China is a friend of Canada November 23, 2012Posted by hslu in China, Cold War, Congress, Economics, Energy, Global Affair, Obama, Oil.
Tags: Canada, CEO, China, China National Offshore Oil Corporation, CNOOC, Justin Trudeau, Nexen, Nexen Oil Sand, NXY, Pierre Trudeau, United States, 中国海洋石油有限公司
add a comment
The United States, especially those in the White House (e.g., Obama) and many in the Congress, e.g., Charles Schumer, treats China like an enemy. As such, the U.S. has rejected previous bids by Chinese companies to merge with US-based companies citing national security among other concerns.
Well, not every western country is this stupid. I believe that Canada sees China as a friend and a business partner. A good trading relationship with China will generate much more opportunities in China for Canadian companies in the future.
We’ll know pretty soon whether my guess is right or not because, in case you haven’t heard, China’s CNOOC (NYSE: CEO) has offered to buy Canada’s Nexen Inc. (NYSE: NXY) for $27.5 per share, a 60% premium over Nexen’s market value in late July, 2012. CNOOC is China’s Offshore oil company.
I am actually very hopeful that the government of Canada will make the right decision to accept CNOOC’s bid even though the decision has been moved back one month to early December, 2012. The Canadian government may announce its decision in the first or second week of December, 2012.
The reasons I am hopeful is that Canada is less hostile to Chinese companies and Canada actually needs foreign capital injection to develop its vast oil sand resources in Alberta.
In additional, Justin Trudeau, son of Canada’s legendary Prime Minister, Pierre Trudeau and the leader of the the Liberal Party, wrote an Op-Ed piece saying that
“CNOOC-Nexen deal is good for Canada,”
According to Mr. Trudeau, the deal makes sense because:
- Canada’s economic prospects have always been tied to trade. We are a small market that must export and attract investment to create jobs and growth, and import to keep costs down and provide choice for middle-class families.
- For much of our history, the only trading relationship that mattered was with the United States. From Laurier to Mulroney, it defined our politics in watershed elections that bookended the last century, and inflamed passionate debates about national identity throughout. That was the 20th century. The 21st century is different. Trade remains a paramount objective, but we can no longer rely on the U.S. alone to drive our growth.
- Our relationship with our southern neighbour remains our most important, but we cannot afford to miss vital opportunities elsewhere. By 2030, two-thirds of the planet’s middle class will be in Asia. How we define and manage our relationship with Asian economies to play a Canadian role in fuelling that growth will matter as much to the Canadian middle class in this century as our relationship with the U.S. did in the last.
- Because Chinese and other foreign investors will create middle-class Canadian jobs. Foreign investment raises productivity, and hence the living standards of Canadian families.
- We deceive ourselves by thinking that trade with Asia can be squeezed into the 20th-century mold. China, for one, sets its own rules and will continue to do so because it can.
- China has a game plan. There is nothing inherently sinister about that.
Well said, Mr. Trudeau.
I guess that raising the living standard of American people has never crossed the minds of the likes such as Obama or Schumer when they rejected China’s bid for American companies in the past.
Oil sand business is a capital intensive business. Canada needs capital to create good paying jobs and China has the need to secure its long term energy supply. As such, I believe that Canada-China cooperation is a perfect match. Since Obama didn’t want Canadian oil (He killed the shovel-ready Keystone XL Pipeline,) Canada can sell its oil to China and other Asian countries.
Better yet, I bet you that China like to build a pipeline and send Alberta oil to the Pacific coast where it can be transported to satisfy the needs from the booming Asian economies. I bet, Japan wouldn’t mind buying Canadian oil either because it is closer and it comes from a country where, unlike many oil-producing countries in the Middle East, the government is much more stable.
I am hopeful because, no matter what Obama says, China is a friend of China.
By the way, if the deal goes through, you can make an easy 10% profit based on the current price of NXY. If you want to check out options, you might want to consider Jan 25 call which is at $1.80 now. March 25 calls is only $1.85
Merkel beat Obama December 12, 2011Posted by hslu in Congress, Economics, Global Affair, jobs, Obama, Politics.
Tags: Angela Merkel, Barack Obama, European Union, Germany, Obama, United States, Wall Street, White House
add a comment
With a financial crisis on hand, the United States chose to flood the market with tax money and Federal Reserve’s printing press which bailed out politicians’ bodies on the Wall Street and covered their own asses. In the process the politicians in the United States and Bernanke ignored the threat of inflation in the future, disregard the enormous financial burden on our kids and grandkids and arguably avoided a short term collapse of the financial system in the world.
In other words, Americans get used to kick the can down the road unlike what Chinese people have been taught for thousands of years: “積穀防饑 未雨綢繆,” “ji1 gu3 fang2 ji1 wei4 yu3 chou2 mou2,” which means “ save some grains for the hard times in the future” and “ fix your houses when it is not raining.”
This is the all too familiar Wall Street and American corporation mentality: our top priority is our next quarter’s results and the performance of our stock prices. We’ll worry about our long term problems when we have to in the future.
Ditto for American people in general when time was good: enjoyed life now with borrowed money, credit cards and home equity loans, so that they could have regular vacations, flat panel TVs, boats, fancy cars and big houses. They did it to show off their fancy life style, pump up their egos and satisfy their short term pleasure in life.
The disastrous results are clearly laid out in front of our eyes when things are not that rosy: near zero savings rates, high credit card debts, lost homes, foreclosed mortgages, soup lines, food stamps and welfare. Even worse, the Americans are not equipped to handle the consequences of globalization bought on by the very free trade policy that politicians are so proud of; American people are ill-prepared to compete with billions of hard working people in foreign countries, be it Chinese, Indians, Mexicans, Salvadorians, Thailand, or Koreans. In general, Americans lack the necessary education to compete in the high tech fields and Americans are lazy when competing with Mexicans and Salvadorians in low wage jobs. If you do not believe me, just look at the sorry state American’s public school system is in. And on the low wages job market, have you seen any white people cutting grass for you or washing dishes in restaurants? They choose to stay at home, watch TV, collect food stamps and use up their 99-week unemployment benefits instead.
This feel-good-now mentality is unfortunately reflected in American’s slow decline orchestrated by none other than Obama who thinks that America shouldn’t always take the lead on the world stage.
This is where Germany’s Mrs. Merkel comes in.
Germans work hard and they have their economy to prove it. They do not believe in short-term satisfaction on the back of future generations. They also believe that the financial market should be given a whack on the side of their collective head with a 2×4 so that they can be taught a lesson that they will remember. They despise countries like Greece, Spain and Italy and do not think they should use Germany people’s tax money to bail out people in these countries.
Because of this deeply rooted value system, Mrs. Merkel chose a vastly different route despite Obama’s calling right before the latest EU summit of all member countries:
“There’s a short-term crisis that has to be resolved,” Obama reminded Merkel, “to make sure that markets have confidence that Europe stands behind the euro.”
Mrs. Merkel, like some Germany officials, believed that the short-term crisis Obama referred to was actually his diminishing chance of re-election in 11 months, which will be damaged further by a prolonged recession without flooding the European economy will tax payers’ money. Mrs. Merkel and many Germans believe, not dissimilar to Chinese’s philosophy; me included, that when time is tough, one has to cut back on one’s spending and not piling on more debt for the sake of avoiding short pain, however unpleasant it may be. However, since Germany is bonded together with these countries by the common currency and a weak EU treaty which gave Mrs. Merkel little leverage to force these feel-good-now countries, including France, to do what is necessary to right the wrong for the sack of long term stability, i.e., cutting back on government spending, reducing public workers’ pension benefits, stopping the lazy life style of their citizens, giving up part of country’s solvency by allowing European commissions to exam their national budgets and adapting German’s style of governance and financial practices.
Mrs. Merkel used the threat of the imminent breakup of the Euro to force everyone in the room, including France’s Sarkozy, to adapt German’s financial practices and fiscal policies and follow Germany’s lead to whip the European countries in shape in the long run.
There is no doubt that there will be short term pain to be paid from a pending recession bought on by reduced government and private sector spending from many European countries. But Mrs. Merkel achieved one thing that no one was able to do in the past: forging the European Union into a more integrated entity which will no doubt out-perform the United States, a declining country saddled with crushing debt and the threat of inflation, in the future.
Mrs. Merkel’s German beat Obama’s America hands down. Europe nations will suffer now but American’s problem will come just about the time when Europe begins to stand up from the ashes.
But Obama is happy because Obama got his wish that America is no longer the lead nation in the world.
Super Committee members to Mars November 30, 2011Posted by hslu in Congress, Economics, Politics, Taxes.
Tags: Barack Obama, Curiosit, Mars, Mars Science Laboratory, NASA, Planet, republican, Super Committee, U.S. Congress, United State, United States Congress, United States federal budget
add a comment
Congress asked the redesign and ordered members of the Super Committee to take the nine month ride to Mars. Their mission is to come up with a credible plan to slash the U.S. federal budget by $4.5 trillion in the next 10 years.
If they are successful, NASA will send another probe to pick them up.
America’s Enemy is what? August 8, 2011Posted by hslu in Congress, Economics, Health Insurance, Islam, Military, Obama, Politics, Taxes.
Tags: Credit down grade, S&P
add a comment
Democracy. Yes, the long term decline of the all mighty United States is DEMOCRACY.
It was democracy that has put America into the current dilemma. Politicians wanted to keep their seats in the Congress so that they did the only thing they knew in a democratic system: buying votes. Well, it came in the form of social security, Medicare, Medicaid, food stamps, Obama care, lavish pension benefits for selected groups of people (union workers mostly,) and pork back to their home districts.
They generously spent other people’s money, our tax money, redistributed it based on favoritism among the politicians, usually behind closed doors: Louisiana purchase and corn husker kick-back, to name a couple, all under the banner of none other than Democracy.
It sounded good: majority rules. And that’s why it bought the US down to it’s knees in the eyes of other countries.
The Us is facing fanatic Islamic fundamentalists domestically and abroad which forced the US to spend trillions of dollars in many wars just to keep it’s citizens safe. The added military expenses acted like a tax on all it’s people. There us no end game in sight no matter what Obama told you and how many soldiers Obama is going to pull from the battle field in Iraq and Afghanistan. The battle fields to the fanatics are everywhere Americans are.
Now, with 50 years of showering their voters with lavish goodies under the disguise of democracy, America’s fate is finally catching up on the nation.
This is because that democracy will prevent the adaptation of a fiscally sounded approach to the root of the problem: no one wants to give up their free handouts from the government so that they will fight to keep them all.
In the end nothing gets cut because of the middle of the road approach that we hailed as the best system in the world: DEMOCRACY, and in the end all the promised cuts end up like smoke disappearing into the thin air. The problem gets kicked down the road, the politicians get to protect the benefits of their constituents, their seats in the government is saved and democracy survives, again, until the next election.
Such is the glory of democracy.
In the meantime, we middle class gals and guys are paying thru our noses the endless demand of taxes through our working lives just so the politicians can spend it the way they have been pushed by the interest groups all in the name of democracy.
By the time, we say goodbye to this world, the politicians still want a piece of what you have left behind.
They can do it because it is a democratic process.
Nothing but rotten eggs in US Congress July 12, 2011Posted by hslu in Congress, Economics, Global Affair, Health Insurance, jobs, Obama, Politics, Taxes.
Tags: Debt ceiling, deficit, Eat your peas, Obama
add a comment
A back door “raise the debt ceiling” plan was proposed by Senate Republican leader today.
The US Congress has a lot rotten eggs who should have faced the run-away spending problem head-on with massive spending cuts in order to save the US from becoming the next Greece.
Instead they sit in their lavish office and dream up a plan only politicians’ mothers can like.
The debt problem is Obama’s problem. Obama can continue service the debt but he has to choose the programs he wants to fund and cut the ones he doesn’t like to fund. In the process, slashing the federal government by 10% just like any private company would do in the similar situation.
The US government is filled with waste and should be trimmed immediately.
Well, what is the chance this back door plan will pass the Congress?
It will be business as usual and the big bucket is being kicked down the road again.
As for the proposed $2 trillion spending cut in the next 10 years being tossed around these day, my advice for you is don’t bet on it because:
1. It is only $200 billion per year which amounts to about 14% of this years’ deficit.
2. Most of the cuts will in the out years which is a joke to start with. It doesn’t mean anything. Remember the spending cut for FY 2010? $60 billion became $20 billion. $20 billion was shrunk to $10 billion. Then $10 billion ended up as $450 million. Ladies and gentlemen, this was your Congress at it’s best with liberal media helping them hiding the real facts from US citizens.
3. The US government is very good at fudging the numbers. It has thousands of high paying zombies who are paid to message numbers on budgets, CPIs, PPIs and unemployment numbers. It will be the same on the so-called cuts.
Here is something you can wrap your arms around:
I say cut the federal worker by 5% a years for each of the next 5 years to start with. Cut their benefits retroactively to the previous 5 years. Let them eat their peas to borrow a phrase from Obama.
Then cut entitlement for those 30 and younger because they put Obama in the office who is responsible for the lousy economy we are in. Let them eat their peas because the have to face the consequence of their own actions.
Government Shutdown, It’s about time April 8, 2011Posted by hslu in Congress, Economics, Energy, Global Affair, Military, Obama, Oil, Politics, Taxes.
Tags: Government shutdown, White House
add a comment
Don’t pay the law makers. Stop paying their staffs.
Stop paying the White House. Obama can cook for his family.
Don’t pay the federal employees.
Find out who are the non-essential ones and fire them.
Find out wasteful programs and terminate them.
Only active, essential, combat military personnel gets paid.
Military personnel stationed in foreign countries should be paid by host countries. Otherwise, bring them home.
Stop funding non-essential programs such as NPR. Auction it off to the highest bider if it is so hot.
Stop funding foreign aids.
Stop funding the UN.
All research programs should go through value assessment. Shut them down if it shows no value or no chance of ever going commercial.
Stop ethanol subsidies and make the industry survive on it’s own.
Send every tax payees their shares of money saved from government shutdown.
Bill Clinton Lied. Hillary is no different. January 15, 2011Posted by hslu in China, Cold War, Congress, Economics, Global Affair, Military, Politics.
Tags: Beijing, biggest debtor nation, Bill Clinton, Cold War, 睁着眼说瞎话, Hillary Clinton, Japan, Obama, reserve currency, Soviet Union, US dollar, 放狗屁
1 comment so far
A pre-requisite of a politician is be able to lie.
Be able to lie in front of cameras.
Be able to lie with a straight face.
As such, the higher the office, the greater a liar she or she has to be.
Bill Clinton lied. He lied under oath. He lied in front of cameras. He knew he lied.
And he got caught, humiliated and impeached. He got what he deserved unless he liked jail better.
Hillary lied as well. Her lies before the visit of China’s President next Monday are strictly for domestic consumption because China does not believe her or the Obama Administration. She said that the US is not trying to contain China. The US is merely cultivating allies in Asia to help it manage Beijing’s increasingly bold projection of military and economic power.
She is either 睁着眼说瞎话 “zheng1 zhe1 yen3 shui1 xia1 hua4″ or, shall we say, 放狗屁 “fang4 gou3 pi4″:
The United States is no question the most powerful nation in the world with influences felt every corner of the world: Mid-East, Europe, Americas and Asia.
The US treats China as its enemy and a threat to its super power position. It is uniting China’s neighbors; South Korea, Japan, Taiwan, Vietnam and India; to contain China’s expansion both militarily and economically.
The US is hoping a repeat of the outcome of the Cold War with Russia where a military race with America bankrupted the former Soviet Union.
The United States has lost the economical war to China. In less than 20 years, from 1993 to 2000, the US has become the biggest debtor nation in the world. The only thing the US has going for it is the US dollar which is used as the reserve currency of the world. That position is slowly being chipped away. When, not if, it happens, all hell breaks lose and the US will be in shit hole so deep that it has no way of getting out ever.
Now, let’s go back to the Cold War between the US and China.
The US wants a Cold War with China. I say:”Let them have it.”
Because that’s a sure way of bankrupting a nation, especially a nation like the United States.
Yeah, $600 billion per year! $700 billion per year! Why not $800 billion per year?
Let’s the US Congress approves all the weapons the military wants while green back is the king in the world. We are only talking about tax dollars from its citizens.Who cares about the national debt?
The thing is that the $700 billion or $800 billion won’t stimulate the US economy like it used to after the Great Depression. That $700 billion or $800 billion buys a lot of pork, supports a lot of waste and stimulates the economies of other countries where US stations its troops at.
Let the US borrow more money from China and Japan to fund its ambition of being the superpower in the world. It adds no real value to its economy. You can’t eat bullets. You can’t eat air carriers. You can’t eat cruise missiles either. And all that inventories require a lot of money to keep them functioning at all times while the roads, water pipes and infrastructures are crumbling down. They only serve one purpose and one purpose only: maintaining an image of the most powerful nation in the world. Other than that it has no real value except hastens America’s road to bankruptcy.
With all the lies from Clinton, China will not be easily intimidated. And China will do what it plans to do: 5 years at a time.
Federal employees deserve salary freeze December 23, 2010Posted by hslu in Congress, Economics, Obama, Politics.
Tags: congressional staff, Congressmen and Senators, National Federation of Federal Employees, postal workers, salary freeze, 天下乌鸦一般黑
add a comment
For two years at least. And we need a 20% cut on the head counts as well.
Listen to William Dougan, president of the National Federation of Federal Employees:
“We are suffering the same hardships as many across the nation as a result of the recession, and it’s unfair and unfortunate that Congress has chosen to single these folks out.”
What suffering? Is he kidding? Federal workers on average make about $74,000 a year. Let’s freeze their pays for however long it in necessary to bring their pays to the level of private compensations. And their health care and retirement benefits.
And mind you that the freeze does not include bonuses and promotion pays. I bet your bottom dollar that many of them will get promotions, if not this year, for sure the next.
There was no suffering by federal employees except postal workers who have enjoyed a good life and fat pays for too long. Now the postal workers work longer hours and they get longer routes as they should. Their pension and health care should also be cut to be in line with those of the private workers. Same for all federal employees, as well as Congressmen and Senators.
Will the freeze apply to those Congressmen and Senators as well? If not, it should.
How about the congressional staff, do they get their salary frozen for two years too? If not, it should.
In case you didn’t know, Obama suggested the freeze as he changed his strip to the middle in preparation for 2012.
Politicians lie when it is convenient and beneficial for them to do so.
天下乌鸦一般黑 “tian1 xia4 wu1 ya1 yi1 ban1 hei1″
All crows in the world are just as black as the others.
To save or to spend December 7, 2010Posted by hslu in Congress, Economics, Obama, Politics.
Tags: Bush tax cut, Economy, Middle class, Obama, Tax holiday
add a comment
Assuming the tax cut deal struck between Obama and Republicans survive the objections from Democrats, what will you do with the extra money you are not sending to Uncle Sam?
Will you go out and spend them on something that will make you feel good? Or will you send it to the credit card company to pay down that debt you’ve accumulated over the holidays?
My bet is you will not spend it. Well, maybe a small portion to but juniors something.
Will it make a dent on the high unemployment rate?
The extension of Bush tax cut will only prevent the economy sink even further. It wo’t bring too much of a relieve to the high unemployment figure.
Nonetheless, Obama will claim credit in January 2012 even if the economy stays in the shit hole at that time.
He’ll say that he cares about America’s middle class. He cares about the economy. He didn’t give it a damn to Democrats because they are damaged goods after the mid-term election.
Obama cares more about his re-election more than the future of the Democrat party even though he helped bring the party down to it’s knees.
Recovery or Recession? December 2, 2010Posted by hslu in Congress, Economics, jobs, Obama, Politics.
Tags: Bush tax cut, Congress, new jobs, Obama, recession, Recovery, unemployment checks
add a comment
New York Times finally admitted of what we have known for a long time:
Across the U.S., Long Recovery Looks Like Recession
The stock market has been held hostage by the employment number for more than a year now.
The US economy is still limping along creating roughly 80,000 new jobs a month which are not enough to accommodate even the new workers entering the work force. Obama and the Congress should keep the Bush tax cut so that we don’t have to face a huge tax increase at a time when the economy is still struggling to catch its footing.
The Congress should also stop sending out unemployment checks so that those people who have been getting 99 weeks of benefit checks from us can stop asking for hand-outs, get up from their couches, get out of their house and find a job instead.
We’ll find out whether it is a recovery or recession soon.