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PostDevelopments in Hong Kong (Bienvenido Macario, USA, 11/02/14 3:49 am)
I hope it's not yet too late to comment about developments in Hong Kong and China. [Absolutely not: JE.]
First, China unveiled its own "World Bank," the $50 billion Asian Infrastructure Investment Bank (AIIB), seen to rival the World Bank and ADB. The World Bank's disadvantage is the current president, who is in fact a Harvard-trained physician turned financial guru. What does Dr. Jim Yong Kim know about finance and the more complex global finance? Maybe he's there to give prescription-strength sleep medications, a ready answer when past and present World Bank officers and employees are asked: "How do you sleep?"
Dr. Kim formerly served with the World Health Organization (WHO), which is mishandling the Ebola epidemic. I have a hypothesis that perhaps he is looking for ways to launder the loot Kojo Annan made in the oil-for-food scandal. Because realistically, the best way to handle the Ebola crisis is to create a huge quarantine area in West Africa covering ports, airports and borders of the affected countries. That's a lot of construction work, and a perfect cover to launder Kojo Annan's loot.
Going back to China's AIIB, Australia, Indonesia and South Korea did not join. It wouldn't be surprising if US Secretary of State John Kerry pressured Australia into boycotting the Walmart World Bank, I mean, the Chinese World Bank.
With regards to the rivalry between Party leader Xi Jinping and Politburo Standing Committee Chair Zhang Dejiang, this is to be expected in a one-party system where during the Cold War days, succession was settled with guns and violence usually resulting in death sentences or life imprisonment. But I think those days are over.
I picked up a different article that has nothing to do with turning the pro-democracy protests into another Tiananmen Square Massacre. This time it appears to be Xi Jinping's move and it could cast Zhang Dejiang in a bad light.
Last month China's receipts showed $37.6 billion of exports to Hong Kong. But Hong Kong's imports from China were just $24.1 billion. That's a $13.5 billion difference of funds going into mainland China under the radar of its strict foreign investment policy. China has one of the strictest foreign investments policies among emerging markets. Another way of looking at it is that goods from China are being smuggled into Hong Kong. But the money still flows back to China. Therefore it's about bogus export receipts.
If we go back to the article Ric Mauricio sent on 29 October (http://m.theepochtimes.com/n3/1046356-hong-kong-media-political-faction-sought-massacre/ ), Zhang Dejiang, a known ally of ex-CCP chief Jiang Zemin, is the Chairman of CCP's rubber-stamp legislature and controls the Party's portfolio for Hong Kong and Macau affairs.
By the way, my thanks to Ric. The article he submitted helped to solve the ghost export receipts mystery.
JE comments: Why would Dr. Kim of the World Bank have any interest in money laundering? I trust Bienvenido Macario was just thinking out loud here. As for Dr. Kim's training in finance, for three years he was the President of Dartmouth College. That is primarily a money job.
Perhaps the more important question is whether WAISers agree with Bienvenido that the International Community has mishandled the Ebola crisis. On the contrary, I've been impressed by the magnitude of the response, and by the relative lack of bickering among nations sending assistance.