Global Analysis from the European Perspective. Preparing for the world of tomorrow


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EU, not China or Japan, is the biggest US Treasury holder. And this is not a good sign.

US-based media have been reporting that Japan has become the biggest holder of the US treasuries, surpassing China last month. However, this is true only in regard to single countries. If we consider the European Union member states collectively, then they appear to be the biggest holder of the US treasuries. It has been so almost one year long. Unfortunately, the EU’s holdings are artificially overstated because of some financial havens and they are going in the opposite direction to the trend: up rather than down.

According to the latest data from TIC (Treasury International Capital System), the EU was in possession of $1242 billion of US Treasuries in November 2016, $9 billion more than one month earlier. The EU was the only one from three biggest holders that increased its amount of US treasuries in November, while China and Japan continued to lower their holdings.

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China is militarizing the South China Sea, or is it?

China is by far the most powerful contestant. Neither the Philippines, nor Malaysia nor Vietnam can compare, though they, especially Hanoi, dare to put up a fight and stave off the encroachment on its sovereignty. China, true, is willing to sit down to the negotiation table, yet insists on bilateral talks; the smaller contestants prefer group talks. And they all look to the United States, if for different reasons. China is trying to expand its regional clout, the smaller countries are defending their rights. And the United States? Failure to respond to the Chinese challenge entails serious consequences such as damage to Washington’s status of the world superpower and loss of American credibility, not only in the eyes of the few South-East Asian nations concerned but also others, like Japan. The eyes of the world are thus focused on the South China Sea.

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Chinese 13th Five-Year-Plan Will Not Only Impact The Nation, But The Whole World

The coming years will be crucial for the Chinese economy and decisive for the realization of the „Chinese dream” of a prosperous society. This dream is to be achieved through the 13th Five-Year-Plan. This conglomerate of strategic goals will have a cascading effect; it will affect the global economy as well.

Many see the Five-Year-Plan (FYP) as a Stalinist holdover of China’s old command economy1; disregarding those „Guidelines” is a mistake. Investors should be fully aware of China’s five year economical cycles. China’s economic cycles are dictated by the elite of the Communist Party of China (CPC) and not by the invisible hand of the market.

China is run by the CPC whom does not see a free markets as a goal, but as a mean to improve the wealth of the citizens of China. The website of the CPC states the following ”The Communist Party of China takes Marxism-Leninism, Mao Zedong Thought, Deng Xiaoping Theory, the important thought of Three Represents and the Scientific Outlook on Development as its guide to action.”

To understand the importance of the FYP, one must understand exactly what it is. Continue reading

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Russia and China could join forces in linking their national payment systems, to rival Western alternatives, Russian Prime Minister Dmitry Medvedev said. Underlining the success of China’s Unionpay system and Beijing’s efforts to internationalize its currency, Medvedev told in Beijing that Russia was developing its own payment system, known as Karta Mir. “At the moment it is being discussed whether Karta Mir should be linked to Chinese payment systems in some way,” Source Newsweek


Economic cooperation between Russia and China has been actively developing according to Russian Deputy Prime Minister Sergei Prikhodko. He says the sides are working to prolong the bilateral currency swap agreement. “At present, financial regulators of the two countries are working on extending the bilateral currency swap agreement for the next three years,” he said as Russian Prime Minister Dmitry Medvedev heads off on an official visit to China. Source RT


The H-6K Badger warplanes – with 1,600km range air-launched cruise missiles – are testing US defence zones around Guam, the Military Times quoted unnamed US defence officials in the region as saying on Tuesday. China’s bomber runs targeting Guam were part of a range of activities making US forces in the territory worry about the potential threat from Beijing – even as North Korea pursues its nuclear weapons programme, the report said. Source South China Morning Post




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