Europe join China's led Dev Bank as US cling to WB/IMF

[RV Pundit]

You're getting tied up in knots because you don't have knowledge to be able to simplify and understands global economics.

Debt markets are affected by many variables...stop yapping about exchange rate(USD) and fed monetary policy..that your read somewhere. The biggest risk in borrowing from wall street or london is market SENTIMENTS...driven mostly by manipulators and speculators...how many times have you seen good stocks or debts get harmed! The same with countries..you borrow from Wall Street..and prepare to be eaten alive..when all over sudden interest rates rises to 20%..and you have to default. A country therefore safest bet is to borrow from WB,IMF, China and other such lenders with flexible terms. EuroBond and such traded debts are very very risky.

IMF and WB are not US or EU institution...they are suppose to be GLOBAL institutions like the UN...they are suppose to have MEGA CAPITAL to deal with world financial problems. US cannot raise capital to make the bank a World Bank and yet they do not want China to pump their capital and increase their shareholding.

Lastly China  are yet to allow PRIVATE sectors in critical sectors like BANKING leave alone infrastructure. This is another nonsense you've recently read (PPP) and you're all over with it.

There is no silver bullet kijana..last week it was all about building houses for slums..then urbanization...now you're crazy about Public Private Partnerships.

Are those the stuff you go to listen in Alykan conference so you can get free water

or sometimes at 60% grant.

(a) Can you provide evidence of such a case of 60% grant and figure and also avail evidence of who got the mining rights and value of minerals in such a country to evaluate the amount of thuggery,o

Gov,parastal and private sector can similar take advantage of the debt market..be it tbill/tbond floated by CBK..or through NSE or LSE or NYSE..of course with a lot of cautions. Such kind of loans have brought forth financial crisis...latest Argentina,Greece,Asia financial crisis,global crisis of 2007, the great depression etc etc. Those are your loan sharks or shylocks.

(b) Monetary policy,

Globally,Most foreign debt whether by Chinese or Americans is in USD terms which is the global currency,What that means is that what happens in the USA affects the global debt market you see,When the FED raises the interest rates,USD appreciates,When it lowers the interest rates,the dollar depreciates,that means when the Federal reserve raised the interest rates from 1994-7,The USD appreciated against all other currencies,that means the Asian nations which were heavily indebted suffered because inflation went up,currency lost value and economy crumbled,its the same thing happening now,the best time to borrow was 2008-2013,With the fed finished with QE and is about to raise interest rates,Nations will suffer as dollar gains value,

In the meantime multilateral lenders like IMF and WB should allow China to pump more capital into it...so IMF and WB can truly respond to contemporary crises...right now the bank is a joke..that now passes for NGO doing poverty work...instead of a bank that can finance lapset yote at one go.

And you should know who has stalled reforms in IMF and WB...USA.

These institutions like IMF or WB will always advance the agenda of big powers,we need local based solutions and strike better concessional deals with private investors,

The countries that truly have real money to lend to others i dare say are China, Arab nations(Saudi esp) and maybe Norway. US,Japan and Europe are playing poker...indebted to the eye balls..yet somehow lending money They are simply printing money. US gov, individuals, companies and states or counties..are indebted to the eyeballs..they have max out all their 100 credit cards..and yet they somehow send the same money as outflow investment to China or Kenya...talk of over-leveraging. The same case with Japan and Europe...debts of more than 100%...Japan 250% or about.

CHINA i repeat is only country you want to focus going forward. They have real money backed by real fundamentals.

You are praising Arabs and Chinese because you believe media hype of big money which is owned by the state unlike the west where there is even bigger money in private investors,QE is unconventional monetary policy and has been in the world for decades,its buying debt of private commercial institutions to lower debt yield and spur growth...to add more,the west is behind the development of China and Arab world through PPP,

Without Prejudice.

[MOON Ki]

Like Mansfield you've gone into lots of the usual nitpicking and lots  googling just to make a point. I suggest you keep abreast with what is happening outside the US regularly and you won't have to bombard us with links; which are a dime  a dozen.China has 4 trillion reserves.

You said that: 

"chinese have been divesting their historic gazillions of reserves around the world."

As usual, you simply made up such nonsense and it was necessary to point that out.    Now, say "thank you" for the enlightenment. 

By the way, if you think China's $4 trillion in reserves is a lot of money, may I point out that that Black Rock, a single American investment company, has about $4.6 trillion to play with.   

[Mr Mansfield.]

You're getting tied up in knots because you don't have knowledge to be able to simplify and understands global economics.

Debt markets are affected by many variables...stop yapping about exchange rate(USD) and fed monetary policy..that your read somewhere. The biggest risk in borrowing from wall street or london is market SENTIMENTS...driven mostly by manipulators and speculators...how many times have you seen good stocks or debts get harmed! The same with countries..you borrow from Wall Street..and prepare to be eaten alive..when all over sudden interest rates rises to 20%..and you have to default. A country therefore safest bet is to borrow from WB,IMF, China and other such lenders with flexible terms. EuroBond and such traded debts are very very risky.

IMF and WB are not US or EU institution...they are suppose to be GLOBAL institutions like the UN...they are suppose to have MEGA CAPITAL to deal with world financial problems. US cannot raise capital to make the bank a World Bank and yet they do not want China to pump their capital and increase their shareholding.

Lastly China  are yet to allow PRIVATE sectors in critical sectors like BANKING leave alone infrastructure. This is another nonsense you've recently read (PPP) and you're all over with it.

There is no silver bullet kijana..last week it was all about building houses for slums..then urbanization...now you're crazy about Public Private Partnerships.

Are those the stuff you go to listen in Alykan conference so you can get free water

Seems you have run out of ammo,

Aly khan is a great guy,

Without Prejudice.

[Mr Mansfield.]

if you think China's $4 trillion in reserves is a lot of money, may I point out that that Black Rock, a single American investment company, has about $4.6 trillion to play with.

Precisely,

Without Prejudice.

[MOON Ki]

Seems you have run out of ammo,

One thing that has to be "admired" is the guy's absolute devotion, bordering on religious faith, to his notion that China will save Africa.  Everything is interpreted in a way that supports his faith, and not even the strongest and clearest of facts will move him from what he wants to believe.  On the contrary, he will simply counter with his own home-made "facts" and keep going.

If I ever become the leader of a cult, I will print out Pundit's writings and tell my followers, "this man should be your model; yours is to believe and not let facts get in the way!".   

[RV Pundit]

China indeed will save Africa. When we get another benefactor with as much scale as China i will let you know.

One thing that has to be "admired" is the guy's absolute devotion, bordering on religious faith, to his notion that China will save Africa.  Everything is interpreted in a way that supports his faith, and not even the strongest and clearest of facts will move him from what he wants to believe.  On the contrary, he will simply counter with his own home-made "facts" and keep going.

If I ever become the leader of a cult, I will print out Pundit's writings and tell my followers, "this man should be your model; yours is to believe and not let facts get in the way!".   

[RV Pundit]

Yeah blackrock has 4.6 trillion USD cash reserves in their fault..only in your dreams. They have "assets" from US treasury including all the toxic mortagages . Alkyan manfields mentor also has 2billion assets in USD he is managing. Get difference btw assets and reserves (CASH RESERVES). NSSF last i checked had 200B kshs assets...but those are people money...not...i repeat not CASH RESERVES.

You'd have to check Apple to find out biggest cash reserves a company in US has. 200BUSD which is more than reserves the US has.You wonder what will happen going forward as yuan is accepted more and more as global currency.

If you want to borrow money...go to China, or Saudi Arabia, or Norway.

You said that: 

"chinese have been divesting their historic gazillions of reserves around the world."

As usual, you simply made up such nonsense and it was necessary to point that out.    Now, say "thank you" for the enlightenment. 

By the way, if you think China's $4 trillion in reserves is a lot of money, may I point out that that Black Rock, a single American investment company, has about $4.6 trillion to play with.   

[Mr Mansfield.]

Yeah blackrock has 4.6 trillion USD cash reserves in their fault..only in your dreams. They have "assets" from US treasury including all the toxic mortagages.

(a) Blackrock does NOT own the $4.5TN assets,Its an asset manager,that is it manages those assets on behalf of other people,

(b) Blackrock clients include individuals,pension funds,mutual funds,banks,sovereign wealth funds,central banks,insurance companies,From the last reported date these clients were 61% from USA,31% from EMEA and 8% from Asia pacific,

(c) Blackrock invests the client money so that they can get a return on investment,they invest in government bonds,real estate,infrastructural projects etc etc,

(d) As an asset manager,It charges its clients 1% management fee that's why its last reported annual revenue was $10BN,that is 1% of $1TN under management

Streamline your knowledge,

Without Prejudice.

[Mr Mansfield.]

Everything is interpreted in a way that supports his faith, and not even the strongest and clearest of facts will move him from what he wants to believe.

He is delusional,A mental disorder,

Without Prejudice.

[MOON Ki]

You'd have to check Apple to find out biggest cash reserves a company in US has.

Mr. Manfield has tried to help you in such matters; for example, last I looked, pension money alone accounted for about $1.2 trillion that BlackRock had to play with.   I hope you were paying attention.

There is another lesson I had in mind for you.   To get it, you will have to go back and actually read some of the information I gave earlier.   You seem to think that China has this great pile of reserves that it controls in every way.   You should consider this:

"quantitative easing policy as a main factor contributing to the decline, adding there were no risks or problems."

http://www.marketwatch.com/story/what-next-after-chinas-foreign-reserve-fall-2014-10-26

One of the things I was trying to point out to you is that what happens with China's "tidy pile" actually depends on what the Americans do.   Fortunately for them, the Chinese, unlike you, understand that.

200BUSD which is more than reserves the US has.You wonder what will happen going forward as yuan is accepted more and more as global currency.

I asked you earlier if you actually understand why countries hold forex reserves and why the US has less than even some developing country.   Try and think about that one.

In the last 10 months, the USA dollar has risen so sharply that it is now approaching 12-year highs.   The rest of the world is wailing about  dollar-denominated purchases---sorry, most still don't take your yuan---and everyone is scrambling for dollars.    (But, please, feel free to wake us up when "yuan is accepted more and more as global currency".) 

Still, the Great Pundit of Nipate tells us that this is "printed" money and not money that is, as he puts it, "backed by fundamentals".    So, what is the problem?   The Americans are not printing fast enough?   And is anybody rejecting dollars because they are "printed" and not "backed by fundamentals"?

By the way, I hope you do realize that even your Beloved China has most of its forex reserves in dollars.   Perhaps they get special ones that are "backed by fundamentals", as opposed to the regular ones that are just "printed"?   

[MOON Ki]

You'd have to check Apple to find out biggest cash reserves a company in US has.

If you actually read what I wrote, you would have noticed that the words I used were "[money] to play with" (as in "control"), and that is very different from "own".   This might come as shocking news to you, but even most banks do not "own" all the money they have; they merely "control" the money their shareholders have parked there. 

Mr. Manfield has tried to help you in such matters; for example, last I looked, pension money alone accounted for about $1.2 trillion that BlackRock had to play with.   I hope you were paying attention.

There is another lesson I had in mind for you, and it is a pity that you missed it.   To get it, you will have to go back and actually read some of the information I gave earlier.   You seem to think that China has this great pile of reserves that it controls in every way, like money in a person's savings account or something.   You should consider this (which I gave you earlier):

"quantitative easing policy as a main factor contributing to the decline, adding there were no risks or problems."

http://www.marketwatch.com/story/what-next-after-chinas-foreign-reserve-fall-2014-10-26

One of the things I was trying to point out to you is that what happens with China's "tidy pile" actually depends on what the Americans do.   Fortunately for them, the Chinese, unlike you, understand that.

It is, in fact, a bit more than that: you actually need to try and understand how what happens in the US economy, what the US Federal Reserve does, ... affects the entire world economy.   What the example shows you is that not even your Great China is immune.

200BUSD which is more than reserves the US has.You wonder what will happen going forward as yuan is accepted more and more as global currency.

I asked you earlier if you actually understand why countries hold forex reserves and why the US has less than even some developing country.   Try and think about that one. Hint: when other folks keep chasing after your currency and are prepared to hand over theirs, just like that!, why would you bother to keep their currency?   

In the last 10 months, the USA dollar has risen so sharply that it is now approaching 12-year highs.   The rest of the world is wailing about their dollar-denominated purchases---sorry, most still don't take your yuan---and everyone is scrambling, frantically,  for dollars.   

Still, the Great Pundit of Nipate tells us that this is "printed" money and not money that is, as he puts it, "backed by fundamentals".    So, what is the problem?   The Americans are not printing fast enough?   And is anybody rejecting dollars because they are "printed" and not "backed by fundamentals"?

By the way, I hope you do realize that even your Beloved China has most of its forex reserves in dollars.   Perhaps they get special ones that are "backed by fundamentals", as opposed to the regular ones that are just "printed"? 

Now, a little exercise for you: Go around forex shops in different parts of Kenya.   You see anybody peddling or chasing RMB?   But, please, feel free to wake us up when "yuan is accepted more and more as global currency". 

[MOON Ki]

China indeed will save Africa. When we get another benefactor with as much scale as China i will let you know.

My friend:

Only the African will save Africa.   What will the Chinese do that's really new?   Here we are, communicating in a mzungu language; and take a look at the history of the best schools in Kenya?   The main roads, railways, etc.  ... where did they come from?   How many Kenyans/Africans are dying to migrate to China as opposed to the West?   (Oh, even today, Chinese folks are literally dying in shipping containers to get to the West!)  Why is that so?   
The Chinese are just going down a well-trodden path:

* The Chinese are building infrastructure?    That has been done before, by others, and Mwafrika couldn't maintain it.   In fact, even the Chinese themselves have been there before: when I notice people wanking about things like SGR, I ask them "look at TAZARA etc.; what's new"?

* The Chinese certainly are going after Africa's natural resources like nobody's business.   Are the Africans getting a fair deal?   That's your homework for today.

* The wildlife is pretty much gone.  Folks keep jumping up and down about infrastructure.   That can always be replaced, but wildlife once gone is really gone?   The Chinese fondness for ivory, rhino horn, etc. comes from the fact that they once had their own.   They "finished" that, and now they have turned to Africa, and, for some strange reason, Mwafrika is only too happy to help in promoting that disaster.

* If I recall correctly, the World Bank would not fund SGR because they did not see any long-term economic sense in it; the advice was that folks would be better off rehabilitating existing lines.   

Enter Kung Fu: "Whether the line makes money or not is not our concern.   We will lend you the money, and charge you interest.  But just to be on the safe side, we will also charge you a hefty, shylock-rate fee to insure the loan.  Plus, we will bring so many of our little guys to do the work; your guys can keep whistling in the little road-side markets."

In the 21st, we laugh at the idea that some of our ancestors gave away productive land---and, sometimes, even people!---in return for beads and shiny bits of glass.   Meanwhile, right now, material for 22nd comedians is actively encouraged.

* Kenya is supposedly the Economic Powerhouse of East Africa, this, that, and the other.   But right now, about 25% of Kenyan children will not reach their full potential, because they do not get enough nutrition to grow, mentally and physically.   Many Kenyans don't even have clean water to drink or a place to take a shit.  I will not belabor the point: even you should have a rough idea.

Is China-Man working to fix any of that?  I doubt it: where are  the shylock loans?   where are the ivory and rhino horns?   

It will not be the West or the East.   Only Africans will save Africa.  

[RV Pundit]

I see you're 10 yrs late. The world is rapidly changing and leaving your US of the yore behind. Isn't that why we Europe is joining China led bank and have open currency swaps. The day when US controlled world economy is over. China has your speak is world biggest economy (PPP) and world biggest consumer and producers of goods and services..therefore you might have to do a lot of updating!

When US started printing their way out of their own wall street induced malaise..China started thinking about plan B....and that meant reducing any more purchase of US tbills and tbonds...and investing that money in their own companies quest for internationalisation and of course lending more and more to other countries..they also have been working towards making yuan a global currency..with more spreads now (since 2014) and more currency swaps and exchange houses.Right now the Chinese card UnionPay has overtaken MasterCard and Visa Card in both value and transaction...so the yuan is pretty much the accepted. Countries like Russia have gone ahead and sign deals in Yuan..

The days of the dollar and USA are GONE! 
 
The consesus is that China has long overtaken the US as world economic powerhouse.  Enter China. And all we hear are animals will be decimated like it official policy of China to support poaching of elephants? That is truly scrapping the bottom of the barrel.

When it come to China effect on Africa economy..evidence is there for all to see...China pays a premium for our raw materials, they do not take them through force or war, and their investment in Africa infrastructure has pretty much paid off. Most accept the latest Africa rise is due to China.

WB is a failed institution that nobody should take seriously. Ask their IFC branch what mess they did with RVR concession that gok gave them to oversee!!!!!!!!!!!! before they give us yet another advice. Didnt IFC not get some south african farmer to ran the lunatic express...for 25yrs making any investment there by our gov impossible.

Kenya is going to do well if they design their economic policies with CHINA as their NO 1 PARTNER.

It doesn't mean we won't have problems...and really some your ideas are totally whack..the country is so complicated to have your little priorities (starvation, health)...perhaps next time you need to understand how we make our budget as a country...to appreciate the competing needs we have...with little resources we have. The country cannot come to standstill until your little priorities of everyone getting fed by gov and given free meds is done. Gov has to spread the money across all sectors...including nuclear research

China has been there and done recently ..we can do it if we learn from them.

.
My friend:

Only the African will save Africa.   What will the Chinese do that's really new?   Here we are, communicating in a mzungu language; and take a look at the history of the best schools in Kenya?   The main roads, railways, etc.  ... where did they come from?   How many Kenyans/Africans are dying to migrate to China as opposed to the West?   (Oh, even today, Chinese folks are literally dying in shipping containers to get to the West!)  Why is that so?   
The Chinese are just going down a well-trodden path:

* The Chinese are building infrastructure?    That has been done before, by others, and Mwafrika couldn't maintain it.   In fact, even the Chinese themselves have been there before: when I notice people wanking about things like SGR, I ask them "look at TAZARA etc.; what's new"?

* The Chinese certainly are going after Africa's natural resources like nobody's business.   Are the Africans getting a fair deal?   That's your homework for today.

* The wildlife is pretty much gone.  Folks keep jumping up and down about infrastructure.   That can always be replaced, but wildlife once gone is really gone?   The Chinese fondness for ivory, rhino horn, etc. comes from the fact that they once had their own.   They "finished" that, and now they have turned to Africa, and, for some strange reason, Mwafrika is only too happy to help in promoting that disaster.

* If I recall correctly, the World Bank would not fund SGR because they did not see any long-term economic sense in it; the advice was that folks would be better off rehabilitating existing lines.   

Enter Kung Fu: "Whether the line makes money or not is not our concern.   We will lend you the money, and charge you interest.  But just to be on the safe side, we will also charge you a hefty, shylock-rate fee to insure the loan.  Plus, we will bring so many of our little guys to do the work; your guys can keep whistling in the little road-side markets."

In the 21st, we laugh at the idea that some of our ancestors gave away productive land---and, sometimes, even people!---in return for beads and shiny bits of glass.   Meanwhile, right now, material for 22nd comedians is actively encouraged.

* Kenya is supposedly the Economic Powerhouse of East Africa, this, that, and the other.   But right now, about 25% of Kenyan children will not reach their full potential, because they do not get enough nutrition to grow, mentally and physically.   Many Kenyans don't even have clean water to drink or a place to take a shit.  I will not belabor the point: even you should have a rough idea.

Is China-Man working to fix any of that?  I doubt it: where are  the shylock loans?   where are the ivory and rhino horns?   

It will not be the West or the East.   Only Africans will save Africa.  

[MOON Ki]

I see you're 10 yrs late. The world is rapidly changing and leaving your US of the yore behind. Isn't that why we Europe is joining China led bank and have open currency swaps. The day when US controlled world economy is over. China has your speak is world biggest economy (PPP) and world biggest consumer and producers of goods and services..therefore you might have to do a lot of updating

You really ought to make an effort to understand some of the things that you read here and there.   This stringing-together of random bits, from all over the place, is quite shabby.  And you also need to get over obsession with sheer size; it is such mindlessness, without regard to quality, that explains much of Africa's sad story today.

As usual, it looks like I will have to whack you over the head, several times, with facts, before you wake up.  You will, as usual, dodge by claiming that it's "nit-picking".

Start here:

"In the last 10 months, the USA dollar has risen so sharply that it is now approaching 12-year highs.   The rest of the world is wailing about their dollar-denominated purchases---sorry, most still don't take your yuan---and everyone is scrambling, frantically,  for dollars."

Do you see RMB anywhere in that picture, other the implication that nobody is chasing after yuan?   Who are all these people you think are chasing after RMB?   For what would they be doing that?   Weka information hapa hapa. 

The days of the US controlling the world economy are over, blah, blah, blah, and China is the way to go?   Maybe it will be noticed the third time ... Your Great Chinese Friends pointing out that they are helpless when the US Federal Reserve does some things:

"

The other thing is that you shouldn't be so excited about European joining a Chinese-led bank.    Do you actually have any understanding about ownership in such banks?    Western countries are involved in all sorts of Asian banks.  Take, for example the Asian Development Bank: the USA is the 2nd largest shareholder in that and has probably 2.5 times as many shares as China.   (Oh, like the new AIIB that has caused you so much unexplained excitement, that one too doesn't have much use for African countries.)

When US started printing their way out of their own wall street induced malaise..China started thinking about plan B....and that meant reducing any more purchase of US tbills and tbonds...

And what is that Plan B?   Do you ever make any attempt to understand what you read?   (a) China is the biggest holder of all that US paper.  Do you think that those "cash reserves" are actually in little green bits, with pictures of dead presidents,  in some vault?   (b) Did you read Chinese guy in charge of all that telling folks not to worry that there had been some uncontrollable reduction?  (c) This one is more subtle, and it might take you a year or so to understand: China hold so much US paper that the last thing it wants (or needs) to see is the US $ go down!

and investing that money in their own companies quest for internationalisation and of course lending more and more to other countries..they also have been working towards making yuan a global currency..

I thought gave you a very simple exercise: go down the road, anywhere in Kenya, and look for who's peddling yuan.  Then report back. 

When it come to China effect on Africa economy..evidence is there for all to see...

Where is it for us to see?  Please help.

China pays a premium for our raw materials

(a) What do you consider "premium?  (b) In what currency do they pay?

and their investment in Africa infrastructure has pretty much paid off.

Really?  Where and how?   Kenya is up to the eyeballs in Chinese debt (interest + shylock-rate insurance).  How many kilometres of railway are "paying off"?   

WB is a failed institution that nobody should take seriously. Ask their IFC branch what mess they did with RVR concession that gok gave them to oversee!!!!!!!!!!!!

I don't see how the World Bank has suddenly got involved in my main message that only Africans will save Africa.   But perhaps you can explain.

As regards RVR, I would look well before that.   This is a repeat:

The EAC + friends got some Japanese consultant to advice them.  What the guy had to say: "Your obsession with gauge and new things is misplaced.   You need to focus on maintenance.   When you manage (at high cost) to replace your old, narrow-gauge lines with new standard-gauge lines, you will be running at lower speeds and hauling less tonnage than we do with older, refurbished narrow-gauge lines."

And the answer?   Folks are still waiting. 

..the country is so complicated to have your little priorities (starvation, health)...perhaps next time you need to understand how we make our budget as a country...

Don't worry about me; I'll manage.   But is there any chance that folks there could turn my "little priorities" into "big priorities"?   

Anyways ...

Instead of devoting so much space to jerking-off about China, why don't you, right here, explain to me what I "need to understand" about your "budget as a country".  Right here, and right now.  Start with:

(a) The health of Kenyan children under five, especially the problems related to nutrition. (The cost of providing proper nutrition at that age is far less than the final costs of failing to do so.)

(b) The lack of something as simple as clean water for a large chunk of the population.  (How hard can that be?   And does anyone care about the final costs?)

(c) Why folks are literally dying from shit all over the place?

China has been there and done recently ..we can do it if we learn from them.

So, what are you learning from China?   One of the first things all those Asians did was to figure out how to feed themselves.   In Africa, folks are dying like flies from just about everything while those with any signs of life are wanking over Chinese "saviours".   Talk about Mission Impossible!

[RV Pundit]

First, a simple advice, some of us have jobs,careers and work to do so please learn to SUMMARIZE your points in simple paragraphs. These posts are not the end of the world. SUMMARIZE. Unless you of course have to research, research, google, google and then spawn threads..from a single response.

Now let examine some facts. China economy is world biggest. China is world largest consumer and producer of goods and services. China has the world largest forex reserve. China has been financing the US(through buying their debts) although this has been reducing yearly after US messed up with QE.

China has been working on making yuan a freely exchangeable currency that will replace the dollar. The latest on that front was last year..when China allowed more spread for yuan to swing and the pursuit by China for currency swaps. Of course chinese are extra cautions. The condition for switch off from dollar to US are near ready...whatever little appreciation the USD is having..is most likely related troubles in EU..not in super strong China.

What folks are demanding of the yuan is simple...making it freely tradeable like USD...it questions of People Bank of China just making that decision..and voila the END OF USD. It happened before for British Pound.

Now to Africa...countries that have worked closely with China..have grown..at double digit...the last decade of growth in Africa..is SINGULARLY ATTRIBUTABLE TO CHINA. Start with Ethiopia, Angola,Zambia and even Kenya.

As regards to your little priorities..am glad to report that all indicators in health and food security have been consistently good for a generation now...both in raw and aggregrate...mortality is failing down (all forms), life expectancy is up, poverty down...

A lot need to be done...but we cannot stop the more than 100 major functions of gov..to focus on 2.

Some people need digital tv others need food...some folks need broadband internet..others need medicine...the gov through parliament has to set the priorities in the budget.

If you want to be part of budget making...send your public participation contributions [ where you'll find others with disparate needs] or well join parliament.

Do not attempt to over-simply gov, development and complex issues. Even the simplest family has to make tough choices including going hungry so they can send a kid to school or even postponing hospitalization so they can pay dowry.  You cannot advice them to stop all that..and focus on FOOD AND HEALTH.

I see you're 10 yrs late. The world is rapidly changing and leaving your US of the yore behind. Isn't that why we Europe is joining China led bank and have open currency swaps. The day when US controlled world economy is over. China has your speak is world biggest economy (PPP) and world biggest consumer and producers of goods and services..therefore you might have to do a lot of updating

You really ought to make an effort to understand some of the things that you read here and there.   This stringing-together of random bits, from all over the place, is quite shabby.  And you also need to get over obsession with sheer size; it is such mindlessness, without regard to quality, that explains much of Africa's sad story today.

As usual, it looks like I will have to whack you over the head, several times, with facts, before you wake up.  You will, as usual, dodge by claiming that it's "nit-picking".

Start here:

"In the last 10 months, the USA dollar has risen so sharply that it is now approaching 12-year highs.   The rest of the world is wailing about their dollar-denominated purchases---sorry, most still don't take your yuan---and everyone is scrambling, frantically,  for dollars."

Do you see RMB anywhere in that picture, other the implication that nobody is chasing after yuan?   Who are all these people you think are chasing after RMB?   For what would they be doing that?   Weka information hapa hapa. 

The days of the US controlling the world economy are over, blah, blah, blah, and China is the way to go?   Maybe it will be noticed the third time ... Your Great Chinese Friends pointing out that they are helpless when the US Federal Reserve does some things:

"

The other thing is that you shouldn't be so excited about European joining a Chinese-led bank.    Do you actually have any understanding about ownership in such banks?    Western countries are involved in all sorts of Asian banks.  Take, for example the Asian Development Bank: the USA is the 2nd largest shareholder in that and has probably 2.5 times as many shares as China.   (Oh, like the new AIIB that has caused you so much unexplained excitement, that one too doesn't have much use for African countries.)

When US started printing their way out of their own wall street induced malaise..China started thinking about plan B....and that meant reducing any more purchase of US tbills and tbonds...

And what is that Plan B?   Do you ever make any attempt to understand what you read?   (a) China is the biggest holder of all that US paper.  Do you think that those "cash reserves" are actually in little green bits, with pictures of dead presidents,  in some vault?   (b) Did you read Chinese guy in charge of all that telling folks not to worry that there had been some uncontrollable reduction?  (c) This one is more subtle, and it might take you a year or so to understand: China hold so much US paper that the last thing it wants (or needs) to see is the US $ go down!

and investing that money in their own companies quest for internationalisation and of course lending more and more to other countries..they also have been working towards making yuan a global currency..

I thought gave you a very simple exercise: go down the road, anywhere in Kenya, and look for who's peddling yuan.  Then report back. 

When it come to China effect on Africa economy..evidence is there for all to see...

Where is it for us to see?  Please help.

China pays a premium for our raw materials

(a) What do you consider "premium?  (b) In what currency do they pay?

and their investment in Africa infrastructure has pretty much paid off.

Really?  Where and how?   Kenya is up to the eyeballs in Chinese debt (interest + shylock-rate insurance).  How many kilometres of railway are "paying off"?   

WB is a failed institution that nobody should take seriously. Ask their IFC branch what mess they did with RVR concession that gok gave them to oversee!!!!!!!!!!!!

I don't see how the World Bank has suddenly got involved in my main message that only Africans will save Africa.   But perhaps you can explain.

As regards RVR, I would look well before that.   This is a repeat:

The EAC + friends got some Japanese consultant to advice them.  What the guy had to say: "Your obsession with gauge and new things is misplaced.   You need to focus on maintenance.   When you manage (at high cost) to replace your old, narrow-gauge lines with new standard-gauge lines, you will be running at lower speeds and hauling less tonnage than we do with older, refurbished narrow-gauge lines."

And the answer?   Folks are still waiting. 

..the country is so complicated to have your little priorities (starvation, health)...perhaps next time you need to understand how we make our budget as a country...

Don't worry about me; I'll manage.   But is there any chance that folks there could turn my "little priorities" into "big priorities"?   

Anyways ...

Instead of devoting so much space to jerking-off about China, why don't you, right here, explain to me what I "need to understand" about your "budget as a country".  Right here, and right now.  Start with:

(a) The health of Kenyan children under five, especially the problems related to nutrition. (The cost of providing proper nutrition at that age is far less than the final costs of failing to do so.)

(b) The lack of something as simple as clean water for a large chunk of the population.  (How hard can that be?   And does anyone care about the final costs?)

(c) Why folks are literally dying from shit all over the place?

China has been there and done recently ..we can do it if we learn from them.

So, what are you learning from China?   One of the first things all those Asians did was to figure out how to feed themselves.   In Africa, folks are dying like flies from just about everything while those with any signs of life are wanking over Chinese "saviours".   Talk about Mission Impossible!

[Real P]

Great post RVP! Last year when I was in Taipei. I could not access this site, but could access nipate.com. I don't think Nipate.org is accessible in every country ...  I am not a mod .. but mods should be advising Veri ...

[Kim Jong-Un's Pajama Pants]

I think China-US will continue to be a symbiotic relationship for the foreseeable future.  They are mutually beneficial to each other.  China needs the US consumer.  The US is addicted to cheap Chinese goods.  At the end of the day, the rich capitalist decides who is left standing.

The foreign reserves discussion led me to google about what the foreign reserve is.  What it means.  What they can do with it.  I have always had the layman's view of it as hordes of cash available to serikali to do with it as it feels.  I found this article below enlightening.

http://www.marketwatch.com/story/what-should-china-buy-with-its-39-trillion-reserves-2014-06-17

[RV Pundit]

I hope you're not buying into usual US based propaganda that China "DEPEND" on US market. China-US trade at best is 15%of China's international trade (leave alone huge internal trade).China does trade with everyone. 15% with Europe. 20% plus with South Asia. Maybe 10% with India. 2% with Africa. Maybe 10% with South America. 10% with Middle East. Maybe 10% with Eastern Europeans and Russia.Some percentage with Ocenia (Australia and likes).

In short if US blockaded trade with China...Chinese will lose 15% market share....in their international trade..which is sometllhing China can easily intra-china trade in that 1.3B people country.

Everyone is ADDICTED to cheap chinese products.

China is a BEHEMOOTH. A dragon that just starting to grow wings. Those who have seen the figures and projected what dragon will look like..will not waste a minute arguing about the Eagle

Behemooth growing at nearly 8%, with per capita still at 10K, now imagine if they double that, tripple that, and finally catch up with typical   developed country earning 40-50k per capita.

In 2050...expect China economy to be 5 times more than US. Everyone should be excited because China dragon will lift many people out of poverty. The world economy cannot be sustained by 300M americans and similar number of Europeans and Japanese. You need India and China running the show. The world economy has been stuck at 60-70 trillion dollars.When dragon is done growing and fly the world economy will be spinning 150 trillion or more USD..and there will be enough merry to spread around.

I think China-US will continue to be a symbiotic relationship for the foreseeable future.  They are mutually beneficial to each other.  China needs the US consumer.  The US is addicted to cheap Chinese goods.  At the end of the day, the rich capitalist decides who is left standing.

The foreign reserves discussion led me to google about what the foreign reserve is.  What it means.  What they can do with it.  I have always had the layman's view of it as hordes of cash available to serikali to do with it as it feels.  I found this article below enlightening.

[Kim Jong-Un's Pajama Pants]

I hope you're not buying into usual US based propaganda that China "DEPEND" on US market. China-US trade at best is 15%of China's international trade (leave alone huge internal trade).China does trade with everyone. 15% with Europe. 20% plus with South Asia. Maybe 10% with India. 2% with Africa. Maybe 10% with South America. 10% with Middle East. Maybe 10% with Eastern Europeans and Russia.Some percentage with Ocenia (Australia and likes).

In short if US blockaded trade with China...Chinese will lose 15% market share....in their international trade..which is sometllhing China can easily intra-china trade in that 1.3B people country.

Everyone is ADDICTED to cheap chinese products.

China is a BEHEMOOTH. A dragon that just starting to grow wings. Those who have seen the figures and projected what dragon will look like..will not waste a minute arguing about the Eagle

Behemooth growing at nearly 8%, with per capita still at 10K, now imagine if they double that, tripple that, and finally catch up with typical   developed country earning 40-50k per capita.

In 2050...expect China economy to be 5 times more than US. Everyone should be excited because China dragon will lift many people out of poverty. The world economy cannot be sustained by 300M americans and similar number of Europeans and Japanese. You need India and China running the show. The world economy has been stuck at 60-70 trillion dollars.When dragon is done growing and fly the world economy will be spinning 150 trillion or more USD..and there will be enough merry to spread around.

I think China-US will continue to be a symbiotic relationship for the foreseeable future.  They are mutually beneficial to each other.  China needs the US consumer.  The US is addicted to cheap Chinese goods.  At the end of the day, the rich capitalist decides who is left standing.

The foreign reserves discussion led me to google about what the foreign reserve is.  What it means.  What they can do with it.  I have always had the layman's view of it as hordes of cash available to serikali to do with it as it feels.  I found this article below enlightening.

No.  I don't buy easily into propaganda.  I believe they depend on the US market among others.  China needs to export cheap goods and the US is their biggest single market.  I think their domestic market is also growing, but they need to export.

A trade war between them benefits no one.  While it is debatable who it would hurt more.  It's not even remotely about to happen.  A few influential US companies also have a sizable market in China.

I am just sharing what I thought sheds some light on foreign reserves, at least for me.  Quite a few moving parts it seems.

[RV Pundit]

It simple...China is largest importer..and the largest exporter..with largest economy..and biggest population..and still growing at staggering rates considering the size of the economy.

China trade with nearly everyone. In kenya we buy about 2B dollars worth of Chinese goods..and export very little to them. The same for many countries.

US if i use the latest stats...export 8% and import 18% of all China trade. That is not a lot. China is not just exporting stuff..it buy lots of US made stuff...US balance of trade with China is not as bad as ours!!!

Yes i want everyone to be happy trading with a bigger china including US, Africa and name them. You want a billion chinese flooding our towns sharing their yuan either as business men, tourist, donors, investors and name it.

Who wouldn't want a nice think like that?

What i do not understand is the double speak from Europeans and Americans..who want Africans not to enjoy the happpiness directly from China...ohoo be wary about China really? when they are literally financing you; and you're dying to make deals with them.

No.  I don't buy easily into propaganda.  I believe they depend on the US market among others.  China needs to export cheap goods and the US is their biggest single market.  I think their domestic market is also growing, but they need to export.

A trade war between them benefits no one.  While it is debatable who it would hurt more.  It's not even remotely about to happen.  A few influential US companies also have a sizable market in China.

I am just sharing what I thought sheds some light on foreign reserves, at least for me.  Quite a few moving parts it seems.