Wall Street's Mouthpiece Admits: China Far Ahead

December 23, 2014

CNBC-TV, most often a cheering section for Wall Street stocks and bankers, was sobered today. It posted a long economics analysis by Michael Ivanovitch, "Asia builds while the EU talks about it," which acknowledged the superiority in growth and investment of China's economic policy, over any other nation on earth.

Ivanovitch begins by contrasting the EU's pathetic economic failure, with China's and Eurasia's economic growth which has established a beachhead right in the midst of the EU, in the Eastern and Central Europe (CEE) nations. At EU's latest "sanctions summit" this weekend they also discussed EU-wide infrastructure projects: but $315 billion euros in investment was needed and $20 billion was available for the whole continent [!], so they postponed the whole discussion. Europarliament President Martin Schulz "joked" that the EU makes lists of projects it is going to scrap, not build.

But with Chinese Prime Minister Li in the CEE:

"In a stark contrast with the confusion at the EU Brussels jamboree, the European wish-list presented to Chinese investors in Belgrade was clear and precise — ranging from airports, railroads, highways, special industrial zones..."

They were all taken up and will be started quickly — under the EU's nose. The CEE nations, not accidentally, are lukewarm supporters of sanctions against Russia, at most.

And this, in turn, Ivanovitch writes:

"...[is] very little compared to the vast transportation, communications and energy networks implemented and planned in Asia.... It is ... mainly financed by China's huge financial resources, part of which will now be channeled through the 21-nation Asian Infrastructure Investment Bank (AIIB)."

China, he reports, is "by far the world's largest capital exporter," an acknowledgment one doesn't see in western financial press.

This analysis concludes with India and Indonesia as the two largest infrastructure target areas, India in particular intending to "invest $1 trillion over the next five years. The idea of its current and previous presidents was that Asia "invest its savings in regional growth projects rather than in the fixed-income assets of heavily indebted countries. "China is increasingly moving in that direction."

For the Jim Cramers of CNBC-TV, this one must hurt.