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Sunday, 3 June 2012

American drone wars and state secrecy!

How Barack Obama became a hardliner?

He was once a liberal law professor who campaigned against the Iraq war. Now, according to revelations last week, the US president personally oversees a 'kill list' for drone strikes in Yemen and Pakistan. Then there's the CIA renditions, increased surveillance and a crackdown on whistleblowers. No wonder Washington insiders are likening him to 'George W Bush on steroids'

Barack Obama
The revelation that Barack Obama keeps a 'kill list' of people to be targeted by drones has led to criticism from former supporters. Photograph: Carolyn Kaster/AP



Amos Guiora knows all about the pitfalls of targeted assassinations, both in terms of legal process and the risk of killing the wrong people or causing civilian casualties. The University of Utah law professor spent many years in the Israel Defence Forces, including time as a legal adviser in the Gaza Strip where such killing strikes are common. He knows what it feels like when people weigh life-and-death decisions.

Yet Guiora – no dove on such matters – confessed he was "deeply concerned" about President Barack Obama's own "kill list" of terrorists and the way they are eliminated by missiles fired from robot drones around the world. He believes US policy has not tightly defined how people get on the list, leaving it open to legal and moral problems when the order to kill leaves Obama's desk. "He is making a decision largely devoid of external review," Guiroa told the Observer, saying the US's apparent methodology for deciding who is a terrorist is "loosey goosey".

Indeed, newspaper revelations last week about the "kill list" showed the Obama administration defines a militant as any military-age male in the strike zone when its drone attacks. That has raised the hackles of many who saw Obama as somehow more sophisticated on terrorism issues than his predecessor, George W Bush. But Guiora does not view it that way. He sees Obama as the same as Bush, just much more enthusiastic when it comes to waging drone war. "If Bush did what Obama has been doing, then journalists would have been all over it," he said.

But the "kill list" and rapidly expanded drone programme are just two of many aspects of Obama's national security policy that seem at odds with the expectations of many supporters in 2008. Having come to office on a powerful message of breaking with Bush, Obama has in fact built on his predecessor's national security tactics.

Obama has presided over a massive expansion of secret surveillance of American citizens by the National Security Agency. He has launched a ferocious and unprecedented crackdown on whistleblowers. He has made more government documents classified than any previous president. He has broken his promise to close down the controversial Guantánamo Bay prison and pressed on with prosecutions via secretive military tribunals, rather than civilian courts. He has preserved CIA renditions. He has tried to grab broad new powers on what defines a terrorist or a terrorist supporter and what can be done with them, often without recourse to legal process.

The sheer scope and breadth of Obama's national security policy has stunned even fervent Bush supporters and members of the Washington DC establishment. In last week's New York Times article that detailed the "kill list", Bush's last CIA director, Michael Hayden, said Obama should open the process to more public scrutiny. "Democracies do not make war on the basis of legal memos locked in a [Department of Justice] safe," he told the newspaper.

Even more pertinently, Aaron David Miller, a long-term Middle East policy adviser to both Republican and Democratic administrations, delivered a damning verdict in a recent issue of Foreign Policy magazine. He wrote bluntly: "Barack Obama has become George W Bush on steroids."

Many disillusioned supporters would agree. Jesselyn Radack was a justice department ethics adviser under Bush who became a whistleblower over violations of the legal rights of "American Taliban" John Walker Lindh. Now Radack works for the Government Accountability Project, defending fellow whistleblowers. She campaigned for Obama, donated money and voted for him. Now she has watched his administration – which promised transparency and whistleblower protection – crack down on national security whistleblowers.

It has used the Espionage Act – an obscure first world war anti-spy law – six times. That is more such uses in three years than all previous presidents combined. Cases include John Kiriakou, a CIA agent who leaked details of waterboarding, and Thomas Drake, who revealed the inflated costs of an NSA data collection project that had been contracted out. "We did not see this coming. Obama has led the most brutal crackdown on whistleblowers ever," Radack said.

Yet the development fits in with a growing level of secrecy in government under Obama. Last week a report by the Information Security Oversight Office revealed 2011 had seen US officials create more than 92m classified documents: the most ever and 16m more than the year before. Officials insist much of the growth is due to simple administrative procedure, but anti-secrecy activists are not convinced. Some estimates put the number of documents wrongly classified as secret at 90%.

"We are seeing the reversal of the proper flow of information between the government and the governed. It is probably the fundamental civil liberties issue of our time," said Elizabeth Goitein, a national security expert at the Brennan Centre for Justice. "The national security establishment is getting bigger and bigger."

One astonishing example of this lies high in the mountain deserts of Utah. This is the innocuously named Utah Data Centre being built for the NSA near a tiny town called Bluffdale. When completed next year, the heavily fortified $2bn building, which is self-sufficient with its own power plant, will be five times the size of the US Capitol in Washington DC. It will house gigantic servers that will store vast amounts of data from ordinary Americans that will be sifted and mined for intelligence clues. It will cover everything from phone calls to emails to credit card receipts.

Yet the UDC is just the most obvious sign of how the operations and scope of the NSA has grown since the 9/11 terrorist attacks. Under Bush, a key part was a secret "warrantless wiretapping" programme that was scrapped when it was exposed. However, in 2008 Congress passed a bill that effectively allowed the programme to continue by simply legalising key components. Under Obama, that work has intensified and earlier this year a Senate intelligence committee extended the law until 2017, which would make it last until the end of any Obama second term.

"Obama did not reverse what Bush did, he went beyond it. Obama is just able to wrap it up in a better looking package. He is more liberal, more eloquent. He does not look like a cowboy," said James Bamford, journalist and author of numerous books about the NSA including 2008's The Shadow Factory.

That might explain the lack of media coverage of Obama's planned changes to a military funding law called the National Defence Authorisation Act. A clause was added to the NDAA that had such a vague definition of support of terrorism that journalists and political activists went to court claiming it threatened them with indefinite detention for things like interviewing members of Hamas or WikiLeaks. Few expected the group to win, but when lawyers for Obama refused to definitively rebut their claims, a New York judge ruled in their favour. Yet, far from seeking to adjust the NDAA's wording, the White House is now appealing against the decision.

That hard line should perhaps surprise only the naive. "He's expanded the secrecy regime in general," said Radack. Yet it is the drone programme and "kill list" that have emerged as most central to Obama's hardline national security policy. In January 2009, when Obama came to power, the drone programme existed only for Pakistan and had seen 44 strikes in five years. With Obama in office it expanded to Afghanistan, Yemen and Somalia with more than 250 strikes. Since April there have been 14 strikes in Yemen alone.

Civilian casualties are common. Obama's first strike in Yemen killed two families who were neighbours of the target. One in Pakistan missed and blew up a respected tribal leader and a peace delegation. He has deliberately killed American citizens, including the radical cleric Anwar al-Awlaki in September last year, and accidentally killed others, such as Awlaki's 16-year-old son, Abdul-Rahman.

The drone operation now operates out of two main bases in the US, dozens of smaller installations and at least six foreign countries. There are "terror Tuesday" meetings to discuss targets which Obama's campaign manager, David Axelrod, sometimes attends, lending credence to those who see naked political calculation involved.

Yet for some, politics seems moot. Obama has shown himself to be a ruthless projector of national security powers at home and abroad, but the alternative in the coming election is Republican Mitt Romney.

"Whoever gets elected, whether it's Obama or Romney, they are going to continue this very dangerous path," said Radack. "It creates a constitutional crisis for our country. A crisis of who we are as Americans. You can't be a free society when all this happens in secret."

Death from the sky

• Popularly called drones, the flying robots used by Obama are referred to as unmanned aerial vehicles by the defence industry that makes them. The air force, however, calls them RPAs, or remotely piloted aircraft, as they are flown by human pilots, just at a great distance from where they are operating.

• The US air force alone has up to 70,000 people processing the surveillance information collected from drones. This includes examining footage of people and vehicles on the ground in target countries and trying to observe patterns in their movements.

• Drones are not just used by the military and intelligence community. US Customs and Border Protection has drones patrolling land and sea borders. They are used in drug busts and to prevent illegal cross-border traffic.

• It is assumed the Pentagon alone has 7,000 or so drones at work. Ten years ago there were fewer than 50. Their origins go back to the Vietnam war and beyond that to the use of reconnaissance balloons on the battlefield.

• Last year a diplomatic crisis with Iran broke out after a sophisticated US drone, the RQ-170 Sentinel, crash-landed on Iranian soil. Iranian forces claimed it had been downed by sophisticated jamming technology.

Saturday, 2 June 2012

Japan's Politics Favoring a Regional FTA over TPP?

It is easy to misapprehend Japanese politics.  It is hard—to put it mildly—to correctly apprehend them.   I say misapprehend, rather than misunderstand, Japan’s politics because the problem is not so much interpretation of information as of one of limited and biased sources of information.

Sad to say, if you don’t have Japanese and aren’t listening to and reading the Japanese media, you can simply give up thinking that any judgment you make is based on meaningfully representative information.  But even if you do follow matters in Japanese, it is hard to avoid finding one’s judgment biased by the fact that only Japan’s big business community—whose organ is the Nihon Keizai Shimbun—seems to speak on any issue clearly and with one voice.  The trap is allowing oneself to think that the Nikkei’s advocacy—because clear and forceful—holds more sway in the political process than that of a host of other interest groups, or that Japan’s political process is particularly responsive to big business.

I say this by way of apology and no doubt excuse for what I have suggested in the past is the “slam dunk” logic of Japan’s entering the Trans-Pacific Partnership (TPP) negotiations, or of meeting any ostensible deadlines for doing so, or of TTP being one of the highest priorities of the Noda government, and that accession to an agreement is critical to Japan’s future.

During the past month, and for at least the next few weeks, the Noda government—and Prime Minister Noda personally—have been engaged in a raucous and exhausting debate with dissident members of its own ruling Democratic Party of Japan (DPJ) as well as the opposition parties, led by the Liberal Democrats (LDP), over legislation to raise Japan’s consumption tax from 5% to 10%.  Noda has said many times that he is staking his political life on passage of the consumption tax rise, so vital does he believe it is to putting Japan back on a path to fiscal soundness and avoiding a Greece-like crisis.

Noda’s policy stance on the consumption tax is exactly that of Japan’s big business establishment, and the editorial pages of the Nihon Keizai Shimbun.   What about TPP—along with the consumption tax hike, a cause celebre of the Nikkei?  In fact, the trade agreement seems to have slipped completely off the agenda, at least for the time being.  Why—if it is so critical—might this be the case?

In answering this question I am indebted to an exceptionally insightful analysis by Professor Aurelia George Mulgan of the University of New South Wales in Australia recently posted in the East Asian Forum (website: eastasiaforum.org).  Apart from the obvious point that presently Noda has no spare political capital to invest in TPP, Professor Mulgan notes that “Japan’s record on signing Free Trade Agreements (FTAs) is not promising.  As a general rule, Japan prefers signing FTAs with non-agricultural exporting powers, rather than with powerhouses like Australia, New Zealand, and the U.S….  Japan has not signed trade agreements with its major trading partners or with developed countries (except for Switzerland in 2009); and it has preferred developing countries instead because it asks them to accept a lower trade liberalization rate with exceptions for some agricultural product.”

Professor Mulgan elaborates on why TPP is stalled, and may be doomed, in Japan.  I want to relate his many insights in a future post.  Now I will focus on one more; he writes:

“PM Noda has argued that by joining the TPP Japan ‘can absorb the Asia Pacific’s growth power’, but this argument is flawed because…China, South Korea, Thailand, Indonesia, and the Philippines, are not in it.”

While TPP may be going nowhere, Professor Mulgan believes that Japan will “continue to push the Japan-China-South Korea FTA proposal, which was boosted by Noda’s recent trip to Beijing.”  In fact, at the tripartite meeting in Beijing Noda suffered another humiliating snub as Hu Jintao refused to meet one-on-one with him.  Speculation was briefly rife in the Japanese press as to why this happened.  But the buzz quickly passed, as snubs from Beijing seem recently to be the rule rather than the exception.

As readers of this blog know, I believe that the China-centric Asian regional economic and trade integration is an overriding mega-trend shaping and redefining Japan’s future.

Despite the Nikkei’s advocacy, movement toward TPP has stalled.    Very likely, where Japan’s varied political interests are aligning is toward a Japan-China-Korea FTA.

Stephen Harner
Stephen Harner, Forbes Contributor


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You are guilty until you prove yourself innocent in cyberspace, right?

Write or not, you can be wrong!

It is absolutely right that we be held responsible for what we post and say in cyberspace. But only if we indeed are the ones who wrote and posted it. 

SOME years ago, a nephew – a freshie in college then – walked over to me with his phone and pointed out an app he had. It was all in Russian, so it was pretty much Greek to me.

“Watch this,” he said, and fiddled with the keys. Seconds later, my phone rang. It was my wife.

But the wife was sitting across the table, all innocent-like and with her handphone safely ensconced in one of those tie-string cloth bags – inside her handbag (why they do that with handphones, I will never understand).

So, I stared at the nephew. He grinned. It was an app, he said, that could tap into any phone nearby and make a call out, using that number. You got to chat and someone else got the bill.

Cyber fun: This file picture shows a group of people patronising a cybercafe in Petaling Jaya. Someone could very easily walk into a place like this, hack into a person’s account and do something nasty.
 
“Do you want it? I can bluetooth it over to your phone,” he asked, oh so generously.

No thanks, I said, I can pay my bills without having to land someone else with the burden.

That was years ago and with a phone that’s nowhere as canggih as the ones to be found these days. These days, I am told, kids can do just about anything with their phones and computers or tablets.

Which is why the story of the new Evidence Act is quite scary for people like me. You see, anything posted on, say, your Facebook account is now your responsibility (as it should be, if you really did post it) and the real scary part is: you are guilty until you prove yourself innocent.

I’m no wonderkid and I am still trying to figure out what all this means but the doctrine of being guilty until proven innocent just doesn’t sit right.

Sure, some friends tell me that IP addresses are infallible and unique but these days, tech guys can do just about anything.

And what if some guy goes into a cybercafé, hacks into my computer and does some nasty stuff. Do I take the fall?

I mean, I’m the guy who grew up with stuff like The Net, where Sandra Bullock’s character has her identity stolen and loses just about everything. Of course, in the movie, she’s this IT-savvy girl-genius who manages to outdo the bad guys. But this is the real world. The bad guys often win!

And even Datin Paduka Marina Mahathir (she needs no introduction) had to make clear a few days ago that some imposter (im-poster, how apt) was posting stuff in her name.

Sure, there’s a need to regulate what’s being said in social media these days. I tell you, it’s a real rancorous country out there these days.

We’ve had a yellow rally, a red rally, big guys with beef burgers, bigger guys going bottoms up (with warm water please, no isotonic drinks. Someone should tell them that bottoms up is best done with the hard stuff), even punch-ups and egg-throwing fests.

And all that rancour is turning into a lot of venom and seditious, defamatory stuff that’s being spewed anonymously on the Net.

It doesn’t have to be all politics, either.

There was this model who was rubbed the wrong way, quite literally, by some guy in a cybercafe. And a few other guys had heckled her and made catcalls in Tamil.

If she is expecting catcalls in Hindi, Urdu, Telegu or Malayalam from Indian-looking guys in Malaysia, she has a long wait coming.

Most Indian-looking guys here speak Tamil and many do make cat-calls at pretty, young Indian-looking woman.

I don’t know where this woman’s ancestors came from in India but since the guys spoke in Tamil, she decided she hated the Tamils and went on a hate-spree on Facebook.

Of course, that angered other Tamils, whose only crime was trolling the Net. And they went after her with a real vengeance.

The poor woman had to apologise in a newspaper, saying she meant to scold only those guys who had hurt her.

That is the problem with the social media. It’s one thing to grumble to friends about others, but another altogether to go about hate-mongering on the Net.

This model is not alone. Some years ago, another woman – a snatch theft victim, I think – also went on a racist rant after her ordeal.

She, too, received several angry retorts before being forced to apologise.

So, it is important that we stop to think about what we want to write in cyberspace.

And I believe it is absolutely right that we be held responsible for what we post and say. But only if we indeed are the ones who wrote and posted it. But guilty until proven innocent? I’ll definitely take a rain check on that.

> The law comes into effect June 1, 2012 but the writer hopes that lawmakers will take another look at it, although he has no solutions to offer. It’s over to the techies, really.


Why Not? By D. RAJ

Related post:

Bridging the rich-poor gap in Singapore

The recent pay increases are seen by some Singaporeans as a step forward, but critics view them as tweaking, rather than resolving, a fundamental problem.

WHEN Cabinet ministers took turns to rebuff a proposal to push up salaries of lowly-paid workers, most Singaporeans viewed it as good as buried.

Given the strict way the government is run, the revolutionary idea raised by former state economic adviser Professor Lim Chong Yah might well have faced the death sentence.

His think-out-of-the-box way of narrowing the economic gap called for the salaries of low-level workers to be raised by 50% over three years, and those at the top-end be frozen for a similar period.

The widening gap between rich and poor is becoming one of the most pressing problems here today. It threatens Singapore’s social fabric despite its strong GDP growth.

To the PAP, Prof Lim’s suggestion probably smacks too much of socialism.

But according to the professor, this land of record millionaires needs such a solution because it has for years been significantly under-paying its poorer workers.

The rich are becoming richer, and the poor poorer, not the best way to win votes.

The Boston Consulting Group said that 15.5% of Singapore households have at least S$1mil (RM2.4mil) in liquid assets, the highest percentage in the world.

But the earnings of the city’s 20% lowest paid had declined during the past 10 years.

The unequal growth was not due to globalisation or technological change, but the mass influx of foreign workers in the past 10 years, said prominent diplomat Prof Tommy Koh.

He said Singapore had a per capita income similar to Denmark, Finland, and Sweden, yet cleaners in these countries were paid some seven times more than those in Singapore.

Prime Minister Lee Hsien Loong’s response to Prof Lim was a firm “no” and said such pay increases must be matched by a rise in productivity.

That is virtually impossible as this growth slowed to an average 1% a year in the past decade.

However, I’m glad no one said “never” to Prof Lim. Due to the seriousness of the problem, it is unlikely any leader can swear that the concept will not be relooked at one day.

In fact, since Prof Lim’s controversial suggestion, a series of steep pay increases resembling — and even exceeding — his suggestion has been announced — although only for a duration of one year.

Prof Lim’s proposal was for an average of 16%-17% a year for a consecutive three years.

The recent ones included the following:

> SMRT announced that it was raising bus drivers’ salaries by 35%, but for a six- instead of five-day week.

> Public health workers, including nurses, will have had increases of up to 17% from last month.

> Social workers can expect pay rises of up to 15% this year.

> NTUC, the large union movement, announced that non-executive staff will get up to 15.8% in wage increment and adjustment.

> Several thousand junior and mid-level civil servants will get pay increases of between 5% and 15% this year.

The increases are, of course, unconnected to Prof Lim’s proposal but some observers believe the government is worried over, and may be responding to, the growing public unhappiness about stagnant salaries.

In its way, the job market seems to be lending support to Prof Lim’s proposed measures. The economic imbalance is the second worse in the world, next only to Hong Kong.

But Premier Lee disagreed.

“Although we want our workers to earn more, we cannot simply push up Singaporean wages as we would like,” he wrote on his Facebook page.

“The only way for our workers to do better is to compete on knowledge and innovation, upgrade our skills, and stay ahead of the pack.”

Critics, however, say this is near crisis time and it is not sufficient for the premier to stick to a conventional approach.

Meanwhile, the national wages advisory council, of which Prof Lim is former chairman, has for the first time since 1984 recommended a minimum quantum of pay raise.

It suggested S$50 (RM120) plus an unspecified percentage for workers earning less than S$1,000 (RM2,400) a month.

Although critics say it is a far cry from what is needed, it is apparently aimed at drawing a minimum line.
The authorities have always rejected calls for a minimum wage in Singapore.

Ryan Ong of Yahoo Moneysmart commented: “No offence and all, but that’s about as helpful as a pair of blunt scissors.

“I guarantee a whole bunch of companies are already reading ‘unspecified percentage’ as ‘nothing’.”

Some Singaporeans welcome the recent pay increases as a step forward but critics view them as tweaking, rather than resolving, a fundamental problem.

But as the debate flows, a dark shadow is appearing on the horizon that can worsen the situation and threaten any prospect of strong pay increases.

The global economy appears to be slowing down as it faces woes from Europe, which Singapore has strongly invested in, and an economic slowdown in China.

More employers are likely to become more concerned about avoiding being pulled down rather than how much to raise staff salaries.

A local daily reported that some industries, including shipping, are already feeling the pinch from the slowing Western markets.

Some are planning measures to reduce costs or retrench workers as a short term solution, TODAY reported.

This puts the squeeze on the government’s social compact of promising jobs and a reasonable living standard to Singaporeans in return for their political support.

The grounds at home and abroad are becoming tougher for everyone.

INSIGHT: DOWN SOUTH By SEAH CHIANG NEE
cnseah05@hotmail.com 


Related posts:
Mar 17, 2012

Thursday, 31 May 2012

Are you raising selfish kids?

Most children are egocentric, more so in these modern times. There are ways to get them to see the world beyond themselves.

YOU often hear parents complaining about how today’s children are not as obedient, thoughtful and polite as those of previous generations.

This is especially true in Generation Y and Z kids, who are also known as “Generation Me”. Generation Y and Z includes those born in the digital age and who have been familiar with using smartphones, the Internet and digital gadgets from a young age. There are varying opinions on when exactly the generation began. Some say those born in the 1980s onwards while others point to the 1990s or even the noughties.

Gen Y and Z children have a greater sense of entitlement, demand for instant gratification and generally disregard others’ needs. In simpler terms, they appear to be more selfish than kids in generations before them. It used to be family first, community’s interests, and country’s pride. Now, it is “me” first.

Get this: The GoGetter — Land & Water puzzle will be yours if you come up with the best story on ‘Games/puzzles my kids love to play’ for June.
 
With all manner of advertising being thrown at us these days, it is not surprising that children don’t always know how to separate wants and needs. They seem to think they need a lot of things, with some even believing they have the right to demand for materialistic possessions. Parents who overindulge their children will give them the impression that they are entitled to these luxuries.

If a child is selfish in nature, he or she will not know how to care for others and this will eventually lead to social and relationship problems.

ParenThots shares some methods to ensure your child sees the world beyond himself or herself.

Book reviews 

Geronimo Stilton is the Famous Five of the 21st century. The comforting news is that the English in the book series is sound, the stories set in various countries offer lessons in Geography and culture, and at least your kids are reading! Definitely recommended.

Childhood Allergies is written simply so that parents can get a clear idea of what allergies are about and what symptoms to look out for.

Bully stories 

There are quite a few bully stories this week, including one from a man in his 60s who says he still can’t forget what happened when he was six years old as well as a letter to bullies from a former victim.

The voting for the best bully stories ends tomorrow. So, do click on Like at the end of the story or on the post about your favourite bully story on the ParenThots Facebook page (facebook.com/parenthots).

Father’s Day contest 

This is the last week to win a netbook computer for your dad through the Dad Deserves An Asus contest. Just log in using your Mystar ID, answer the three objective questions and complete the sentence: “Dad needs an Asus netbook because ...”

You can enter to win for your husband, father or even yourself (if you are a father). The prize should go to a father. We will check!

The contest closes June 3.

Win a puzzle 

If your child loves puzzles and games, you will want to know about the Win A Puzzle promotion. Just write in about the topic of the month (the topic changes every month) and you stand a chance to win a puzzle. There is only one puzzle to be won every month. The puzzles are sponsored by educational toys company BRAINet.

For June, the title to write on is “Games/puzzles my kids love to play” and the word limit is 700. The prize for June is the GoGetter – Land & Water.

The last day to send in entries is June 20. Go to ParenThots for more details.

Related posts:
Jun 29, 2011

China, Japan to launch yuan-yen direct trading

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Trade between Asia's two largest economies is about to get a whole lot easier. China's central bank confirmed Tuesday that the country will allow the direct trading of its currency against the Japanese yen starting Friday.



This makes the yen the first major currency besides the US dollar that can be directly traded with the RMB. The move is part of efforts made by China and Japan to strengthen cooperation in trade and financial markets. And it’s a huge step forward for the internationalization of the yuan.

After some excitement in the Asian markets yesterday. The People’s Bank of China confirmed on Tuesday that China and Japan will start to directly trade their currencies in Shanghai and Tokyo from June 1. The move will shore up trade and financial ties between Asia’s two biggest economies, and also marks another step to raise the yuan’s international role.

Japanese Finance Minister Jun Azumi, who announced the decision in Tokyo, stressed the cost benefits behind the move.

Azumi said, "By conducting transactions without using a third country’s currency, it will bring merits of reducing transaction costs and lowering risks involved in settlements at financial institutions. It will also contribute to improving convenience of both countries’ currencies and reinvigorate the Tokyo market."

The step eliminates the US dollar’s monopoly position to set the exchange rate between the two currencies, and follows a deal struck by the leaders of the two countries in December.

Experts say it’s an important move towards the internationalization of China’s yuan currency.

Professor Ding Zhijie, dean of School of Banking & Finance, UIBE, said, "It raises the convertibility of the yuan. And I believe the yuan trading will be accepted by more Asian economies as well as the international markets. It will also push forward the internationalization of the yuan."

Several banks in the two countries, including Bank of Tokyo-Mitsubishi UFJ and Bank of China, will start the direct trading.

Huang Jiaying, trade with Bank of China said, "The move will likely make the yuan accepted by more Japanese investors as well. It will also help boost the possibility of the yuan becoming an internationally-settled currency, which is an important move of propelling the yuan to become an international reserve currency."

And Japan, which in March pledged to buy about 10 billion US dollars of Chinese government debt, is the first economy to connect with China’s yuan. The move is likely to strengthen ties with its biggest
trading partner.

Japan, China to shore up yen/yuan trade
Japan, China to shore up yen/yuan trade

Japan and China will start trading their currencies directly in Tokyo and Shanghai from June 1 in a move that shores up trade and financial ties between Asia's two biggest economies and also marks another baby step to raise the yuan's international role.

The step eliminates the use of the dollar to set the exchange rate and follows an agreement struck by the leaders of the two countries in December, which also involves Japan buying Chinese government debt and efforts to forge a free trade pact between China, Japan and South Korea.

"This is part of China's broader strategy to reduce dependence on the dollar. The yen has been chosen because of large trade flows between the two countries," said Dariusz Kowalczyk, senior economist and strategist at Credit Agricole CIB in Hong Kong.

"Volumes of currency trading on shore are small, but this could lead to an expansion of trading with other currencies. It would be easier for China to expand into other Asian currencies."

Japanese Finance Minister Jun Azumi, who announced the decision in Tokyo, stressed the cost benefits of the move.

"By conducting transactions without using the third country's currency, it will bring merits of reducing transaction costs and lowering risks involved in settlements at financial institutions," Azumi told reporters after a cabinet meeting.

The People's Bank of China noted benefits for mutual trade, but also tied the decision to China's drive to boost the use of the yuan as a settlement currency for trade and financial transactions.

"Developing the direct yuan/yen trading will help form the direct yuan/yen exchange rate and reduce the trading cost for entities and promote the use of the yuan and yen in bilateral trade and investment as well as help strengthen financial cooperation between the two countries," it said in a statement.

A separate statement issued by the China Foreign Exchange Trade System said it will provide a market-making system for direct yuan/yen trading.

Until now yen-yuan rates were calculated on the basis of their respective rates against the dollar, so the move is expected to narrow trading spreads, lower transaction costs and allow more trade deals to be settled directly.

For Japan, which in March pledged to buy about $10 billion of Chinese government debt, becoming the first major economy to do so, the move could strengthen ties with its biggest trading partner.

Despite sometimes rancorous political ties between the two neighbours, Japan's economic fortunes are increasingly tied to China's economic growth and consumer demand.

Dealers in Shanghai said the near-term effect would be probably higher trading volumes and lower costs.

"Direct yuan-yen trading is likely to cut trading costs, boosting yuan-yen trading liquidity," said a dealer at a foreign bank. "Most yuan trading against the yen now goes through the dollar, because traders refer to dollar-yuan value to price yen-yuan."

But some played down the broader impact.

"From what I can see, it doesn't actually include any opening up of the capital account at all. It just allows a direct cross to be traded rather than actually increasing the amount of flow that can happen onshore to offshore," Dominic Bunning, currency strategist at HSCB in Hong Kong, said.

"It seems to be more of a technical issue rather than a major development."

The move to facilitate yen-yuan trading and the debt deal are part of Beijing's long-term efforts to elevate the yuan's status as an international currency, which so far have mainly centred on China's promotion of the yuan to settle trade.

Beijing has struck agreements with several nations from Malaysia to Belarus and Argentina on the use of the yuan in trade and other transactions. It has expanded a pilot programme started in 2009 into a nationwide one allowing firms to settle their trade in yuan.

The result has been a relative surge in the use of the currency. More than 9%of China's total trade was settled in yuan in 2011, up from just 0.7% in 2010.

Few argue against the idea that the yuan will one day become a reserve currency, given World Bank predictions that China will overtake the United States as the world's top economy before 2030. But to achieve that the yuan would need to become fully convertible and Beijing has yet to indicate any timetable for reaching that stage.- Reuters


Wednesday, 30 May 2012

How this stay at home mom made $13900 monthly income? Believe it or not?


By Erica Jones

Julie investigates a single Mom who makes over $13900+/Month. She reveals her secrets to us.

Amy Livingston of Penang , 09 never thought that she would consider it, until curiosity got the best of her and she filled out a simple online form. Before she knew it, she discovered her secret to beating the recession, and being able to provide for her family while at home with her three children.

I read Amy's blog last month and decided to feature her story in our weekly consumer report. In our phone interview she told me her amazing story. "I actually make about $15,000 to $17,000 a month working from home. It's enough to comfortably replace my old job income, especially considering I only work about 15-18 hours a week from home right now.

Working online has been a financial windfall for Amy, who struggled for months to find a decent job but kept hitting dead ends. "I lost my job shortly after the recession hit, I needed reliable income, I was not interested in the "get rich quick" scams you see all over the internet. Those are all pyramid schemes. I just needed a legitimate way to earn a living for me and my family. The best part of working online is that I am always home with the kids, I save a lot of money."
"I actually make $15,000 to $17,000 a month working from home." - Amy Livingston
I asked her about how she started her remarkable journey. "It was pretty easy, I actually received an email that sparked my interest, so I went to the site, filled out a short form and signed up for a work at home program where I got instant access to everything! Since they offered a 365 Day Money Back Guarantee - I figured I really had nothing to lose. So, I started the program and within four weeks I was making over $5,000 a month. It's really simple, I am not a computer whiz, but I can use the internet. I followed the instructions, and I don't even have to sell anything and nobody has to buy anything. This is a very stable system and they are recruiting, you should try it."

Consumers purchase Billions and Billions of dollars worth of products each year online. Every time people use the internet, go on facebook or do a search, someone is making money. This program will teach you how to get a piece of this money and free yourself from the 9-5. The internet economy has grown by leaps and bounds in the recession, so why not take advantage of the gold rush? There are plenty of scams on the internet claiming you can make $50,000 a month, but that is exactly what they are... scams. From my conversation with Amy, "I am making a good salary from home, which is amazing, under a year ago I was jobless in a horrible economy. I thank God every day that I signed up for this program."
"I am making a good salary from home, which is amazing, under a year ago I was jobless in a horrible economy. I thank God every day that I signed up for this program." - Amy Livingston
Quickly, Amy Livingston was able to use the simple The Online Income System to make it out of the recession.


Amys Step by Step Guide:

Amy had never shared her story before, and with her permission, are putting it public. Here are the steps she told us to take:

Step 1
Visit the following website and review the newsletter with all the details you need to change Your life, as it has Many others. The Online Income System (Universal).

Step 2
Follow the directions and set up an account. You will then be given all the tools you need to start posting links, and making profits. Everything is tracked in a system that will show you how much money you are making (see images above).

Related links:

The Online Income System - Official Website (Rated 2011 Top Oportunity)
Discounted Promotion Ends: Thursday, May 31, 2011