Errant hill clearing by developers causes of floods, sinkholes, seepages damaged houses!

Misery raining down: The stretch in Paya Terubong is flooded during the downpour on Saturday Sept 12, 2015 — Photo courtesy of Gerakan secretary Oh Tong Keong.

GEORGE TOWN: The flash floods in low-lying parts on the island especially Air Itam, Paya Terubong and Bukit Jambul were caused by uncontrolled development of the hills, claimed state Gerakan secretary Oh Tong Keong.

“Paya Terubong became flooded after a downpour that lasted more than an hour and this was due to the clearing of the hills in Air Itam. The state has given developers a free hand to carry out their projects on the hills.

“The situation is so bad now that we do not even know if these developers are genuine as the state has failed to take action against anyone despite the local media reporting about our hills going bald due to development,” he said when contacted yesterday.

Pictures of a stretch in Paya Terubong being flooded have been circulating online since the downpour on Saturday with a news portal claiming that the cutting of hills and development of new condominiums were the cause of the floods.

Local Government, Traffic Management and Flood Mitigation Project chairman Chow Kon Yew said the flooding was the cause of work being carried out by a developer involved in a high-rise project in the area.

“The drains became blocked and this resulted in the water flowing onto the road during the downpour. Workers were sent by the developer to clear the drain and the water receded within an hour.” - The Star

Massive flood water from IJM Trehous construction project next to Bukit Jambul Hill pond is now flooded, overflown, diverted and entered visibly through inside houses at Lintang Bukit Jambul 1, instead of direct to the drain at Paya Terubong road. This is because the pond water outlet was choked and the original underground piping system is confirmed broken and formed sinkholes with water diverted to residential houses.

Pond water overflown to houses

Sinkhole in front of house



<< Pond water flown out from house to drain 

These caused damages to houses due to soil erosion, multiple slabs collapsed, multiple cracks; broken tiles: cements, pipes and water leakages, etc.

House Slabs collapsed

To prevent further damages to houses, residents proposed to Penang City Council to construct an alternate outlet for pond water smoothly flown out to alternate area, close and seal up with cement the existing outlet which was not properly constructed as it was choked/stucked all the times.

Probe on cause of mudslide



GEORGE TOWN: Illegal hill clearing behind the Green Garden Apartments in Paya Terubong could have been the cause behind the mudslide on Wednesday.

Flood Mitigation Committee chairman Chow Kon Yeow said there was a possibility that the hill was illegally cleared for farming.

A team has been sent to inspect the hill to determine how the mudslide occurred and to investigate the extent of the illegal clearing.

“We will have a press conference on Saturday to explain what we discovered.

“I can’t say much yet as investigations are ongoing,” he said yesterday.

Chow added that the flash floods were also due to the inability of two retention ponds in two development sites in the area to cope with the surface runoff.

Works to widen and deepen the retention ponds are ongoing.

Early Wednesday morning, a downpour caused a deluge of fast-flowing mud and debris from the hills to hit Jalan Paya Terubong while flash floods hit low-lying areas of the island.

In a press statement issued on the same day, Chow said the flash floods in Penang were due to an increased surface runoff where the water level increased suddenly, causing drains to be filled to the brim.

“The drains in George Town were not designed to handle such heavy rainfall,” he said.

A check on Penang’s tide chart also showed that the rising tide was highest at 8.19am, about an hour after the rain began in most parts.

Among the worst affected areas were Bandar Baru Perda, Kampung Nelayan, Kampung Sulup, Kampung 14 and Kampung Masjid in Teluk Kumbar, and Kampung Seronok and Kampung Binjai in Bayan Lepas.

According to a weather review from August to October available on the Malaysian Meteorological Department website, countries in South-East Asia are currently in the phase of the south-west monsoon.

Floods and mudslide hit Penang



GEORGE TOWN: An early morning downpour caused flash floods in many parts of the town here, leading to traffic snarls at low-lying areas like Jalan Khaw Sim Bee, Jalan Westland, Jalan P. Ramlee, Jalan Logan, Jalan Anson, Jalan Transfer and Jalan Hutton.

However, the worst-hit areas were away from the town centre, with a deluge of mud and sand hitting Jalan Paya Terubong heading towards Balik Pulau.

There was also a bumper-to-bumper crawl after an uprooted tree blocked a good part of the road.

Traffic police were deployed to the scene to control the traffic flow until the tree was removed.

Resident Y.S. Chai, 42, who lives in a terrace house in Jalan Paya Terubong, said the flash flood was one of the worst that had ever occurred as it washed mud and soil down to the road and into the house compounds.

Deluged: Water flowing down the hillslope in Paya Terubong, Air Itam. – ZAINUDIN AHAD / The Star.

She said the heavy rain lasted for only about 30 minutes but muddy waters rose very quickly and rushed onto the front porch of her house.

“I have never encountered a flood this bad before. It took us around three hours to clean everything up,” she said.

Further down the road, a gloomy Pon Kah Tong sprayed water from a hose to clear the mud that had accumulated in his car service workshop.

Paya Terubong is an area that has seen rapid development in recent years.

The floods subsided before noon.

BY ROYCE TAN The Star

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China will never start a currency war, Premier Li said in World Economic Forum 2015 (Summer Davos)

http://t.cn/RybGv7t

Dialogue 09/15/2015 China-ASEAN ties

http://t.cn/RyV1n6t

Summer Davos

Premier: China's economy moves in positive direction 

The future of China's economy is bright thanks to a solid base and strong impetus, said Premier Li Keqiang at the opening ceremony of the Summer Davos meeting in Dalian, northeast China, on Thursday.

Li said it was not blind optimism because China had the advantages of huge potential and inner tenacity.

Major programs to promote new industrialization, information technology, urbanization and agricultural modernization are now in progress, which will contain domestic demand.

China's variety of industries guaranteed an economy characterized by resistance and self-recovery, Li said.

Structural reforms, to realize sustainable economic expansion, have been successful, the premier said.

As the largest developing country in the world, China will continue to roll out measures to maintain medium-high growth with higher efficiency and quality.

Li highlighted the reform of the financial sector, stressing the importance of market and laws in fostering a fair, transparent and stable capital market as well as improving risk controls.

China has the support of high savings and large foreign exchange reserves, and reforms will improve the usage of such resources to support the real economy. Besides cutting interest rates and reserve requirement ratios, China has scrapped the interest rate ceiling for both loans and deposits, and will allow more private capital to enter the sector as well as boost private banks, financing assurance and financial leasing, the premier said.

He also mentioned the recent changes to the yuan's central parity system, stressing that the move had nothing to do with boosting exports, and the country is unwilling to see a currency war, as it will be harmful to China.

The inter-bank foreign exchange market will be opened to foreign central banks, and a cross-border RMB payment system will be established by the end of 2015 to improve the yuan offshore market, Li said. - (Xinhua)

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Tibet celebrates 50 years of liberation and its founding in Lhasa

 http://english.cntv.cn/2015/09/08/VIDE1441677723249238.shtml 

Celebrations, parade to mark 50 years of Tibet’s development

http://t.cn/RyUoi8T 

Tibetan people's livelihood greatly improved in 50 years

The Chinese central government has over the years instituted many polices to help Tibet's development, in order to enable Tibetans to enjoy better education, higher incomes, better health care and social security. CCTV reporter Liu Yang is in the Tibet Autonomous Region's capital Lhasa. She talked earlier about the region's transformations, as regional autonomy of ethnic minorities has been implemented in Tibet for 50 years.

 http://english.cntv.cn/2015/09/07/VIDE1441606442024166.shtml  http://t.cn/RyUKUft

Potala Palace bathed in the morning light in Lhasa, June 1, 2013. [Photo by Li Zhongmin/All rights reserved by chinadaily.com.cn]

Autonomy and assistance drive Tibet to prosperity

The now-50-year-old Tibet autonomous region has every reason to rejoice: The national regional autonomy mechanism is working well and benefiting ordinary Tibetans.

Yet the 14th Dalai Lama and those in Dharamsala of India will not be sharing the festive mood, for this is not what the Dalai Lama wants. The "high degree of autonomy" he advocates is de facto independence. He wants the central government to forsake any military presence in the region and for the region to conduct its own diplomacy. This would mean the region becoming an independent sovereignty entity.

But for that to happen, he would first have to overturn the established jurisprudential truth that Tibet is a part of China. Which is impossible.

The Dalai Lama knows that the autonomous region was an outcome of negotiations between the central government and the local authorities of Tibet, and was written into the famous 17-Article Agreement for Tibet's peaceful liberation. Until the armed rebellion in 1959, the Dalai Lama himself chaired the preparatory committee for the Tibet autonomous region.

And the design drawn up then has served Tibet well, no matter how unwilling he is to acknowledge it.

There is but little exaggeration in local administrators' familiar claims that Tibet is enjoying its golden days, because it keeps changing for the better with each passing day.

Few of these changes would have been possible without the very special autonomy bestowed on Tibet.

Such autonomy facilitates local administration, because, in addition to making laws and regulations on its own like all other local governments, the regional government is authorized to tailor national laws to local conditions in their implementation.

Even among the country's autonomous regions, Tibet has been the subject of envy for the policy favors it has received. Financial subsidies from the central government accounted for almost 93 percent of financial expenditures of Tibet from 1952 to 2014, not to mention the endless aid programs provided by dozens of central government offices, provinces and major State companies. And the sixth central conference on Tibet has just promised further efforts to improve local living standards.

More importantly, the traditional culture of Tibet, from Tibetan Buddhism to the Tibetan language and way of life, which the Dalai Lama says is a target of "cultural genocide", remains alive and well.

Compared with the Dalai Lama's pipe dream "autonomy", what the Tibetan people enjoy now is genuine and practical freedom to build better lives. - China Daily/Asia News Network

Real Tibet can’t be concealed by Dalai’s lies

A grand ceremony marking the 50th anniversary of the founding of the Tibet Autonomous Region is held at the square of the Potala Palace in Lhasa, capital of southwest China's Tibet Autonomous Region, Sept. 8, 2015. (Xinhua/Ding Lin

This year marks the 50th anniversary of the establishment of the Tibet Autonomous Region. People of all ethnicities have held celebrations for this anniversary.

For all these years, there have been two Tibets in public opinion. One is the real Tibet. The other is an imaginary one hyped by the Dalai Lama clique and Western opinion who often denounced that Tibet is not what it used to be under the rule of the CPC.

The imaginary Tibet does not exist, but with the instigation of Western media and the Dalai Lama, this Tibet has a certain influence in the international opinion sphere. This is perhaps the longest-lasting lie in the modern world.

This lie even forms moral and political correctness in the Western world, which blocks Westerners from knowing about the real Tibet. Some people believe only changes in the power structure and political relations between China and the West can break the lie.

The 14th Dalai Lama is lauded as a "saint" and his image was made into a smiling and wise old man. But his record when he ruled Tibet will thwart the Western public's notions. The Dalai Lama never dares to talk about his past. This cruel ruler in exile once received the Nobel Peace Prize plotted by Western forces. He also enjoyed the spotlight as a guest of Western leaders. But once the Western opinion reveals his shadowy past, he will be exposed as a cheater.

What should Tibet be like? Western opinion articulates it into an original ecological community with no association with the modern world. They view Tibetan people as aborigines and see all modern facilities in Tibet as destruction.

This is an unfair and unreasonable mentality. It is for the Tibetan public and Chinese people as a whole to assess the social achievements of Tibet. They know what Tibet most needs and care more about Tibet's development than any external forces.

Tibet has achieved remarkable political progress and undergone unprecedented modern infrastructure construction. Besides, this was all done with Tibet's culture and ecology protected. Compared to Native Americans in the US, the Tibetans have kept their originality more.

The lies told by the West will not last long. As China gradually moves to the center of the world stage, people across the world will have the chance to see the real Tibet. Tibet will help improve China's image. The Dalai Lama clique that has become an appendage to external forces to destabilize Tibet is bound to be the loser as time goes by. - Global Times

Why is the Dalai Lama Lying?



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Property is the safest way to invest

Liquidity risk: If your objective of purchasing properties is to leave your child or children with a sizeable monetary legacy when you pass on, there may be other viable alternatives.

Works on fundamentals still vital

TIME and time again, we hear about the need to save up to buy our first property. Then we hear about why we should save up to buy the next property (presumably for the “certainty” of investment gains), and the success stories of those who made their first million, primarily through property investment.

So, anyone who has received a healthy dose of these for a few years would naturally deduce that in order to gain significant returns to our investment portfolio, the key is property. This does not always hold true.

As with any investment, you must still go through the fundamental questions that help you ascertain whether property is the right tool for you.

We will get back to what these fundamental questions are after forming a backdrop from two somewhat representative examples.

In 2009, 38-year-old Albert bought a 4,300 sq ft condominium at a prestigious location in the heart of Kuala Lumpur for RM4.3mil. At RM1,000 per sq ft, many would deem this a good buy; more so now that the current market value has risen to RM5.1mil.

Now, let’s see this “gain” from a different perspective. Since Albert bought the property for investment purposes, he had two options to earn returns from this investment – either rent it out for an amount higher than the loan repayment value, or sell the property to monetise the higher market value.

Unfortunately for Albert, he has as yet not been able to find a buyer even though it has been six years since he bought the property. Given the softer property market, although he has been lucky to find a tenant, he is receiving a rental yield that is lower than his loan repayment. This is fine as long as Albert remains gainfully employed and is able to afford the loan repayment for as long as it takes to sell the property.

Capital gain

Let us look at another property owner. Also in 2009, Nik and Sara, a newly-married couple, purchased a 3,100 sq ft landed residential property in a fast-developing suburb in the Klang Valley for RM350,000. Unlike Albert, they bought the property for their own residential use.

Over the years, given that their home is located close to a major shopping mall and to the highway, the market value of their property rose to the current RM1mil.

Did they “gain” from this property? Similar to Albert’s case, in order for Nik and Sara to make capital gains from this property, they would need to sell it to lock-on the value.

However, since they are residing in that property, selling it would mean looking for alternative accommodation.

Would they be able to maintain the same standard of living (i.e. an equally convenient 3,100 sq ft living space, and so forth) with the proceeds received from the property sale? If not, then like for Albert, the higher market value would not have resulted in any direct investment gain for them.

But unlike Albert, it doesn’t matter as they did not purchase the house as an investment instrument and the loan repayment does not result in any unexpected negative cashflow.

So on the backdrop of both these scenarios, we are ready to move on to the fundamental questions you should consider when assessing the suitability of any investment instrument, property or otherwise. The six most fundamental considerations are, perhaps, best rendered acrostically as O.H.A.M.L.A.:

• Objective – or what you hope to use of those funds for (i.e. the capital) in the future; 
• Holding period – the length of time you are able to sustain financially without touching the returns    or capital for that investment; 
• Affordability – would you need to compromise your standard of living if there is no cashflow from     the investment throughout the holding period; 
• Market risk – the quantum of price movement that you could stomach during the holding period; 
• Liquidity risk – how long would it take for you to sell the investment and receive your funds; and 
• Alternative instruments – are there any that could achieve the same investment objective with lower risks attached.

Going back to Albert’s case; he bought the condominium with the objective of making significant capital gains in five years (i.e. the holding period).

At the point of purchase in 2009, he assumed his employment status would not change and that he would earn the same or a higher salary over the course of his holding period. However, he is now self-employed, hence his earnings are no longer fixed each month.

Therefore, the affordability factor is now compromised as he needs to ensure his loan commitments are met each month despite a fluctuating income.

Next, although he made the fair assumption (which turned out to be right) that the property would appreciate in market value in the future, he underestimated the liquidity rush when investing in properties, i.e. finding a willing buyer for the price he is willing to sell and getting the cash from that sale within a short period of time.

As many of us may have experienced, due to legal and loan documentation requirements, it could take up to a few months to get back our funds even after a willing buyer has been identified.

Lastly, unfortunately for Albert, other alternative instruments that could perhaps meet his investment objective for significant returns (eg. investing in high risk companies in the stock exchange or investing in a start-up company) also carry similar, if not higher, risks.

First-time buyer

That said, property or real estate remains an important instrument for most investors. For a first-time property buyer, owning a property that you could live in removes the risk that rental prices could escalate where you may be forced to compromise your lifestyle to find alternative accommodation.

Individuals with significant excess funds after investing in a diversified portfolio consisting of instruments such as high yielding deposits, blue chip shares, unit trusts, endowment insurance plans and bonds, should consider property as the next instrument to augment their investment portfolio.

If you are an investor seeking a consistent stream of income, other than rental income, alternative instruments that could give you that regular payout could be unit trust funds with an income-generating mandate, endowment insurance plans, high dividend blue chip stocks or even bonds.

With all these instruments, especially unit trusts and endowment policies, you would be able to easily liquidate your investments and get your sale proceeds within 14 days or less. This is important when you do not have a significant amount of excess cash in hand for potential financial emergencies.

If your objective of purchasing the property is to leave your child or children with a sizeable monetary legacy when you pass on, there may be viable alternatives. For some, this means building up a stable business for the children to inherit.

For many others, there is always the traditional portfolio that consists of shares, unit trust funds, bonds and so forth.

The lesser-known alternative would be to purchase a universal life insurance policy that would ensure your beneficiaries receive a sizeable payout after you have passed on.

So if you are 40 years old, instead of spending RM2mil to buy a bungalow in Kajang that your children may likely liquidate anyhow once you have passed on – after all, your intended legacy was the cash value of the property – you could instead spend a little over quarter that amount to purchase a universal life policy that would pay RM2mil in cash to your children once you are gone.

By using O.H.A.M.L.A. as a guide, your investment universe could open up your world to a wide array of instruments beyond property to help you meet your objective. As the old proverb goes: There are more ways than one to skin a cat.

By EVELYN YEO - FINANCIAL MYTHBUSTER

Yeo is OCBC Bank (M) Bhd head of wealth management.

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Great contribution from the Chinese: UN Chief Praises WW2 parade, 回憶麻坡 (Muar)人支援抗戰

UN chief praises parade, China's great contribution

The world has been saying about Beijing's grand military parade on Thursday, held to mark the 70th anniversary of China's victory in the War of Resistance Against Japanese Aggression and the end of World War Two. Here's what many world leaders who attended the commemorations thought.http://t.cn/RyyvmLn

UN Secretary-General Ban Ki-moon has spoken to CCTV about his feelings regarding China's V-Day parade. He said he was deeply impressed by the celebration, and has fully recognized China's contribution during the World War Two.

The world has been saying about Beijing's grand military parade on Thursday, held to mark the 70th anniversary of China's victory in the War of Resistance Against Japanese Aggression and the end of World War Two. Here's what many world leaders who attended the commemorations thought.

"The V-Day parade was very grand. I felt that not only Chinese leaders, but also ordinary Chinese, could cherish the memory of the victory in the war against Japanese aggression, as well as the memory of the martyrs who made contributions."

回憶麻坡 (Muar)人支援抗戰

《血脉长城——华侨华人与抗日战争》 20150822 第一集 海外赤子 情系中华_新闻频道_央视网(cctv.com)

分享视频  http://t.cn/RLFHIhj
http://player.cntv.cn/flashplayer/players/htmls/smallwindow.html?pid=59618b21f97244b59b5fc4cf55d7d68b&time=0&tai=news

（吉隆坡5日訊）為紀念抗戰勝利70週年，中國中央電視台CCTV-13播放電視紀錄片《血脈長城》，反映海外華人不怕犧牲，支援中國抗戰的歷史事跡。

• （圖：星洲日報）

在紀錄片中，星洲日報前國際新聞組主任鄭昭賢介紹了麻坡抗日先烈張開川和南僑機工領袖劉貝錦的事跡。

麻坡人因組織峇株巴轄石原鐵山的工潮，不讓日本人獲得源源的鐵礦石供應，以製造軍火，送到中國戰場殺害中國人，結果他們遭到日軍秋後算帳，付出流血的代價。

紀錄片播出麻坡人當購買的愛國公債，明知不可能償還，還是踴躍認購。

當年在陳嘉庚的領導下，南洋籌賑總會於3年多時間共籌得4億多國幣，而麻坡的籌款成績特佳，成為籌賑模範區。

紀錄片第二集介紹南僑機工和飛虎隊。

馬來亞機工，101歲的許海星上鏡頭和講話，同時紀錄片《血脈長城》也介紹檳城女機工，花木蘭李月美和白雪嬌的感人事跡。

第三集介紹馬來亞抗日烈士林謀盛的生平事跡和參與法國諾曼地登陸的華人戰士。

紀錄片播麻坡歷史建築

中國中央電視台的抗日紀錄片除了介紹麻坡抗日義烈張開川、顏迥華事跡和早年麻坡抗日核心，麻坡漳泉公會。

紀錄片播映麻坡漳泉公會大廈雄偉畫面，配上飄動的白雲藍天，徐悲鴻為鼓勵麻坡人抗日，贈送漳泉公會的名畫〈神駒圖〉，加上漳泉公會會長拿督黃國華的講解。

紀錄片播映麻坡歷史性建築物，位於三馬路〈新民舞台〉。

這是武漢合唱團到麻坡演出的地點，也是麻坡抗敵後援會成立大會的地點，戰後改為麗士戲院。

麻坡殉難義烈顏迥華的兒子顏其仁老師在戲院內，面對中央電視台攝制隊的鏡頭，回憶當年武漢合唱團在該處演出時激動人心的場面。

他的父親顏迥華為抗日日夜奔波演說，購買抗日公債，即使錢不夠，還向人借錢買公債。最後他與麻坡籌賑會其他領導人遭日軍殺害。

登中國僑網可看《血脈長城》

登上中國僑網，可以觀看北京CCTV-13新聞頻道的《血脈長城》紀錄片，網址是：http://news.cntv.cn/2015/08/22/VIDE1440250079837485.shtml

- See more at: http://news.sinchew.com.my/node/441982#sthash.WRuBaR9C.dpuf

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UN chief stresses UN′s impartiality after Japan protests China parade trip 반기문



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IMF Managing Director Christine Lagarde participating in the Asia Finance Conference at the Bank of Indonesia, in Jakarta, Indonesia on Sept 2, 2015. PHOTO: EPA

With a strong dollar and growing fiscal and trade deficits, small wonder that the markets are debating whether that engine is flying on empty

I was in Jakarta this week attending an IMF-Bank Indonesia conference on the Future of Asian Finance, the title of an International Monetary Fund (IMF) book launched last week with essays by IMF experts reviewing the lessons from the past and sketching how Asia can build its future, with a supportive financial system.

This is a very useful book, because it contains massive amount of helpful data and analyses for Asian policymakers to strategise how to respond to the current turbulence.

This weekend, the G20 Finance Ministers and central bank governors are meeting in Ankara, as Turkey takes the chair of G20 Presidency for 2015, with the key objectives of: strengthening global recovery and lifting potential; enhancing resilience; and buttressing sustainability.

Unfortunately, the current environment is heading in the opposite direction.

In the IMF Note for the G20 Meeting assessed that global growth for the first half of 2015 was slowing; financial conditions for emerging market economies have tightened; and risks are tilting towards the downside.

My interpretation is that basically what the IMF is saying is that if we are not careful, a perfect storm may be looming.

Understandably, the fund called for strong mutual policy action to raise growth and mitigate risks.

The real problem is that G20 members’ policy actions are likely to pull in different directions.

Sept 15 will be the seventh anniversary of the failure of Lehman Brothers, a landmark event, which triggered efforts to prevent global collapse that set up the greatest financial bubble in recorded history.

In the first half of 2015, almost every country witnessed record peaks in their stock markets, bond markets and real estate prices.

Given the fact that most countries are still slowing or having modest recoveries, this bubble has been pumped up by advanced country central banks in an activist monetary gamble called quantitative easing.

Indeed, the McKinsey Global Institute has warned that global credit and leverage is at its highest ever, and despite much soul searching about the need for macro-prudential regulation to prevent bubble risks, there has been not much deleveraging.

We have the odd situation whereby the governor of the Bank of England, currently chairman of the Financial Stability Board, warns about real estate bubbles, but hasn’t dared so far to raise interest rates in his own country.

The Fed has also anguished over whether to raise interest rates this month or in December. The polarity of debate is astonishing.

There are those who say that the US economy is now strong enough to take a 25 basis point interest rate increase, whereas authoritative figures like former Treasury Secretary Larry Summers have argued that another round of QE4 may be necessary to prevent “secular stagnation”.

When the Chinese authorities intervened in the A share market in August, the Financial Times and Wall Street Journal revelled at China’s debacle, only to wake up after their own markets, Dow, Nikkei and German Dax, witnessed the largest drops since 2011 after the announcement of the yuan devaluation of only 1.9%.

People in glass houses should not throw stones at each other, forgetting that other people’s misery, mistakes or misfortunes rebound on oneself.

The markets are not wrong to be nervous. The current global slowdown and turbulence is not the fault of any single country, but the result of a highly fragmented international financial system (IMS) being buffetted without a single monetary authority, fiscal authority or regulatory authority.

We have moved from a unipolar world to a multipolar casino where no one is fully in charge.

The IMS fragility stems from the fact that its inherent trade and debt imbalances, swing periodically to excesses without a coherent or single mechanism to control or moderate them.

Remember, the IMF is not the world’s central bank – that power was assumed by the leading sovereign central banks, particularly the US Fed. In 2005, then chairman Ben Bernanke complained that the Fed was losing monetary policy effectiveness because of excess savings by the surplus countries, notably China and Japan.

The United States can run ever larger trade deficits, because surplus countries are more than willing to hold dollars in their foreign exchange reserves.

The 2007/2009 crises erupted when the trade imbalances generated a second order imbalance with the United States and European banks expanding credit both off-balance sheet and off-shore in dollars and euro.

The complacency of their regulators allowed these banks to be excessively leveraged. Threats of raising interest rates caused a market reversal and illiquidity, leading to a crisis of confidence and collapse.

Seven years later, the advanced country central banks and regulators again crow that they have “fixed” the problems, but the markets are as fragile as ever.

They are held together because the central banks have emerged as not only lenders of last resort, but buyers of first resort at any sign of market tantrum.

The stark reality was that it was China’s massive reflation in 2009 that reduced its current account imbalances, increased commodity prices and pulled the world out of recession.

But that was at a cost of a huge internal credit binge. Now that China has taken a pause in growth and attempted to correct its internal imbalances, the rest of the world is taking fright.

When the underlying imbalances are correcting as is happening now, there are no excess savings and no excess credit – only the prospect of higher interest rates.

And higher interest rates mean the pricking of the global asset bubble.

In short, before 2007, the world was a four-engine jet, propelled by the United States, Europe, Japan and the emerging markets, led by China.

After 2009, when Europe and Japan slowed, it was a two-engine jet, with China helping the United States sustain growth and currency stability.

Since the United States and Japan are hesitant to want China to join the special drawing rights club, that second engine is being recaliberated.

The world is now flying on one engine, the United States and US dollar.

With a strong dollar and growing fiscal and trade deficits, small wonder that the markets are debating whether that engine is flying on empty.

And what is the Future of Asian Finance? Watch this space next.

By ANDREW SHENG .THINK ASIAN
Asia News Network
Andrew Sheng comments on global issues from an Asian perspective.

The writer, president of the Fung Global Institute, Hong Kong and the chief adviser to the China Banking Regulatory Commission, is a former chairman of the Securities and Futures Commission of Hong Kong.

WW2 Eastern frontier main battle: China's V-day parade 2015

Xi takes group photos with foreign guests ahead of V-Day parade Chinese President Xi Jinping took group photos with foreign leaders, government representatives and leading officials of international and regional organizations ahead of a V-Day parade on Thursday morning.

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China holds parade, vows peace on war anniversary

Staged a grand parade on Thursday in Tian'anmen Square to mark the 70th anniversary of victory in the Chinese People's War of Resistance against Japanese Aggression (1937-45) and the end of World War II, China attracted the world's attention by showing the aspiration for peace and its determination to safeguard post-war international order.

President Xi Jinping delivered a speech before the parade to call people to commemorate the hard-won peace after years of bloody war that had inflicted heavy losses on China and other countries.

Scan the code and check China Daily's up-to-date full coverage of China's V-Day parade.

In honoring all the Chinese who perished in the war and those who have contributed to the victory in the deadly conflicts with Japan, the parade is a tribute to history and a call for peace, Xi said.

But he warned that the world is far from tranquil although peace and development have become the prevailing trend.

War is the sword of Damocles that still hangs over mankind. We must learn the lessons of history and dedicate ourselves to peace, he said.

Ravaging through Asia, Europe, Africa and Oceania, that war inflicted over 100 million military and civilian casualties. China suffered over 35 million casualties and the Soviet Union lost more than 27 million lives, Xi said.

The victory of the Chinese People's War of Resistance Against Japanese Aggression is the first complete victory won by China in its resistance against foreign aggression in modern times.

This great triumph re-established China as a major country in the world and opened up bright prospects for the great renewal of the Chinese nation, Xi said.

Xi vowed that China will never seek hegemony or expansion no matter how much stronger it may become. He said the country will never inflict its past suffering on any other nation.

Xi, also general secretary of the Communist Party of China Central Committee and chairman of the Central Military Commission, inspected the troops after the speech.

On the Tian'anmen Square, Xi and the first lady Peng Liyuan welcomed honored guests, including 30 national leaders, to watch the parade which involved more than 12,000 military personel as well as veterans and their descendants. Seventeen foreign military teams also took part.

Leaders including Russian President Vladimir Putin, President of the Republic of Korea Park Geun-hye, Pakistani President Mamnoon Hussain and UN Secretary-General Ban Ki-moom witnessed the historical event.

1779 overseas Chinese from more than 120 countries and regions were invited, 5 of them were invited to watch the parade from the Tian'anmen Rostrum, including Chinese American physicist Paul Chu, and business tycoon Lucio Tan.

Opened with a helicopter flying by parading the national flag, the march past lasted for about 50 minutes. 20 military helicopters flew overhead forming the figure 70 to mark the 70th anniversary commemorations. Seven fighter jets flew past, making the world's longest colored vapor trail.

After more than 300 veterans, including Kuomingtang veterans, and their descendants passed by in two vehicle formations, eleven formations of Chinese troops marched past, including 51 female honor guards. It was the first time female honor guards have joined a parade. More than 50 generals, with an average age of 53, leaded parade units.

Seventeen formations of foreign troops from 17 countries including Russia and Pakistan, marched past, before twenty-seven formations of armaments paraded. This was the first time foreign military teams join in a Chinese military parade.

Studio interview: China to showcase never-before-seen military hardware http://t.cn/RyAuPdo

More than 500 pieces of China's latest equipment were displayed, 84 percent of which have never been viewed by the public, many of which are among the world's most advanced.

The navy displayed its latest anti-ship missiles, ship-to-air missiles and carrier-based aircraft, while the air force brought long-range bombers, fighters and airborne early warning and control (AEWC) aircraft.

The armaments on display also included the army's newest helicopter gunships and battle tanks as well as intermediate-range conventional and strategic ballistic missiles from the Second Artillery Force.

The events ended with 10 air force formations flying over the square and doves and balloons being released.

China has held 15 military parades since the establishment of the People's Republic of China. In 1999 and 2009, grand military parades were held to celebrate the country's 50th and 60th founding anniversary. This was the first parade not held on China's National Day.

As it is an international convention to hold a parade to mark the victory day, China held the grand event with a theme of "remember history, cherish the memory of China's revolutionary martyrs, uphold peace and create the future".

By PENG YINING in Tian'anmen square (chinadaily.com.cn)



Obama's absence at parade costs US chance to display leadership

Tomorrow, China will be holding a military parade to commemorate the 70th anniversary of the victory in the World Anti-Fascist War. Dozens of global leaders or their special envoys have arrived in Beijing, save for US President Barack Obama or his high-level representative, who could have been a guest of honor at the ceremony.

The absence of the US president at such an important event is a pity. Washington’s move has also affected most Western European leaders, who decided to follow the US' lead.

But Washington compromised, and will send US Ambassador to China Max Baucus to the parade, a gesture to show that the US will be present at the event. Washington clearly doesn’t want the absence of Obama or his high-level envoy to turn into media fodder.

While it is a pity, Obama’s absence will hardly affect Sino-US relations. Still, as former allies, China and the US have lost a chance to celebrate the victory they achieved together. How they fought side by side 70 years ago continues to be cherished by the Chinese, and the memory of that time has helped nurture a favorable impression of the US.

Geopolitics remains central to Washington’s decision-making process, and weighs heavily on US diplomatic policy. However, calculated moves do not always lead to a better decision. Washington’s ambivalence to Beijing’s invitation has cost itself a chance to display leadership across the Pacific Ocean, regardless of trivial gamesmanship and bickering in the region. The US seems unable to look at the big picture: The parade in Beijing is a righteous cause.

It is not hard to figure out why Obama or a special envoy will be absent. To some extent, the reasons are understandable. First, the US simply wants to show its support to Japan, which strongly opposes the parade and imagines itself as the target of the event. Second, the US dislikes such large parades in a non-Western country, considering it “muscle-flexing.” Third, as the US election approaches, presidential candidates try to earn brownie points with the electorate through China-bashing. The political climate in the US might have made Obama think twice.

To be honest, China never expected Obama to attend. But his “remedial work,” by asking Baucus to attend on his behalf, is weak.

Many China watchers have differing takes on the US’ attitude toward China’s parade. Some believe Baucus’ presence reaffirms an agreement between China and the US that both countries have no animosity towards each other. But some think Obama’s absence is much more complicated.

The Chinese have learned how to deal with narrow-mindedness, so they don’t actually mind whether Obama or a high-level official from Washington will attend. China’s open mind will help steer both countries away from unnecessary disputes

Source:Globaltimes.cn Published: 2015-9-2 21:11:50

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