Nuwan Online - Nuwan Weerasinghe’s Web Log

I have pointed out what would happen to US Citizens as well as we Sri Lankans in a Situation where crude oil reaches 120$. I also mentioned how generous the chinese are to continue their interest in US treasury bonds to finance the ‘Empire Of Debt’. The United States of America is running Budget Defecits this planet has never seen……….more like an empire towards doom. Besides, president Bush has little concern over financing his modern Vietnam in Iraq. He recently requested a further 400 billion USD from his country to finance the Iraq war. (To bring democracy to Iraq!!!!!!!!!)………What a price…………………

How rich are the americans anyway? What are the level of their Savings? Can they keep on running mamoth Budget Defecits like now for ever? Can they continue to fight futile wars like this forever? Where is this once great Republic heading?

Currently US debts, I mean all kinds of debts are not in billions but trillions of dollars and they still continue this larger than life attitude.These Obligations will be and has to be paid by yet to be born future american generations. If not for the Central Banks of Japan,China,Taiwan and Korea, US will in no way will be able to finance all what they are doing now.

Again, if not for the US consumers buying all the clothes we are making for them, countries like Sri Lanka will have their own sets of problems. So far Big Asia economies are happy to invest their surplus dollars in US bonds and happy to keep the trend going.

But most importantly America should be responsible, get your acts together, stop fighting stupid wars. After all,this not what the founding fathers of your great nation wanted right? An Empire of Debt?

When you go down its not just you, we all go down!

For those who are interested just visit this for an idea of American debt.

And are these people serious!

If US Catches a ‘Cold’ it is definitely a ‘Pneumonia’ Situation for Sri Lanka. I’m talking economics now for a change. US is dependant on the outside world mainly for two things. First they are very dependant on Asia for Debt. US Citizens Save almost zero but are spending big time. This is how the US consumer is seen as a Economic Growth engine for Asian economies due to the buying capacity. They finance this larger than life spending by being in debt, everything from Real Estate to Cars, to 50Inch LCD TVs. How long they can afford to do this, no one knows. Japan and China holds large stakes of US treasury bonds (closer or more than a Trillion $s.). China wants US consumers to consume and US wants Chineese money to consume. The System is something like this.

Then, US wants oil, and they wants lots of that. US military is all but a load of metal if not for fuel. US has to therefore ensure a smooth supply of oil to keep its economy running. This is what you call a US interest. Now Venizuela is not so friendly with US and Nigeria is slowly but surely is going into a turmoil with sporadic disrupts with its oil production. Iran looks like a Volcanoe.

If for some reason Chineese stops investing in US Treasury Bonds! Or the oil supplies to US is disrupted for sometime. US might even go into a recession. I think from these two scenarios the latter looks more and more probable. Read this for a better idea. Also take some time looking at these unfolding trends and these at Google news also.

Finally a US recession will be a depression for us. US Consumers would be hard hit. Considering the fact that  our exports would be hit. So, millions of Sri Lankans, Vietnamese, Bangladeshis, Chineese and of course lots of Indian Software Engineers will face extinction.

We better watch out, its not only LTTE planes comming our way…………………..

We are Global Citizens afterall…………

For me, the most illfated decision made by Hitler during the Second world war was Operation Barbarossa or the invasion of Soviet Russia. Simple maths will prove that it takes virtually millions of soldiers to invade Russia due to her sheer size. But Hiltler went ahead with his plans and the rest is history.

The Gernman attempt to capture the city of Stalingrad is a bit of history itself as hundreds and thousands of both Germans and Russians lost their lives. A briliant movie on a Russian Snipper "Enemy at the Gates" is based on this Stalingrad siege.

But this is not the story…………..

Russian Leader Joseph Stalin had a Son serving in the Red Army at that Time ‘Jakov Djugahvili‘ who was a Senior Lieutenant. He was caught by the Germans during battle.

German Field Marshal Paulus who surrendered to the Red Army in the battle of Stalingrad was in the custody of the Russians. Hiltler suggested a prisoner exchange, Jakov for Paulus. Afterall its Joseph Stalin’s (Russian Leader) Son for a German Field Marshal.

Stalin’s reply for this proposal was………..

"A marshal would not be exchanged for  lieutenant"

President George W Bush has found a new friend or Ally in the Form of India. The extent of this new relationship is such that the US will help India on developing it’s ‘Civilian Neuclear Capabilities’. This is indeed a dramatic turnaround considering the geo political situation 2 decades ago when the Russians were in Afghanistan and when the US was actively channeling aid to the Mujahideen fighters through Pakistan. (Osama Bin Laden was First a Mujahideen before becoming Al Quaeda).
Then, the main US Ally in the Region was Pakistan and former President of Sri-Lanka, J.R Jayawardena was also actively seeking US mediation in the Region at this time. India being a traditional Ally of the Former Soviet Union was quick to put pressure on the Colombo Government to deter Colombo on any Co-Operation with US or Israel.
Given the History of US and Indian relations, recent developments are certainly interesting and requires more insight. First, Europe and Japan are no more considered as ‘powers’ as their declining economies suggest. There is a New Kid On the Block………………….China.
At the beginning of this year China surpassed UK in terms of GDP and by now Should be the 5th Largest Economy and growing at 9-10 percent annually. Also India is fast Emerging as an Economic power. But unluckily these two Asian Giants have their own problems regarding border disputes.
Also India is Sceptic about the ‘Emerging China’. This is the opertunity George Bush has Seized. He knows well and truly that there is nothing much USA could do to stop the Chineese emergence and what he wants is someone to try and counter this. Naturally this is India.