BRIC+ News & comments

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New Hainan site at ~18degree North get more Earth spin. Gansu at ~39N has less.

Cos(18) = 0.9511 and Cos(39) = 0.8905 Thus new site under construction gives 6% more of ~1000mph speed Eastward on the launch pad. That is 60mph. May not seem like much until you consider the fuel burnt by a heavy rocket before it reaches 60mph speed. The weight of that fuel is extra payload the new site can orbit with the same rocket compared to one fired from Gansu.

Also, China wants to strengthen its active militrary presence in the South China Sea, where last month they startred to pump natural gas from off shore wells in the South China Sea to factories, etc. Recall also it was near Hainan Island that the US spy ship was was chased away from the Hainan submarine base about a year ago. It is highly probable, IMHO, the US ship was placing bottom sensors* to track and record sound signatures of Chinese subs. (Even the much quieter Russian subs can be individually identified by their sound signatures - each is as unique, with sophisticated computer process as human voices are.) The records could be periodically extracted from the sensors by US subs and China would not know they were there.

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*I further suspect that these sensors may be powered by the small tidal variation of the pressure. Perhaps with a diaphram that is also microphone. I.e. the larger amplitude very low frequence motions of it (including surface atmosphere presure variation with weather) make energy and the frequencies greater than 0.1 Hz are stored as sub (and surface boat) sound signatures. I am just guessing but I would sure try to see if that is not posible, if it were my project, and had a 5+ year useful life goal. (As the dB/dT would be very tiny, I would try piezo-electic crystal and or a "latch & release" system to get much larger dB/dt.)
 
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Now ALL the significant rating services agree: Brazil's bonds are "investment grade."

"... Brazil’s credit rating was raised to investment grade by Moody’s Investors Service after Latin America’s largest economy built record foreign reserves and averted a prolonged recession amid the global financial crisis.

Moody’s cited Brazil’s “strong economic and financial resilience” during the worldwide slowdown as it raised the rating one level to Baa3, the lowest investment grade. The upgrade came a year after Standard & Poor’s and Fitch Ratings increased their ratings for Brazil above junk. Moody’s assigned a positive outlook, signaling it may lift the rating again.

Brazil’s Bovespa stock index rose to a 14-month high and the currency jumped the most in a month. {in dollar terms, up more than 100% from crisis low.} The country’s foreign reserves climbed to $223 billion from a low during the crisis of $199 billion on Feb. 26 as prices for its commodity exports rebounded and investors poured money into the stock and bond markets, encouraged by President Luiz Inacio Lula da Silva’s stimulus measures. Reserves were $74 billion three years ago. ..."

FROM: http://www.bloomberg.com/apps/news?pid=20601087&sid=a_xXRRZEl7Sc
 
On BRAZIL (not my words):
“…Since 2002, strong capital inflows have sustained a process of exchange rate appreciation {Real getting stronger} in Brazil, briefly interrupted in the last quarter of 2008 by the financial crisis.

{See graph of this and my discussion showing how you would have tripled your dollars if you had followed my advice to buy Brazilian ADRs about 4 years ago, at:
http://www.sciforums.com/showpost.php?p=2372866&postcount=65 }

“…direct investment {into Brazil} has posted positive figures, accumulating US$ 90 billion since 2003. Net portfolio inflows amounted to US$ 80 billion in total from 1Q03 through 3Q08 (having spiked to US$ 48 billion in 2007) and net loan flows totaled a positive US$75 billion in the same period (excluding IMF flows). In this environment of abundant liquidity, Brazil prepaid the IMF in November 2005. Since then, the CB and the Treasury interventions in the market have escalated amassing net purchases of US$ 169 billion by September 2008, with international reserves (IR) piling up to above US$ 200 billion. {yesterday it was US$ 232 billion as CB has been buying USD again.} … a sound fiscal stance permitted the adoption of a countercyclical stance, which has been critical to avoid a deeper recession in the country. This year through July, the Central Bank reduced the basic interest rate in 500bps to a record low of 8.75%, in contrast to previous crisis, when interest rates were bumped up to avoid the free fall of the currency … {Article continues to note that central bank buying dollars with Real borrowed at higher than US bond rates is costly to central bank but done to help exporters. As showing in first graph below. (Second is for average of Emerging Markets vs. US Treasury rates. Note how much higher basic interest rates are in Brazil vs. average EM.}
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{Article then, with aid of more graphs, very perceptively discusses the impact of FDI influx and FX on industrial productivity and the choice of intervention measures available to avoid the “Dutch disease” but does not use that term and also fails to even note the very important constraint Braizil’s Poupanca ( tax free saving account with legally fixed 6% real interest) has on these options. – the only significant flaw in an other wise excellent discussion, which although focused on Brazil is generally applicable to India, China, etc with large FDI and associated FX problems for local exporters and long term national productivity.}

Quoted parts from: http://www.rgemonitor.com/latam-mon...ate_and_international_reserves_whither_brazil

I have very recently discovered www.rgemonitor.com but will be a frequent visitor in the future. Here, for example, is link to their discussion as to why US and Argentina, both originally agrarian societies settled by Europeans are so different today: http://www.rgemonitor.com/latam-monitor/257485/usa_argentina_and_alan_beattie_wrong_starting_point
 
For several years I have been saying China would switch to real assets large part of its US Treasury paper promisses and that that would take several more years (nearly a decade total) to mostly accomplish. Here is news of their latest, a 40 billion dollar grab for oil (not yet a done deal, but Chia is offering more than western oil companies are.):

"A Chinese state-owned oil company is in talks with Nigeria to buy large stakes in some of the world’s richest oil blocs in a deal that would eclipse Beijing’s previous efforts to secure crude overseas. ... CNOOC, one of China’s three energy majors, is trying to buy 6bn barrels of oil, equivalent to one in every six barrels of the proven reserves in Nigeria, sub-Saharan Africa’s biggest crude producer and a major supplier to the US.

China’s push to gain a significant foothold in Nigeria underlines the scale of its long-term ambitions to secure access to energy resources across the globe. Much of its investment has been for exploration, in contrast with the Nigerian blocks which are already producing or due to start pumping soon. ..."

From: http://www.ft.com/cms/s/0/9d714f96-ac60-11de-a754-00144feabdc0.html

"... CNOOC's potential bid came after Nigeria's oil licenses were set for renewal. Global oil giants including Shell, Chevron, Total and Exxon Mobil control or partially control 23 oil blocks in Nigeria, among which 16 licenses are set to expire. ...

Tanimu Yakubu, the Nigerian president's economic advisor, said China might not secure "anything close" to 6 billion barrels from the negotiations, adding, "We want to retain our traditional friends". He, however, noted that the Chinese "are really offering multiples of what existing producers are pledging (for licenses). We love to see this kind of competition." ..."

From: http://english.peopledaily.com.cn/90001/90778/90857/90860/6773658.html

Which interestingly credits the above FT article as its source, not CNOOC.
 
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11Sept09: Rare earths become rare:
China produces more than 93 percent of the global supply of rare-earth metals, a group of 17 "lanthanide" elements essential in high-tech devices and green products. … Against such background, strategic thinkers in Western countries are starting to worry that China could impose a total ban on exports of terbium, dysprosium, yttrium, thulium, and lutetium, and may restrict foreign sales of other rare-earth metals. US technology news magazine Wired quoted an old piece of wisdom from the Strategic Air Command as saying, "When you have them by the balls, their hearts and minds will follow."

"China''s regulation of its rare-earth metals industry does not aim at subduing any country, but protecting China's national resources, " Zhou Shijian, senior researcher at the China-US Relations Research Center of Tsinghua University, told the Global Times. "The cheap export era should have ended.” … China's decision could cause a crisis for high-tech development, according to Britain's Daily Telegraph newspaper.
The newspaper report says global energy competition has entered a new stage, because nations are already experiencing difficulties in acquiring rare raw materials.

Vanadium is a metal that strengthens steel and protects against rust. It is alloyed with steel to make missile casings, as well as high-speed tools, superconducting magnets and jet engines. China restricts the export of vanadium and other minor metals as part of a domestic policy meant to preserve strategic metals, encourage investment in processing industries and control international price fluctuations.… As the world's second-largest rare-earth metals holder, the US accounts for nearly 12 percent of worldwide stocks. Early in 1981, the US categorized the metals that are of great importance to the economy and warfare and categorized them as strategic metals. … Japan imports nearly all its rare-earth elements from China, with two thirds of its annual imports in reserve for strategic purposes. Since 1983, Japan put seven rare-earth metals into reserve, including nickel, chromium, tungsten, molybdenum, cobalt, manganese and vanadium.

Australia and Canada are also tightening the mining of rare-earth metals, and importing from China for their reserves.
Demand for rare-earth metals is forecast to increase by between 10 and 20 percent each year, on the back of growing demand for metals such as neodymium, used to make hybrid electric vehicles and generators for wind turbines. Japan sees the rare-earth elements as a probable battleground for future trade wars.

Mines in the US that were forced out of business by price wars may be brought back into use. US-based Molycorp Minerals is preparing to resume mining of rare-earth ore deposits at a California facility, Wired reported. … A handful of Canadian mining companies are exploring for new supplies in South Africa, Brazil and the US while pushing ahead with existing projects.

Condensed by Billy T from four pages at: http://english.peopledaily.com.cn/90001/90780/91344/6754749.html
 
Post 185 tells of China's latest effort to convert ~40 billion dollars into Nigerian oil assets. My local paper has summary of earlier efforts and other information related to China and oil:

In 2008 each day China imported 4.5 million barrels of oil and will need 8.5 billion / day imported in 2018. In 2008 they used ~8million barrels daily.

To secure future needs China has sent 16 billion dollars to Venezuela, 10 billion loaned to Brazil to be repaid with 200,000 barrels per day (for 20 years as I recall).

In2008 Nigeria produced 2.17 million barrels / day (down 8% from 2007) but ~1/3 of China's imports come from Saudi Arabia (21.6%) and Iran (14.6%). China wants more from Africa, especially Nigeria:

April 06: $2.7 billion for participation in off shore Nigerian fields
June 06: $1 billion for literorial rights in Angola
June 08: $5 billion for exploration rights on land in Nigeria
June 09: $7.2 billion Sinopec buys Swiss Addax gaining their fields in Africa and Iraq
July 09: $1.3 billion CnooC & Sinopec buy Angolan field of American Co. Marathon
August 09: 3 to 5 billion (deal not yet final) for literorial field in Ghana.

In the mineral area China has had problems with Australia: $19 billion for Rio Tino initially agreed to but rejected by government (China then jail some of their officers in China.) Last week, Australia’s minister for foreign investments, Patrick Colmer, ruled that China could only have less than 50% of exploration projects and only 15% of producing mines, killing China's deals for exploration of Magnetite in western Australia and cancelling China's 51% interest of Lynas Corp (mines and exploration)

China has 90 projects / bids totaling 34 billion now in Australia pending government actions, not including the large off shore Island gas (for LNG) deal that has been approved. (about 50 billion over 20 years as I recall - can't find my post about that deal)

There are lots of smaller (<1billion) deals, like this one announced yesterday:

"The China Investment Corporation (CIC), the country's sovereign wealth fund, Wednesday announced it had paid 939 million U.S. dollars for a stake in Kazakhstan oil and gas company JSC Kaz Munai Gas Exploration Production (KMG EP). ... KMG EP stocks are listed on the Kazakhstan Stock Exchange and its GDRs are traded on the London Stock Exchange. ..."
From: http://english.peopledaily.com.cn/90001/90778/90861/6774842.html (today's people's daily)
 
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A survey report published at the Summer Davos Forum being held in Dalian between September 10 and 12 showed that over 70 percent of respondents believe that by 2020, Asia led by China will become the most influential region among global economies. This survey report involved 130 worldwide important business leaders, financial personnel, scholars, government officials and people from supervisory institutions.

This week's issue of the U.S. Fortune magazine used a formula to illustrate the global influence of the Chinese economy: Sinopec plus the Industrial and Commercial Bank of China (ICBC) equal ExxonMobil Chemical plus Microsoft plus Luxembourg's gross domestic product (GDP).

This formula shows the respective growth and decline of the strengths of Chinese and US enterprises, but its deep underlying meaning is that the financial crisis is shifting world power to emerging markets led by China.
From: http://english.peopledaily.com.cn/90001/90780/91344/6755577.html
 
Final paragraph of very informative Economist article on Chinese economy:

"...China does not yet have dangerous bubbles in housing and shares that could threaten its recovery. Indeed, rising asset prices will help boost consumer spending over the next year, which will in turn help broaden China’s recovery. But to minimise the risk that China is starting to inflate its biggest bubble ever, the government does need to curb excessive liquidity. That means allowing the yuan to appreciate. With interest rates likely to remain close to zero in America for some time, China cannot significantly tighten its own rates unless it allows its currency to rise. If China’s growth has decoupled from America, then so must its monetary policy. ..."

Read all at: http://www.economist.com/businessfinance/displaystory.cfm?story_id=14587130
 
China locks up more oil (see post 187 for other recent deals):

"... Iraq signed a deal in Baghdad with British Petroleum (BP) and China National Petroleum Corp (CNPC) to develop its super-giant Rumaila oilfield, according to Iraq's oil ministry on Thursday.

The program, worth more than 15 billion U.S. dollars of investment, is a milestone in Iraq's efforts to renew its struggling oil sector, ... According to the 20-year contract, BP holds a 38 per cent stake in the venture, while CNPC has a 37 per cent share. Iraq's State Oil Marketing Organisation controls the rest.

Currently, Rumaila has a capacity of 1.1 million barrels per day, almost half Iraq's total output of 2.4m bpd. BP and CNPC aim to boost output to 2.85m* barrels per day. ..."

FROM: http://english.peopledaily.com.cn/90001/90777/90854/6778305.html

Billy T comment:
* If that is done, China will get 1.05m Barrels / day. Asuming "m" is million, then that is five times more oil for China than the 200,000 barrels / day
(also for 20 years, as I recall) China will collect from Brazil as repayment of the 10 billion loan made about 6 months ago to help PetroBras develop the "pre-salt" oil discoveries. Strange that China gets 5 times more oil for only 50% more money when one considers the fact Iraq's oil is less deep and on land. Must be the instability risk of any deal in Iraq forces Iraq to sell its oil cheap.
 
To continue reading post 190's "China locks up more oil & gas" theme and Putin's just finished three day visit to China (4 billion USD signed deals not counting the long-term deals for oil and gas via pipeline!) see: http://www.sciforums.com/showpost.php?p=2389281&postcount=901

But here is honor China just won from English Travel Magazine (And photo showing why in part, but award was mainly based on how well airport functions etc.):

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One Km long (World's largest) Beijing Capital International Airport（BCIA)

"... Beijing Capital International Airport, with precise flight information, clear information signs, excellent geographical location and convenient ground transportation services became the champion with the highest score of 87.30..."

BCIA also "has won awards from Center for Asia Pacific Aviation, Airports Council International (ACI), Airports Council International and other organizations. ..."

The top 15 airports in Conde Nast Traveller 2009 Readers' Travel Awards include:
1. Beijing (87.30)
2. Incheon (86.44)
3. Singapore (86.38)
4. Schiphol (86.17)
5. Hong Kong (85.65)
6. Dubai (85.56)
7. Madrid(84.53)
8. Kuala Lumpur (84.47)
9. Sydney (84.40)
10. Barcelona (83.35)
11. Zurich (77.63)
12. Frankfurt (76.84)
13. Munich (76.53)
14. Copenhagen (72.74)
15. Vancouver (71.06)

FROM: http://english.peopledaily.com.cn/90001/90778/90862/6784252.html

Note #15 (Vancouver) is only one in all of N. or S. America!

BCIA was bulit for the olympic tourist in less time than Heatrow lost in only the public hearing delays to add a new terminal to the existing airport!
I only hope Brazil can do half a well for the 2016 Olympics.
 
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"Russia may add a new reserve currency- RMB to its foreign exchange reserves, Russian vice-premier concurrently Minister Alexei Kudrin said. ...

At present, the portion of U.S. dollars in Russia's forex reserves has declined to 49 percent, and euros' portion increases to 41 percent. Pound and other currencies take up 10 percent. ... In a few years, the International Monetary Fund Special Drawing Rights may be included in the foreign exchange reserves. In light of gross domestic product (GDP), China is the world's second-largest economy. Because of the growing influence of the RMB, yuan may also join Russia’s foreign exchange reserves, he said. ..." From: http://english.peopledaily.com.cn/90001/90778/90859/6792509.html
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"China has surpassed South Africa to become the world's largest gold producer with a total output of 282 tons last year, according to China Gold Association. ..." From: http://english.peopledaily.com.cn/90001/90778/90860/6790593.html

I have mentioned it before, but it seems possible China could make the Yuan convertable into gold as a way to immediately make it an international currency suitable for holding in other countries reserves. (as Russia may now do - see first part above.) - Perhaps China does not yet want to further weaken the dollar while they hold so much of them in their reserves, but China like almost everyone else is reducting the percentage of dollars in their reserves. (Note in first part Russia has got it down to only 49% and averaging over all central banks, the percentage has dropped for 67% to 63%in last year.

If China were to back the Yuan with gold, it would not be like gold once backed the dollar. I.e. only other central banks could redeme Yuan for gold, not ordinary people, especially not Chinese or Indians who love to hold gold even though it gives no interest and may be stolen. Article is focused on one Chinese gold producer who is expanding production by 30 tons annually.

I have reason to believe that China has huge belt of gold rich ore near the border with Mongolia. If true, in a few years China could be producing 500 tons annually. That could drive the price down, if available on the open market, so China will probably limit the amount available, much like De Beers limits the release of diamonds to the market. Developing this resource would be very consistent with the new Chinese policy to preferentially develop the interior. (The 20 million or so workers in coastal cities who lost their export realted jobs, no doubt made the leaders of the CCP think development of the interior was good for the CCP.)

As central banks want to hold interest bearing bonds, more than gold, even the current annual production, I think, would allow China to back the yuan with Gold. Since they have not, and since they continue to buy US treasury paper, is is obvious they (as I predicted) need to both* (1) reduce more the dollar percentage of their reserves and (2) to convert to mainly a domestic market economy before either dumping dollars or backing the Yuan with gold. IMHO, either move could destroy the dollar, and China does not want that, YET.
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* China is doing both about as fast as it can and still tie the Yuan to the sinking dollar to help its exporters. I.e. accelerating the use of dollars to buy real assets in long term contracts, especially oil, and developing the interior (agrigan reform, new clincis, etc.). (Now has more than 100 cities of > 1 million, most of the relatively new in the interior.) China's most rapid growth area is no longer the coastal cities.
 
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"... Chinese Premier Wen Jiabao on Saturday assured Prime Minister Manmohan Singh that his country would correct the balance of
trade that is currently in its favour. ... fiscal 2008-09, Chinese exports to India were a tidy USD 31.33 billion. But India's exports were far less at USD 9.27 billion creating a gap which the domestic Indian firms have expressed concern over. ..."
From: http://economictimes.indiatimes.com...rrect-trade-imbalance/articleshow/5157371.cms

Not just the US that has trade balance problem with China.
 
"... India, the world’s biggest gold consumer, bought 200 metric tons from the International Monetary Fund for $6.7 billion as central banks show increased interest in diversifying their holdings to protect against a slumping dollar.

The transaction, equivalent to 8 percent of world annual mine production, was the IMF’s first such sale in nine years and propels India to the ninth-biggest government owner globally, according to figures from London-based research company GFMS Ltd. The country previously held 358 tons, the data show. The news was a “surprise because everybody was talking about China being the buyer,” ..."

From: http://www.bloomberg.com/apps/news?pid=20601087&sid=al7qXOH.bVn8&pos=5
 
China still expanding into Africa:

“… At the Beijing Summit of FOCAC held in November 2006, Chinese President Hu Jintao pledged to double China's aid to Africa in three years. … By the end of September 2009, it has finished more than 90 percent of it … To date, the Chinese side has helped train a total of 13,757 people for African nations, … Eighty-seven Chinese agricultural experts had already reached Africa, while other experts arrived in late October. So, in all, 104 Chinese agricultural experts are now working in 33 African countries. …

Moreover, China pledged to assist African nations in building 30 hospitals, including the provision of medical equipment or facilities for two of them. At present, 16 hospitals are being built, the construction for 10 other hospitals would commence late this year, and pre-construction preparations or designing for the remaining two hospitals are underway.

China's FDI in Africa amounted to 875 million dollars in the first three quarters of 2009, posing an increase of 78.6 percent year-on-year. So, Africa is one of the regions with a relatively fast growth for Chinese FDI. Meanwhile, Africa has become China's second largest engineering contracting market.* By late 2008, the country had inked deals with Africa for contract projects worth 126.3 billion dollars and completed the turnover of 68.1 billion dollars. From January to September this year, China finished in Africa the contract engineering business turnover of 17.84 billion dollars, up 41.2 percent year-on-year. …”

From: http://english.peopledaily.com.cn/90001/90780/91421/6802280.html

And not just in Africa:

"China is stepping up its overseas efforts, despite the economic recession worldwide," said Zhang Xiaoqiang, vice-director of the National Development and Reform Commission. "Many of China's companies are active investors." China's overseas direct investment rose 190 percent year-on-year in the third quarter, bringing the total investment for the first nine months to $32.87 billion ..." {Converting US Treasury's paper promises into real assets.}

From: http://english.peopledaily.com.cn/90001/90776/90883/6802815.html

Billy T comment:
It helps rate of expansion into Africa when one is not concerned with corruption and human rights abuse. China is more concerned with “The greater good for the greatest numbers.” than with these abstract principles related to individual rights.

One can see this in China itself. For example, thousands were quickly evicted from their homes to build the world’s largest airport terminal in record time for the Olympics. – No need for “public hearings” etc. that alone took longer in UK to just expand a terminal at existing Heathrow Airport than the Chinese took to build from scratch the beautiful and highly functional (winner of several international prizes) airport seen in this post:
http://www.sciforums.com/showpost.php?p=2389311&postcount=191

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* I read about a year ago that half of all the hydroelectric dams now in construction in the world are in Africa and being made with Chinese enginneers and local labor. (Also read that the Chinese keep to themselves in their own quarters with Chinese cooks etc. and tend to look down on the locals who resent the much better paid Chinese bossing them around, ignoring local customs, leaders, etc.)
 
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China & Brazil bilateral ties grow stronger:

"... The two-way cooperation has been steadily on the rise since China and Brazil forged a strategic partnership in 1993. Since then, two sides expanded overall cooperation in terms of politics, economy and trade, culture and sci-tech, and meanwhile forged ahead with a strategic partnership. ... Heads of states from the two countries signed a joint statement in May this year to work out an action plan for 2010-2014, ...

RMB cross-border settlement is conducive to the further expansion of Sino-Brazil economic and trade cooperation. China and Brazil complement each other in economy and trade, and economic and trade ties are the pillar of bilateral strategic partnership. Trade volume in 2008 set a historical new high of 48.5 billion U.S. dollars, a year-on-year increase of 63.2 percent. China has replaced the U.S. to become Brazil's largest trading partner in April 2009, creating more space for further bilateral cooperation.

Cross-border settlement reduces the risk of changes in exchange rates, and it also provides convenience for enterprises to expand cooperation, more choices for importers, and effective ways to combat global economic downturn. ... " {I.e. trading in RMB (Yuan) & Reais, without use of dollars but not quite so now as Yuan is tied to dollar still.}

From: http://english.peopledaily.com.cn/90001/90780/91421/6806265.html
 
China & Africa:

"... China will offer Africa $10 billion in preferential loans over the next three years... Chinese Premier Wen Jiabao said today to the conference of the Forum on China Africa Cooperation at Sharm el-Sheikh, Egypt. The loans will mainly target infrastructure and social programs. China will also open its markets to goods from African countries... FOCAC, created in 2000, includes China and 39 African countries.

China has been making a drive to invest in minerals and energy in Africa as well as expand the African market for its burgeoning exports.* By the end of 2008China had invested $7.8 billion in Africa. ..."

FROM: http://www.bloomberg.com/apps/news?pid=20601087&sid=a0xYnQllsOfc&pos=7
Below is the NYT article's last paragraph with more useful numbers:

"The loans and other overtures have turned China into one of Africa’s largest trading partners. Trade has soared from about $10 billion in 2000 to $106.8 billion last year; Chinese direct investment in Africa leaped 81 percent in the first six months of this year, to $552 million, the Commerce Ministry said. ..."

FROM: http://www.nytimes.com/2009/11/09/world/asia/09china.html?_r=1&hp

And here, b y edit, is next day follow up details:
http://english.peopledaily.com.cn/90001/90776/90883/6807055.html
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*Exactly what Billy T predicted ~5 years ago. I.e. China is positioning itself to be an economy that serves mainly its domestic market and exports mainly to Southern Hemisphere countires to pay for the energy, raw materials, and food stocks it needs to import. China (like me) recognized some years ago that the purchasing power of the US and EU was going down the tubes and does not want to be flushed down with these Northern Hemisphere countires as they sink into depression. Again I post: There will come a day when China says:

Go to Hell USA. Your green paper is worthless. We do not need to export to you (or finance your deficits).
 
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China is world's leading auto market (and soon world's largest builder of ocean ships (taking title from S. Korea who took it from Japan a decade ago.):

"... China's auto sales rose 72 percent month on month to 1.22 million units in October ... Auto{motive} sales {thur october} broke the 10 million mark to 10.89 ... up 36.23 percent from a year ago. {In same 10 months US sales were 8.6 million units.} In January, China cut the purchase tax on vehicles with engines of 1.6 liters or less from 10 percent to 5 percent to promote the sales of energy-saving vehicles. It also offered subsidies for auto buyers in rural areas.

Passenger car sales surged 76 percent to 946,400 units in October, bringing the total sales to 8.19 million units in the first ten months. ..."

From: http://english.people.com.cn/90001/90778/90860/6808089.html

"... South Korea's shipbuilding industry is suffering from insufficient orders due to the serious financial crisis, and China will replace South Korea as the world's largest shipbuilding country. ...
From January to October, China's new orders amounted to 2.71 million CGT, and the market share reaches as high as 52.3%, while new orders in South Korea totals only 1.64 million CGT with 31.8% global market share. This means that China has exceeded South Korea in orders received and new orders and becomes the world's largest shipbuilding country. ... South Korea's shipbuilding industry surpassed Japan in 2000. ..."

From: http://english.peopledaily.com.cn/90001/90778/90860/6809292.html
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* China is also raising vehicle fuel costs:
"... China will raise {wholesale} gasoline and diesel prices both by 480 yuan (70.28 U.S. dollars) per tonne. ..."

PS Brazil's vehicle sales are up 16% in October vs. September. (The total for first 9 months of 2009 is 2.6 million vehicles. That is down YoY by 9.7% mainly due to 42% drop in exported vehicles. - Another example of how the strong Real / weak dollar is hurting Brazilian exporters.)
This data, from my newspaper today.

Because of global shortage of sugar, effective price of Alcohol at the filling station is now almost same as gasoline. "Gasoline" has been 25% alcohol for several years, but now govenment is strongly considering making it only 20% of alcohol added to the "gas." (Does not want people using 100% gasoline more in their flex fuel cars instead of 100% ETOH.) Both are taxed equaly on their energy content, but government plays with the percent ETOH in the gasoline to keep demand balanced. (neither in surplus or short supply.)
 
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