EconomyWatch.com

US Treasury hid $40 bn likely taxpayer loss on AIG bailout TARP Insp Genl says "US govt has obligation, when describing potential losses, to give complete information” Ideal chance 4 O 2 replace Geithner w income-equalizing Stiglitz/Roubini/Krugman

Shock of recent IMF meeting: extent to which Western leaders openly acknowledge Asian econ global dominance 4 present & future Analytically good but unclear how they will deal w new situation, both as "group" of some sort & individual countries

Intense China rivalry, fastest-growing mrkt 4 German corps, but proximity gives Japan edge Euro plunge v-a-v yen helps tho econs, execs say initial cost secondary factor given sectors where 2 compete eg specialized factory machines, heavy equipment

China companies see low-cost manufacturing now losing proposition Some leaving 4 cheaper places: western C, B-desh, V-nam Others, stuck in coastal industrial heartland, trying 2 innovate, move up value-added scale Govt helping, 2 keep jobs, tax $

Since 2000 US in crises in 6 areas: financial/economic/ideological/political/intellectual/media Now ugly fight btwn two TBTF groups: banks & insurance companies, saying other shd pay 4 bad housing loans BOTH admit consciously did NO due diligence

Full econ potential stifled by terrible roads, bridges, railroads & power grid so unreliable many ofc bldgs run generators to insure lights & computers stay on Prob: dearth of civil engineers MUCH higher IT salaries lure best minds from hands-on work

Rare earth metals key to most high-tech products & clean energy processes China said 2 have 93% world supply Main market: Japan, w whom China engaged in bizarre confrontation Ironic then J says recycling used electronics become new rare-earth source

Peak oil: global reserves top out & production falls, creating permanent supply crisis G mil study sees shifts in global power bal, new relationships of interdependency, decline of western nations, total market collapse, on-going economic crises

Joint SEC/CFTC "investigation" of May 6 Flash Crash not reassuring at all Details bit of HOW but ignores WHY &, crucially, how to AVOID such events in future Culprits clearly high-speed traders & runaway computer algorithm Investors flee equity mrkts

REAL China econ story: systematic, concerted drive 2 b THE global leader in clean/green high-tech Many aspects govt help pioneered by US during equiv growth 19th C Many US corps getting help & end result will b cleaner world ecology Benefit 2 all