From Volume 7, Issue 42 of EIR Online, Published Oct. 14, 2008
Asia News Digest

Peoples's Daily: Bailout Will Lead to Dollar Collapse

Oct. 7 (EIRNS)—The U.S. Treasury "rescue" bailout is a "double-edged sword," states a commentary in today's edition of the People's Daily of China. It is clear from the international reaction, that there is "no guarantee" that the bailout will work, the commentary stated, as the markets continue to crash. "After all, whatever plan is put in place at this moment cannot work as a one-step crisis fixer.... It is apparent [that] the system-wide purchase of problem assets ... is by no means a panacea for the ailing U.S economy, but more like an emergency tactic."

While there might be some "relief," the official paper of the Chinese Communist Party wrote, the problems in the U.S. economy are too profound to be solved this way, as rising unemployment and falling consumption demonstrate. The economy is "likely to go further into an economic depression," affecting the entire world.

The commentary argued that the bailout package may well worsen the situation. An "in-depth analysis suggested that the $700 billion bailout plan would possibly send the entire world plunging into a fresh wave of financial crisis," by bringing down the value of the dollar. As the U.S. continues its "long-term goal to devaluate its dollars," this means the "likelihood of another large-scale expansion of US dollars.... People are convinced that far more dollar liquidities will be created in the international financial market, with a level much higher than the newly issued bonds by the U.S government or fiscal deficits. These dollar liquidities would push forward the devaluation of the U.S dollars," while forcing inflation in key commodities' prices, which will be "another nightmare for those economies already bogged down in the marshes of high inflation."

The bailout might be able to ease the situation, "but it cannot cure the disease suffered by the whole financial system. The countries concerned will have to work out the emergency plans of their own in a bid to stabilize their own economy and financial market. Against the global financial fears, the governments will also have to join efforts to combat the financial crisis and push ahead with the reforms in the international financial and monetary systems in order to curb the hegemony wielded by the U.S dollars over the world economy," People's Daily concluded.

People's Daily is published worldwide with a circulation of 3 to 4 million, with editions in Chinese, English, Japanese, French, Spanish, Russian, and Arabic.

Thai Royal Mob Close To Removing Third Prime Minister

Oct. 11 (EIRNS)—The fascist mob which has occupied the Government House in Bangkok for over six weeks is close to bringing down the third straight Thai government, with the royal family and the Army openly siding with the Soros-styled anarchistic "democrats," against the popularly elected governments. In the face of Asian nations' efforts to unify their response to the global financial collapse, the British are pulling out all the stops to keep Thailand—central to the unity of the ten ASEAN nations—in perpetual chaos.

On Oct. 7, Deputy Prime Minister Chavalit Yongchaiyudh, a former prime minister who was brought back into government to try to solve the crisis, deployed police to disperse the People's Alliance for Democracy (PAD) mob from the Parliament building, where it had set up barricades to prevent the meeting of Parliament. (Democracy to the PAD means appointed parliamentarians and a military free to intervene at will.) Using tear gas, the police removed the mob, with two deaths and many injuries, whose cause is disputed—there may have been bombs and weapons carried by the mob.

This was what the fascists wanted—a bloody shirt to wave, to justify a military coup against Prime Minister Somchai Wongsawat's government. The gang of mostly Baby-Boomer anarchists who make up the PAD have received open support from the Queen, who is paying the medical expenses of those injured in the melee, and from the Army. Army Chief Anupong Paochinda—who took part in the 2006 coup against Prime Minister Thaksin Shinawatra, and later refused an order from the last Prime Minister, Samak Sundaravej, to clear the mob from the Government House—has now deployed unarmed troops to the street, to defend the mob from the police!

Chavalit, a former general, resigned after the action to clear the mob from around the Parliament, but sent a challenge to the military to impose order. Incredibly, Army Chief Anupong told Chavalit and Somchai to "take responsibility" for the violence, denouncing Chavalit for his orders to clear the mob from around the Parliament, to allow the functioning of constitutional government.

Showing once again that the courts are under the control of the royal/military crowd backing the mob, when the police finally took the leaders of the PAD into custody, to face the outstanding warrants against them, the court dropped the serious charges of treason and insurrection, leaving only minor charges of "inciting unrest," and then released them on bail—to return to inciting unrest at the Government House and other sites.

Now the Constitutional Court is preparing to impose a ban on the government party over minor election charges against a few members—a repeat of their banning of Thaksin's party. The only possible intention is the classic imperial tactic of creating chaos.

British Launch Move for Independent Kashmir

Oct. 8 (EIRNS)—Having destabilized Pakistan with the help of the Pakistani Inter-Services Intelligence (ISI) and a number of terrorist groups that are nurtured in what the Jamestown Foundation calls "Londonistan," the British move to weaken India by stirring up the disputed Kashmir issue has been officially launched. In recent years, because of a disastrous globalization-centered economic policy adopted by the government of Indian Prime Minister Manmohan Singh, since 2004, the country has become violence-prone and vulnerable to destabilization.

The ISI and the London-controlled terrorists have heated up the India-held part of Jammu and Kashmir in recent months. On Oct. 6, some of the British backroom operators made their appearance in Birmingham, England, at a meeting hosted by local MP Khalid Mahmud and chaired by Lord Nazir Ahmad. The British MPs who spoke represented all three major British parties.

At the meeting, the British MPs condemned the alleged human rights violations in Indian-Held Kashmir (IHK) by the Indian authorities, and urged the U.K. to bring about a political settlement in the region, saying that London had an obligation in this regard, as a divided Kashmir an unfinished business dating back to the subcontinent's partition. The MPs said that an election in both parts of Kashmir should be organized under the supervision of the United Nations, with active support of the European Union (EU) and the British Commonwealth. Such a plebiscite, long rejected by both New Delhi and Islamabad, is a ploy adopted in the 1948 UN Resolution which said the Kashmiris, in such a plebiscite, can vote to remain with India, or Pakistan, or to seek an independent Kashmir.

South Korean Minister Rips 'Genius' Who Invented Derivatives

Oct. 10 (EIRNS)—South Korean Finance Minister Kang Man-Soo, before leaving Seoul for the Washington, D.C. meeting of the International Monetary Fund this weekend, told the Washington Post: "The United States almost forced the rest of the world to open up their financial sectors. It has been telling the world that its derivatives are an advanced technique created by some genius." He corrected that myth by explaining that "derivatives and hedge funds are like casino gambling. A lot of Koreans are asking, how can the U.S. be so weak?"

Kang also insisted that the G7 "bring emerging markets into consideration as they make plans for a solution," effectively backing up the call by French President Nicolas Sarkozy to expand the G7 to a G14, to discuss the creation of a new economic order.

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