Threatened by a "financial tsunami," the world must consider building a financial order no longer dependent on the United States, a leading Chinese state newspaper said on Wednesday.

The commentary in the overseas edition of the People's Daily said the collapse of Lehman Brothers Holdings Inc (LEH.P: Quote, Profile, Research, Stock Buzz) "may augur an even larger impending global 'financial tsunami'."

The People's Daily is the official newspaper of China's ruling Communist Party, and the overseas edition is a smaller circulation offshoot of the main paper.

Its pronouncements do not necessarily directly reflect leadership views, but this commentary by a professor at Shanghai's Tongji University suggested considerable official alarm at the strains buckling world financial markets.

China's central bank earlier this week cut its lending rate for the first time in six years, a move analysts said was aimed at bolstering the economy and the battered stock market.

"The eruption of the U.S. sub-prime crisis has exposed massive loopholes in the United States' financial oversight and supervision," writes the commentator, Shi Jianxun.

"The world urgently needs to create a diversified currency and financial system and fair and just financial order that is not dependent on the United States."

But Vice Premier Wang Qishan, on a visit to the United States, told U.S. trade officials in a meeting on Tuesday that China and the United States needed to maintain close economic ties with global markets going through such turbulence.

"The Chinese government is well aware of the fact that the United States, which is the world's largest developed country, and China, which is the world's largest developing country, should have constructive and cooperative economic and trade relations," he said.

China is a major buyer of U.S. Treasury bonds, and through its sovereign wealth fund it has taken stakes in two large U.S. financial institutions.

In July 2005, China revalued the yuan and freed it from a dollar peg to float within managed bands. But the yuan and China's trade remains tightly linked to the fortunes of the dollar.

The commentary suggested China must brace for grave economic fallout and look to alternatives, saying the crisis brings to mind the Great Depression of the 1930s.

"Lehman Brothers announced bankruptcy will not only have a domino effect on the global financial world, it will bring a shock to the world economy," the front-page comment stated.

 

olja  oljekrig  oilwars  USA  FED  nyliberalism  nyliberal  neoliberal  skojare  liberaler  kollapsen av nyliberalismen  militär keynesianism  Bush  Clinton  McCain  Förenta Staterna  George W Bush  liberal kris  den osynliga handen  globalisering  internationella förhållande  amerikansk ekonomi  dollar collaps  the invisible hand  neocons  militar speditures  structural crisis trade balance  Globalisation  Globalization  globalism  Globalisering   IMF  world bank  corporate bond equities markets  disarray; the banking system  collapsing  consumer spending  tax revenues  national debt black holes  krigsförbrytare  war criminals  Democracy  liberal democracy  dictatorship  fascism  McBush  11/9  9/11  Palin terrorism  War on terrorism Russia  Georgia  Bush  Putin  south Ossetia  War nuclear  Nato  Election 2008  Obama  McCain  Iran  11 september   Accounting    Asset    Asymmetric information    Autarky    Average cost    Average propensity to consume B   Barter system    Bonds    Budget    Business economics C   Call money market    Capital    Capital Asset Pricing Model    Capital market line    Commerce    Commodity    Company    Corporate finance    Credit    Currency D   Depreciation    Diversification    Duty E   Economics E cont.   Efficient frontier F   Finance    Main Page    Gini coefficient    Microfinance    Price floor    Equity    Financial economics    National stock exchange    Budget deficit    Sample    Financial instrument    Fixed capital    Foreign exchange rate    Future value H   Hedge funds I   Industry    Inter-connected Stock Exchange L   Lending    Loan M   Macroeconomics    Money Supply    Money changer    Money market N   Normal distribution O   Option    Over-The-Counter Exchange of India P   Present value    Price    Product    Profit R   Repo rate    Return on investment    Risk    Risk management S   Secondary market    Security Market Line    Sell    Share    Share certificate    Standard deviation    Stock    Stock market T   Tariff    Taxation    Time value of money  Treasury bonds Y   Yield Z   Zero-coupon bond  Foreign policy law of the United States  imperialism  noninterference  nonintervention  regionalism  axis-of-evil  Bill of Rights  blow-back  budget  capitalism  caucus  civil rights  collateral damage  depression  disinformation  doublespeak  fascism  free speech  free enterprise  Federal Reserve System  FDIC  globalization  mpeachment  inflation  laissez-faire  MSM   Mainstream media  Neo-liberalism  Neo-conservative (Neocon)  New World Order  outlays  POTUS  propaganda  privatize  recession  revenue enhancement  republic  SCOTUS  Supreme Court of the United State  SEC  social security  subsidy  think tank  tyranny  terrorism  unilateralism  Weapons of mass destruction  antiterrorism  expansionism  geopolitics  neocolonialism  neoliberalism  ultraconservatism  Dollar Collapse  Credit Default Swap  CDS  Credit derivatives finance  Credit-default swaps on Fannie and Freddie  Credit Default Swaps and Financial WMDs trade  quote market  dealer  the bid  strategy  investors  lower the overall cost  shares   principal  mortgage  outstanding. Average life    weighted-average time   receipt   future cash flows  using as the weights the dollar amounts  principal paydowns. Average maturity The average time to maturity  securities  mutual fund  Changes in interest rates  bondholders and stockholders  Dow Jones Industrial Average  contract  financialoptions contractstraded  Corporation  financial institutions   bids  offers  tradedbonds  bond government agency   corporations created  manage a revenue-producing public enterprise. authority bond  municipal bond  margin protections  incorporated  authority bond contract  institutional investors  transact block business  purchase  sale   security  Markets   price   free interaction of prospective buyers  sellers floor  stock exchange  stocks preferred  dividend discount model   share  equity  low price-earnings ratios  high dividend yield  futures and options  contract  executed  exchanges   closing period  taxpayer  cash flow   risk  profit   asset value exceeds market value  A security  collateralized  Stock Price Riskless Indexed Notes. Zero-coupon four-year bonds repayable  security   commodity  financial_institution   syndication. This implies the entity that agreed and negotiated the project financing structure  bank  underwriter entitled to syndicate the loan or bondissue  convertible arbitrage index arbitrage  and international arbitrage  profits differences  price  extremely similar  security  currency  commodity  traded  two or more markets  Lower-rate refunding issue proceeds  invested Treasuries  first call date  interest rate Preferred Stock  equities  call provision in a municipal bondindenture   right of redemption  issuer  interest payment  general equities  order to buy or sell  quantity of stock  convertible securities. Interest  accumulated  market value  discount bond  liability  pension plan  strategy  available information forecasting techniques  better performance  buy  holdportfolio  asset  protected  potential loss  insurance  hedging Adjustable rate   convertible securities  interest rate   dividend adjusted standard market rate  outside control of the bank or savings institution  Treasury bonds  notes. Bush  McCain  Obama  Imperialists  hegemony  american century  pax americana  Palin  Finanskris  kreditkris  dollarraset  olja  oljekrig  oilwars  USA  FED  nyliberalism  nyliberal  neoliberal  skojare  liberaler  kollapsen av nyliberalismen  militär keynesianism  Bush  Clinton  McCain  Förenta Staterna  George W Bush  liberal kris  den osynliga handen  Bernake  Greenspan  kreditkrisen  finanskrisen  bankkrisen  konsument krediter  skuld  nationell skuld  räntenivå  recession  konjunktur strukturell kris  national debt handelsbalans utlandsskuld  nykeynesianism; internationell ekonomi  ekonomiskt läge  globalisering  internationella förhållande  amerikansk ekonomi  bankväsendet  finansmarknad  avreglering  pension  globala rånet  nyliberal skojeriet  neoliberalism  neocons  financial crisis  bank crisis  recesion  depresion  economics  voodoo economics  freakonomics  Federal reserve  Dollar Collapse  neokeynesianism interest rate  obligations  CDOs  state obligations  economic colapse  the dollar empire  monetary policy  national debt  state debt  credit crisis  credit card  mortgages structured investment vehicles   financial asset   credit crunch  Bank of England   financial panic   Individual Voluntary Agreement   toxic packages   sub-prime mortgages  privatization  deregulation  foreign debt  dollar asssets  dollar collaps  the invisible hand  neocons  debt mortage loans  mortage debt  consumer debt  bonds  trasure bonds inflation  consument price index  producent price index  energy price  oil price  bonds price  stocks  stock  Wall Street  financial markets  militar speditures  structural crisis trade balance  Globalisation  Globalization  globalism  Globalisering   IMF  world bank  corporate bond equities markets  disarray; the banking system  collapsing  consumer spending  tax revenues  national debt black holes  Closed Economy The Black Economy  Recession  Leverage  Treasury Bill  Asymmetric Information  The Long Tail  Demand Forecasting  Monetization  Monopoly  Monopsony  Duopoly  Oligopoly