From blunt capitalist-imperialist US President Obama : Play by the Rules even if we break them - teaching an ancient peaceful civilisation restraint defies common sense

Obama is under immense pressure as his precarious standing becomes more obvious as the presidential re-election nears. His belligerent attitude and proactive alignment with Asia Pacific ally Australia defies rationality. Despite rhetoric for change, Obama has succumbed to neo-Cons to put on an aggressive cowboy front to stir up peaceful waters in the region. While China has thousands of years of diplomacy and peaceful coexistence even at the zenith of the Tang and Ming dynasties, post-war US has seen more invasions in distant lands, resulting in painful casualties and fatalities on all sides (not to mention mammoth economic losses),  within half a century. More than any other imperialistic and hegemonistic nations had chalked up in history. 


As long as US continues its ranting on China's currency manipulation instead of reflecting on and redressing weaknesses in domestic economic fundamentals, it is not getting out of the rut. There are lots of hard work to be done to curb its credit manipulation, raise fiscal standards, improve productivity and bring about more equitable distribution of wealth. Carbon trading and taxes are not on the US government's agenda either, preferring to put the blame and burden on Third World countries trying to pick up from lost years of development to eradicate poverty by sacrificing their health and environment taking on the role as factories of the world. 

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Obama's tough-minded and bluntly worded message to China was that rising power brings with it rising responsibilities. China has an obligation not only to follow the rules, but, in Obama's words, to help underwrite them.

Obama's comments were in answer to a question about trade. But his bluntness with China reflects a deep disappointment in Washington with China's performance over a wide range of economic, security and global governance issues.

The Trans-Pacific Partnership is not designed to exclude China, Obama says, but if a country wants to join it has to open up its economy. This is shrewd diplomacy by Obama. The TPP is open to any nation that meets the criteria. Because China won't meet the criteria, the emphasis of the discussion is not on the US beating up on Beijing, but Beijing's refusal to liberalise.

http://www.theaustralian.com.au/national-affairs/opinion/blunt-diplomacy-a-shrewd-move/story-e6frgd0x-1226197235738?from=promo-strip-na

BofA Divests China Construction Bank Stake to Boost Capital, Not Declining Confidence in China

Bank of America's latest move to further divest its shares in the Chinese bank is more to lock in investment gains and take profits than a signal of loss confidence and an impending hard landing in the Chinese economy.


Where else can and should investors take their capital to if not China, India and smaller Asian economies?
Certainly not USA and Europe?


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Chief Executive Officer Brian T. Moynihan, 52, is selling assets to replenish Bank of America's capital and meet regulatory requirements for risk buffers after faulty mortgages led to about $40 billion of expenses. The lender joins Goldman Sachs Group Inc. in paring stakes in China's two biggest banks by tapping the stocks' biggest one-month rally in four years.

“We view this announcement positively for CCB as it removes a significant overhang from its shares,” Mike Werner, an analyst at Sanford C. Bernstein & Co. in Hong Kong, wrote in a research report. “This is especially true as the market was aware that BofA was seeking to improve its struggling capital adequacy ratios.”

http://news.businessweek.com/article.asp?documentKey=1376-LUNJLL6K50XS01-6V6EUMOEAT4U2F1PGK5CVJJIL5