APEC meets, Obama not present, & a Chinese leader gives a warning to the USA

COGwriter

The US government began its ‘shutdown.’ Here are some reports about it and reactions in Asia:

October 07, 2013

Leaders of the Asia-Pacific Economic Cooperation (APEC) forum have begun a two-day summit on the Indonesian resort island of Bali to discuss trade, economies, security and other issues in the Asia-Pacific…

Twelve APEC members are engaged in negotiations for a free trade area called the Trans-Pacific Partnership. They include Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States and Vietnam.

U.S. President Barack Obama had hoped to attend the APEC forum to promote his goal of securing a TPP agreement by the end of this year, but he was forced to skip the forum due to domestic budgetary disputes that led to the partial shutdown of the U.S. federal government.  http://www.voanews.com/content/apec-begins-twoday-summit/1764275.html

With Obama out, Others Take APEC Stage, Sort Of

As some of the world’s heavy-weight leaders stood in the spotlight Monday at a regional economic summit, they still managed to be upstaged by who was missing…

For Obama, the Asia Pacific Economic Cooperation summit was meant to be an opportunity to underline renewed U.S. attention to Asia as a counterbalance to China’s increased economic and military clout. But that message was undermined by the U.S. budget impasse and government shutdown forcing Obama to cancel his trip to Indonesia and three other countries. His absence was perhaps felt most by Indonesians who consider him one of their own after he spent part of his childhood growing up in the capital, Jakarta.  http://abcnews.go.com/International/wireStory/obama-leaders-apec-main-stage-20490287

As I reported earlier (Kerry claims USA still committed to Asia despite shutdown as China takes advantage of Obama’s trip cancellation), it is likely that the USA will decide that it will have to pay Asia greater attention in the future because its President Obama cancelled his appearance at APEC citing budget/shutdown concerns.

Various ones have suggested that the combination of Barack Obama’s non-appearance at APEC, combined with the USA’s debt issues, and China’s financial growth are greatly assisting China and its influence in the region.

In a move not directly related to the APEC meeting, China sent out a message that it probably wanted to drive home to those in APEC:

07 October 2013

A senior Chinese official has warned that the “clock is ticking” to avoid a US default that could hurt China’s interests and the global economy.

China, the US’s largest creditor, is “naturally concerned about developments in the US fiscal cliff”, vice finance minister Zhu Guangyao said.

Washington must agree a deal to raise its borrowing limit by 17 October, or risk not being able to pay its bills.

He asked that “the US earnestly take steps to resolve” the issue.

US Treasury Secretary Jacob Lew has said that unless Congress agrees an increase in the debt ceiling by 17 October, Washington will be left with about $30bn in cash to meet its obligations – about half the $60bn-a-day needed.

For many governments and investors the approaching deadlock over the debt ceiling is far more critical than the current impasse over the federal shutdown caused by Congress’s failure to agree a new budget…

Mr Zhu said…”The executive branch of the US government has to take decisive and credible steps to avoid a default on its Treasury bonds,” he said.  http://www.bbc.co.uk/news/business-24426881

It is interesting that at least one Chinese leader wants the ‘executive branch’ (the portion of the US government that Barack Obama leads) to take decisive and credible steps.  The implication is that Zhu does not believe that it has been doing so.

The Bible warns:

17… Your land shall be divided by survey line; You shall die in a defiled land; And Israel shall surely be led away captive From his own land (Amos 7:17)

13 “Behold, therefore, I beat My fists at the dishonest profit which you have made, and at the bloodshed which has been in your midst. 14 Can your heart endure, or can your hands remain strong, in the days when I shall deal with you? I, the Lord, have spoken, and will do it. 15 I will scatter you among the nations, disperse you throughout the countries, and remove your filthiness completely from you. (Ezekiel 22:13-15)

By having massive debt that they will not truly pay back, the peoples of the USA make a “dishonest profit” and they will eventually be taken captive and scattered.

The USA has been hurting its credibility throughout 2013 in terms of how it has handled its numerous fiscal ‘crises’ and its so-called ‘debt-ceiling’ (which it keeps raising, despite complaints by some about doing so).  Although more are getting concerned, this is not enough to YET many to totally abandon the USA dollar.  The Chinese themselves have taken steps in the hope that their currency either will replace of the USA dollar or will at least contribute to doing that (e.g. China seems to have taken steps to further dethrone the USA dollar and Rise of ‘PetroYuan’ is a step in the demise of the US dollar)–Russia has tended to support various aspects of this (China and Russia working to dethrone US dollar as world’s international currency). Russia’s developing Eurasian Union seems to also have a role to play in coming up with a way to avoid the US dollar in trade.

And while many want to consider that a USA default on its debt is “unthinkable,” clearly more are noticing that the political gridlock, etc. in the USA is putting the future of the USA dollar at risk. And, I would add, that it is much worse than that. But also is giving nations reasons to think about the “unthinkable,” and some are trying to take steps related to that.  This includes not only the Chinese and others in Asia, European leaders too (see IMF and others have fears about possible USA default) are watching and are concerned.

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