AGE OF MULTIPOLAR CURRENCY WARS. Part I

The USA and the EU demand China to revalue Yuan, but the Chinese authorities deny this request, stating that this will lead to bankruptcy of Chinese enterprises and, accordingly, to the growth of unemployment and social instability, which Beijing afraid even more than the discontent of its trade partners. As a counter-thesis in the debate with the USA, China presses the charges of uncontrolled emission of the U.S. dollars, which, according to the PRC, provoked the imbalance of the world economy.

SCO or anti-NATO?

Despite the tremendous financial aid that America renders to Pakistan, recently anti-American sentiments have ripened in this country — Pakistani, who assisted the CIA during the search and discovery of the “terrorist #1” have been arrested for one. The USA are obviously “losing” Pakistan, but the very fact that this country may join the Shanghai Cooperation Organization (SCO) any moment make the regional situation critical for the United States. Add the scheduled withdrawal of the U.S. and allied troops from Afghanistan (which also drifts towards the SCO) here and the change of regional balance of powers becomes apparent. Simultaneously, the inveterate issue of the Indian-Pakistani stand is being settled — India also has all the chances to become an SCO member.

WHAT IS GLOBAL FINANCIAL STABILITY FOUNDED UPON? Part I

Arrest of IMF Managing Director Dominique Strauss-Kahn in New-York has crumbled euro and put the financial aid programs for European countries that fetched themselves in a severe economic situation at risk. It is unknown, whether 62-year-old politician and financier is actually guilty of the things he’s accused of, but the financial consequences of his arrest are on hand. Assuming that Strauss-Kahn, known for his playboy adventures, actually did what he was charged with, that might the most costly liaison in the world. So what kind of global financial order is it, if it can be ruined by a sudden testosterone attack of an aging Frenchman?