This page has been archived and commenting is disabled.

Goldman Aligns Itself Against US, UK, And Europe, Alongside China In Choice For Next IMF Head

Tyler Durden's picture




 

Christine Lagarde's chances of heading the IMF just took a another step back. Why? Because the firm whose alumni are about to be or already are in key posts at the Fed, the ECB and the BOC, has said (through its moutpiece Jim O'Neill who "can't see how the EUR should be above 1.40" even as Thomas Stolper et al see it going to 1.55 in a year) that it is not too crazy about having a European replacement for DSK, and that "it might be better if some leadership and authority came from outside of Europe with a fresh set of independent eyes" (supposedly the fact that Lagarde has had no formaly economic academic brainwashing is not a factor). In other words, Goldman has aligned itself with China, which has made it clear that it may be wise if the next IMF leadership "reflected the New World Order." As such, the largely symbolic IMF conclave just became very interesting: while the IMF is largely a figurehead with the real backstop organization always being the Federal Reserve, Goldman appears to have just voted alongside China... and thus against Europe and the US.

From Goldman's Jim O'Neill:

IMF LEADERSHIP.

Two weeks ago at a conference in Singapore, when asked to make some bold predictions about the future, I joked that the next head of the IMF would be Sir Alex Ferguson. Little did I know that within a week of that joke, the Fund would need a new leader.

I have been discussing the possible candidates for the new Head with many people this week, as have many others. The new leader should satisfy two broad criteria. One, he or she must be well versed in the many economic and policy issues that the IMF must handle and lead. Two, he or she must have a personality that can engage successfully with the many different members to orchestrate change as well as a better and more balanced world economy.  What the leader mustn’t be is simply a figurehead of a pure European and US “deal” to sustain the historic arrangement that the IMF always has a European leader and the World Bank has an American leader. If the IMF ends up with European leader, that person will have to face the additional burden of being regarded as such a product, adding to his or her challenges.

As is being discussed in the media, a number of candidates from the “Growth Market” world are in the mix, with names from Brazil, China, India, Mexico and Turkey being considered. From the developed world, the name of Christine Lagarde is dominant and she appears to be the favourite right now. The IMF has said they will find a new Head by the end of June.

A number of commentators are suggesting that, given the European debt crisis and the challenges facing European Monetary Union, the leader must come from Europe. This strikes me as a rather ridiculous argument on two fronts. First, if this were a critical factor in the decision, it would suggest that we should have had a Latin leader in the 1980’s and an Asian head in the late 1990’s. Furthermore, it implies that every time there is a country at the centre of a global crisis, its Finance Minister should become the head of the IMF. Second, I believe the exact opposite could be the case. In fact, to really solve the EMU crisis, it might be better if some leadership and authority came from outside of Europe with a fresh set of independent eyes.

THE EMU CRISIS.

The void at the IMF comes at a time when the IMF is needed to help move the crisis onto a sounder footing. It seems as though Europe’s leaders are already struggling, and the loss of Strauss Kahn is seen as an additional blow. Whether this is because of his personal expert knowledge or because he had the ear of German Chancellor Merkel is unclear, but he probably had both. Whether either of these two qualities is specifically helpful is more questionable.

At the core of the EMU problem are the difficulties facing German leaders concerning leadership. In my judgment, the EMU crisis is more one of governance and leadership and not really a sovereign debt crisis. As should be better known, the GDP-weighted average debt and deficit position of the Euro Area compares favourably with both the UK and US, and is considerably better than Japan. Each of Ireland, Greece and Portugal has current debts that on their own seem very problematic, and both Spain and Italy could be troubling. But remember, Belgium and Italy joined EMU in 1999 with debt levels of more than 100 pct of GDP, and this didn’t stop them from being allowed to join the system.

The problem for the Club Med countries is that, post the global credit crisis, investors are much more nervous about what they will and won’t invest in, and the current European position looks troubling. What appears to be now blatantly clear is that too many countries were allowed to join in 1999 and, as many skeptics have argued, it is not an optimal currency area. It is easy for me to offer this observation, but it is not easy for either the leaders of those countries  or Germany, or the EU, to change it. Removing any of them from EMU now could lead to a lot of unpredictable outcomes. This might not make life any easier for them or the remaining members, especially in the near term. At the other extreme, making the troubled countries more optimal members of the single currency might require not only a lot of adjustment pains, but also more of a true pan European world of rules and regulations, especially in terms of underlying fiscal tools and political decision making. This is really the choice facing Europe’s leaders, and it is not one any of them seem to be currently prepared to make. By default – pardon the unfortunate word – they are simply trying to persuade the world that “everything will be alright in the end.”

THE WORLD ECONOMY.

I continue to believe that without more severe contagion through the financial markets, the global importance of the troubled Club Med countries is much less than many believe. As I show at many speeches I give, 8 of the 10 most likely contributors to global GDP in the current decade will be so-called emerging economies. The combined GDP of these eight “Growth Economies,” Brazil, Russia, India and China (the four BRICs) as well as Korea, Indonesia, Mexico and Turkey, will increase by more than 5 times that of the Euro Area. And, by the end of the decade, their collective GDP will probably be bigger than the Euro Area. What happens to all of these countries will be much more important globally than what happens in the Euro Area.

If the Growth Eight were part of a regional club as is the EU, in my opinion it would seem a straightforward choice that the new IMF leader should come from one of their countries. Perhaps they should try to decide on a jointly preferredcandidate rather than each one promoting their own.

Of course, one country, China, stands at the heart of the Growth Eight’s prospects, and they alone will contribute half of their decade’s GDP change. In principle, China should have a big say about the IMF’s future. As I am also fond of showing, last year increases in China’s imports ($400 bn) were more than the size of Greece’s total economy. What happens to China’s imports in the coming years is a lot more important the issue of Greek debt.

But does this mean that the new head of the IMF should be Chinese? At a Goldman Sachs BRIC conference early last week, a client asked me whether I thought it would be appropriate for the new head of the IMF to come from a nondemocratic country. This was an extremely good and difficult question. My answer wasn’t very popular with fellow panelists or I suspect much of the Western audience. I suggested that citizens of China and Russia don’t seem to be too disturbed about not being democracies; they want a better standard of living and more wealth. What system of political structure delivers that seems less important. As it relates to the IMF, it is not a requirement to be a democracy to be a member, so it doesn’t strike me as though its leader necessarily needs to come from a democratic country. What an effective leader of the IMF needs to be is someone who understands the complex changing structure of the world, which involves both democracies and those which are not. It requires someone with strong leadership skills and vision. Perhaps my joke in Singapore might be worth exploring!

Jim O’Neill

Chairman, Goldman Sachs Asset Management

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Sun, 05/22/2011 - 19:44 | 1300738 SilverDoctors
SilverDoctors's picture

Banksters know the GIG is up on the LMBA/COMEX.  Time to move the party to asia.

Hyperinflation is on its way to our neck of the woods....check out this 1st hand account of a US businessman living and profiting through the Mexican Peso Devaluation.

Living Through a Currency Devaluation

http://silverdoctors.blogspot.com/2011/05/living-through-currency-devalu...

Sun, 05/22/2011 - 19:46 | 1300743 covert
covert's picture

off topic:

look at the video at the bottom:

time to celebrate!

http://covert2.wordpress.com/2011/04/09/islam-expose-xii/

Sun, 05/22/2011 - 19:48 | 1300754 zen0
zen0's picture

let us just remember that high inflation and hyperinflation are not the same thing.

Sun, 05/22/2011 - 19:46 | 1300740 TheGoodDoctor
TheGoodDoctor's picture

Shills to the God damned end.

Sun, 05/22/2011 - 20:44 | 1300858 CPL
CPL's picture

Yup, considering wars have been started over less.  Monday is going to be an interesting day

Sun, 05/22/2011 - 22:17 | 1300985 Manthong
Manthong's picture

"..more wealth. What system of political structure delivers that seems less important."

He probably didn't mean it quite that way, but it's how the words came out.

Sun, 05/22/2011 - 19:44 | 1300742 MikeNYC
MikeNYC's picture

Someone is defending 1,41 pretty f'in hard right now. That's OK, bitch, we're patient.

Sun, 05/22/2011 - 19:50 | 1300756 mynhair
mynhair's picture

Yep.  Expect HUF to break first.  (Fingers crossed.)

Sun, 05/22/2011 - 19:46 | 1300744 zen0
zen0's picture


We meet today in the midst of another great transformation—one that is occurring more rapidly than most recognise.
The financial crisis has accelerated the shift in the world’s economic centre of gravity. Emerging-market economies now account for almost three-quarters of global growth—up from just one-third at the turn of the millennium.

From a speech by the Governor of the Bank of Canada, May 19th.

Might as well let the drivers drive, right?

Sun, 05/22/2011 - 19:49 | 1300746 FunkyMonkeyBoy
FunkyMonkeyBoy's picture

Beware the New World Order.

Where you gonna go to, when you don't like your world fascist government?

Sun, 05/22/2011 - 19:56 | 1300767 topcallingtroll
topcallingtroll's picture

South america.

Plenty of opportunity. Few rules.
The few rules they have are ignored,
but pick a country in the top half of
the income distribution.

Sun, 05/22/2011 - 23:16 | 1301056 Guy Fawkes Mulder
Guy Fawkes Mulder's picture

Apparently you are missing the concept of the New WORLD Order.

They run THE WORLD.

Even if select, choice locales on the globe evade their clutches for, say, a generation, your progeny is still damned to hell.

Not to mention that the "New" World Order is really for all intents and purposes The Old World Order, and they have plenty more experience in South America than you.

Mon, 05/23/2011 - 06:03 | 1301293 Smiddywesson
Smiddywesson's picture

You all assuming the world inches forward incrementally.  The wheels are coming off.  There will be no New World Order.  There will probably be no China as a unified nation soon, and the same goes for the USA.  The game is going to change all at once, everywhere, and all the little kiddies who could detail you on American Idol will say that nobody saw it coming.

Mon, 05/23/2011 - 08:20 | 1301372 ibjamming
ibjamming's picture

That's what I'm thinking too.  An "anti-globalism", an anti-NWO, a fracturing.

 

Like the collapse of the USSR...the states will secede, and probably form regional alliances, the ME will be a shambles, oil output will slow to a crawl, big time world depression as the world starves for energy.  The lights may stay on...but movement will come to a halt.  The population will halve within a year and slowly go to a third of the current levels.  Actually...it'll be a good thing for the human species...we've been carrying too much dead wood for too long.  We're overdo a massive culling.  Whole "groups" may disappear as racism sweeps through formerly "diversified" societies.

Personally, I hope they can keep it together for another 50 years...I'm getting too old to farm.

What I really think will happen is WW III.  Over oil.  I think a ME invasion is coming...maybe soon.  Oil is too costly...the middleman has to go.  I think the "west" wants that land back to get that oil...and it will take it.  Cutting energy costs by half...$50 oil would be THE thing to end this global depression and rocket us back into expansion again.  Besides, it would allow us to reset half our debt too.  China would be against us in WW III, so any debt we owe them would be wiped out with the click of a keyboard.  We'd seize Chinese and ME assets.  It's really the ONLY way out of this mess.

Mon, 05/23/2011 - 11:53 | 1302089 natureoftheexpe...
natureoftheexperiment's picture

I'm parallel with your realistc outlook, but if Bernake and the FOMC go ahead with QEx3, won't the effects be artifical? What I'm trying to say is, that no matter what happens, the only outcome is war.

Sun, 05/22/2011 - 21:42 | 1300931 zen0
zen0's picture

ain't noboby say it good....just is. Where you gonna go, sinner man, all on that day?

Sun, 05/22/2011 - 19:47 | 1300749 Popo
Popo's picture

Just a ploy. They're looking for legal absolution for any future investigation.

Sun, 05/22/2011 - 19:55 | 1300759 topcallingtroll
topcallingtroll's picture

It doesnt matter what china wants.

We have a longstanding agreement with europe that they run the imf and we run the world bank.

When china allows free convertibility of their currency and starts wearing big boy pants they can have some influence.

Sun, 05/22/2011 - 22:15 | 1300980 i-dog
i-dog's picture

Contrary to TD's headline, I don't think that Goldman siding with China is necessarily against the US interest: the US bankstas would love to use China as the excuse to have their own puppets at the head of both the IMF and World Bank. What is strange, to me, in this case is that China is seen to be acting against Europe's bankstas and in favour of the US bankstas.

Sun, 05/22/2011 - 20:00 | 1300762 XRAYD
XRAYD's picture

Why?  

 

“We should say thank you,” said Mr. Diamond [CEO Barclays], who earlier this month defended his bank’s lucrative bonus payments before British lawmakers, “a very heartfelt thank you.”

 

With him on stage, the French Finance Minister Christine Lagarde was not impressed: “The best way the banking sector can say thank you is with good financing for the economy, sensible compensation packages and reinforcement of their capital.”

http://dealbook.nytimes.com/2011/01/29/words-of-remorse-at-davos-sort-of/

The opposition is the same as against Elizabeth Warren and protecting consumers. . Anything that might put the vampire on a diet is bad for the world of Goldman et al.

 

 

Sun, 05/22/2011 - 19:57 | 1300769 scratch_and_sniff
scratch_and_sniff's picture

 

Someone will eventually call them "fair weather friends", but we all know they were never anyone’s' friend. How do they get away with it, how do they manage to slime their way into every despicable position imaginable? How do these demonic deranged grasping greedy spastics get away with it? HOW!!??

 

Sun, 05/22/2011 - 21:26 | 1300909 anony
anony's picture

Well, one possibility is this:

Substitute these names for the Big Jefes in all the most powerful financial and government positions:

Corleone, Capone, Luchiano, Bonnano, Pugliese, Rocco, Testa, Gotti,

Instead of the current ones:

Shapiro, Geithner, Blankfein, Rubin, Summers, Greenspan, Friedman, Gensler, Fuld, Madoff, Frank, Schumer,

Now do you know how?

Mon, 05/23/2011 - 08:07 | 1301390 ibjamming
ibjamming's picture

Yup...the USA has become the Mafia.  We offer "protection", and all you do is pay us a vig...a percent of your business.  We're a global scale Mafia...plain and simple.

Sun, 05/22/2011 - 20:02 | 1300770 Use of Weapons
Use of Weapons's picture

What happens to China’s imports in the coming years is a lot more important the issue of Greek debt.

 

Here's what's going to happen to China's imports in the coming years: they're going to slow down, then cease when the shit hits the fan.

Take a look at the following table, and you'll see a country essentially "stocking up" for the next large internal push towards self-sufficiency. Given coal, nuclear and even green energy options being chased, and high-tech industry being taken on, China's goal is (and always has been) self-sufficiency.

For oil / gas, well... they have a large neighbour for those.

 

Hmm. ZH hates tables. Great. http://www.uschina.org/statistics/tradetable.html

85 Electrical machinery and equipment 314.4 29.0 27 Mineral fuel and oil 188.7 52.1 84 Power generation equipment 172.3 39.4 26 Ores, slag and ash 108.6 54.9 90 Optics and medical equipment 89.8 34.1 39 Plastics and articles thereof 63.7 31.3 28, 29 Inorganic and organic chemicals 58.2* 37.2* 87 Vehicles, excluding rail 49.5 74.5 74 Copper and articles thereof 46.1 55.8 72, 73 Iron and steel 34.5* -6.1*

 

Sun, 05/22/2011 - 22:43 | 1301021 zen0
zen0's picture

China has always considered itself the "Middle Kingdom". Why? Because in the Chinese Universe, there are 5 directions...East, West, North, South, and Center.

Everything flows from the center, and into the center.

Sun, 05/22/2011 - 19:58 | 1300771 YHC-FTSE
YHC-FTSE's picture

Almost every article on ZH these days resemble a Dali painting: Surreal, but very interesting. 

 

I never thought I'd ever find myself nodding with the black squid, but Jim does make a few good points. 

Sun, 05/22/2011 - 20:26 | 1300818 Kayman
Kayman's picture

 

but Jim does make a few good points. 

"What system of political structure delivers that seems less important."

Yeah, that democracy thing sure is a nuisance.

Hitler would have loved to hear that when Nazi Germany was the growth engine of Europe.

And this from a Goldman shill. Maybe Goldman held shares in I.G. Farben after all.

These slime buckets would sell their children's kidneys at the right strike price.

Sun, 05/22/2011 - 20:59 | 1300870 Arius
Arius's picture

how about their own mother....you talking about psychopaths...

Sun, 05/22/2011 - 22:38 | 1301017 JR
JR's picture

Kayman, you brought O’Neill down with one of the most succinctly articulated verbal jabs in the business; you are the greatest…in whatever you write.  Thanks.

Mon, 05/23/2011 - 05:04 | 1301268 falak pema
falak pema's picture

Hey Kay, you don't want to bad mouth Amerika's best and brightest financial boys...Or they'll ask you to step up to bat and take a swing at finding a real solution. Then...it gets complicated...and some guys blow their nuts all over the place...as in suite 2806. Just saying, these guys are deal makers in a game that is "Cut and Run" at its best. Last man out in the currency war right now, where GS is big, gets to hear 'nut cracker's suite'... and its NOT sweet!

Mon, 05/23/2011 - 11:50 | 1302074 Kayman
Kayman's picture

falak

I fear not Goldman. I fear the collapse of this country.

The real solution is writing down all the debt and starting over. 3 decades of paper mirages cannot be solved with another decade of paper.

Ben has provided top end liquidity, but the gangrene must be cut out. And yes, it will be painful.

Mon, 05/23/2011 - 08:17 | 1301410 YHC-FTSE
YHC-FTSE's picture

No arguments about the potential organ donors from Squiddy progeny. :)

 

They say the best liars are those who interweave the truth with deceit, and he has done a superb job in the above speech about the EMU - surely you agree? That's why Jim owns a super yacht and we post whining diatribes on websites. 

 

As I said, things get more surreal by the day. As for democracies - yep, it is certainly the best form, but only because we get to fire our leaders, not because we can hire them. And when it's a two party race with both parties in the wide pockets of the corporations, then it's no choice at all is it? BTW, Hitler was widely lauded about Germany being the growth engine of Europe in his day. While on that era, surely you know the quote about how Fascism should be called Corporatism - the perfect marriage between the corporations and the state - attributed to Mussolini? It describes the present day USA perfectly. 

 

With the current troubles in the EU, I think it should be a European MD at the head of the IMF - and yes, it shouldn't exist, but it does so I'm dealing with it - Gordon Brown or Axel Weber are my choices because imo they are most likely to re-evaluate the SDR.

Mon, 05/23/2011 - 12:08 | 1302119 Kayman
Kayman's picture

Hitler was widely, but not universally lauded, for the "miracle" growth of the economy.

An economy that was financed through debt and theft. Ultimately leading to war to keep the top spinning.

Hitler looted France with a "point-of-the gun" fixed exchange rate.  Then German soldiers started sending French goods back to the Fatherland.

Debt and Theft. Isn't that what our New World Order finance system relies on ?

The math says there is a limit to Ben's balance sheet and unchecked public debt and I do not need to dust off my differential calculus books to confirm it.

Mon, 05/23/2011 - 13:08 | 1302281 YHC-FTSE
YHC-FTSE's picture

"Debt and Theft. Isn't that what our New World Order finance system relies on ?"

 

Perfectly put! 

 

My instincts tell me that Ben's balance sheet has an off-book option called the IMF, where debt-as-assets of entire nations are traded like candy in fiat USD, and therefore keeping the world demand for the greenback for as long as nobody challenges its supremacy. As he prints ever more trillions of dollars expecting the other countries in Club IMF to add their blood to limit the dilution of the USD, millions of people with a modicum of wealth will feel the decimation of their assets, and billions will starve.  

 

That is why, in order to keep the dollar hegemony, Ben/TPTB find it imperative to destroy any chance of a review of the SDR, and the pricing of commodities in anything other than fiat USD.  If a common medium of exchange for selling and buying and settling debts that is not controlled by one entity (Fed) alone ever emerges on the international scene, it will mean the collapse of the dollar, sooner rather than inevitably later. It seems to me that America wants to take every other country with it, as it collapses into its own footprint, and that is why I want a review of the SDR to include other currencies as well as commodities so that some nations who haven't been so reckless can survive the fallout. 

Sun, 05/22/2011 - 20:00 | 1300772 nmewn
nmewn's picture

So we can dispense with the duo inverted, half pike back flip and stick the entry into the DSK pool?

Just as it was getting interesting, it was those damn commies all the time ;-)

Sun, 05/22/2011 - 20:05 | 1300774 buzzsaw99
buzzsaw99's picture

I prefer that a Chinese firm usurp the functions of the squid completely. At least they use their own money.

Sun, 05/22/2011 - 20:52 | 1300856 Dejean Splicer
Dejean Splicer's picture

I doubt the lizard people will be able to co-opt China like they have done to the US. They have well defined boundaries. If anything Chinese culture will assimilate them.

Colonel Tso's matzoh balls with a green teabag.

Sun, 05/22/2011 - 21:42 | 1300929 buzzsaw99
buzzsaw99's picture

resistance is futile.

Mon, 05/23/2011 - 05:38 | 1301283 sethstorm
sethstorm's picture

I prefer that the US co-opts the functions of China's government completely, including the land governed by China.

 

Sun, 05/22/2011 - 20:08 | 1300776 THE DORK OF CORK
THE DORK OF CORK's picture

This is a old story repeating itself - I am reminded of the Spanish decline in the middle part of the last century - they lived the high life for a while but the bankers transported the   Gold to Switzerland and then the party was over.

 

Sun, 05/22/2011 - 20:18 | 1300808 Caviar Emptor
Caviar Emptor's picture

In more recent times, I remember Goldman and Steve Friedman cozying up to the Japanese at the height of their power in the 1980s. Same jockstrap, different scrotum. 

Sun, 05/22/2011 - 22:09 | 1300965 gookempucky
gookempucky's picture

Exactly CE as now the new iphone is the LONGEVITY BOND, these guys need to burn.

 

 

Goldman Sachs, Deutsche Bank and JPMorgan Chase, which bundled and sold billions of dollars of mortgage loans, now want to help investors bet on people's deaths.
Pension funds sitting on more than US$23 trillion of assets are buying insurance against the risk their members live longer than expected.

Investment banks see this as an opportunity to package that risk into bonds and other securities and create a new market for those willing to bet on life-expectancy rates. If pensioners die sooner than expected, investors profit. If they live longer, investors must compensate the pension fund for the additional costs it faces

Sun, 05/22/2011 - 20:31 | 1300827 disabledvet
disabledvet's picture

how does one finance a trillion dollar deficit with gold?  obviously it can't be done.  nor of course can it be done with bailouts, nor can it be done with debt monetization schemes however well conceived.  in the end only economic growth through greater production, greater market efficiencies, sound fiscal and monetary policies and for lack of a better word "political transparency" by being functionally honest with the folks about how this will work going forward.  the bond vigilantes have been out in full force for a year now--they are in effect enforcing a rule of money about debt repayment schemes that don't work.  we know one that does for a time:  repayment through a depreciating currency. every time the euro surges the crisis in the emu grows.  i think it goes without say that the next head of the IMF must come from Europe because "that is where the crisis is" and clearly the "more we understand how interconnected we are in the end" the "less worse" i guess it will be for all of us in the end.  As Ben Franklin said of the American revolution:  "we should all hang together or most assuredly we will all hang seperately."  no nation or "group of people's" is immune from the ravages of what Warren Buffet so poignantly called "weapons of financial mass destruction."

Mon, 05/23/2011 - 04:52 | 1301263 falak pema
falak pema's picture

Btw Dork, great game from Leinster!! What a match!

And...now that DSk is gone, I don't see the haircut option, shot down by Geithner, being resuscitated by who-ever is next from IMF side. This Greece-Spain spiral is a game changer in Euro zone by the looks of it. I didn't expect this unwind so soon...But when the king of IMF falls and all say "hail the new king" ...all old bets are off!

I wonder what the Irish will say in this new twist of euro zone twister!

 

Mon, 05/23/2011 - 05:35 | 1301281 sethstorm
sethstorm's picture

The lesson?  If the banks decide to move things, make the move impossibly painful or that you're waiting on the other side to repatriate.

Sun, 05/22/2011 - 20:11 | 1300793 silberblick
silberblick's picture

 

Goldman is just aligning itself with China to get privileges, perhaps on the Hong Hong exchange.

Follow the link below to find out why the Hong Kong Mercantile Exchange must be seen and understood as an extension of the Chinese government and its long term goals, and consequently, why it will not help create an equitable or realistic price discovery mechanism for gold. Not for now anyway.

http://thesilvergoldhedge.blogspot.com/2011/05/why-hong-kong-exchange-will-disappoint.html

 

Sun, 05/22/2011 - 20:20 | 1300807 topcallingtroll
topcallingtroll's picture

Goldman definitely sees a big potential market with lots of inefficiencies to exploit.

Sun, 05/22/2011 - 21:54 | 1300942 gookempucky
gookempucky's picture
Goldman is just aligning itself with China to get privileges Or set up a buddy for needed asylum when their house of DOUCHE comes down ??

 

Source: Financial Times

Pakistan has asked China to build a naval base at its south-western port of Gwadar and expects the Chinese navy to maintain a regular presence there, a plan likely to alarm both India and the US.

“We have asked our Chinese brothers to please build a naval base at Gwadar,” Chaudhary Ahmed Mukhtar, Pakistan’s defence minister, told the Financial Times, confirming that the request was conveyed to China during a visit last week by Yusuf Raza Gilani, Pakistan’s prime minister.

Hitherto, China has shied away from moves that might alienate the US and Beijing’s neighbours, such as India, Malaysia and Indonesia. “China’s rise is a beneficial force for peace and we have no hegemonic ambitions,” said a Chinese official familiar with Beijing’s security policy.

But Christopher Yung, senior research fellow at National Defense University in Washington, said in a recent paper “the nature and degree of China’s access to out-of-area bases will be the ultimate indication and warning” of its eventual intention to become a global military power. A Pentagon official said: “We have questions and concerns about this development and [China’s] intentions. But that is why we believe it is important to have a healthy, stable and continuous military-to-military relationship.”

A senior Pakistani official familiar with Sino-Pakistani discussions on naval co-operation said: “The naval base is something we hope will allow Chinese vessels to regularly visit in [the] future and also use the place for repair and maintenance of their fleet in the [Indian Ocean region].”

Mon, 05/23/2011 - 04:47 | 1301261 falak pema
falak pema's picture

"brotherhood" takes on new meaning and a new geo-political dimension. Tough times ahead for USA power play in subcontinent. Maybe, O'b has already integrated this in his coming military pull-back plans from Pak/Afgh.

Mon, 05/23/2011 - 05:34 | 1301278 sethstorm
sethstorm's picture

Now would be a very good time to have the US overthrow the China-supporting Pakistan leaders.

Mon, 05/23/2011 - 05:40 | 1301285 falak pema
falak pema's picture

typical knee jerk...and replace them by whom? OBL's spiritual son? The USA has built the military connection with PAK army for 55 years. They are truly stuck with this military caste now turning more and more rabidly anti-US. What you sow you will one day reap...

Sun, 05/22/2011 - 20:22 | 1300812 Caviar Emptor
Caviar Emptor's picture

Goldman is just being Goldman. No shame, nothing personal. Just business. 

Sun, 05/22/2011 - 20:34 | 1300839 disabledvet
disabledvet's picture

it started with the banks--and so it will end with them.  Goldman is fighting the concept of "banking as a utility" and nothing more and i think looking at the world "through their eyes" points out the obvious.  looking at the world through the eyes of a banker on the other hand does not "point out the obvious" at all but instead "the obfuscation."  seems stupid but this is "how it works"--in short:  "how do we pay our bills?" not as individuals but as "part of collective enterprise"?  governments needless to say ALWAYS have the most to say on that--and when they say "markets beware" we all should say "Caviar Emptor."

Sun, 05/22/2011 - 20:57 | 1300876 Caviar Emptor
Caviar Emptor's picture

haha. We should. Because the joke will be on those who remain uninformed and trusting of "the system". I think the small core of those of us who are using PMs to sidestep "the system" is growing. The trend may take a dramatic upturn in the coming months. Too many people are getting screwed. 

Sun, 05/22/2011 - 21:59 | 1300944 dracos_ghost
dracos_ghost's picture

O'Neil coined the BRIC term and disaster that it became. Of course he's going to come off as the Chinese are wonderful. He has the PRC pecker inserted half way up his intenstinal tract.

China should STFU. How much more self handicapping is the world going to allow them and still talk shite. As others have pointed out, let them float their currency if they want to run with the big dogs.

China collapses in 2013 when the new "princelings" take over.

 

Sun, 05/22/2011 - 20:52 | 1300871 MikeNYC
MikeNYC's picture

You can now add Australia to the list. They want a head chosen on 'merit.'

Mon, 05/23/2011 - 05:01 | 1301267 reload
reload's picture

what a quaint idea.

Sun, 05/22/2011 - 21:08 | 1300889 Everyman
Everyman's picture

Everybody at GS should be shot in the face with a .45.

Sun, 05/22/2011 - 22:17 | 1300977 JR
JR's picture

Maybe Junker prefers bows and arrows.

Sun, 05/22/2011 - 23:20 | 1301061 Guy Fawkes Mulder
Guy Fawkes Mulder's picture

Or a .44

Mon, 05/23/2011 - 04:21 | 1301255 Urban Redneck
Urban Redneck's picture

The Chinese prefer the back of the head, which tends to leave a larger exit wound where the face used to be.  They also have no reservations about killing bankers who poorly serve or displease the Committee, which calls Goldman's judgement into question.  It is all the more ironic because the Chinese have copied and improved upon some of the Nazi's Jew harvesting technology, although the feasibility and side-effects of squid-to-human organ transplants are still unknown. 

Mon, 05/23/2011 - 05:32 | 1301276 sethstorm
sethstorm's picture

Too small?

Sun, 05/22/2011 - 21:34 | 1300911 Ted K
Ted K's picture

Lloyd Blankfein and the GS crew would turn Hu Jintao over in bed and give him a 10 hour rimming if it added to their yearly bonus.  Is anyone surprised they will side with China on the IMF???  We've seen this behavior many times before from those with the big schnoz.

http://www.nytimes.com/1993/10/13/world/israel-sells-arms-to-china-us-sa...

and here:

http://news.bbc.co.uk/2/hi/middle_east/4101961.stm

Then after selling weapons to U.S. enemies, and mass murder in Gaza, Netanyahu goes to Obama and says "Did you honestly think we weren't going to get free weapon technology and not turn around and sell it wholesale??? What do I like like, a stupid American goyim??"

It's just a total mystery how these people engender so much hatred isn't it??? It's really got me baffled........

Sun, 05/22/2011 - 21:32 | 1300917 Ned Zeppelin
Ned Zeppelin's picture

"Two weeks ago at a conference in Singapore, when asked to make some bold predictions about the future, I joked that the next head of the IMF would be Sir Alex Ferguson. Little did I know that within a week of that joke, the Fund would need a new leader."

I actually give most conspiracy theories a wide berth since I think they are BS -  no one is that good at keeping secrets, outside the military anyway.  But there is something in this pair of sentences from this Goldman douchebag that tells me they knew this was coming.  Or set it up.  Some cunning linguist needs to parse through that this statement and translate the code. 

Sun, 05/22/2011 - 21:36 | 1300919 palmereldritch
palmereldritch's picture

Dang Dae a Ho!

Sun, 05/22/2011 - 21:44 | 1300930 zaknick
zaknick's picture

by topcallingtroll
on Sun, 05/22/2011 - 19:55
#1300759

It doesnt matter what china wants.

We have a longstanding agreement with europe that they run the imf and we run the world bank.

When china allows free convertibility of their currency and starts wearing big boy pants they can have some influence.

* reply
* **JUNK** (2) Flagged as JUNK.

Sayeth the bankster??? WTF you doing here? Why aren't you at the CFR, bitch?

I also saw your comment about going to South America to evade your fascist comeuppance; redneck, GO HOME!

Sun, 05/22/2011 - 22:08 | 1300964 Seymour Butt
Seymour Butt's picture

Sir Alex Ferguson happens to be one of my all time favorite Managers. MU 2011 Champions League!!!

On a different note, Lagarde is being setup to fail spectacularly. Google "glass cliff."

Sun, 05/22/2011 - 22:11 | 1300971 JR
JR's picture

At a Goldman Sachs BRIC conference early last week, a client asked me whether I thought it would be appropriate for the new head of the IMF to come from a nondemocratic country. This was an extremely good and difficult question... I suggested that citizens of China and Russia don’t seem to be too disturbed about not being democracies; they want a better standard of living and more wealth. What system of political structure delivers that seems less important. – Goldman mouthpiece Jim O'Neill

Jim, you are a nutcase.

I hope China has a spot over there for Goldman and Jim to move into a new headquarters.  

It kind of makes you wonder how Goldman qualifies to not only say who the IMF managing director would be, but it also picks the US presidents of the World Bank – like Goldmanite Robert Zoellick. And the Goldmans are first in line after the collapse of their worldwide schemes for the bailouts which are coming from the United Sates government.

It proves how powerless the IMF job is; if Goldman could get someone from China or with China’s approval to run it then you know that the owners of the Fed are running it.  Ownership and takeover are the same thing; and the more Goldman shows its heavy thumb on the scale the better off we are. 

Goldman and the investment bankers have this dream and it doesn’t work. They can’t even make the economy of the US work (after they destroyed it), let alone the worlds’.

It is time for Americans to give liberty a higher value than all other objectives.

Sun, 05/22/2011 - 22:35 | 1301011 Atomizer
Atomizer's picture

We said JR. The secrets are all out in the open, over analyzing seems to be the norm today.

Sun, 05/22/2011 - 22:30 | 1301004 gwar5
gwar5's picture

Goldman's nod seems part of their ongoing move to greener pastures....

To paraphrase economic pundits from days gone by: "The International financiers have no national loyalties, boundaries, or ideology, and will throw your ass under the bus in a New York minute."

Goldman, et al, have been planning this for way over a decade if anybody follows the CFR website. The West has already been strip mined. No easy money here anymore. Asia/BRICS are the rainmakers for the next century while the USA and the Eurozone will be left to struggle with >$150 in trillions in debt and unfunded liabilities. The squid is cutting their losses and bartering away our future for their own prospects with China. Throwing a bone to China for power in the IMF is a small price to pay. Clinton knew what he was doing taking all that money from China and giving them our classified long range missile guidance system.

Perhaps that's the real reason for all the fraudulent global warming science? What better way to shut the West down and preserve resources for the new century of growth in Asia? But if the world is (really this time) coming to an end due to AGW then why should the world's biggest polluter become the allocating of resources?

Maurice Strong is now living a nice secure life in China. Don't know Maurice? He's an 80 something yo Canadian billionaire and uber UN and IMF crony and Chinese advisor. He's been pushing global warming as a way to shut down the West -- years before Al Gore. He sees it as a way to stop growth in the West and reallocate resources to Asia -- "it's only fair". 

Goldman, et al., wants a say in the Asian growth and resource play and China wants a say in the world currency game.  We've been DSK'd. 

 

 

Sun, 05/22/2011 - 23:34 | 1301074 JR
JR's picture

Shades of Ernest Hemingway for old Maurice?  Allegedly Ernest and Castro were friends but that didn’t stop Castro from confiscating Hemingway’s extremely handsome island home, La Finca Vigia. Some allege Hemingway’s suicide was caused singly by the loss of La Vigia.

Larry Daley, professor emeritus at Oregon State University, writes that Hemingway long feared that this would happen and despite the support that he had given Castro he was unable to convince his Communist friend not to confiscate the property.

Daley says Hemingway left Cuba in July 1960 while the massive confiscations were beginning and the fact that he left most of his property, books and papers in Cuba is usual in such confiscations because household items were inventoried and held on site by the Cuban government.

Says Daley: Castro, almost immediately after arriving in Havana on January 8th 1959, started the process of confiscating all property on the Island and as the Cuban authorities became more and more aggressive and greedy, it slowly became clear that the Castro government, following its own interpretation of Marxist guidelines, wanted possession of everything.

Picking a partner like Castro or China is the same as picking a partner like Goldman Sachs – a procedure that the American people, like Hemingway, are learning to their regret.

A photo of Hemingway’s La Finca Vigia in San Francisco de Paula tells more than can words his chagrin at its loss:

http://www.hemingwaysociety.org/justice/

Mon, 05/23/2011 - 05:24 | 1301273 falak pema
falak pema's picture

On the Hemingway theme :

Requiem for a CIA Hitman ...

On April 1 this year a man called Bill Young was found dead in his home, (a bit like the Hemingway hacienda), in Chiang Mai in Northern Thailand. He had a gun in one hand and a crucifix in the other when they found him. (Hemingway only had his shot gun).

Bill Young, a man of 76 was a legend in the region. Grand son of a Baptist missionary he became a CIA "hit man" at the beginning of the Vietnam conflict. He was one of the initial instigators of the "secret war" that they led in Laos. His suicide motivated by failing health ends a long chapter of espionage play, CIA style, in the region. 

The guy is a prime example of a breed of spies that don't exist any more : a cultured man, anthropologist, fascinated by the social customs of different tribes living in those hilly, isolated regions; speaking their local dialects, marrying their customs and even their women.... Reminds me of Hemingway, Koestler and others. 

So there, I thought I would share this with you as Bill Young was the last of a breed; like was Hemingway.

 

Mon, 05/23/2011 - 12:33 | 1302182 Kayman
Kayman's picture

thanks JR

Maurice is another useful idiot.

Hemingway a gift.

Sun, 05/22/2011 - 22:51 | 1301028 El Hosel
El Hosel's picture

  This is great news.... The sooner GS = Bullseye on the forehead the better.

Sun, 05/22/2011 - 23:12 | 1301049 Sigma O
Sigma O's picture

"One, he or she must be well versed in the many economic and policy issues that the IMF must handle and lead. Two, he or she must have a personality that can engage successfully with the many different members to orchestrate change as well as a better and more balanced world economy."

I suggest Nafissatou Diallo.

Mon, 05/23/2011 - 09:30 | 1301053 Widowmaker
Widowmaker's picture

Goldman Sachs has been against the US (in the name of "free" market bullshit) for decades.

Zion thrives for free on the backs of every US citizen, performing abortions of the American dream 3 generations deep!

Masters of materialism [incorporated fascism] until it burns to ashes - like the paper and poverty they fuck every single night.

Vapor-money will be dead soon, anyway.

Sun, 05/22/2011 - 23:37 | 1301081 Madhouse
Madhouse's picture

Vampire squid moving on to new body ?  Good news actually. If China were really smart they wouldn't let that firm 200 miles from its border...

Sun, 05/22/2011 - 23:38 | 1301082 williambanzai7
williambanzai7's picture

Who is taking bets on Goldman supoena's this week

Mon, 05/23/2011 - 01:17 | 1301183 Manthong
Manthong's picture

Twenty bucks says Blankfein’s called to testify regarding misrepresentations about doing God’s work and overvaluing assets (tranches of US Senator’s souls) in deals with the devil.

Mon, 05/23/2011 - 00:38 | 1301160 Tail Dogging The Wag
Tail Dogging The Wag's picture

You know what I think of Goldman Sachs...

**********************************************************************

In times of change you need new alternatives and new ideas.

Land in Panama is one of the most undervalued assets in 2011.

PROTECT YOUR CAPITAL. INVEST. SAVE. OWN. LAND.

http://www.thorssoncapital.com/land-portfolio.html

In the event of a sale of land from any of the Thorsson Capital properties to any Zero Hedge reader, the vendor (Thorsson Capital) hereby pledges a donation of 1% of the total sale to Zero Hedge, said donation is to be made within 30 working days of settlement.

***********************************************************************

Watch our new videos available on our site

Mon, 05/23/2011 - 00:55 | 1301168 The Heart
The Heart's picture

Complete channel change.

Please confirm. Is number one reactor on fire?

JNN ?????? ????? (Live):

http://www.youtube.com/watch?v=FptmoVcgpqg

Mon, 05/23/2011 - 01:18 | 1301180 eureka
eureka's picture

Fuck Jim. Fuck Goldman. Fuck investors. Fuck leverage.

Man's only nobility - and the only tax he pays - is his labor.

Mon, 05/23/2011 - 02:09 | 1301219 theopco
theopco's picture

Traitors. I want blood.

Mon, 05/23/2011 - 05:41 | 1301284 sethstorm
sethstorm's picture

+infinity.

Nothing good has come from China, or can come from China.

Mon, 05/23/2011 - 02:44 | 1301230 zippy_uk
zippy_uk's picture

Another tick in the box for the "Not Gordon" camp.

Imagine if an Asian head did take the head of the IMF an insisted EURope got competative (Germans excepted of course). Yes - they would love that outcome I am sure.

Mon, 05/23/2011 - 03:04 | 1301240 gorillaonyourback
gorillaonyourback's picture

who ever wrote this piece is a true euro crony capitalist,, hoping the IMF retains some semblance of power,,,lololololol.  He is under the assumption the imf will survive, but doesn't mention of if they don't.  retard!   if any one of those countries re institute their currency and it catches on. there wont be an IMF ,it will be called something rather different, where the BRICs make up say 70-80% of the new trade alliance whatever they call it

fucking lackey for the IMF,  writing to get some sympathy for the fucks lolololololo

Mon, 05/23/2011 - 05:18 | 1301272 williambanzai7
williambanzai7's picture

This is what is known in the trade as global ass licking, which Goldman counts among it's storied strengths.

Mon, 05/23/2011 - 06:24 | 1301310 falak pema
falak pema's picture

well, WB, you nearly had me tit licking on the Christine avatar you did; it was so well titted!...so what you, (that's genius), get for free ...I'm sure the Chinese, (that's horse ass), can obtain for money ! These jockeys will ride a lame, blind horse if the money is good!

Mon, 05/23/2011 - 07:19 | 1301345 dcb
dcb's picture

I disagree, if you see or read interviews with Lagarde she is rather rational, and not a huge big fan of the banking industry. Goldman is supporting it's own economic interests. the side of endless tax payer financied bailouts.

Sometimes having the non formal training allows you to see the foolishness ofo the system, and since adoption of the foolishness of the system is key to advancing within that system they want someone that can be controlled. It's not about nation state, but control, not about ability, but control.

How do you think we got stuck with bernanke, summers, geither.

Do NOT follow this link or you will be banned from the site!