Posts tagged ‘Iran’

July 22, 2011

More news behind the headlines

In this edition, the shifting sands of power in the Middle East, the alliance between Iran and North Korea, the politics of India’s oil supply, Vince Cable’s corrupt dealings, and why Mongolia matters.

Is Libya trying to sell off its shipping fleet? – By Robert Zeliger

blog.foreignpolicy.com – How desperate is Muammar Qaddafi to raise cash? According to a new report, the Libyan leader is trying to unload the country’s fleet of 22 shipping vessels as economic sanctions and continued fight.

Why Mongolia Matters « Commentary Magazine

commentarymagazine.com – Our colleague Michael Rubin makes a good case for why we should care about Mongolia as well as why we should reject the realpolitik that would have the United States eschew friendship with small st..

How Saudi Arabia and Qatar Became Friends Again – By Sultan Sooud Al Qassemi

foreignpolicy.com – In the spring of 2006, Qatar’s then energy minister broke his silence on a stalled, multibillion-dollar project to supply Qatari gas to Kuwait. “We have received no clearance from Saudi Arabia” he…

North Korea and Iran increase collaboration on nuclear missile, report claims

telegraph.co.uk – It was capable of manufacturing high strength steel that Iran has been unable to manufacture. Iran has instead relied on carbon fibre materials that are less reliable.”What previously had been a on…

‘India can cope with oil supply halt’

timesofindia.indiatimes.com – NEW DELHI: India has back-up plan to cope with a halt to crude supplies from Iran, oil minister S Jaipal Reddy said, as the Islamic republic upped the ante in an oil payments row and Indian refiner…

Cable flies into controversy with £32m for Westland Business News, Business

independent.co.uk – AgustaWestland has secured a £22m government loan to build the new AW169 helicopter at its Yeovil factory, along with £10m in research and development grants. The funds, announced by the Business…

March 4, 2011

Who owns the US?

Federal_Debt-VS-Taxes

Image via Wikipedia

By Greg Bocquet, here:

Regardless of how much closer Obama’s budget brings our economy into a balance of payments not seen since 2001, we will continue to run deficits for the next decade, and the national debt will keep growing every year that happens.

While most of the country’s $14 trillion debt is held by private banks in the U.S., the Treasury Department and the Federal Reserve Board estimate that, as of December, about $4.4 trillion of it was held by foreign governments that purchase our treasury securities much as an investor buys shares in a company and comes to own his or her little chunk of the organization.

Looking at the list of our top international creditors, a few overall characteristics show some interesting trends: Three of the top 10 spots are held by China and its constituent parts, and while two of our biggest creditors are fellow English-speaking democracies, a considerable share of our debt is held by oil exporters that tend to be decidedly less friendly in other areas of international relations.

Here we break down the top 10 foreign holders of U.S. debt, comparing each creditor’s holdings with the equivalent chunk of the United States they “own,” represented by the latest (2009) state gross domestic product data released by the U.S. Bureau of Economic Analysis. Obviously, these creditors won’t actually take states from us as payment on our debts, but it’s fun to imagine what states and national monuments they could assert a claim to.

foreigndebt-flags.jpg
©Radar Communication

1. Mainland China

Amount of U.S. debt: $891.6 billion

Share of total foreign debt: 20.4%

Building on the holdings of its associated territories, China is the undisputed largest holder of U.S. foreign debt in the world. Accounting for 20.4% of the total, mainland China’s $891.6 billion in U.S. treasury securities is almost equal to the combined 2009 GDP of Illinois ($630.4 billion) and Indiana ($262.6 billion) in 2009, a shade higher at a combined $893 billion. As President Obama — who is from Chicago — wrangles over his proposed budget with Congress he may be wise to remember that his home city may be at stake in the deal.

[…]

4. Oil Exporters

Amount of U.S. debt: $218 billion

Share of total foreign debt: 5%

Another grouped entry, the oil exporters form another international bloc with money to burn. The group includes 15 countries as diverse as the regions they represent: Ecuador, Venezuela, Indonesia, Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, the United Arab Emirates, Algeria, Gabon, Libya, and Nigeria. As a group they hold 5% of all American foreign debt, with a combined $218 billion of U.S. treasury securities in their own treasuries. That’s roughly equivalent to the combined 2009 GDP of Nebraska ($86.4 billion) and Kansas ($124.9 billion), which seems to be an equal trade: The two states produce a bunch of grain for export, which many of the arid oil producers tend to trade for oil.

[…]

6. Caribbean Banking Centers

Amount of U.S. debt: $155.6 billion

Share of total foreign debt: 3.6%

You have to have cash on hand to buy up U.S. government debt, and offshore banking has given six countries the combined capital needed to make the Caribbean Banking Centers our sixth-largest foreign creditor. The Treasury Department counts the Bahamas, Bermuda, the Cayman Islands, the Netherlands Antilles, Panama and the British Virgin Islands in this designation, which as a group holds $155.6 billion in U.S. treasury securities. That’s equivalent to the GDP of landlocked Kentucky ($156.6 billion), whose residents may not actually mind if they were ever to become an extension of some Caribbean island paradise.

7. Hong Kong

Amount of U.S. debt: $138.2 billion

Share of total foreign debt: 3.2%

At No. 7 on the list of our foreign creditors is Hong Kong, a formerly British part of China that maintains a separate government and economic ties than the communist mainland. With $138.2 billion in U.S. treasury securities, the capitalist enclave could lay claim to Yellowstone Park and our nation’s capital: The combined GDP of Wyoming ($37.5 billion) and Washington D.C. ($99.1 billion) totaled $136.6 billion in 2009.

[…]

10. Russia

Amount of U.S. debt: $106.2 billion

Share of total foreign debt: 2.4%

Starting off the list of our major foreign creditors is Russia, which holds about 2.4% of the U.S. debt pie that sits on the international dinner table. Its $106.2 billion in treasury securities is equivalent to the 2009 GDP of our sparsely populated North: The combined output of North Dakota ($31.9 billion), South Dakota ($38.3 billion) and Montana ($36 billion) matches up nicely with the Russian holdings, at $106.2 billion.

Let’s hope Russian president Dmitry Medvedev doesn’t come to collect.

October 4, 2010

Blog round up

Lady Poverty: Poverty and abundance

Large-scale commodity production gives us a sense of material abundance. So much stuff! We call ourselves “developed” because we have advanced so much further than the “developing” or “underdeveloped” world in terms of the things we can buy. In other parts of the world, and at other times in history, consumer options have been much more limited. Nevertheless, individuals in any society are vulnerable anytime things like food, shelter and medicine are treated as commodities, not rights.

Poverty in an advanced consumer society can look a lot different than poverty in an early- or semi-capitalist one. [READ THE REST]

Harry’s Place: The Islamic Republic’s corporate enablers

The Guardian reports:

Shell, the Anglo-Dutch oil giant, paid the state-owned Iranian oil company at least $1.5bn (£0.94bn) for crude oil this summer, increasing its business with Tehran as the international community implemented some of the toughest sanctions yet aimed at constricting the Islamic republic’s economy and its lifeline oil business.[…]

Now I realize there is some dispute among opponents of the regime over the effectiveness of economic sanctions on Iran. But it’s hard for me to grasp how pouring one-and-a-half billion dollars into the coffers of the Iranian government does anything other than strengthen the regime– not only in its nuclear program but also in its ability to brutalize and repress its political opponents, to keep a lid on wider opposition through state subsidies and to supply weapons to the likes of Hezbollah.

Shell Oil’s reputation for responsible and ethical behavior is already pretty lousy, and they may figure that doing business with Iran won’t make it much worse. But I have to believe that they– like other companies– would be susceptible to worldwide pressure to stop funding the Iranian regime.

Earlier this year the telecom giant Nokia-Siemens Networks got around to admitting a “share of the blame for Iran’s brutal crackdown on anti-government demonstrators last year after selling mobile phone surveillance to the authoritarian regime.”[…]

Arguing the World: Partial Readings: The World Has Changed

Poverty Rising

The 2009 census data unveiled a few weeks ago revealed a troubling, if unsurprising, fact: one in seven Americans is now below the poverty line—and when the number of those now sharing homes is included, the figures are even starker. There is one glimmer of hope amid the grim news: senior citizens have actually seen a rise in income—a testament to the effectiveness of Social Security as an anti-poverty program. The safety net for families with children, especially those with single mothers, has proved far less effective; and a new Pew study illuminates the dire economic straits in which former prison inmates and their families find themselves. The effects have been exacerbated by rising incarceration rates: “1 in every 28 children (3.6 percent) has a parent incarcerated, up from 1 in 125 just 25 years ago. Two-thirds of these children’s parents were incarcerated for non-violent offenses.”