Main Bank of China Is in Need of Capital


Dollar and yuan currency at a bank in China. China’s central bank has accumulated about $1 trillion in United States debt.

HONG KONG – China’s central bank is in a bind.

It has been on a buying binge in the United States over the last seven years, snapping up roughly $1 trillion worth of Treasury bonds and mortgage-backed debt issued by Fannie Mae and Freddie Mac.

Those investments have been declining sharply in value when converted from dollars into the strong yuan, casting a spotlight on the central bank’s tiny capital base. The bank’s capital, just $3.2 billion, has not grown during the buying spree, despite private warnings from the International Monetary Fund.

Now the central bank needs an infusion of capital. Central banks can, of course, print more money, but that would stoke inflation. Instead, the People’s Bank of China has begun discussions with the finance ministry on ways to shore up its capital, said three people familiar with the discussions who insisted on anonymity because the subject is delicate in China.

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Russian Lawmaker Says Moscow to Deploy Weapons Near Poland

A senior Russian lawmaker says Moscow will deploy high-precision weapons near Poland, in response to a U.S. – Poland missile defense agreement signed in Warsaw last month.

Viktor Zavarzin, head of the defense committee in the State Duma, said Thursday Russia has new weapons that will be installed near the sites where Washington plans to deploy interceptor missiles.

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Ron Paul supporters’ magical disappearing act

Ron Paul, the Texas congressman who unsuccessfully sought the Republican nomination for president, has been said to resemble Gandalf, the magician from the movie version of “The Lord of the Rings.”

Republican officials seemed to make Paul’s supporters magically disappear during Wednesday night’s roll call vote, in which the GOP convention officially nominated John McCain as the party’s presidential candidate.

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World’s richest got even richer last year

NEW YORK (Reuters) – The old saying holds true: The rich do get richer.

Even as world financial markets broke down last year, personal wealth around the world grew 5 percent to $109.5 trillion, according to a global wealth report released on Thursday by Boston Consulting Group.

It was the sixth consecutive year of expanding wealth. The fastest growth was among households in developing regions, such as China and the Gulf States and among families who were already rich.

That wealth also is increasingly concentrated among the richest.

The top 1 percent of all households owned 35 percent of the world’s wealth last year. Meanwhile, the top 0.001 percent, ultra-rich households holding at least $5 million in assets, commanded $21 trillion — a fifth of the world’s wealth.

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Who is Wrecking America?

By PAUL CRAIG ROBERTS

Paul Craig Roberts was Assistant Secretary of the Treasury in the Reagan administration. He was Associate Editor of the Wall Street Journal editorial page and Contributing Editor of National Review.

Does the liberal-left have a clue? I sometimes think not.

In his book, “What’s the Matter With Kansas?,” Thomas Frank made the excellent point that the Karl Rove Republicans take advantage of ordinary’s people’s frustrations and resentments to lead them into voting against their best interest.

Frank’s new book, “The Wrecking Crew: How Conservatives Rule,” lacks the insight that distinguished his previous book. Why does Frank think that conservatives or liberals rule?

Neither rule. America is ruled by organized interest groups with money to elect candidates who serve their interests. Frank’s book does not even mention the Israel Lobby, which bleeds Americans for the sake of Israeli territorial expansion. Check the index. Israel is not there.

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Is Google Turning Into Big Brother?

The Debut of Chrome, Google’s New Browser, May Have Been Quiet for a Reason

While we’re transfixed by the presidential election, in the world of high tech another duel between two well-funded, take-no-quarter candidates has just emerged & and in the long run the impact on our daily lives may be nearly as great — and perhaps even sinister.

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Hold the Spinach, Hold the Lettuce – the FDA Wants to Nuke Our Veggies

(NaturalNews) The FDA has just announced that food producers may now start zapping lettuce and spinach with just enough ionizing radiation to kill E. coli. The muckety-mucks at the FDA have decided, in their infinite wisdom, to use the American public as guinea pigs in an ongoing human experiment to find out the long-term effects of the consumption of irradiated food.

In spite of the FDA’s insistence that eating food treated with just a wee bit of ionizing radiation is safe, Public Citizen (a consumer watchdog group founded by Ralph Nader in 1971 for the purpose of protecting health, safety, and democracy) believes otherwise (understatement) and is trying to get the word out to consumers about the lies that are being told to the trusting American public.

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GM, Ford, Chrysler Sales Collapse

Chrysler President Jim Press: Maybe towards the end of ’09, going into 2010, there’ll start to be some signs of recovery.” Maybe not.
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The Wall Street Journal is reporting Auto Sales Tumble, But Industry Sees Signs of Hope.

Sales of cars and light trucks fell 15.5% to 1.25 million last month, down from 1.48 million a year earlier, according to Autodata Corp. The closely watched seasonally adjusted annualized selling rate was 13.7 million vehicles, up from 12.55 million in July, but down from 16.3 million in August 2007, Autodata said.

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House prices suffer biggest fall since records began


House prices: Dropped by more than £25,000 over the past year. Photo: Cate Gillon/Getty

House prices fell by 1.8% in August, bringing the average price of a property in the UK below the government’s new stamp duty threshold, figures showed today.

The UK’s largest lender, Halifax, said the average price of a property had fallen by 12.7% since last August – the biggest fall since it began publishing a monthly survey in the early 1980s.

Prices have dropped by more than £25,000 since August 2007 when the average cost of a home was £199,612, and by more than £3,000 since July.

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