Tuesday, 26 February 2008

‘Sovereign’ means . . . Sovereign !


Here’s a mighty exercise in self-delusion. The EC is hoping to persuade the owners of gigantic sovereign wealth funds to sign up to a code of conduct. El Presidente Barroso has pronounced:

We cannot allow non-European funds to be run in an opaque manner or used as an implement of geo-political strategy.

"We will not propose European legislation”, he graciously declares: but he's not to be trifled with: “we reserve the right to do so if we cannot achieve transparency through voluntary means"

This 'we' who *cannot allow* would be the ‘we’ who have been rushing round soliciting sovereign dosh to bail out our failing banks, I take it. Presumably Barroso imagines the Chinese are awaiting the EC’s proposals with trepidation, and that when he tells them to behave like Norway – his chosen model for a Sovereign – they will be keen to fall in line. Or something...

At C@W we have been writing about the Sovereigns since the days when everyone else was worrying about private equity. Let’s get the basics straight. If ‘we’ continue to dismantle our economies and pour trillions of money into the hands of the nations in question, then there is going to be a shift in the balance of power. We don’t like it ? Fair enough, but let’s not embarrass ourselves with this posturing.

Opaque ? Tool of geo-political strategy ? Yes indeed: they ain’t called ‘sovereign’ for nothing !

ND

18 comments:

Sackerson said...

"we should not make the mistake the English made of trying to govern the world, we shall merely own it. Nothing can stop us now!"

Allegedly a quote from an American official in 1932, reproduced on the back of Robert Wyatt's 1982 LP:

http://www.amazon.com/Nothing-Can-Stop-Robert-Wyatt/dp/B000006PKS

Ed said...

I have no problem with foreign governments owning "our" assets or infrastructure. Not only does it surely mean that the owning country is less likely to do anything to upset their investment, if anything does go wrong Parliament can just nationalise it for £1 then sell it straight back to British investors.

Parliament is the only sovereign power in this land.

Sackerson said...

"Parliament is the only sovereign power in this land."

... isn't, should be.

Ed said...

Is, because it **could** decide to leave the EU if we put enough pressure on it.

CityUnslicker said...

ND makes a good point. In pure economic terms too it is very important that the liquidity is kept in the global system.

if all the west's money was simply to languish in arab and asian bank accounts the world would run out of money for investment and become a poorer place very quickly.

The money needs to come back to the West somehwo to be put to productive use again if the recipient economies can't do anything with it.

trying to stop this is absolutely economically illiterate - which is entirely what I would expect of Barroso and his ilk.

Sackerson said...

Ed - I'm right behind you there. But if you also want the power to nationalise domestic, foreign-held assets without compensation, you'd better hope we're in the Premier league militarily.

CU - The EU, UK and US are complaining about hangovers, when they should stop drinking. Putting ouselves in the power of foreign governments that may not always have friendly intentions, is far from wise. Who has the bottle to sort out the mess we're in?

Anonymous said...

Simple Solution:

SWFs should just start buying tons of commodities, bidding the prices to incredible levels. The Americans (and other deficit countries) would squirm from the resulting simultaneous weakening of the dollar (or deficit country currency) and skyrocketing price of commodities (thus consumer prices).

After that, they would be begging the opaque SWFs to go back to financial assets.

Anonymous said...

.....European funds to be run in an opaque manner.....


POT KETTLE BLACK

Anonymous said...

Sadly we are doomed. Totally and irrevocably. You see the Chinese need food, apart from everything else, and that is something that is in ever shorter supply right now. So when the Chinese start using their sovereign wealth fund to buy food you see prices go up, as they have done. Of course the Chinese don't like that, so the next thing they will do is start buying farms in the West. And poor old blighty will be left out in the cold with nothing worth selling to import the food and energy it needs for almost half of its population.

The sovereign wealth funds will be used to purchase the MEANs of production, not merely the output of the production. This is the danger that sovereign wealth funds present.


Inflation is hitting food disproportionately because the improtance of food is rising disproportionately. There are millions more people with the power to buy more food. The food that we want to eat too. Can we compete with them for this food? No. We don't have anything to sell, and we need to start the race to the bottom to be in a position to sell what little we have.

Britain is about to be wiped out in the next generation. There is likely to be civil war and mass emigration. I can't see any other outcome for us. Competing tooth and nail with China will drag us down to the same level, with most of the population on starvation rations. De-population will be the only long-term solution.

CityUnslicker said...

RS - I disagree re China. They have population ageing problem that will substantially limit their growth.

In addition as commodity prices increase there will be a shift back to farming. UK can produce far more than it currently does, albeit in a relatively more expensive way.

All I will agree to is that standards of living may drop as regards to accessibility of food as it becomes a more expensive resource.

As for the UK civil war - that may be but it will be over pension provision and be along age lines rather than anything else.

CityUnslicker said...

Sackerson - much liquidity is needed, it is not a zero sum game.

I also recall Japan in the 80's coming to eat us all and put us into penury with their unstopable economic power.

Sackerson said...

We may need liquidity but it ought to be our own, shouldn't it? Isn't boasting about our capital account like boasting about the size of our mortgages?

Anonymous said...

"I also recall Japan in the 80's coming to eat us all and put us into penury with their unstopable economic power."

Be careful. Japan has a population of 120million, compared to China's 1300million. Japan wouldn't make much impact on the Western world in terms of its food demands, but China certainly could - 300million Chinese live below the bread line. The demands of the Chinese for cheaper food have overthrown Chinese authorities many times in the past. They are strongly driven to secure food supplies for their people.

We should bear in mind also that, Japan invaded China prior to WWII in order to cope with its ever increasing population. It wanted more "living space" for its expanding population just as Hitler looked for "liebensraum" ten years after the Great Depression started.

We may think that such food wars are a thing of the past, but in reality they were merely suppressed by the so-called "Green revolution" of the 70's. The reality is that the benefits of the Green revolution have now been completely absorbed by the rapidly growing populations of India, China and South America. These countries are now turning to rapid industrialisation to try and buy the food they need from places that are net exporters like the US and Australia, knowing that they cannot produce any more of their own food using the benefits of 70's technology. They are now in the position to buy large stocks of wheat and are setting about doing so. Britain relies on its wits for exporting things to pay for the food we import - but this is increasingly undermined by our export of UK jobs to the Chinese and Indians. Meanwhile many of our sharpest citizens have seen the writing on the wall and have taken their families to a better future in Australia, New Zealand and Canada. Plenty of farmland there, of course....

During a housing market boom, how much do you pay for your house? AS MUCH AS YOU CAN AFFORD! Well that boom is over and a new one is beginning. How much will you pay for your daily bread in ten years time? AS MUCH AS YOU CAN AFFORD!

The solution for some seems to be to buy land. Farmland prices are rising rapidly. 46% of land sales are to non-farmers. Are these people that are in the know and have clicked on to the future for this country? Well if they have I guess they had better buy a gun too. Things could turn very nasty.

Anonymous said...

If you want to learn a lot more about UK over-population this site is perfect:-

http://www.optimumpopulation.org/opt.toomany.uk.html

OPT research suggests that a sustainable population for the UK should not exceed 30million. Currently we are already at twice that, and the population is growing very fast now. We are being squeezed from both sides - our own population growing to unsustainable levels and the populations of emerging economies growing and buying the food from under our noses.

Mark Wadsworth said...

What Ed says. That's the beginning and the end of the debate AFAICS.

Nick Drew said...

wow, I go away for two days and WW III breaks out !

Anonymous said...

aaaa片, 免費聊天, 咆哮小老鼠影片分享區, 金瓶梅影片, av女優王國, 78論壇, 女同聊天室, 熟女貼圖, 1069壞朋友論壇gay, 淫蕩少女總部, 日本情色派, 平水相逢, 黑澀會美眉無名, 網路小說免費看, 999東洋成人, 免費視訊聊天, 情色電影分享區, 9k躺伯虎聊天室, 傑克論壇, 日本女星杉本彩寫真, 自拍電影免費下載, a片論壇, 情色短片試看, 素人自拍寫真, 免費成人影音, 彩虹自拍, 小魔女貼影片, 自拍裸體寫真, 禿頭俱樂部, 環球av影音城, 學生色情聊天室, 視訊美女, 辣妹情色圖, 性感卡通美女圖片, 影音, 情色照片 做愛, hilive tv , 忘年之交聊天室, 制服美女, 性感辣妹, ut 女同聊天室, 淫蕩自拍, 處女貼圖貼片區, 聊天ukiss tw, 亞亞成人館, 777成人, 秋瓷炫裸體寫真, 淫蕩天使貼圖, 十八禁成人影音, 禁地論壇, 洪爺淫蕩自拍, 秘書自拍圖片,

做愛的漫畫圖片, 情色電影分享區, 做愛ㄉ影片, 丁字褲美女寫真, 色美眉, 自拍俱樂部首頁, 日本偷自拍圖片, 色情做愛影片, 情色貼圖區, 八國聯軍情色網, 免費線上a片, 淫蕩女孩自拍, 美國a片, 都都成人站, 色情自拍, 本土自拍照片, 熊貓貼圖區, 色情影片, 5278影片網, 脫星寫真圖片, 粉喵聊天室, 金瓶梅18, sex888影片分享區, 1007視訊, 雙贏論壇, 爆爆爽a片免費看, 天堂私服論壇, 情色電影下載, 成人短片, 麗的線上情色小遊戲, 情色動畫免費下載, 日本女優, 小說論壇, 777成人區, showlive影音聊天網, 聊天室尋夢園, 義大利女星寫真集, 韓國a片, 熟女人妻援交, 0204成人, 性感內衣模特兒, 影片, 情色卡通, 85cc免費影城85cc, 本土自拍照片, 成人漫畫區, 18禁, 情人節阿性,

Anonymous said...

情色電影, aio交友愛情館, 言情小說, 愛情小說, 色情A片, 情色論壇, 色情影片, 視訊聊天室, 免費視訊聊天, 免費視訊, 視訊美女, 視訊交友, ut聊天室, 視訊聊天, 免費視訊聊天室, a片下載, av片, A漫, av dvd, av成人網, 聊天室, 成人論壇, 本土自拍, 自拍, A片, 愛情公寓, 情色, 舊情人, 情色貼圖, 情色文學, 情色交友, 色情聊天室, 色情小說, 一葉情貼圖片區, 情色小說, 色情, 色情遊戲, 情色視訊, 情色電影, aio交友愛情館, 色情a片, 一夜情, 辣妹視訊, 視訊聊天室, 免費視訊聊天, 免費視訊, 視訊, 視訊美女, 美女視訊, 視訊交友, 視訊聊天, 免費視訊聊天室, 情人視訊網, 影音視訊聊天室, 視訊交友90739, 成人影片, 成人交友,

免費A片, 本土自拍, AV女優, 美女視訊, 情色交友, 免費AV, 色情網站, 辣妹視訊, 美女交友, 色情影片, 成人影片, 成人網站, A片,H漫, 18成人, 成人圖片, 成人漫畫, 情色網, 日本A片, 免費A片下載, 性愛, 成人交友, 嘟嘟成人網, 成人電影, 成人, 成人貼圖, 成人小說, 成人文章, 成人圖片區, 免費成人影片, 成人遊戲, 微風成人, 愛情公寓, 情色, 情色貼圖, 情色文學, 做愛, 色情聊天室, 色情小說, 一葉情貼圖片區, 情色小說, 色情, 寄情築園小遊戲, 色情遊戲, 情色視訊,