Monday, November 29, 2004

What China is Doing

There has been great debate on the purchase of U.S. Treasuries by Asian central banks over the past year. Brad Setser claims: "in 2003, the world added roughly $60 billion in euro and yen reserves, and $440 billion in dollar reserves. Since China accounted for about a quarter of the overall increase in the world's reserve, it seems likely that its reserve acquisition did not deviate too much from the global breakdown of roughly 90% dollars/ 10% other currencies." China poses a problem for a lot of Economists, as "The Economist this week estimated that 80% of China’s $515 billion in reserves are in dollars, which works out to $412 billion. China’s recorded holdings of Treasuries are around $175 billion. That leaves around $240 billion in other dollar assets." Brad Setser asks the question, "So what is China doing with the remaining $210 billion of reserves assets that it has added over the past two years?"

This Author's answer differs from that of most Economists. The answer can be found in the signing of a Trade treaty with Southeast Asian nations (10) for the purpose of eliminating all Tariffs by 2010. Every indication coming from the meeting in Vientenne expresses Chinese desire to create a South Asian form of the EU. This Author holds the view that China fully intends to fund the new SAU with American Dollar reserves held. These Dollars in Reserve, whether Treasuries or Dollars, will pay the Costs to individual nations of elimination of Tariffs, serve as a Development Fund for integration of Economies, and cancel need for Trade credits with the World by member nations. lgl

2 comments:

SAULAT KAMRAN said...

Subject: A proposal to build a South Asian Union (SAU) like European Union by expanding SAARC states.
His Excellencies,
Presidents, Prime Ministers, Kings, Head of Governments & States, Political & Religious Leaders, Intellectuals, Educationists, Economists, Welfare Organizations, Mass People of South Asian region.
Peace be upon all of you, history is repeating from the creation of human life till now and will be repeated until the last final judgment of Creator. Actually, Creator created us as his best creation of life but we divided it into different nations, religions, cultures, languages, ideologies, etc in several thousands of years since the appearance of 1st human Adam (PBUH). We don’t know when the human life on earth will be finished for ever on dooms day, but some think that human life never stop repeating it’s wrongs. Now we have seen that the days of the human being are becoming more critical, insecure, divided among our selves in different ideas, increasing of poverty, and destruction of economy of some nations in comparison with the economy of some rich countries of the west. So the time for South Asian nations to unite as a strong body which is most caring for the inhabitants of this region has come, and in this way, we can develop ourselves. I have no right to waste your valuable time, but my heart is pressing me to place this proposal or advice to the holy hearts of our great rulers of the people of SAARC countries.

Proposal for future South Asian Union (SAU)

1. The mass people of this region want to abolish visa system for them selves in order to enjoy traveling facility freely and free trade among the regional countries like EU states. We can include Saudi Arabia, Yemen, Oman, United Arab Emirates, Qatar, Bahrain, Kuwait, Iraq, Jordan, Lebanon, Palestine, Syria, Turkey, Cyprus, Iran, Azerbaijan, Turkmenistan, Uzbekistan, Kazakhstan, Kyrgyzstan, Tajikistan, Afghanistan, Myanmar, Thailand, Cambodia, Laos, Vietnam, Malaysia, Indonesia, Singapore, Brunei, China, Mongolia, North Korea, South Korea, Japan & Philippine. The Afghan president his Excellency Mr. Hamid Karzai and his Government also shows interest for entering into SAARC.

2. If we can include thirty seven more countries (Saudi Arabia, Yemen, Oman, United Arab Emirates, Qatar, Bahrain, Kuwait, Iraq, Jordan, Lebanon, Palestine, Syria, Turkey, Cyprus, Iran, Azerbaijan, Turkmenistan, Uzbekistan, Kazakhstan, Kyrgyzstan, Tajikistan, Afghanistan, Myanmar, Thailand, Cambodia, Laos, Vietnam, Malaysia, Indonesia, Singapore, Brunei, China, Mongolia, North Korea, South Korea, Japan & Philippine) with the seven countries of SAARC (Pakistan, India, Nepal, Bhutan, Bangladesh, Sri Lanka and Maldives), then this organization or union will be one of the strongest unions. Then we can establish a powerful single currency like EURO as, for example SACU (South Asian Currency), dollar, or any other selected by the forum. And currency value can be fixed by averaging the currency values of the nations concerned.

3. All states will keep there own national flags as state flag and one common union flag, like that of EU.

4. We can establish joint military command council for the defense of the whole region like EU. That means we can unite in a union to ensure human life security along with a strong economy like European Union.
I do not know when the people of this region of South Asia will start to feel love and affection for each other, and will be united. But we should try to establish a golden future for ourselves. If successful, then generation after generation of this region will remember you for your kindness. God bless us with eternal & external peace.

Yours,
Saulat Kamran
E-Mail Address: saulat@dhaka.net
Website: http://www.southasianunion.net
House No -28, Road No-4, Dhanmandi R/A.
Dhaka, Bangladesh.

SAULAT KAMRAN said...

Proposed Road Map of SAU


. Marching a step ahead to form South Asian Union (SAU) is good sign for the people of the region. We may be of different cultures, religions, languages etc but we all are human and descendents or genealogy of first parents-Adam and Eve (p.b.u.t.).
We all have to come closer and make ourselves ambitious to lay down the foundation of the Union. Proposed 44 countries are mentioned below:
Saudi Arabia, Yemen, Oman, United Arab Emirates, Qatar, Bahrain, Kuwait, Iraq, Jordan, Lebanon, Palestine, Syria, Turkey, Cyprus, Iran, Azerbaijan, Turkmenistan, Uzbekistan, Kazakhstan, Kyrgyzstan, Tajikistan, Afghanistan, Pakistan, India, Nepal, Bhutan, Bangladesh, Sri Lanka, Maldives, Myanmar, Thailand, Laos, Cambodia, Vietnam, Malaysia, Singapore, Indonesia, , Brunei, China, Mongolia, North Korea, South Korea, Japan and Philippine.

Process of South Asian Union (SAU) Implementation

1. Forming union by including 44 countries as mentioned above.
2. The Nations of the region can form South Asian Parliament by approving the appointment of Presidents, Kings, Prime ministers, Foreign ministers, Home ministers, Defense ministers & ministers for trade & commerce as members of the SAU parliament.
3. Establishing a powerful single currency like EURO, for example South Asian Currency (SACU) or dollar or any other selected by the forum. And valuation can be fixed by averaging the currency values of the nations concerned.
4. Abolishing visa system in order to promote traveling freely, and adopting free trade among the regional countries.
5. Forming a joint military council to establish security of state, countries of the union & for common people.
6. Paving ways for the people of the Union to seek jobs according to their capabilities.
7. Making good uses of cultural and sports organizations through which the participating nations can establish their identity to understand each other.
8. Funding should be made by member nations to establish Research Centers for medicines, incurable diseases, and science & technology for the benefit of general people.
9. Establishing Bank such as Union Bank of South Asia to educate mass population, provide fund for natural disaster. Also making ways to drive homeless and astray people into employment through cottage industries to make their livelihood better so as to stop them from becoming smugglers, miscreants, or terrorists.
10. Regarding child labor, concrete steps should be taken by providing free education established by the Union in the form of NGO. Orphans to be included in this establishment.
11. Each state should be responsible to stop smuggler from drug/ arms trafficking. Also find ways to stop women & children trafficking.
12. State to State disputes should be resolved for the best interest of the people. If necessary, the SAU may be called in the process of settlement.

Yours,
Saulat Kamran
E-Mail Address: saulat@dhaka.net
Website: http://www.southasianunion.net
House No -28, Road No-4, Dhanmandi R/A.
Dhaka, Bangladesh.