Hillary Clinton Brings Her "F" Game to Asia-Pacific

♠ Posted by Emmanuel in , at 10/31/2011 04:18:00 PM
Hillary Clinton and her supporters writing in Foreign Policy represents a sure-fire way to irk me. Sometime ago, a partisan New Democrat Network (NDN) kid went after me in Foreign Policy after I wrote in Foreign Affairs about the conceptual shortcomings of US Secretary of State Hillary Clinton's "Internet freedom" idea. That, of course, was before Missus Clinton's "Internet freedom" shtick went the way of "strong dollar" policy after the Julian Assange / WikiLeaks imbroglio. Let's just say that certain people warned her of the overblown nature of the idea long before it became a global laughingstock.Now I am confronted with some more eyebrow-raising commentary in Foreign Policy, this time from Hillary Clinton herself. (Or, more accurately, her speechwriters.) Although hyperbole is pretty much par for the course when it comes to US foreign policy pronouncements, it is quite frankly appalling how errors of omission and commission permeate her latest magnum opus (of sorts). Hillary...
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BoJ vs the World: Yen Intervention Chronicles

♠ Posted by Emmanuel in , at 10/31/2011 02:15:00 PM
I admittedly feel sorry for the Japanese with their currency hitting record high after record high while their economy suffers from massive public debt, lingering deflation, and this year's devastating earthquake. While there are reasons that partially explain why the yen is especially strong at the moment, you have to wonder if Japan's macroeconomic fundamentals warrant such strength. Although Japanese firms have done their best over recent years to move more manufacturing operations offshore to Asian neighbours in particular precisely to escape yen strength, they can only go so far. Japanese companies are certainly feeling...
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Attribute Indian GP Success to No Gov't Involvement

♠ Posted by Emmanuel in , at 10/30/2011 12:53:00 PM
Well here's something that might gladden the hearts of Cato or Mises Institute haters of all that is the public sector. I have just finished watching the inaugural Indian Grand Prix at the brand-new Buddh International Circuit, and I must say that the facilities look world-class. To observers of Indian sports hosting, the F1 race represents a remarkable turnaround from the Commonwealth Games fiasco of only a few months ago with the latters' collapsing structures, unfinished stadiums, and a squalid athletes' village.It is perhaps prescient that in that previous post on the Commonwealth Games, I ventured that the forthcoming...
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West's Gloom Aside, World is Getting Much Richer

♠ Posted by Emmanuel in at 10/30/2011 07:31:00 AM
It is probably a reflection of Western media dominance that the overriding tone of much coverage is of sour times. I was particularly struck by the TIME cover story that inflated the recent London riots to a tale of the decline and fall of the West. Having personally witnessed next to none of the violence while living in London--like most cities, it is geographically clustered into socio-economic pockets--let's say I have my doubts of what really happened in a single city. Still, the prevailing mood is undoubtedly glum in Europe, North America and so forth. With their ageing populations and stagnant (crisis-prone) economies,...
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What's Next? 2nd S&P or 1st Fitch's US Downgrade?

♠ Posted by Emmanuel in , at 10/27/2011 12:12:00 PM
I've gotten bored of Europe's so-called problems. All this time I've kept a lot of my cash in euros and for this cheap Yankee talk about Euro-collapse, it's back above $1.40. Like I said, markets realize what real money is as opposed to play money.Which brings us back to America--a place with real problems and a quite useless currency to boot. Giving away the store, the above title is pretty much a pointless question since both will probably occur nearly simultaneously, conditioned as they both are on the imminent failure of the deficit commission to come up with something constructive before year's end. Given the current state of efforts to significantly reduce the size of American fiscal deficits going forward (i.e., nuthin'), both are pretty much baked in the cake unless major evasive action takes place. Which is worse? Having two out of the three major global rating agencies whack US debt from AAA will likely have more repercussions insofar as a majority opinion is required...
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Burma's Normalization Passes SE Asia, Not West

♠ Posted by Emmanuel in at 10/26/2011 12:46:00 PM
What do we do with Myanmar? It's long been a serious headache in Southeast Asia since it joined the Association of Southeast Asian Nations (ASEAN) in 1997 together with Laos and Vietnam. For all its fraught history under military rule, there is no denying that it is geographically part of Southeast Asia. Unlike in the EU where aspirants are subject to human rights criteria and in the Eurozone with its macroeconomic criteria (which may be cheated anyway--look at Greece), there is a greater tolerance of political-economic diversity in ASEAN almost by necessity.There has been much interest in the West as of late regarding Myanmar's...
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Precisely: Why the EU Will Make It (But Not the US)

♠ Posted by Emmanuel in , at 10/25/2011 11:58:00 AM
I am usually pick up neat stuff from the Globalist once in a while. Just today, I came across a new feature from Martin Sieff, who recently penned a much-needed antidote to the current American obsession with China that considers India as well--but not necessarily as a natural US ally. (Think of India cooperating more with the Soviet Union during the Cold War, for instance, or its contemporaneous role as American's main foil in WTO Doha Round negotiations.) Here, though, he focuses on another erstwhile US ally in the EU that actually has worthwhile differences that should help see it through.Sieff provides a neat argument that, despite having some serious problems, the EU has instead supplanted the US in having a (warranted) sense of optimism about the future:Merkel, Sarkozy, Cameron and the leaders of the European Commission in Brussels certainly face very long odds. And they encounter disbelief from the dominant force in the global economic system, the established opinion shapers...
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Peronists in Athens or the Politics of Greek Haircut

♠ Posted by Emmanuel in ,,, at 10/24/2011 08:13:00 AM
A little off the top; a little off the side. Monitoring how things are going in South America's second largest economy nearly a decade after its default and subsequent two-thirds haircut on the face value of its sovereign bonds is interesting for obvious reasons. In particular, how would the Greek PASOK socialist government fare in the aftermath of taking the clipper and shears like its Argentine predecessors? Certainly, the Peronists holding on to the reins of power even today after overseeing the styling job on its creditors is some comfort to the Greeks. With even EC economists letting on the inevitability of a haircut--albeit...
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Emiratization & the Middle East Migration Debate

♠ Posted by Emmanuel in , at 10/21/2011 09:36:00 AM
Migration has obviously been a hot topic as of late in many Middle East energy exporters that have large migrant worker populations. While the stereotypical migrant performs '3-D' dirty, dangerous, or difficult work, the reality is more complex. Expatriates cannot readily be lumped into one category, performing work requiring varying levels of skill and come from not just Asia but also Europe and further afield.However, a particularly urgent concern has been a tendency to look over domestic labour in favour of foreign labour. Out of habit, the assumption is that the locals would rather sit back and relax while others did what...
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EU Again Ponders Silencing Rating Agencies

♠ Posted by Emmanuel in , at 10/21/2011 09:28:00 AM
While credit rating agencies may not be the last word on the subject matter, you do have to wonder if the alternative of having such functions suspended altogether would inspire market confidence. Does 'shooting the messenger' help? But don't ask me; European bigwigs including the EU internal market commissioner are considering new measures to silence credit rating agencies...under certain conditions. It's tricky formulating such conditions since many may well wonder if the EU is simply shooting the messenger when sovereign debt of its less stellar performers comes under sustained pressure. From Dow Jones:The European Union's executive is leaning toward proposing a ban on the issuing of sovereign credit ratings for countries in bailout talks, European internal market commissioner Michel Barnier said Thursday. "I think it's legitimate to have a special treatment when a country is in negotiation or is covered by an international solidarity program with the IMF or a European solidarity...
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Thai Flooding, a Problem for 'Detroit of the Orient'

♠ Posted by Emmanuel in , at 10/20/2011 10:31:00 AM
You are likely familiar with the chronic flooding which has adversely affected many of our Thai friends since it's been in the headlines for weeks on end. With relatively little chance of subsiding soon, I'm afraid that this situation looks set to run for quite some time to come.One of the industries affected by this chronic flooding has been auto manufacturing. With the Japanese still looking to broaden their operating base throughout the Asia-Pacific as a natural hedge against a mighty yen back home, Thailand has become something of a Southeast Asian hub for car assembly and the like. Hence some dubbing it the 'Detroit of...
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Arab Spring Mushy Thinking: Egypt is Worse Off

♠ Posted by Emmanuel in at 10/19/2011 09:00:00 AM
Well here's more food for thought for those fond of Hollywood-style ...and they lived happily ever after inanities. (Those Americans sure are fond of fairy tales in the virtual absence of meaningful improvements in their real lives.) Sure Mubarak was a pretty nasty character--especially to his longstanding political enemies--but is Egypt as a whole better off now than it was under him? Let's just say that things have not been going so well under the current military junta. What an improvement in any event--from a dictatorship by a former military figure to one run by current military figures.All in all it's not a pretty picture...
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Clare Short, New Mining Transparency (EITI) Chair

♠ Posted by Emmanuel in , at 10/18/2011 02:32:00 PM
Here's a worthwhile initiative I may not have mentioned yet that should nevertheless gain more attention for the work it does. I suppose that it's only fitting that an initiative that was launched by Tony Blair (in 2002) should now be chaired by none other than his bete noire Clare Short. If you remember, Clare Short was the international development secretary (head of DfID) from when New Labour took the reins of power in 1997 to May 2003 when she resigned this post to indicate her disgust over UK participation in the Iraq invasion. Those were some days; dare I say when Brits still used to dream about the future.In the meantime,...
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Occupy Wall Street, New Anti-Globalization Flunkies

♠ Posted by Emmanuel in at 10/17/2011 10:50:00 AM
Some people never learn. One of the recurring complaints about the so-called anti-globalization movement has been its lack of an actionable and coherent agenda. In many ways, anti-globalization is a step backwards from being a counter-hegemonic force from Marxist thought--many of whose elements it borrows but then mucks up with its own flights of fancy. Occupy Wall Street is even worse. While I certainly don't begrudge those wishing to curtail the influence of certain financial institutions--even mainstream figures do the same--you have to wonder if these all-purpose rants have any chance of effecting anything significant.Consider the large logical inconsistencies about these all-purpose gatherings to complain about whatever annoys certain folks. For starters:1. Why is "Wall Street" a target for those concerned with the environment? Financial services are not a carbon-intensive form of economic activity compared to, say, heavy manufacturing of the sort United Automobile Workers...
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WTO on 'Making Globalization Socially Sustainable'

♠ Posted by Emmanuel in , at 10/16/2011 12:59:00 PM
There is already a towering amount of reading material on the subject matter out there, but for what it's worth, the WTO and ILO have prepared a new publication on the theme of Making Globalization Socially Sustainable. In a way, it's a helpful step being taken by the WTO in understanding its critics' concerns about matters such as trade liberalization. Instead of emphasizing principles of comparative advantage ad infinitum, acknowledging that gains and losses are unevenly distributed and that these differences help explain varying appetites for, say, completing multilateral trade deals, may be an avenue worth exploring. Contributors...
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Mighty Yen and the New Japan, Inc Buying Spree

♠ Posted by Emmanuel in , at 10/13/2011 09:58:00 AM
Those of you old enough remember the Eighties when Americans lived in mortal fear of the Japanese (just as they do nowadays of the Chinese). US carmakers were unable to produce automobiles that were competitive with Japanese designs in terms of economy and reliability, resulting in local yokels literally taking sledgehammers to cars made in Japan. This mounting sense of discomfort about Japan, Inc taking over was exacerbated by Japanese concerns buying prime US properties--most especially the Rockefeller Center during their 80s heyday. As Japan entered the 90s, though, let's just say things weren't so hunky-dory at home, forcing...
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Pointless PRC Bellyaching on China Currency Bill

♠ Posted by Emmanuel in , at 10/12/2011 03:08:00 PM
On the occasion of one of the many China-bashing bills finally clearing the US Senate, we have the expected denunciation from PRC state media regarding the "protectionism" underlining this legislation as well as the usual objection of America passing the buck for its inability to create export-competitive industries. (Though I do appreciate the irony of the identity of the complainant ;-) To which I say it's a lot of hot air on both sides. Consider:1. The prospects of this legislation passing the Republican-majority House of Representatives is low. Leadership there is certainly not warming to it. At worst, a parallel bill will be devised that waters down the Senate version, though that will still be forthcoming.2. Having been an election-time proponent of an earlier iteration of China-bashing legislation, Obama is now cool to it. Again, it's the two-step you must perform as a Democratic candidate keen on gaining influential union support during campaign time. Which you promptly...
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Asian Hell: Palin, Summers, Amy Chua, etc. in Korea

♠ Posted by Emmanuel in at 10/11/2011 02:16:00 PM
Today, I wish not to engage in epistemological debates about what constitutes knowledge. Rather, I wish to question whether self-styled opinion leaders warrant such a role in spreading knowledge. While watching Bloomberg TV, I came across an advertisement for the ongoing World Knowledge Forum 2011 in Seoul, South Korea that is running its main event from today till Thursday. So far so unremarkable: in many ways it's a spin-off of the World Economic Forum idea. What's more, I don't necessarily begrudge the organizers who probably will make money running the show since this is not just the first iteration of the event.Reading...
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Three Cheers for Asian Innovation

♠ Posted by Emmanuel in at 10/10/2011 06:55:00 AM
I just wanted to point you in the direction of an interesting competition the Wall Street Journal is tracking that places the spotlight on Asian innovation. With perhaps the exception of the Japanese who also went through the reverse engineering stage--taking apart Western creations and imitating them--Asian nations are not well-known for coming up with innovative products and services with a global reach. Which of course is a fair enough criticism since they haven't been at the leading edge of innovation, really.However, have a look and see what they're now coming up in the Pacific Rim. There are indeed some interesting developments alike a hearing aid app that brings the benefits of expensive, custom-made devices to those able to afford ubiquitous portable devices. With most Asian nations being in the Pacific ring of fire, the curious-looking "Earthquake Cushion" also appears promising. Its lack of visual flair should be more than made up by being a low-cost, readily assembled...
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The Myth of the Inflexible Chinese Communist Party

♠ Posted by Emmanuel in , at 10/09/2011 10:43:00 AM
Some of you may be familiar with the US-China Economic and Security Review Commission (USCC) that was created by the American congress in 2000 to do exactly what it says in its name: review the national security implications of economic ties--particularly in trade--with China. Most likely, it was formed with the upcoming accession of China to the WTO in mind on November 11, 2001--the most significant date for me in that year bar none. Even then, the Americans appear to have recognized who the rising power was. Still, it probably didn't expect that the US would stumble so badly, or that China would do so well in contrast since...
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