Strong US dollar hurting emerging economies

 “The markets have consistently tried to price in rosy scenarios which were associated with a weaker dollar and they continue to be surprised that the reality isn’t quite as rosy,” said Maurice Obstfeld, former chief economist at the International Monetary Fund.

The strong dollar “is going to be negative for emerging markets. It’s going to be negative for global trade,” he said.

So far at least, the damage has been less widespread than last year, when the dollar surge led to a historic selloff in emerging-market assets and helped tip countries like Sri Lanka and Ghana into full-blown economic crises.

In recent months, currencies in Latin America and Eastern Europe have been hit hard. Central banks in Brazil, Poland and Hungary have started cutting policy rates after winning praise for their quick action to tighten monetary policy in 2021, well ahead of the Fed and other developed-market central banks. They are now under pressure to pause or slow rate-cutting plans to prevent further pressure on their currencies.

A stronger dollar is felt broadly in emerging markets. A paper co-written by Obstfeld last year showed how the shock of a sharp rise in the dollar leads to yearslong economic underperformance in less developed economies. Consumption, output, investment and government spending all come under pressure alongside the local currency.

“It’s a double whammy,” he said. “You’re being driven away from your growth target and you’re being driven away from your inflation target at the same time.”

Some global central banks are tapping into stockpiles of foreign currency to help shore up their currencies. Others are publicly threatening to do so, a tactic known as jawboning.

Japanese Finance Minister Shunichi Suzuki on Friday pledged to take action against sharp falls in the yen, which is close to 150 a dollar. That is around the level that last year spurred the

“We will take appropriate action against excessive moves without ruling out any options,” Suzuki said. “We have a strong sense of urgency.”

Both Switzerland and South Korea have sold foreign-currency reserves to bolster their currencies, the franc and the won. Analysts believe China is helping prop up the yuan, which fell to a 16-year low in onshore trading in September, by having state banks sell dollars.

Investors had largely expected the greenback to weaken this year as the Fed wound down its most aggressive campaign of interest-rate increases since the 1980s. Indeed, in the first half of the year, beaten-down currencies like the British pound and euro rebounded from 2022’s brutal declines.

But those rallies have petered out. The euro, which topped $1.10 over the summer, has fallen back toward $1.05 as the eurozone economy stagnates and worries over debt sustainability in fragile southern economies like Italy re-emerge.

Many investors still hope the dollar’s decadelong winning streak, which has left it at least 10% overvalued by many estimates, is coming to an end.

One factor could be fading American growth. U.S. consumers have been running down their $2 trillion-plus in pandemic-era savings and the resumption of student-loan payments is expected to further dent consumption. The unemployment rate, while still near historic lows, has been edging up.

U.S. growth is likely to fall in line with the rest of the world in 2024, said Luca Paolini, chief strategist at Pictet Asset Management. The dollar’s recent rally is “the last hurrah before a significant decline next year,” he said.

Anonymous

Due to tariffs on Chinese components, iPhone 15 cost Indians way more than it would have in US, despite ‘made in India’

Apple fans in India are having to shell out a lot more than their counterparts in the US to get their hands on the latest iPhone 15 models, which were launched last month.

In India, the iPhone 15 - which costs $799 in the US - is selling for Rs 79,900 (around $965), while the $999 iPhone 15 Pro is selling at Rs 1,34,900 ($1,628) and the $1,199 iPhone 15 Pro Max costs Rs 1,59,900 ($1,930) — which shows that the price difference in some models is more than 50 percent.

In the latest line-up, the iPhone 15 and iPhone 15 Plus models are being locally assembled. But even if smartphones are assembled in India, many components are imported, especially from China. These components also attract duties, which impact the phone’s price.

While iPhones are ‘made’ in India, it is important to note that their components are subject to import duties. Similarly, the iPhone 15 Pro models (which are imported) face even steeper tariffs, with a 20 percent customs duty and an additional 2 percent cess.

A 2022 comparative study of India’s import tariffs in the electronics sector, by the Indian Cellular and Electronics Association (ICEA), released in July this year, noted that India’s electronics manufacturing industry, which included mobile phones, was marred by high input tariffs, resulting in increased cost of production, reduced scale of operations, and lower ability to compete in both the global and the domestic markets.

Anonymous

China's National Anthem "March of the Volunteers" and Its International Appeal

    A brief background story  of the Chinese National Anthem - "March of the Volunteers"  and its significance and ramifications internationally. 

Background story: Resistance against Japan invasion in the late 1920s  and 1930s and up to mid 1945.

Since the Opium Wars in the 1830s to 1860s China had been reduced to a semi-colonial status under the European powers, America and Japan. After the untimely death of President Sun Yat Sen in 1925, China was plunged into a chaotic state of warlordism where the generals of the last Ching Dynasty took power as warlords in control of many Chinese provinces. During this chaotic period as there was no Central Government Japanese militarists took advantage of the situation to occupy Manchuria in the late 1920s . And on September 18, 1931 Japan engineered the Mukden incident to provide as an excuse for it to take official full control of Manchuria. It  contrived the fake state of Manchukuo with Pu Yi as the nominal emperor but with Japan in full control of the government. Local patriotic Chinese went underground to organize resistance against the Japanese occupation of Manchuria. The Mukden Incident of September 18, 1931 is generally viewed as the date in which Japan sowed the seeds of World War II.

Having taken full control of Manchuria illegally the Japanese now planned a full scale invasion of China. In July 1937, Japan engineered the Marco Polo Bridge incident to provide an excuse for it to invade China. China had to face the Japanese invasion alone as all the Western powers including America had no desire to let China to consolidate as a strong united country which they viewed in long term as contrary and anathema to their interests. 

During this Japanese invasion of China from the late 1920s to 1945 China had to face the mighty Japanese military machine alone. Chiang Kai Shek of the Kuomintang Party put up only minimal resistance as he was more intent to fight and crush the communist armies of Mao Tse-Tung. The Chinese Communist Party led by Mao Tse-Tung started guerrilla warfare against the mighty Japanese armies. Local patriotic Chinese citizens spontaneously organized resistance brigades to fight the Japanese. They fought together with the communist armies of Mao Tse-Tung. They gave hell to the Japanese armies. 

These local militias or volunteers fought bravely, gallantly and stoically against the mighty Japanese army. Two of the patriotic volunteers were Tian Han and Nieh Er. It was Tian Han who wrote the lyrics of the Chinese National Anthem "March of the Volunteers" and Nieh Er who  composed the music score..Both Tian Han and Nieh Er came from a line of great family music scholars. Beside the National Anthem they had also written and composed quite a lot of other patriotic songs and music to encourage and spur the spirit of the great anti-Japanese resistance fighters.

As the first line of the "March of the Volunteers" indicate that all who refuse to be born slaves must rise up to fight and overthrow all imperialists both Western and Japanese imperialists. The March of the Volunteers and the 'Red Star' over China was a beacon or symbol for the liberalisation of the countries all over the world in Asia, Africa and Latin America from the enslavement by brutal unconscionable Western imperialists which is now championed and led by the evil United States.

The CPC or Communist Party of China is not only the saving star of China. It was and will be the saving star of all countries under the yoke of Western imperialism and colonialism in the last 500 years. The free world especially the countries of the south must be wary of the diabolical United States which has never care to hide its sinister intention to enslave all countries in the world under white and Anglo-Saxons people's toxic total control and hegemony. It is good that countries of the south have taken a leaf from China and learn how to boot out the Western imperialists especially the United States from their countries in Africa, Latin America and Asia.

The lyrics of the Chinese national anthem in English

Arise! Ye who refuse to be born slave!
With our very flesh and blood, let us build our new Great Wall.
China's masses have met, the day of danger                                                                                                  Indignation fills the heart of all our countrymen                                                                                            Arise! Arise! Arise!                                                                                                                                        Many hearts and one mind, brave the enemies' gunfire!                                                                               March on! Brave the enemies' gunfire!                                                                                                           March on! March on! on!

The lyrics of the Chinese national anthem in Hanyu Pinyin and Mandarin or Putong Hua

Qilai! Buyuan zuo nuli de renmen,
Ba women de xuerou zhucheng women xin de changcheng.
Zhonghua Minzu dao liao zui weixian de shihou,
Meigeren beipo zhe fachu zuihou de housheng.
Qilai! Qilai! Qilai!
Women wanzhong yixin,
Mao zhe diren de paohuo,
Qianjin!
Mao zhe diren de paohuo,
Qianjin! Qianjin! Qianjin! Jin!

起来！不愿做奴隶的人们！
把我们的血肉，筑成我们新的长城!
中华民族到了最危险的时候，
每个人被迫着发出最后的吼声。
起来！起来！起来！
我们万众一心，
冒着敌人的炮火，前进
冒着敌人的炮火，前进!
前进！前进！进!

The lyrics was written by Tian Han and the Music was composed by Nieh Er.  

The patriot song "March of the Volunteers" evolve from fierce stoic resistance against Japanese aggression and invasion. Out of the hundreds of patriotic songs the March of the Volunteers was chosen as the National Anthem because it encapsulates the great fighting spirit of the Chinese people and their determination and sacrifice  for national liberation and its emphasis on values such as courage, resolution and unity in the face of foreign aggression.   Also the song with its martial military music fits in naturally with the resolve and great fervour of the people's revolutionary spirit and therefore  has great patriotic appeal. 

                                   The symbolism of the Chinese national flag :-                                                            It has five stars. The large star stands for the Chinese Communist Party and its leading role in guidinng the nation. The four smaller stars represent the four social classes united in the coalition supporting the party - the peoletariat, the peasants, the petty bourgeoisie and the patriotic capitalists.

Also the large star can similarly stand for  China and the four smaller stars stand for the country's many national minorities. 

Another very famous and popular patriotic song is "Ode to the Motherland"  -  Ge Chang Zu Guo .           Ode to the Motherland is sung in praise of the Motherland. The words and story in the song depicts the beauty of the vast expanse of the Motherland and the undaunting spirit of the people in striving for a better and a more prosperous people  and country under the great guidance of the leadership of the Chinese Communist Party. The lyrics and music of the song was composed by Wang Shen 1918 - 2007,   a native of Jiangsu province.

The Ode to the Motherland was officially published on September 15, 1951. The song is very popular and has been honoured as the Second National Anthem of the country.

Though both The March of the Volunteers and The Ode to the Motherland are great patriotic songs with strong appeal there is still a contrast in mood and feeling. The March of the Volunteers is more solemn and martial in spirit and tone as it was written in war time in the struggle for survival whereas the Ode to the Motherland has a more melodious tone and a lighter spirit as it was written after the war with the victory of the country against foreign aggression. However, both songs have great patriotic appeal and are great treasures of the Chinese people and nation.

Southernglory1

Wednesday, 4th October,2023

                                    

China is very busy spending money on infrastructure building... while gangster and terrorist USA continues with wars and massacres

 

 

 

 

 

 

 

While the Americans and the West are fighting wars, agitating for wars, forming military alliances, and smearing China as an aggressive and expansionist power, China has been very busy building infrastructures all over the world, spending billions and hundreds of billions on the BRI projects.

So, who is the warmonger and aggressive trouble maker? The one fighting wars, creating tension, threatening others, or the one building infrastructures? Who is still believing in the treacherous American lies, that the Americans are peaceful people?

Above are just a few of the major projects China had worked on, and working on many more projects all over the world. This is where China is spending all its trade surpluses. These are not empty promises that the Americans are promising to the Africans and Pacific Islanders. The Americans have not built anything except military bases and selling weapons of war, and starting wars.

Wherever the Americans bombed and destroyed, China would be there to rebuild! The Americans cannot be weaned from their culture of war. War is in their blood, their way to conquer and rule the world.

Anarchy in Philadelphia, USA

 

Hundreds of teenagers looted Apple, Footlocker, Lululemon, and other stores last night in Philadelphia, in the United States. Visuals on social media showed masked boys and girls, all juvenile, fleeing away with items after breaking into high-end stores. Philadelphia police arrested nearly two dozen teenagers and seized at least two firearms. 3 min clip.

1 min clip.