Jerusalem Post- Iran, Russia, China, and Syria plan Largest Military Exercise In Middle East History For Next Month

Iranian media outlets reported on Tuesday that Iran, Russia, China and Syria are to conduct joint military exercises in Syria next month.

The report appears to have originated on Arabic language Syrian media outlet ShamLife, which said the war-games were scheduled in less than a month’s time.

Other Iranian media outlets, including the Revolutionary Guards-linked Mashregh News and Mehr News, which is owned by the Islamic Ideology Dissemination Organization, also carried the same report on Tuesday, but did not cite any Iranian official sources confirming it.

Fars admitted that there has as yet been no official announcement confirming the war-games, but cited an unnamed Syrian official had declared that a joint exercise between those four countries would be carried out “soon”.

via \’Iran, Russia, China, Syria plan \’largest\’… JPost – Middle East.

Also on Tuesday, the BBC reported that the UK had stopped a cargo vessel off the western coast of Scotland allegedly transporting Russian-made refurbished attack helicopters to Syria. British marine insurer the Standard Club canceled cover to the MV Alaed’s owners after UK security services warned that the company would breach EU sanctions if it insured a ship carrying arms to Syria, according to the UK’s Daily Telegraph.

IMF bombshell: Age of America will end by 2016.

Brett says practically everything that needs to be said. Are you prepared?

http://lifelinefood.myefoods.com

By Brett Arends, MarketWatch

BOSTON (MarketWatch) — The International Monetary Fund has just dropped a bombshell, and nobody noticed.

For the first time, the international organization has set a date for the moment when the “Age of America” will end and the U.S. economy will be overtaken by that of China. The International Monetary Fund sees China topping the U.S. in 2016.

According to the latest IMF official forecasts, China’s economy will surpass that of America in real terms in 2016 — just five years from now.

Put that in your calendar.

It provides a painful context for the budget wrangling taking place in Washington right now. It raises enormous questions about what the international security system is going to look like in just a handful of years. And it casts a deepening cloud over both the U.S. dollar and the giant Treasury market, which have been propped up for decades by their privileged status as the liabilities of the world’s superpower.  According to the IMF forecast, which was quietly posted on the Fund’s website just two weeks ago, whoever is elected U.S. president next year — Obama? Mitt Romney? Donald Trump? — will be the last to preside over the world’s largest economy.

Most people aren’t prepared for this. They aren’t even aware it’s that close. Listen to experts of various stripes, and they will tell you this moment is decades away. The most bearish will put the figure in the mid-2020s.

 

 But they’re miscounting. They’re only comparing the gross domestic products of the two countries using current exchange rates.  That’s a largely meaningless comparison in real terms. Exchange rates change quickly. And China’s exchange rates are phony. China artificially undervalues its currency, the renminbi, through massive intervention in the markets.

The comparison that really matters

In addition to comparing the two countries based on exchange rates, the IMF analysis also looked to the true, real-terms picture of the economies using “purchasing power parities.” That compares what people earn and spend in real terms in their domestic economies.  Under PPP, the Chinese economy will expand from $11.2 trillion this year to $19 trillion in 2016. Meanwhile the size of the U.S. economy will rise from $15.2 trillion to $18.8 trillion. That would take America’s share of the world output down to 17.7%, the lowest in modern times. China’s would reach 18%, and rising.

Just 10 years ago, the U.S. economy was three times the size of China’s.

Naturally, all forecasts are fallible. Time and chance happen to them all. The actual date when China surpasses the U.S. might come even earlier than the IMF predicts, or somewhat later. If the great Chinese juggernaut blows a tire, as a growing number fear it might, it could even delay things by several years. But the outcome is scarcely in doubt.

This is more than a statistical story. It is the end of the Age of America. As a bond strategist in Europe told me two weeks ago, “We are witnessing the end of America’s economic hegemony.”  We have lived in a world dominated by the U.S. for so long that there is no longer anyone alive who remembers anything else. America overtook Great Britain as the world’s leading economic power in the 1890s and never looked back.

And both those countries live under very similar rules of constitutional government, respect for civil liberties and the rights of property. China has none of those.

The Age of China will feel very different.

Is The Turning Point Upon Us?

If you add to Mr Jin’s equation that Europe’s meltdown is continuing, and that several states in the US are also facing meltdown, I would have to answer yes.

Is The Turning Point Upon Us?.

Bloomberg: Asian central banks (holding 60 percent of the world’s foreign-exchange reserves) are turning away from the dollar

China Favors Euro Over Dollar as Bernanke Alters Path By Candice Zachariahs and Ron Harui – Aug 16, 2010

China, whose $2.45 trillion in foreign-exchange reserves are the world’s largest, is turning bullish on Europe and Japan at the expense of the U.S. The nation has been buying “quite a lot” of European bonds, said Yu Yongding, a former adviser to the People’s Bank of China who was part of a foreign-policy advisory committee that visited France, Spain and Germany from June 20 to July 2. Japan’s Ministry of Finance said Aug. 9 that China bought 1.73 trillion yen ($20.1 billion) more Japanese debt than it sold in the first half of 2010, the fastest pace of purchases in at least five years.

“Diversification should be a basic principle,”

U.S. Concerns

Concern the U.S. economy is faltering was underscored by the Federal Reserve on Aug. 10. Chairman Ben S. Bernanke said the central bank will reinvest principal payments on its mortgage holdings into Treasury notes to prevent money from being drained out of the financial system, its first expansion of measures to spur growth in more than a year.

“The pace of economic recovery is likely to be more modest in the near term than had been anticipated,” the Federal Open Market Committee said in a statement after meeting in Washington. “The Committee will keep constant the Federal Reserve’s holdings of securities at their current level.” Asian central banks holding some 60 percent of the world’s foreign-exchange reserves are turning away from the dollar. Concerned about weakening U.S. growth and the Treasury’s record borrowing, they are switching toward euro assets to safeguard reserves, driving gains in the 16-nation currency. South Korea, Malaysia and India reduced their holdings of Treasuries, U.S. government data show.

http://www.bloomberg.com/news/print/2010-08-15/china-favors-euros-over-dollars-as-bernanke-shifts-course-on-fed-stimulus.html