Obama flexes US muscle ..!

[GoFlyKiteNow]

Speak loudly and carry a big stick.

WASHINGTON: "Speak softly; carry a big stick," was turn-of-last century American President Teddy Roosevelt's geo-political prescription for a fledgling world power. "Lie low for another 50 years before challenging America," Chinese statesman Deng Xiaoping counselled his developing country some 20 years ago.

Leading a country that is perceived to be weakening economically, President Obama abandoned the speak softly advise to publicly hector his Chinese counterpart Hu Jintao on issues ranging from human rights to currency manipulation to intellectual theft.

No topic was off limit as Obama touched on Taiwan, Tibet, Iran, Sudan, the Korean peninsula to mark out US interests across the globe before letting it be known that Washington was not about to cede its role as a Pacific power, much less a world force.

It was a compelling performance that impressed US pundits, one of whom was relieved that he had demonstrated that "America is not quite so weak and disoriented as the Chinese might have imagined after the financial crisis and the soggy Iraq-Afghanistan wars."

As if to rub in the fact that the US is not overawed by China's rise, and has other Asian options, a top Coca-Cola honcho startled everyone at a reception with a gaffe involving raising a toast for President Hu in Japanese – saying "kanpai" (cheers) instead of the similar sounding "ganbei" in Mandarin.
.

 

[obama.bin.laden]

USA is a bankrupted dead meat. Obama is a lame duck. What muscle?

Obama fell straight into Beijing's trap of pretense. Chinese got the muscle in terms of money human resources and arms and most of all confidence and spirit. USA far lack behind in these important elements.

Obama's weakness is he eats these shit called RIGHTS, he swallow them whole and Beijing knows that well. Hu Jin Tao sent in load of that crap, and Obama ate them all. Rights my foot, Chinese gave them all the fakes!

Ability = Power, physical abilities. Rights = Logical theory = Arbitrary Pretense.

If there is really such thing as Rights then US have patent rights and copy right on stealth fighters and PRC must never make them. But what? PRC is making lots of them, cheap and useful, to use against none but Washington.

What can Obama do?

Just shake hands and say 谢谢！

Behind Hu Jin Tao's back then Obama bang balls LL.

Cantonese said 揸住春袋跳！ meaning (in despair and desperation and frustration) jumping around with hands holding onto your own balls.

 

[boundThunter]

YES, MASTER.

​

 

[Jah_rastafar_I]

USA is a bankrupted dead meat. Obama is a lame duck. What muscle?

............

Opps looks like you're further breaking our resident court jester aka china hater goflykite's already broken up heart.

This fool will be so upset that he'll retaliate with another stupid 1 liner.

 

[GoFlyKiteNow]

Opps looks like you're further breaking our resident court jester aka china hater goflykite's already broken up heart.

This fool will be so upset that he'll retaliate with another stupid 1 liner.

A man profits more by reading what an idiot has to say, than by hearing the orations of the learned.

Looks like I am making profits. !

 

[Jah_rastafar_I]

A man profits more by reading what an idiot has to say, than by hearing the orations of the learned.

Looks like I am making profits. !

Wow another big


FAIL.


Tsk tsk trust you to lack any wit even in posting something like a 1 liner.

 

[HongKanSeng]

Obama can only LICK on all these issues, only tongue & lips service!

Nothing more. Muscles yes! Only tongue and lips muscles.



When Hu Jin Tao make him suck he also have to suck.

:p

 

[Devil Within]

Stop being dumb and learn from smart investor Peter Schiff.

<iframe title="YouTube video player" class="youtube-player" type="text/html" width="640" height="390" src="http://www.youtube.com/embed/xRl3qRaefjo" frameborder="0" allowFullScreen></iframe>

 

[longbow]

GFK - You should read more widely. Where did you get this article from?

US is in symbiotic relationship with China. In Asia, US concerns are North Korea and Iran. China holds all cards in NK and is one of 5 members of UN security council - vital for sanctions against Iran. The rest of Asian countries are irrelevant.

As for the economy, China is US's largest export market and growing at 30% a year. Look at the huge group of CEOs at the meeting hoping to sign deals in China. GE is in JV to build avionics IN CHINA!

The of course there is the close to $1T in US debt the Chinese are holding.

Many commentators, like Kissinger has put this as most important relationship in the world for the next 50 years! Coca Cola CEO probbaly sent heartfelt apologies for the gaff. Just think of Coke's potential market in China! Pepsi is waiting at the wings

Speak loudly and carry a big stick.

WASHINGTON: "Speak softly; carry a big stick," was turn-of-last century American President Teddy Roosevelt's geo-political prescription for a fledgling world power. "Lie low for another 50 years before challenging America," Chinese statesman Deng Xiaoping counselled his developing country some 20 years ago.

Leading a country that is perceived to be weakening economically, President Obama abandoned the speak softly advise to publicly hector his Chinese counterpart Hu Jintao on issues ranging from human rights to currency manipulation to intellectual theft.

No topic was off limit as Obama touched on Taiwan, Tibet, Iran, Sudan, the Korean peninsula to mark out US interests across the globe before letting it be known that Washington was not about to cede its role as a Pacific power, much less a world force.

It was a compelling performance that impressed US pundits, one of whom was relieved that he had demonstrated that "America is not quite so weak and disoriented as the Chinese might have imagined after the financial crisis and the soggy Iraq-Afghanistan wars."

As if to rub in the fact that the US is not overawed by China's rise, and has other Asian options, a top Coca-Cola honcho startled everyone at a reception with a gaffe involving raising a toast for President Hu in Japanese – saying "kanpai" (cheers) instead of the similar sounding "ganbei" in Mandarin.
.

 

[annexa]

Coca Cola was saying 甘拜下风. Ganbai.

 

[longbow]

From Mar 2009 Bloomberg - http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aKB3X01WdINY&refer=asia


March 6 (Bloomberg) -- Coca-Cola Co., the world’s largest soft-drink maker, plans to invest $2 billion in China over the next three years as part of its attempt to win more of the nation’s 1.3 billion consumers.

The investment plan includes a $90 million technology center that opened in Shanghai today, the Atlanta-based company said in an e-mailed statement. Coca-Cola’s proposed investment is 25 percent more than the $1.6 billion it had already spent in China since returning in 1979.

Beverage companies including Coca-Cola and PepsiCo Inc. are expanding in China, betting demand will continue to grow as the recession erodes consumer spending in the U.S. Coca-Cola’s planned spending may also aid its $2.4 billion acquisition of China Huiyuan Juice Group Ltd., which was announced in September and is now awaiting government approval.

“Coca-Cola’s investment is a positive for the Huiyuan acquisition,” said Kevin Luo, a consumer goods analyst with Guotai Junan Securities HK Ltd. in Shenzhen, southern China. “This investment will help create jobs, which would obviously be welcomed by the government, so even though it won’t have a direct impact on the acquisition’s approval, it can’t hurt.”

Pepsi said on Nov. 3 it plans to invest $1 billion in China in the next four years. Japan’s Asahi Breweries Ltd. in January paid $667 million for a 19.9 percent stake in Tsingtao Brewery Co., China’s biggest beer company.

Market Leader

Coca-Cola controls 54 percent of the Chinese soda market and Pepsi 31 percent, according to research company Euromonitor International.

Retail spending in China may rise 14 percent this year, the National Development and Reform Commission, the nation’s top economic planning agency, said in a report distributed yesterday to the country’s legislature. China has also cut taxes and increased welfare spending in a bid to boost consumer spending amid the worst financial crisis since the Great Depression.

“It’s wise for international companies to invest in China, especially at a time when China is trying to boost domestic consumption,” said Kenny Tang, executive director of Redford Securities Co. in Hong Kong. “There’s still room for growth.”

Coca-Cola’s sales by volume rose 19 percent last year in China and declined by 1 percent in North America, according to the company’s annual report.

“Our commitment and confidence in China never wavers,” Coca-Cola Chief Executive Officer Muhtar Kent said in today’s statement. The company will invest in new plants, distribution and sales and marketing, Kent said.

Coca-Cola and Huiyuan, which applied for approval from China’s Ministry of Commerce in September, said then that they expected a government decision by March 23.

“We are in very regular contact with the Ministry of Commerce, and we try to be as helpful as possible in answering questions and providing supplementary information,” Kenth Kaerhoeg, a spokesman for Coca-Cola Asia, said by e-mail today.

 

[longbow]

Ooo Every more investments in 2010 by Coke

Coca-Cola Continues Strong Investment In China Three New Plants In HOHHOT, Luohe And Sanshui Underscore China Commitment
Pacific, October 29, 2010

HOHHOT, Inner Mongolia-- The Chairman and Chief Executive Officer of The Coca-Cola Company, Mr. Muhtar Kent, announced in Inner Mongolia today the opening and near completion of three new bottling plants in China worth a combined 1.6 billion RMB (USD 240 million), continuing its rapid expansion in one of the world's largest and fastest growing beverage markets.

The new investments are a part of Coca-Cola's 3-year USD 2 billion accelerated investment in China and the latest phase of Coca-Cola's long- term commitment to its business in China. The investment is also aligned with the government's call to develop the central and western areas of the country. The plants in Hohhot in Inner Mongolia, Luohe in Henan Province and Sanshui in Guangdong Province will locally produce beverages such as Coca-Cola, Sprite, Fanta, and Minute Maid to quench the thirst of consumers in those regions

The bottling plant in Hohhot, Inner Mongolia, which is opened today, is the 41st Coca-Cola a bottling plant in China. Yesterday, Mr Kent visited Luohe to inaugurate the new bottling plant in that city. It will be the largest Coca-Cola production facility in China and will begin production in November 2010. The plant has been constructed to the Gold LEED (Leadership in Energy and Environment Design) standard, showcasing many energy and water conservation features. The Sanshui plant is also scheduled to commence production by the end of 2010. These new facilities will augment Coca-Cola's strategic footprint in China, with the Luohe investment alone worth 900 million RMB. The three plants together will directly create 2,000 additional new jobs in the local communities and approximately 20,000 additional indirect employment opportunities in the supporting industries. By the end of the year this marks 6 plants inaugurated over the last 2 years.

"This 1.6 billion RMB commitment to Inner Mongolia, Henan and Guangdong Province is more than an investment in Coca-Cola's expansion to capitalize on the fast growing China market. It is also an important step by Coca-Cola to assist in the development of local communities throughout China, including in the less developed areas," said Mr. Muhtar Kent at the opening ceremony for the Hohhot plant. The ceremony was attended by Mr. Bater, the Chairman of the Inner Mongolia Autonomous Region, Mr. Frank Ning, Chairman of COFCO Group, and senior officials of Inner Mongolia and The Coca-Cola Company. "Our business has experienced strong growth year on year in China, which is now our third largest market. More importantly, the new plants in Inner Mongolia, Henan and Guangdong, will extend our competitive edge in China and allow Coca-Cola to support local community development by providing jobs, generating tax revenue and boosting further investment in the local economy by Coca-Cola suppliers," said Mr. Kent.

In addition to the new world-class bottling facilities in China, Coca-Cola is also a global partner of the World EXPO in Shanghai. The Company has already served more than 70 million servings to EXPO visitors and working staff, and has greeted more than one million visitors to the "Coca- Cola Happiness Factory" pavilion in the EXPO Park.

Mr. Muhtar Kent who is Chairman of the US China Business Council and will lead board members on an official trip to Beijing over the coming days to meet with senior government leaders. The delegation will exchange ideas with various officials to help promote and improve commercial relations between China and US corporations.

Coca-Cola and its bottlers have always been active corporate citizens in China, promoting sustainable environmental projects and development of local communities through education and cooperative public-private endeavors. Over the past several years, Coca-Cola has actively contributed to the development of the local communities in China by contributing over 200 million RMB for disaster relief efforts and sponsoring Project Hope, a program that aims to improve education for disadvantaged children throughout China. By 2011, Coca-Cola would have built 100 Project Hope Schools across China. Working hand in hand with the World Wildlife Fund, Coca-Cola has also launched a project in 2007 to conserve the Yangtze River basin, the lifeblood of China that provides water to more than 400 million people. The partnership with WWF made significant progress toward the protection of this valuable natural resource by galvanizing local communities to actively participate in river basin conservation.

 

[Aussie Prick]

Speak loudly and carry a big stick.

WASHINGTON: "Speak softly; carry a big stick," was turn-of-last century American President Teddy Roosevelt's geo-political prescription for a fledgling world power. "Lie is not overawed by China's rise, and has other Asian options, a top Coca-Cola honcho startled everyone at a reception with a gaffe involving raising a toast for President Hu in Japanese – saying "kanpai" (cheers) instead of the similar sounding "ganbei" in Mandarin.
.

Plus America possess another weapon no other nation possess - the world's reserve currency - which basically means the US is the only nation in the world can print to pay off its debts - AND GET AWAY WITH IT -because there is no other alternative to another reserve currency since the Yuan is not even close to convertibility and the Eurozone might implode at any time. All other nations who are printing are suffering inflation while the US enjoys a 1% inflation rate.

2011 we are seeing the US is back on course because all of a sudden billions of investment monies are flowing out of Asia and back to the US. People are once again putting money to work in the USA.

 

[Dreamer1]

Connecting the Dots Between China’s Falling Consumption Level and Its Banking Crisis

Posted: 22 Jan 2011 12:37 AM PST

One of the striking features of China’s continuing growth as an economic power is its extreme (as in unprecedented in the modern era) dependence on exports and investments as drivers of growth. Even more troubling is that as expansion continues, consumption keeps falling as a percentage of GDP.

As countries become more affluent, consumption tends to rise in relationship to GDP. And the ample evidence of colossally unproductive infrastructure projects in China (grossly underoccupied malls, office and residential buildings, even cities) raises further doubts about the sustainability of the Chinese economic model.

The post crisis loan growth in China, in tandem with visible signs that a meaningful proportion of it has little future economic value, has stoked worries that Chinese banks will soon be struggling with non-performing loans. China bulls scoff at this view, contending that China’s 2002-2004 episode of non-performing loans was cleaned up with little fuss (I never bought that story and recall how Ernst and Young was basically bullied by the Chinese government into withdrawing a 2006 report that NPLs at Chinese banks were a stunning 46% of total assets of its four largest banks. Note estimates of the NPLs as a percent of total loans from that crisis vary widely, even excluding Ernst, from 20% to 40%).

The latest post by Michael Pettis links the two phenomena, the fall in Chinese consumption and the cleanup of its last banking crisis. If his analysis is correct, this bodes ill for any correction in global imbalances. China needs to increase its consumption in relationship to GDP to rebalance its economy, but a banking system bailout along the lines of the last one will push them in exactly the opposite direction.

From Pettis:

Throughout modern history, and in nearly every economic system, whether we are talking about China, the US, France, Brazil or any other country, there has really only been one meaningful way to resolve banking crises…The household sector…always pays to clean up the banks.

There are many ways to make them pay… If the regulators are given a longer amount of time during which to clean up the banks, they can use other, less obvious and so less politically unpopular, ways to do the same thing, for example by managing interest rates. In the US and Europe it is fairly standard for the central bank to engineer a steep yield curve by forcing down short-term rates. Since banks borrow short from their depositors and lend long to their customers, the banks are effectively guaranteed a spread, at the expense of course of depositors. Over many years, the depositors end up recapitalizing the banks, usually without realizing it.

Yves here. We commented here from time to time that Greenspan did precisely that in the wake of the savings and loan crisis, and that the Fed appeared to be resorting to this playbook in the immediate aftermath of the crisis, when the yield curve was again particularly steep. Back to Pettis:

There are two additional ways used in countries, like China, with highly controlled financial systems. One is to mandate a wide spread between the lending and deposit rates. In China that spread has been an extremely high 3.0-3.5 percentage points. The other, and more effective, way is to force down the lending and deposit rates sharply in order to minimize the loan burden and to spur investment. This is exactly what China did in the past decade…..

By most standards, even ignoring the borrower’s credit risk, the lending rate in China during the past decade is likely to have been anywhere from 4 to 6 percentage points too low. Over five or ten years, or more, this is an awful lot of debt forgiveness…

The combination of implicit debt forgiveness and the wide spread between the lending and deposit rate has been a very large transfer of wealth from household depositors to banks and borrowers. This transfer is, effectively, a large hidden tax on household income, and it is this transfer that cleaned up the last banking mess.

It is not at all surprising, then, that over the past decade growth in China’s gross domestic product, powered by very cheap lending rates, has substantially exceeded the growth in household income, which was held back by this large hidden tax. It is also not at all surprising that household consumption has declined over the decade as a share of gross national product from a very low 45 percent at the beginning of the decade to an astonishingly low 36 percent last year.

This is how China’s last banking crisis was resolved. It did not result in a collapse in the banking system, but it nonetheless came with a heavy cost. The banking crisis in China resulted in a collapse (and there is no other word for it) in household consumption as a share of the economy.

This is an extremely important observation, and one I fear will not get the attention it deserves. And the implication is obvious: as long as China keeps on using increasingly unproductive debt to fuel growth (it now takes $7 of debt to produce $1 of GDP growth in China, versus $4 to $5 in the mature US), its need to work of growing amounts of bad debt on the sly at the expense of consumption will keep it at loggerheads with its trade partners.

http://www.nakedcapitalism.com/

 

[Leongsam]

Leading a country that is perceived to be weakening economically, President Obama abandoned the speak softly advise to publicly hector his Chinese counterpart Hu Jintao

Should be "... abandoned the speak softly ADVICE....".

"Advise" is a verb.

 

[HellAngel]

When a person speaks loud, we know he is lacking confidence or scared.

 

[Jah_rastafar_I]

wow why is coke investing so much in china? I thought china is very inferior?

Oh now there are reports on obama shouting at Hu? What does that even mean? I guess the louder you shout the more powerful you appear to be.

 

[longbow]

Problem with reserve currency is that it affects all. QE2 affected all the BRIC countries (even Germany and S Korea are bitching about it) and amongst the BRIC, China has better ability to weather the inflation when compared to brasil or india.

Plus America possess another weapon no other nation possess - the world's reserve currency - which basically means the US is the only nation in the world can print to pay off its debts - AND GET AWAY WITH IT -because there is no other alternative to another reserve currency since the Yuan is not even close to convertibility and the Eurozone might implode at any time. All other nations who are printing are suffering inflation while the US enjoys a 1% inflation rate.

2011 we are seeing the US is back on course because all of a sudden billions of investment monies are flowing out of Asia and back to the US. People are once again putting money to work in the USA.

 

[GoFlyKiteNow]

wow why is coke investing so much in china? I thought china is very inferior?

Oh now there are reports on obama shouting at Hu? What does that even mean? I guess the louder you shout the more powerful you appear to be.

All these matters are too complicated for you.
why not just focus only on small simple matters...Phone card and hard disk subject matters ?

 

[Jah_rastafar_I]

All these matters are too complicated for you.
why not just focus only on small simple matters...Phone card and hard disk subject matters ?

Hi resident idiot what makes you think a hdd and phone card are simple matters?


You're so stupid you don't even know i was being sarcastic.

In any case just do your usual dog roll routine. Cut and paste some article bashing china. Get flamed for it retaliate with a lame copied 1 liner get flamed again and then go home and cry.