challenges and difficulties.”

China Recession?
Rogers, who predicted the start of the commodities rally in 1999, recommends investors buy China’s agriculture, water treatment, power generation and infrastructure stocks because the companies won’t be hurt by the nation’s slowing economy.

“China could be in recession, I have no idea and it’s not relevant to me because I’m using my judgment as to what will happen six months from now,” said Rogers, who authored books on investing including “A Bull in China: Investing Profitably in the World’s Greatest Market.”

“There is a lot happening in China and there will be those that will hold up well.”

China’s economy will grow 6.3 percent this quarter from a year earlier, according to the median estimate of nine economists surveyed by Bloomberg after yesterday’s GDP report.

China’s electricity output declined 7.8 percent in November from a year earlier and fell 3 percent in October, the first declines since February 2002, according to China Economic Information Net data compiled by Bloomberg. Manufacturing shrank for a third month as the deepening global recession cut demand for the nation’s toys, clothes and electronics.

‘Manipulating’ the Yuan
Edwards said rising unemployment among factory workers will fuel social unrest, threatening the Communist Party’s survival and increasing the risk authorities will devalue the yuan to boost exports.

The yuan appreciated about 19 percent against the dollar between 2005 and July 2008 as China redressed what U.S. officials saw as an unfair price advantage for exports. The yuan has since stabilized at about 6.85 per dollar. Timothy Geithner, President Barack Obama’s nominee for Treasury secretary, said yesterday that China is “manipulating” its currency.

The yuan fell the most in a month today as the nation’s banks refuted the new U.S. administration’s accusation.

“If you amble your way through the analysis, you realize if push comes to shove they will devalue” the yuan, Edwards said. That may spur lawmakers in the U.S. and China to increase trade barriers, he said.

To contact the reporter on this story: Michael Patterson in London at mpatterson10@bloomberg.net. Last Updated: January 23, 2009 05:50 EST

Thursday, September 25, 2008

China Banks say NO! to US Banks

China banks told to halt lending to US banks-SCMP
Wed Sep 24, 2008 9:52pm EDT

BEIJING, Sept 25 (Reuters) - Chinese regulators have told domestic banks to stop interbank lending to U.S. financial institutions to prevent possible losses during the financial crisis, the South China Morning Post reported on Thursday.

The Hong Kong newspaper cited unidentified industry sources as saying the instruction from the China Banking Regulatory Commission (CBRC) applied to interbank lending of all currencies to U.S. banks but not to banks from other countries.

"The decree appears to be Beijing's first attempt to erect defences against the deepening U.S. financial meltdown after the mainland's major lenders reported billions of U.S. dollars in exposure to the credit crisis," the SCMP said.
A spokesman for the CBRC had no immediate comment. (Reporting by Alan Wheatley and Langi Chiang; editing by Ken Wills)

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Thursday, September 11, 2008

7 years after....its about damn time!!!!!!!

September 11, 2008
Bush Said to Give Orders Allowing Raids in Pakistan
By ERIC SCHMITT and MARK MAZZETTI

WASHINGTON — President Bush secretly approved orders in July that for the first time allow American Special Operations forces to carry out ground assaults inside Pakistan without the prior approval of the Pakistani government, according to senior American officials.
The classified orders signal a watershed for the Bush administration after nearly seven years of trying to work with Pakistan to combat the Taliban and Al Qaeda, and after months of high-level stalemate about how to challenge the militants’ increasingly secure base in Pakistan’s tribal areas.

American officials say that they will notify Pakistan when they conduct limited ground attacks like the Special Operations raid last Wednesday in a Pakistani village near the Afghanistan border, but that they will not ask for its permission.

“The situation in the tribal areas is not tolerable,” said a senior American official who, like others interviewed for this article, spoke on condition of anonymity because of the delicate nature of the missions. “We have to be more assertive. Orders have been issued.”

The new orders reflect concern about safe havens for Al Qaeda and the Taliban inside Pakistan, as well as an American view that Pakistan lacks the will and ability to combat militants. They also illustrate lingering distrust of the Pakistani military and intelligence agencies and a belief that some American operations had been compromised once Pakistanis were advised of the details.

The Central Intelligence Agency has for several years fired missiles at militants inside Pakistan from remotely piloted Predator aircraft. But the new orders for the military’s Special Operations forces relax firm restrictions on conducting raids on the soil of an important ally without its permission.

Pakistan’s top army officer said Wednesday that his forces would not tolerate American incursions like the one that took place last week and that the army would defend the country’s sovereignty “at all costs.”

It is unclear precisely what legal authorities the United States has invoked to conduct even limited ground raids in a friendly country. A second senior American official said that the Pakistani government had privately assented to the general concept of limited ground assaults by Special Operations forces against significant militant targets, but that it did not approve each mission.

The official did not say which members of the government gave their approval.
Any new ground operations in Pakistan raise the prospect of American forces being killed or captured in the restive tribal areas — and a propaganda coup for Al Qaeda. Last week’s raid also presents a major test for Pakistan’s new president, Asif Ali Zardari, who supports more aggressive action by his army against the militants but cannot risk being viewed as an American lap dog, as was his predecessor, Pervez Musharraf.

The new orders were issued after months of debate inside the Bush administration about whether to authorize a ground campaign inside Pakistan. The debate, first reported by The New York Times in late June, at times pitted some officials at the State Department against parts of the Pentagon that advocated aggressive action against Qaeda and Taliban targets inside the tribal areas.

Details about last week’s commando operation have emerged that indicate the mission was more intrusive than had previously been known.

According to two American officials briefed on the raid, it involved more than two dozen members of the Navy Seals who spent several hours on the ground and killed about two dozen suspected Qaeda fighters in what now appeared to have been a planned attack against militants who had been conducting attacks against an American forward operating base across the border in Afghanistan.

Supported by an AC-130 gunship, the Special Operations forces were whisked away by helicopters after completing the mission.

Although the senior American official who provided the most detailed description of the new presidential order would discuss it only on condition of anonymity, his account was corroborated by three other senior American officials from several government agencies, all of whom made clear that they supported the more aggressive approach.

Pakistan’s government has asserted that last week’s raid achieved little except killing civilians and stoking anti-Americanism in the tribal areas.

“Unilateral action by the American forces does not help the war against terror because it only enrages public opinion,” said Husain Haqqani, Pakistan’s ambassador to Washington, during a speech on Friday. “In this particular incident, nothing was gained by the action of the troops.”
As an alternative to American ground operations, some Pakistani officials have made clear that they prefer the C.I.A.’s Predator aircraft, operating from the skies, as a method of killing Qaeda operatives. The C.I.A. for the most part has coordinated with Pakistan’s government before and after it has launched missiles from the drone. On Monday, a Predator strike in North Waziristan killed several Arab Qaeda operatives.

A new American command structure was put in place this year to better coordinate missions by the C.I.A. and members of the Pentagon’s Joint Special Operations Command, made up of the Army’s Delta Force and the Navy Seals.

The move was intended to address frustration on the ground about different agencies operating under different marching orders. Under the arrangement, a senior C.I.A. official based at Bagram air base in Afghanistan was put in charge of coordinating C.I.A. and military activities in the border region.

Spokesmen for the White House, the Defense Department and the C.I.A. declined to comment on Wednesday about the new orders. Some senior Congressional officials have received briefings on the new authorities. A spokeswoman for Senator Carl Levin, a Michigan Democrat who leads the Armed Services Committee, declined to comment.

American commanders in Afghanistan have complained bitterly that militants use sanctuaries in Pakistan to attack American troops in Afghanistan.

“I’m not convinced we’re winning it in Afghanistan,” Adm. Mike Mullen, the chairman of the Joint Chiefs of Staff, told the House Armed Services Committee on Wednesday. “I am convinced we can.”

Toward that goal, Admiral Mullen said he had ordered a comprehensive military strategy to address the border region between Pakistan and Afghanistan.

The commando raid last week and an increasing number of recent missile strikes are part of a more aggressive overall American campaign in the border region aimed at intensifying attacks on Al Qaeda and the Taliban in the waning months of the Bush administration, with less than two months to go before November elections.

State Department officials, as well as some within the National Security Council, have expressed concern about any Special Operations missions that could be carried out without the approval of the American ambassador in Islamabad.

The months-long delay in approving ground missions created intense frustration inside the military’s Special Operations community, which believed that the Bush administration was holding back as the Qaeda safe haven inside Pakistan became more secure for militants.
The stepped-up campaign inside Pakistan comes at a time when American-Pakistani relations have been fraying, and when anger is increasing within American intelligence agencies about ties between Pakistan’s Inter-Services Intelligence Directorate, known as the ISI, and militants in the tribal areas.

Analysts at the C.I.A. and other American spy and security agencies believe not only that the bombing of India’s embassy in Kabul, Afghanistan, in July by militants was aided by ISI operatives, but also that the highest levels of Pakistan’s security apparatus — including the army chief, Gen. Ashfaq Parvez Kayani — had knowledge of the plot.

“It’s very difficult to imagine he was not aware,” a senior American official said of General Kayani.

American intelligence agencies have said that senior Pakistani national security officials favor the use of militant groups to preserve Pakistan’s influence in the region, as a hedge against India and Afghanistan.

In fact, some American intelligence analysts believe that ISI operatives did not mind when their role in the July bombing in Kabul became known. “They didn’t cover their tracks very well,” a senior Defense Department official said, “and I think the embassy bombing was the ISI drawing a line in the sand.”

Instead of getting bogged down in Iraq...this strategy or squeezing Pakistan between Indian and US special ops operating from Afghanistan is 7 years too late....Better late than never! Pakistan's ISI is a government sanctioned pro-terrorism intelligence organization and one of the most deadly and destabilizing entities in the world. They're one of the pillars behind the Taliban and Al Qaeda. They originally helped Americans with managing the Afghani "freedom fighters" during the Russian invasion and now they're working against us. The question, I am everyone has is where are Pakistan's nukes? Hopefully are either being watched by us (US) or have been "secured" by us as has been previously reported.