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China Mocks G7 As "Gathering Of Debtors", Warns "Confrontation Will Be A Disaster For Europe"
Vladimir Putin didn’t get an invite to the Angela Merkel-hosted G7 Summit in Bavaria last week, which means the Russian President not only missed out on two days at the scenic Castle Elmau, but also on lederhosen shopping with US President Barack Obama who, judging from eyewitness accounts and a variety of amusing photo ops, channeled his inner Clark Griswold upon touching down in the Bavarian town of Krun. The G7 isn’t pleased with Russia’s ‘behavior’ in Eastern Europe and so, Moscow has been expelled from the cool kids club until such a time as the Kremlin agrees to uphold Western democratic values.
(Obama in Krun)
But the G7 is an equal opportunity exclusionist which means it’s not just former superpowers that aren’t welcome, but rising superpowers as well, which means you won’t be seeing Xi Jinping at the table either.
But “Big Uncle Xi” (as he is affectionately known in China) likely isn’t losing any sleep because in the eyes of Beijing, the G7 — much like the IMF and the ADB — is a relic of a global economic and political order that is well on its way to obsolescence if it isn’t there already.
(Xi Jinping; illustration: The New Yorker)
The Global Times (which, it should be noted, is owned by the ruling Communist Party’s official newspaper, the People’s Daily) has more on why the G7 is largely irrelevant in the modern world.
Via The Global Times:
The G7 summit concluded in Germany last week. Chinese scholars and media barely showed any interest to this outdated informal institution, except for a Declaration on Maritime Security issued by G7 foreign ministers. The declaration expressed their concerns on "unilateral actions" in the South China Sea, with China as the obvious target.
Judging from the agenda and outcomes of this year's G7 summit, it has run counter to the global trend of peace, development and cooperation and become mere of a geopolitical tool.
Since the very beginning of the establishment of the G7, it has been a rich-man's club that consists of Western major powers and aims to maintain the collective hegemony of the US-led West. It used to focus on the world's economic issues, and then extended to political and security affairs. After the Cold War, Russia was included in this grouping, which almost became the core of global governance and looked as though it might replace the UN Security Council.
However, the other G7 members never treated Russia as an equal partner. Russia was only entitled to discuss politics and security but not financial and economic issues.
As the world entered the 21st century, new economies started to emerge and the world's political and economic center has gradually shifted to the Asia-Pacific. The 2008 global financial crisis forced G7 members into a stalemate, and these nations started to realize that they could only get rid of the crisis with the help of emerging economies. Therefore, the US proposed defining the G20 as the main platform to discuss international economic problems. Within the G20, although the G7, as a sub group, intends to dominate the agenda-setting, the G7 cannot play its role without cooperation from new economies whose voices can be heard more nowadays.
Yet countries such as the US and Japan can hardly accept the rising international status of emerging economies and are reluctant to give up their hegemony. When the financial crisis eased slightly, Western media vigorously propagated the "revival" of the G7. But the economic performance of G7 members meant the summit was a gathering of debtors.
To some extent, the role of the G7 in global economic governance is negative. The IMF and the World Bank are under the control of G7 members. This is one of the reasons for the low implementation capacity of the G20.
In the field of politics and security, Western powers relentlessly promoted the role of the G7. But the G7 has proved to be unable to maintain regional stability, and has led to chaos in the Middle East instead. After the Ukrainian crisis, the West excluded Russia from the original G8, making the current G7 grouping on the way to becoming a Cold War relic.
Russia and China are main targets of the discussion at this G7 summit. They decided to continue to impose pressure on Russia amid the ongoing Ukrainian crisis. As for China, they focused on issues around the Asian Infrastructure Investment Bank and the East and South China Sea. But it is worth noting that European members have shown a different stance from the US and Japan on both matters.
Whether the G7 will become a geopolitical tool or a Cold War relic largely depends on European countries. Unlike the US, Europe shares a closer geopolitical and economic links with Russia. If the G7 becomes a platform for the confrontation between the West and Russia, it will undoubtedly be a disaster for Europe. Seeking a peaceful solution to the Ukrainian crisis with Russia fits European interests. As for the East and South China Sea disputes thousands of kilometers away from the European continent, these countries needn't necessarily get involved.
During the G7 summit, Japanese Prime Minister Shinzo Abe tried to pull European countries to Japan's anti-China bandwagon. China should continue to stay wary of the Japanese government.
Obviously this is to be taken with a grain of salt considering it comes directly from the politburo, but nevertheless, there are some important observations here that deserve attention.
For instance, China equates the G7 with the IMF and the World Bank, two institutions which Beijing is well on its way to challenging via the AIIB and The Silk Road Fund. In public, China has been careful to adopt a conciliatory stance towards existing multilateral lenders. This partly reflects the fact that China isn’t eager to ruffle any feathers among the Western countries who took a rather palpable political risk by throwing their support behind the AIIB in the face of fierce opposition from Washington. Beyond that though, adopting an overly critical stance towards institutions whose goals are ostensibly similar to those of the AIIB risks sending the wrong message to countries who depend on supranational institutions for aid. That said, equating the IMF, The World Bank, and the ADB with the G7 before subsequently calling the latter a “Cold War relic” is a kind of backdoor way of suggesting that the G7-dominated multilateral institutions are, by virtue of their leadership, hurtling towards irrelevancy.
Further, the assertion that “the economic performance of G7 members [means] the summit [is] a gathering of debtors” is on the one hand hypocritical (China, after all, is sitting on $28 trillion in debt) but on the other hand speaks to the fact that, even as China’s economic growth slows as Beijing marks a difficult transition from an investment-led economy to a consumption driven model, economic growth in the West has simply stalled out altogether and as for Japan, well, Tokyo has been grappling with a deflationary nightmare for decades, something Abenomics has so far failed to correct. In other words, China’s economic miracle may be “landing hard” so to speak, but there’s certainly an argument to be made that even in its crippled state, the Chinese economic machine is still capable of outperforming the West.
Finally, and perhaps most importantly, China suggests Washington’s dominance has led the G7 to pursue myopic foreign policies that have conspired to stoke sectarian chaos in the Middle East (it’s now almost impossible for the US to keep track of where it supports Shiite militias and where it backs Sunni militants) and create the conditions for a second Cold War in Eastern Europe. The deliberate exclusion of Russia, Beijing says, risks transforming the G7 into what is effectively the political arm of NATO, which undercuts the institution's ability the foster peace and cooperation.
Again, some of this is propaganda served hot and fresh straight from the Communist Party kitchen. That said, the underlying geopolitical analysis is spot-on even if it's presented with a hyperbolic veneer.
The G7, like the IMF and the World Bank, is quickly falling victim to the arrogance of its most powerful members. If an overriding sense of Western exceptionalism is allowed to create the same type of complacency and rigidity that has paralyzed the IMF, it may not be long before the world's emerging powers supplant entrenched political bodies much as they have moved to supersede ineffectual economic institutions.
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"Further, the assertion that “the economic performance of G7 members [means] the summit [is] a gathering of debtors” is on the one hand hypocritical (China, after all, is sitting on $28 trillion in debt)"
$28T in debt ---- to whom...?
It's a lie coming from Illargi at Automatic Earth blog. That man is a tool ffs. According to those Western numbers, Chinese debt is larger than that of Murica and Europe put together, yet ask yourself, or take a moment to find out, who is Murica and Europe's largest creditor. You will find out it is China. That is how stupid that lie is. This fucking propagandist is treating his readers for utter fools.
Was the first pic taken at an organ grinder convention in Krun?
Eeez theese your minkey?
No, but it is the monkey of the puppet masters.
I thought you said your dog doesn't bite.
I remember all the gloom and doom that followed the descent of the United States from the world's largest creditor to the world's largest debtor all within one term of the Reagan Presidency. That was 30 years ago.
The poor are now more numerous and the middle class are less numerous and the Rich are much richer. If you happen to be a person with a surfeit of wealth and an income that exceeds your capacity to consume, everything is going along just fine. And so it will stay that way until war, or some other violent form of change, comes along in which the rich actually lose out.
Don't hold your breath waiting for this to happen.
Just as America has kicked the can down the road, when it comes to debt and unfunded liabilities, America will keep increasing the credit to pay for debts it could not otherwise repay. We can be reading such posts as this one 50 yeas from now, or until one side ventures into open warfare or one class ventures into open rebellion; or maybe it will take both to happen within the same timeframe (like The Great War and the Bolshevik Revolution).
I was in a bar in Ventura in the eighties. There were two Rolls Royce Corniche convertables outside, the owners inside having a drink. If I remember correctly both were in manufacturing.
When it came time to leave and pay the bill, one of the Corniche owners wrote a check and was promptly refused as his prior check was NSF.
The other Corniche owner was laughing at the situation.
The G7 is like the Corniche owner with the NSF check.
The Comiche "owner" is still pissed off and embarassed about that incident, and has been following you around for years just to junk your comment.
China has been one touch & go from a 'hard landing' - how many times, since 2008...?
Unfortunately, many of these nations are racing to out-spy each other instead of fostering stronger diplomatic ties to benefit the world. It sucks for the average "Joe"... or "Wong" .....
You can be sure the average worker has zero interest in moar war and conflict; he/she wants a steady a job, some eats, feed/raise a family and not be screwed over 24/7.
Will the US fire up the HAARP machine and light up the Pacific Ring of Fire? Sure, we may lose California, but it WOULD solve the drought problem.
What "Western democratic values"? What the are you talking about? This piece of crap looks like something which would come from Western corporate media... like something it is written by some truly moronic creature and intended to spread propaganda, lies and disinformations... like something which is intended for Western public! It insults readers' intelligence ffs! Idiot, Russians are not Westerners to be upholding any Western "standards" or "values" (like you Westerners really have any)! And even if this site is primarily, if not exclusively, for Western public, it is still insulting for your readers to watch those intelectually dishonest, propagandist Western corporate media talking points ffs! Corporate media treats their readers like idiots they can cheat, mislead, deceive and lie to regularly! Do you really want to go down that road? That is something you should be asking yourself. It doesn't take much to lose credibility, but it is god damn hard to build it. Integrity is like a tree: it takes decades to grow it up, but only a minute to destroy it. It is that precious. So maybe you want to think hard and long before you jump onto Western corporate media talking points, like I said, even if your site is meant for Westerners.
And the 2nd objection is regarding the lie about China's debt. Where did you get the 28 trillion number? From Illargi's blog? Chinese debt is all domestically owned and it is around 40% of their GDP. Chinese household debt is miniscule, and China does not have hundreds of trillions in derivatives (nothing in derivatives; that financial "engeneering" product is solely Western invention and has no hold outside of the West), so even adding all Chinese debt (gov and households), you still wouldn't come even close to 28 trillions. Fucking lies and propaganda you are putting here!
For Russia to uphold western democratic values it would need to vaporize wedding parties in Iowa and then spend $5 billion in support of a colour revolution in Texas. Then the Russian foreign minister would need to tell the American people "Fuck You" while he appoints the president and cabinet to assume power after the next "election."
The recently concluded G7 “Gathering of Debtors" was certainly a spectacle to behold. This group certainly has valuable “advice” to offer the rest of the world- US boasts a national debt of > $18 trillion (www.usdebtclock.org). US taxpayers have spent circa $3 trillion on Iraq/Afghanistan and Obama is planning continuing this disaster by setting up new “lily pad” bases in Iraq (www.cnn.com/videos/world/2015/06/11/us-troops-lily-pad-military-bases-iraq-starr-dnt-tsr.cnn). In the EU, the current theme is high debt, high unemployment coupled with increasing austerity, while the Japanese economy has been stagnant/declining for 2 decades. Japan is also faced with the 2011 environmental/financial disaster at Fukushima- the disaster that keeps on giving. One gets the feeling that Japanese Prime Minister Shinzo Abe is hoping that Fukushima will magically disappear.
Silent coup is silent until it is over. By now, you should know the score. Policy coup has allowed London and Israel to hijack the US military to expand borders of Israhell and simultaneously bankrupt its own country. Two birds with one stone or 300 million people turned into debt slaves and stateless at the same time.
China watches silently as millions of innocents in the Middle East are murdered with their generous extended loans, injuried, left parentless and sent into mass migration. China likes cheap oil any way it can get it. Chinese are buying up the world after "killing the dollar" strategy developed by the USA against its own currency (kamikazi economy policy) and spreading their good will where ever the Real Estate deals are ripe for the picking.
The world's economic system is being trashed and America's aim is to end up on top of that trash pile. What is happening at the moment has nothing to do with rehabilitating the workd's financial system or the relationships between nations.
Merca's about to get pu$$y whipped
https://ixquick-proxy.com/do/show_picture.pl?l=english&rais=https%3A%2F%...
“Without gold, the world’s central banks shifted to U.S. Treasury bills – government IOUs issued to finance the budget deficit that was largely military in nature. This meant that global monetary reserves monetized U.S. military spending to surround these countries and destabilize them if they tried to withdraw from the system. (That is what the book `Super Imperialism' is all about.)"
"The easiest way to stop U.S. military adventurism is to restore gold and free the world from having to use a militarized U.S. Treasury-bill standard as their monetary base.” Michael Hudson
paraphrasing ' although this has come straight out of the communist party manifesto . . '
D'uh the same folks who DECIDE POLICY. How Strange but NO Surprise as the BANKERS DECIDE USSofA and EU Policy; So in effect the G7 is NOTHING but a MOUTHPIECE.
Fuck You G7 Windbags. Bark don't try to Bite Me.
Here is the starting point.
http://michaelekelley.com/2015/04/28/next-recession-will-start-with-this-country/
Here is how to prepare.
http://michaelekelley.com/2014/10/16/8-things-to-do-when-recession-happens/
Here is how to get your mind off this stuff.
http://michaelekelley.com/category/humor/
Good luck!
Use of the word "recession" is a dead giveaway that a particular commentator is clueless.
Hint: Great Depression 2.0
Russia, China, Asia, South America, and Africa would do quite fine if Europe and North America went 'Atlantis' and sunk beneath the waves.
Shirley you don't include La Tour d'Argent?
http://www.viamichelin.com/web/Restaurant/Paris_05-75005-La_Tour_d_Argen...
Chicago's $1 Billion Debt Restructuring Advances
by YVETTE SHIELDS
Chicago $1.1 billion general obligation debt restructuring cleared the City Council Finance Committee Monday after a two hour hearing during which new chief financial officer Carole Brown defended plans to roll short-term operating expenses on to the city’s long-term debt load.
READ MORE »
G-7 Is well described as a gathering of debtors. In fact. The USA is north of 17 trillion $ in debt. The UK is pushing 1.5 trillion pounds. The other G-7's like Japan are simply off the charts. Italy is probably insolvent, but limping by. France is stable, but weak. Germany is the defacto EU ruler, and has by far the best real economy. China has more foreign currency reserves than the entire debt of the UK by 2X. The USA has committed and or spent, 7 trillion on wars since 2000. Mind you, that 7 trillion is gone, it produced nothing, that is why the USA is in the state it is.
The EU is now beginning to rot. Right now it still seems rich, but it's sinking fast. And it is going to drown under the weight of one of earths greatest human migrations. No less than 100 million people are preparing to move to Europe. We see the tip of the migration now out to sea in the Mediterranean . Africans and Arabs all demanding access to the EU. And nobody is or will stop them. Brussel's EU masters have a plan, to end European ethnicity and create a population with no nationality and no ethnicity among whites. A population of low wage workers and soldiers to act for Zionism. Zion always seeks to destroy European identity and ethnicity, Zionism controls better when people have no common factor to rally to. At one time Europeans knew what zionists were trying to do in Europe, but now they are back, and this time they will destroy nations and people with 7,000 year histories. To create a new world order, ruled by Zionists, their bankers and corporate CEO's. Meanwhile Europeans are deluded by Zionist owned media and Washington DC, the center of Zionism, acts as an agent of this zionist take over. WHo really wants mass migration to Europe? Nobody, except who? Bankers, Corporate CEOs, militarists and zionists. Same in the USA.
yes yes, the US has debts... mostly to itself... how much is the US owed again?
nope idiot you owr majority of your debt to china and japan . duck it up tutrle brain .
Damn Jack -every post you make is gold, but this one is a real gem. Thanks for giving me positive acknowledgemt and corroboration of my own world viewpoint and observations. You don't mince words -you have told it as it is and you are right on. So many of the few who undertstand what is goping on have the courage to speak the truth as you have.
Sometimes I feel so alone -the curse of knowledge and of discerning the Truth. You are my soul brother and /or sister -whatever you are. By the way. are you a dude or a chick?
"By the way. are you a dude or a chick? "
Big Trouble in Little China. Gotta be a dude...Kurt Russell I would guess.
That's it. Only to broaden the concept slightly, the Zionist goal is to destroy all forms of nationalism, to destroy all strong countries and cultures, to destroy all nation states, destroy Christianity and Islam, and replace them with Cabalism and one unified banking/financial/political system which they own and control, until we are all puppets on a string. Most of the insanity we see occuring between the major powers in the world today (and which has been occuring for the last 100 years) can be explained by this singular goal of the Zionists.
" the Zionist goal is to destroy all forms of nationalism"
except in israhell
The moment anyone points out that US/EU immigration policies are designed to displace the current inhabitants you are labelled a racist. The fact is the current populations are being displaced under a corporate agenda under a long term plan. Within 30 years the current generation and the next generation will know no other reality. The social engineering taking place is deliberate and will destroy our culture or what is left of it. The propaganda model is at play, we are manipulated to think that new immigrants are good for our economy and that we are to feel somewhat sorry for them when in fact our government has screwed them in their own homeland and thus making it necessary for the best and brightest of the nation to migrate to the USA or EU. We in the West have plenty of resources to establish or create a better life for the people who are immigrating back in their own homeland, but our governments policies have screwed over their homelands, our corporations have profited from their misery and profited by war and by extension our governments created this social environment which in the end is going to destroy our own future.
A gathering of debtors? Is that true? Are we all in debt?
WTF....no wonder they are laughing at us!
Like those big fat asian pig fucks dont have debt..lol Hey XI, NICE monicker by the way,
oh by the by Jasper XI, why the fuck were all those fucking ghost cities built in your significant and growing cancer cities?...Got used mother bored?
, wouldnt have been to help out with MBS and drviatives would it NUMBER 9? Fucking thieves...all you have is what you stole, an that tresonist sick fuck willie gave you?, kind of like herpes..Cinton is the gift that keeps giving
China, sort of like that shit that seriously needs flushing down the swirl imediately becuse the flys are swarming, and the brown log stench dosent smell likeR oses...right number 9, with cheese
Oh slick wille, 9 (ole 'Sick Dick)..you fucking commie diseased arkansas, livr lipped pig fuck..you ned to take a very long walk, n when you get there prick, stay the fuck there you bloody cocksucker.
Hitlery the escapee fro Tyson food..stop eating before you explode, you filth fly infestd cunt wesel
'Obama in Krul'
Does the term "nigger in the woodpile" spring to mind !
"Obviously this is to be taken with a grain of salt considering it comes directly from the politburo..."
I don't why this should be taken with a grain of salt. It is at least as credible as the lies and patriotic bullshit coming from Washington and its surrogates at the Washington Post, NY Times, and CNN (well....all of the alphabet networks). To downplay it with this qualification seems like a ploy straight from the DC crowd.
ah...the old American "Their propaganda is lies...always.....WE tell the truth....always....OUR propaganda is truth" ploy
as opposed to the kleptocracy!!!
The Trans-Pacific Partnership benefits China.
how is that?
China has it right, G-7 is nothing but a gathering of debtor nations.
Batshit crazy hobos, fantasists and vicious thugs was my understanding of the G7.
well its true isn't it - oh oh, there at the door
Yeah and most are in debt to China...lol, China might want to turn down the rhetoric; whats the saying? "If I owe £1000 it's my problem, but if I owe £10000000000 it's your problem".
Japan? Isn't this the same country that literally had 10 different finance ministers over a 6 year period recently?
To begin to understand the state of affairs and likely outcome, one must forget anything the learned regarding principles. This is a story of amorality and corruption on all sides. In reality the meak inherit dirt.
the picture of xi looks a lot less communist than the new hitlery posters, which could have been made by stalin.
himmler and goebbels
Moron oligarchs of the west didn't realize that a NWO based on old world thinking doesn't F'n work.
As a member of the left the picture says it all. I see these children soon if not already to be slaves in tpp/tpip. It cant't get any better than that for liberatairns can't it?
If EU keeps growing, US will face a challenger from it's own side. So I think it's obvious that US administration won't hesitate to drag EU into conflict with Russia. Hence, everything happened in Middle East and East Europe.
"If EU keeps growing,"
the EU has stopped growing and is now collapsing.
how can something be a "union" if it is controlled by the ussa?
how can something be a "union" if it's members are making big noises about leaving?
how can it be a "union" if it does not allows its populations a voice in its governance?
etc, etc.
no, the EU is not growing, it is coming apart at the seams.
China apparently realizes that the largest debt bubble in the history of the world was manufactured by the United States...
http://www.globaldeflationnews.com/anatomy-of-a-bubble-how-the-federal-r...
and that Asian markets are flashing strong buy signals,
Like 5 kids (excluding US & Germany) huddled in a basement to ease each other pains, Noises from their Banker (China) and Broker (Russia) will be far too painful.
A big thanks perhaps from Xi. Just spared him from having to spin and be persuaded into any compromises. He is not there...the best excuse to do whatever he wants using willing proxies like Putin.
However, China is also plagued with a huge internal debt problem. It is already an economic/currency war unfolding.
I wonder how well China's economy would be doing if all those debtor nations stopped buying their stuff on credit?
We'll probably never find out because war will most likely precede repudiation.
It's not "buying" if you are borrowing money without the ability to pay back. It's getting something for nothing.
So the question really is whether China will have any major economic problems if she stops sending goods to the US for free.
"Again, some of this is propaganda served hot and fresh straight from the Communist Party kitchen.
That said, the underlying geopolitical analysis is spot-on even if it's presented with a hyperbolic veneer. "
did you really say this? lmao
China should remember that when criminals with big guns lose all their money...
They start robbing , killing & snatching.
So what to do,
keep your guns & boys ready.
Way to go G7:
Top German Banker: Russia and China Will Defeat US Hegemony
Bye Bye Byzantine Mr Obama Constantine X1 Palaiologos.