














View your other email accounts from your Hotmail inbox. Add them now.
'People will forgive you for being wrong, but they will never forgive you for being right - especially if events prove you right while proving them wrong.' Thomas Sowell
In a graphic illustration of the new world order, Arab states have launched secret moves with China, Russia and France to stop using the US currency for oil trading
By Robert Fisk
The Independent 6/10/09
In the most profound financial change in recent Middle East history, Gulf Arabs are planning – along with China, Russia, Japan and France – to end dollar dealings for oil, moving instead to a basket of currencies including the Japanese yen and Chinese yuan, the euro, gold and a new, unified currency planned for nations in the Gulf Co-operation Council, including Saudi Arabia, Abu Dhabi, Kuwait and Qatar.
Secret meetings have already been held by finance ministers and central bank governors in Russia, China, Japan and Brazil to work on the scheme, which will mean that oil will no longer be priced in dollars.
The plans, confirmed to The Independent by both Gulf Arab and Chinese banking sources in Hong Kong, may help to explain the sudden rise in gold prices, but it also augurs an extraordinary transition from dollar markets within nine years.
The Americans, who are aware the meetings have taken place – although they have not discovered the details – are sure to fight this international cabal which will include hitherto loyal allies Japan and the Gulf Arabs. Against the background to these currency meetings, Sun Bigan, China's former special envoy to the Middle East, has warned there is a risk of deepening divisions between China and the US over influence and oil in the Middle East. "Bilateral quarrels and clashes are unavoidable," he told the Asia and Africa Review. "We cannot lower vigilance against hostility in the Middle East over energy interests and security."
This sounds like a dangerous prediction of a future economic war between the US and China over Middle East oil – yet again turning the region's conflicts into a battle for great power supremacy. China uses more oil incrementally than the US because its growth is less energy efficient. The transitional currency in the move away from dollars, according to Chinese banking sources, may well be gold. An indication of the huge amounts involved can be gained from the wealth of Abu Dhabi, Saudi Arabia, Kuwait and Qatar who together hold an estimated $2.1 trillion in dollar reserves.
The decline of American economic power linked to the current global recession was implicitly acknowledged by the World Bank president Robert Zoellick. "One of the legacies of this crisis may be a recognition of changed economic power relations," he said in Istanbul ahead of meetings this week of the IMF and World Bank. But it is China's extraordinary new financial power – along with past anger among oil-producing and oil-consuming nations at America's power to interfere in the international financial system – which has prompted the latest discussions involving the Gulf states.
Brazil has shown interest in collaborating in non-dollar oil payments, along with India. Indeed, China appears to be the most enthusiastic of all the financial powers involved, not least because of its enormous trade with the Middle East.
China imports 60 per cent of its oil, much of it from the Middle East and Russia. The Chinese have oil production concessions in Iraq – blocked by the US until this year – and since 2008 have held an $8bn agreement with Iran to develop refining capacity and gas resources. China has oil deals in Sudan (where it has substituted for US interests) and has been negotiating for oil concessions with Libya, where all such contracts are joint ventures.
Furthermore, Chinese exports to the region now account for no fewer than 10 per cent of the imports of every country in the Middle East, including a huge range of products from cars to weapon systems, food, clothes, even dolls. In a clear sign of China's growing financial muscle, the president of the European Central Bank, Jean-Claude Trichet, yesterday pleaded with Beijing to let the yuan appreciate against a sliding dollar and, by extension, loosen China's reliance on US monetary policy, to help rebalance the world economy and ease upward pressure on the euro.
Ever since the Bretton Woods agreements – the accords after the Second World War which bequeathed the architecture for the modern international financial system – America's trading partners have been left to cope with the impact of Washington's control and, in more recent years, the hegemony of the dollar as the dominant global reserve currency.
The Chinese believe, for example, that the Americans persuaded Britain to stay out of the euro in order to prevent an earlier move away from the dollar. But Chinese banking sources say their discussions have gone too far to be blocked now. "The Russians will eventually bring in the rouble to the basket of currencies," a prominent Hong Kong broker told The Independent. "The Brits are stuck in the middle and will come into the euro. They have no choice because they won't be able to use the US dollar."
Chinese financial sources believe President Barack Obama is too busy fixing the US economy to concentrate on the extraordinary implications of the transition from the dollar in nine years' time. The current deadline for the currency transition is 2018.
The US discussed the trend briefly at the G20 summit in Pittsburgh; the Chinese Central Bank governor and other officials have been worrying aloud about the dollar for years. Their problem is that much of their national wealth is tied up in dollar assets.
"These plans will change the face of international financial transactions," one Chinese banker said. "America and Britain must be very worried. You will know how worried by the thunder of denials this news will generate."
Iran announced late last month that its foreign currency reserves would henceforth be held in euros rather than dollars. Bankers remember, of course, what happened to the last Middle East oil producer to sell its oil in euros rather than dollars. A few months after Saddam Hussein trumpeted his decision, the Americans and British invaded Iraq.
By Trevor Selvam
30 September, 2009
Countercurrents.org
For the past several years I have watched with some amusement, some intrigue and some sneaking admiration-- the avaricious style of India's advent into the CNN and SkyNews style of journalism. I say avaricious, because Indians like to eat up everything they can watch, feel or hear. Like ice cream. If they could, they would eat up a flat panel TV set, right off the wall mounting, with cable, bolts and everything. Including Arnab Goswami, while he would be carrying on his mendacious, Fox-style blather. India needs an Independent Minded New Channel. I am emphasizing the word Minded, because there is a wealth of Minds in India, who are not being interviewed, asked to comment on critical issues.
Indians love two phrases to describe themselves. One is the collective version of Me, Me, Me Too-ism (more like Us to-ism), which drives most TV anchors to emulate a mode that makes a mockery of mimicry itself. We can do it too! Whatever they do, we will do also! The problem is that neither CNN, nor Skynews, nor MSNBC are symbolic of any sober journalistic standards. The BBC, somewhat abstemious and even pious by contrast, is after all a preserver of a post-colonial dignity in the face of American trashiness. If there is any news and analysis channel that stands out for putting out sober, dignified and reflective journalism, it is Al Jazeera. And Indian journalists are not looking at Al Jazeera for inspiration, for sure. In my columns before, I have stated my admiration for the significantly serious journalism of Al Jazeera. Al Jazeera sends out its correspondents to the farthest corners of the world, to investigate the conditions people live in. From the remotest mountains in the Andes, the forest of the Amazons, to the backwaters of Louisiana and to the Uighur areas of China. Al Jazeera even does a report on Kolkata rickshaw pullers, which one would be hard pressed to find on an Indian channel. Their journalists are extraordinarily articulate, nuanced and non-partisan. They also handle all the hot potato items one can imagine, being based in an Islamic country.
And the other phrase is "We are like that only!" The latter is used, when glaring contradictions in behaviour, in consumption patterns, in national key statistics regarding poverty, literacy, the violence of the police forces are compared to India's recent stratospheric conquests and claims to apostolic notions of non-violence. "We are like that only." In other words, take us for what we are. Complex, unexplainable, contradictory and fitting right into the mould of the exotic and the mysterious--an enigma and a stereotype that is beyond classification.
Well, that enigma is actually turning out to be tattered at the edges, quite flaky, quite dangerous and quite an affront to the majority of India's population that live in that swathe of the country that is beginning to be called the Naxalite corridor. This corridor has India's best sources of water and therefore power, mining resources, precious metals and ah yes! The aboriginal people of India live here. With the Dalits, they are one fourth of India's population. Has anybody figured out what would happen if these people got really mad and energized, because they have finally found someone who will fight with them? Urban India better start figuring things out soon.
Indians like the boom-bang, dhoom-dhamaka style of journalism. The journalism that combines doe-eyed twenty-five year old journalists asking seemingly penetrating questions about nothing, to incoherent reporters in the field, while in the background, war-drum like sounds continue with swishy computer graphics that fly in and out in accompaniment with the sound track. The reporters themselves have gone from the realm of hard core comedy to an outright parody of live journalism.. The latest was when while reporting on Lalgarh, a young journalist in a near panic stricken voice kept asking his cameramen to zoom in on a forest in the distance saying "anytime the Maoists could come out from there and anytime I could be stepping on a mine. That is how dangerous it is." Meanwhile an Adivasi man sauntered by the camera with a tangi ( the double edged curved hatchet that Adivasis have used forever) resting on his shoulders and very casually sidestepping a distraught looking CRPF soldier who was staring into the jungle in the distance.
Suddenly, we have a generation of people using the new media, who have not been exposed to the facts of India's political history, pre-independence and post-independence. If these journalists do not know who Bhagat Singh or Khudiram were and why they were executed by the British Empire, if they do not know anything about the Santhal rebellion and Sidhu and Kanu, if they do not know what happened in Telengana and Tebhaga, long before Naxalbari, how can they ask the right questions about what is happening in Lalgarh?
The government of India has cleverly planted the debates in the media. So, for a while the Indian nation will be discussing development first or law and order, first? So there is the KPS Gill and CPI(M)/BJP school of parliamentary intellectualism that will insist on the rule of law. And then the ruling Congress will come out swinging and looking good, saying " Uh! Uh! We will not call in the Army on the Maoists! It is a development problem and we shall bring in the water, the schools, and the clinics and by the way we are mopping up the Maoists alongside." So, the debate of whether the Government of India should be "development centric" or "security centric" will meander along into an insipid ending and quietly the paramilitary operations will proceed with ruthless speed. And the TV anchormen and women will hum and haw and go on to the next debate, which could be on the topic of "Corruption in the Police" or some other insanely hackneyed issue.
Other than the newsmagazine Tehelka, it seems none of the mainstream news journals select particularly intelligent reporters, brief them accurately, when they send them out to missions in the interiors of India. Tehelka tends to go far beyond newspeak. They provide researched and investigated data. They seem to be away from bombastic soundbytes. Shoma Choudhury, writing in the October 3 issue of Tehelka Magazine states the following --"Over this past year, the Home Ministry has been planning a major armed offensive against the Naxals, particularly in Chhattisgarh. According to reports, the plan involves stationing around 75,000 troops in the heartland of India — including special CRPF commandos, the ITBP and the BSF. Scattered newspaper accounts have spoken of forces being withdrawn from Jammu and Kashmir and the Northeast; there is also talk of bringing in the feared Rashtriya Rifles — a battalion created specially for counter-insurgency work — and the purchase of bomb trucks, bomb blankets, bomb baskets, and sophisticated new weaponry."" Please take the time to read Shoma Choudhury at http://www.tehelka.com/story_
main42.asp?filename=Ne031009coverstory.asp
Something big is afoot in India and none of the TV channels are talking about it. The Government of India is withdrawing forces from everywhere and getting set to attack its own people in its heartland area and nobody is talking about it? How can this be?
When Mr. Kobad Gandhy, the Maoist leader was recently arrested, an epidemic of sensationalist articles appeared discussing his pedigree, his jovial mannerisms, his Doon school education etc and then there was a dumbfounded notion of how a well-to-do Parsee family could produce a Naxalite? Well, wake up! Because 40 years ago, almost 80% of the Naxalites came from well-to-do or middle class families and invariably all had solid educational backgrounds..
Why don't Indian news channels discuss violence? I am talking about the violence perpetrated by 62 years of independence that still leaves 53% of India's population below the poverty line? The violence of malnutrition, hunger, infanticide, femicide, where India rules the world in statistics? Do Indian journalists like Vikram Chandra have the balls to rise to the occasion and demand a discussion on the violence of the state? Of course not!
I have never seen any journalism anywhere in the world, where such a large mass movement of aboriginal first nations peoples are seen by the mainstream media with such racist distance and only in terms of incidents, party statements, interviews and dailyspeak.
What India needs is a renaissance in the realm of journalism and intellectual analysis. Folks who have been there and done it all, who are professionals, doctors, lawyers, journalists, engineers, artists, judges (especially those who were witness to the carnage in the 60s and 70s) to step forward and make that climb over the hump and point out that horizon that is beyond this Karat-Biman Bose-Montek-Chidambaran-BJP world. India needs an independent voice, an independent network and the class who can finance it. Yes, a nationalist bourgeoisie would be good. People who have a soul, have a mind and wish to contribute their resources to an India that will really shine! Because no matter how many articles we write, how many letters we sign, Indians are already in the newsbyte snapshot evening news and blackberry breaking news mode and unless you have a restrained analytical feature programming channel, Indian TV journalism remains in the dark ages with a lot of techno features and sound effects but no light, no investigative ability when it comes to the political terrain of India. One must ask ourselves why that is so? Are they afraid of the Indian government?
It's no coincidence that most of those who are obsessed with population growth are post-reproductive wealthy white men: it's about the only environmental issue for which they can't be blamed. The brilliant Earth systems scientist James Lovelock, for instance, claimed last month that "those who fail to see that population growth and climate change are two sides of the same coin are either ignorant or hiding from the truth. These two huge environmental problems are inseparable and to discuss one while ignoring the other is irrational." But it's Lovelock who is being ignorant and irrational.
A paper published yesterday in the journal Environment and Urbanization shows that the places where population has been growing fastest are those in which carbon dioxide has been growing most slowly, and vice versa. Between 1980 and 2005, for instance, sub-Saharan Africa produced 18.5% of the world's population growth and just 2.4% of the growth in CO2. North America turned out only 4% of the extra people, but 14% of the extra emissions. Sixty-three percent of the world's population growth happened in places with very low emissions.
Many of the emissions for which poorer countries are blamed should in fairness belong to the developed nations. Gas flaring by companies exporting oil from Nigeria, for instance, has produced more greenhouse gases than all other sources in sub-Saharan Africa put together. Even deforestation in poor countries is driven mostly by commercial operations delivering timber, meat and animal feed to rich consumers. The rural poor do far less harm.
While there's a weak correlation between global warming and population growth, there's a strong correlation between global warming and wealth. I've been taking a look at a few super-yachts, as I'll need somewhere to entertain Labour ministers in the style to which they are accustomed. First I went through the plans for Royal Falcon Fleet's RFF135, but when I discovered that it burns only 750 litres of fuel per hour I realised that it wasn't going to impress Lord Mandelson. I might raise half an eyebrow in Brighton with the Overmarine Mangusta 105, which sucks up 850 litres per hour. But the raft that's really caught my eye is made by Wally Yachts in Monaco. The WallyPower 118 (which gives total wallies a sensation of power) consumes 3,400 litres per hour when travelling at 60 knots. That's nearly a litre per second. Another way of putting it is 31 litres per kilometre.
Of course, to make a real splash I'll have to shell out on teak and mahogany fittings, carry a few jetskis and a mini-submarine, ferry my guests to the marina by private plane and helicopter, offer them bluefin tuna sushi and beluga caviar, and drive the beast so fast that I mash up half the marine life of the Mediterranean. As the owner of one of these yachts I'll do more damage to the biosphere in 10 minutes than most Africans inflict in a lifetime. Now we're burning, baby.
In May the Sunday Times carried an article headlined "Billionaire club in bid to curb overpopulation". It revealed that "some of America's leading billionaires have met secretly" to decide which good cause they should support. "A consensus emerged that they would back a strategy in which population growth would be tackled as a potentially disastrous environmental, social and industrial threat." The ultra-rich, in other words, have decided that it's the very poor who are trashing the planet. You grope for a metaphor, but it's impossible to satirise.
James Lovelock, like Sir David Attenborough and Jonathan Porritt, is a patron of the Optimum Population Trust. It is one of dozens of campaigns and charities whose sole purpose is to discourage people from breeding in the name of saving the biosphere. But I haven't been able to find any campaign whose sole purpose is to address the impacts of the very rich.