Professional Documents
Culture Documents
Econ
1ac — econ advantage
John Ficenec6, 2-9-2015, "The global financial system stands on the brink of second
credit crisis," Telegraph.co.uk,
http://www.telegraph.co.uk/finance/economics/11398175/The-global-financial-system-
stands-on-the-brink-of-second-credit-crisis.html
The world economy stands on the brink of a second credit crisis as the vital transmission
systems for lending between banks begin to seize up and the debt markets fall over. The
latest round of quantitative easing from the European Central Bank will buy some time
but it looks like too little too late.
It was the collapse of US house prices back in 2007 that resulted in the seizure of the
credit markets and banking crisis of 2008. And it would be easy to lay the blame for the
2008 financial crisis at the doorstep of American home owners, easy but wrong. The
collapse of the US housing market was not the cause of the crisis, it was merely a
symptom of the more insidious ills of cheap credit, low risk and the promise of another
bailout round the corner.
The Keynesian pump priming that has taken place on a colossal scale across the world is
failing. The Chinese economy was growing at 12pc in 2010, but that slowed to 7.7pc in
2013 and 7.4pc last year — its weakest in 24 years. Economists expect Chinese growth to
slow to 7pc this year. It is the once booming property sector that has turned into a bust,
and is now dragging down the wider economy as the bubble deflates.
The second global credit crisis is now already unfolding in China some 6,800 miles away
from the epicentre of the first in the US. The bonds of Chinese real estate companies are
now falling like dominoes. Kaisa, a Shenzhen-based, Hong Kong-listed developer that
raised $2.5bn on international markets had to be bailed out by rival group Sunac last
week after it defaulted onits debts. The bonds of other Chinese real estate groups such as
Glorious Property and Fantasia have also sold off heavily as the contagion spreads.
Chinese authorities have responded to try and contain the situation. The People’s Bank
of China introduced a surprise 50-point cut in the Reserve Requirement Ratio (RRR)
from 20pc to 19.5pc. But this misses the point, the credit system in China is completely
unsustainable unless new money is printed every year to refinance the old, simply
tinkering to ease liquidity won’t cut it.
The strain in its banking system is highlighted by the elevated levels of the Shanghai
Interbank Offered Rate (SHIBOR), which shows Chinese banks are worried about
lending to each other.
There is no schadenfreude in watching China unravel. The idea that this is an isolated
incident is laughable, remember the very same was said of US subprime. The problem is
that banks such as Standard Chartered and HSBC have both rapidly increased their
lending operations in Asia since 2008.
Loans are very easy to make, it is getting the money back that is tricky. If loans go bad in
Asia they will ultimately have to be recognised on the very same group balance sheet
from which finance is extended here in the UK. So, the contagion can quickly spread
from the Chinese property market to a poorly funded UK bank that has never set foot in
Asia. That is because UK banks borrow billions in short term funding from each other.
Loan losses in China can very quickly become a UK problem.
The London Interbank Offered Rate (LIBOR), a guide to how worried UK banks are
about lending to each other, has been steadily rising during the past nine months. Part of
this process is all a healthy return to normal pricing of risk after six years of
extraordinary monetary stimulus. However, as the essential transmission systems of
lending between banks begin to take the strain it is quite possible that six years of
reliance on central banks for funds has left the credit system unable to cope.
It seems nothing has been learned. The response to the underlying causes of the first
global financial collapse, namely cheap debt, low risk and bailouts, has simply been a
heroic effort to create cheaper credit, lower risk and even larger bailouts. It hasn’t
worked.
A new study reveals the staggering scale of the problem as global debt has ballooned by
$57 trillion since 2007 to reach about $200 trillion, according to McKinsey & Co. The
main culprits of monetary expansion has been China, which launched a 4 trillion yuan
(£386bn) stimulus package, the US Federal Reserve has launched three rounds of QE
adding $3.7 trillion worth of assets to its holdings, the Bank of England has spent about
£375bn and Japan has increased its asset buying programme to 80 trillion yen (£454bn)
a year, up from the previous rate of 60-70 trillion yen.
The money has flowed the path of least resistance into the assets that provide the
greatest return. Equities have soared and the stock markets in the UK and US are just
shy off record highs. Taking a look across the companies who’s shares have benefitted it
is the new technology stocks that have risen the fastest and sit on the highest valuations.
Like every stock market mania, the most overpriced assets are the ones furthest divorced
from any sound valuation. Eye watering prices are paid for companies with less than 50
employees using a “this time it’s different” formula based on clicks, eyes, views, or active
members to persuade investors to part with their savings.
Some truly bizarre asset classes have sprung up like mushrooms in the fetid ground of
quantitative easing. The crypto-currency of Bitcoin is perhaps the greatest example.
Bitcoin has no central bank and only exists online as a virtual currency. It is seen as a
rival to traditional state controlled money and payment systems, but in reality they are
two sides of the same coin. Bitcoin flourished as quantitative easing was expanded,
soaring in value by more than 700pc in 2013. Now quantitative easing has ended Bitcoin
has collapsed.
The fledgling crypto-currency hasn’t been alone in retracing its central bank funded
gains. All asset classes are now crumbling. The oil price has collapsed from $115 per
barrel in June last year to about $52 at the end of last week, iron ore has slumped from
$140 per tonne in January last year to $62 per tonne at the end of last week.
It is not only asset classes that that are wavering, the key indicators of international
economic activity are also flashing red. The Baltic Dry Index which is seen as a leading
indicator for world economic growth tumbled to a 29-year low at 559 points last week.
The second credit crisis is already unfolding in China and the latest round of European
money will struggle to halt the contagion in credit markets.
relations solve
don’t need me to tell you how important the U.S.-China relationship is both
to addressing global challenges, but also to the welfare and the economic
interests of the United States , but I will turn the floor now over to Cathy, Under Secretary Novelli. UNDER
SECRETARY NOVELLI: Thanks, Danny. And just as Danny has said, the S&ED has actually been a very productive and
important bilateral forum for a number of the issues that are the economic , the environment issues. And so
we have really been able to use these meetings to come together and, in places where we
disagree, to try to have frank discussions and resolve those things and also figure out how we can
work together. And so I thought I would just take a few minutes to talk about some of the things that maybe aren’t quite always on the front page
but are very important in terms of issues that we’re going to discuss. And the first one is clean energy. The S&ED has a real important opportunity for us
to build off of the progress that was made in Paris last December at the COP21 because we’re the world’s two largest emitters of carbon dioxide, but we
also accounted for more than half of the record $329 billion in global investment in clean energy in 2015. And so we’re going to actually sit down and
talk about how U.S. and Chinese experiences can support China’s power sector reforms. And the reason why this is important is because it’s going to
open the way for more market-oriented strategies to increase renewable energy integration into China. We’re also going to talk about a number of key
issues impacting the environment, and those are going to range from wildlife trafficking and combatting that to ocean conservation and also to supporting
Chinese and American innovators in trying to address a wide array of innovation challenges, including how innovation can help in these areas like
wildlife trafficking and ocean conservation. And you may know that the last S&ED in Washington set in motion President Obama and President Xi’s
historic announcement of their commitments mutually to implement near-complete bans on ivory imports, exports, and domestic and commercial trade.
And this was widely recognized at the time as a game-changing event in the worldwide effort to stop elephant poaching, and in fact, the price of ivory in
China has decreased by half since that announcement. So what we’re planning to do in the S&ED is to talk about how this is going to actually get
implemented. The U.S. is getting ready to roll out its regulations that are going to actually put this ban into effect, and we’re going to talk with the
Chinese about how they’re progressing and doing their own regulations as well as talk about how we can work together with third countries who are
facing problems of poaching. We’re also going to talk to them about how we can jointly address the urgent threats our ocean faces from manmade
pressures and how we can work together to find solutions to threats like plastic pollution and illegal, unreported, and unregulated fishing. We had a great
first session on oceans at our last S&ED, and so we’re going to build on that for this one. And we’re also hoping that we can entice the Chinese to play a
more prominent role in the Our Ocean conference that we’re going to be hosting here in September, on September 14th – or 15th and 16th, because that is
a very, very important conference in bringing the world together to combat illegal fishing, to combat pollution of the ocean. And we want China to
participate since they are a big ocean state. Another way that we see an opening for greater collaboration is a new dialogue that we’re just starting up,
which is going to be on aviation-related issues. And there we’re going to have representatives from seven U.S. agencies who have aviation
responsibilities, including ourselves at the State Department, to meet with our Chinese counterparts and their interagency to talk about how we can adapt
our national aviation systems to meet the needs of the 21st century. And we have – obviously, in the U.S. we have experiences from the growth of our
own commercial aviation system, and we think that talking with Chinese that we can convey what our experiences have been, it can benefit China as it
expands its own aviation system. And so we’re hoping that we’ll be able to have some very tangible results of that on a going-forward basis. Lastly,
we’re also going to talk about how we can work to support the science and technology innovations across the board that can provide jobs and improve the
quality of life for both of our countries. So we are going to be introducing some of the newest members of our EcoPartnerships program, which is a
fantastic program that supports local and state actors in China and the United States who work together to find technical solutions to environmental
challenges. This has been going on for several years, and we have a whole new set of EcoPartners that we’ll be announcing. So we’re
going to
cover a lot of important ground on energy, environment, and of course, the economic realm .
And I think that it speaks to the large relationship that we have. It’s a very large and diverse relationship, and we’re trying to work together where we can
agree, because when we agree, we can have great results and be very constructive. So I thank you very much and I think we are going to take some
questions.
War
Economic collapse leads to war
Orlov 16 (Dmitry: BS in Computer Engineering an MA in Applied Linguistics, and
writes frequently about the US economy. January 12, 2016.
http://cluborlov.blogspot.mx/2016/01/financial-collapse-leads-to-war.html#more)
The US acts militarily to defend the status of the US dollar as the global reserve currency.
But the US dollar is slowly but surely losing its attractiveness as a reserve currency, as
witnessed by China and Russia acting as swiftly as they can to unload their US dollar
reserves, and to stockpile gold instead. Numerous other nations have entered into
arrangements with each other to stop using the US dollar in international trade. The fact
of the matter is, it doesn't take a huge military to flush one's national currency down the
toilet, so, once again; something else must be going on.
There are many other explanations on offer as well, but none of them explain the fact
that the goal of all this militarism seems to be to achieve failure.
The US has surrendered its sovereignty to a clique of financial oligarchs. Having nobody
at all to answer to, this American (and to some extent international) oligarchy has been
ruining the financial condition of the country, running up staggering levels of debt,
destroying savings and retirements, debasing the currency and so on. The inevitable end-
game is that the Federal Reserve (along with the central banks of other “developed
economies”) will end up buying up all the sovereign debt issuance with money they print
for that purpose, and in the end this inevitably leads to hyperinflation and national
bankruptcy. A very special set of conditions has prevented these two events from taking
place thus far, but that doesn't mean that they won't, because that's what always
happens, sooner or later.
Now, let's suppose a financial oligarchy has seized control of the country, and, since it
can't control its own appetites, is running it into the ground. Then it would make sense
for it to have some sort of back-up plan for when the whole financial house of cards falls
apart. Ideally, this plan would effectively put down any chance of revolt of the
downtrodden masses, and allow the oligarchy to maintain security and hold onto its
wealth. Peacetime is fine for as long as it can placate the populace with bread and
circuses, but when a financial calamity causes the economy to crater and bread and
circuses turn scarce, a handy fallback is war.
His mother would like you to know that he has been interviewed, published, or cited by,
among others, the New York Times, the Wall Street Journal, CNN, Andrew Sullivan,
Forbes, BoingBoing, the Independent, the LA Times, Wired, Rolling Stone, Harvard
Business Publishing, Discovery News, Metro International, etc.
As a counter-point to Lloyd's tongue-in-cheek post about 10 Ways the Recession Can
Help the Environment, here are some eco-reasons why we should wish a speedy recovery
(we won't get into non-green reasons here): Firstly, when squeezed, companies will
reduce their investments into research & development and green programs. These are
usually not short-term profit centers, so that is what's axed first. Some progress has been
made in the past few years, it would be sad to lose ground now. Secondly, average
people, when money is tight, will look for less expensive products (duh). Right now, that
usually means that greener products won't make it. Maybe someday if we start taxing
"bads" instead of "goods" (pollution, carbon, toxins instead of labor, income, capital
gains) the least expensive products will also be the greenest, but right now that's not the
case. Thirdly, there's less money going into the stock markets and bank loans are harder
to get, which means that many small firms and startups working on the breakthrough
green technologies of tomorrow can have trouble getting funds or can even go bankrupt,
especially if their clients or backers decide to make cuts. Fourthly, during economic
crises, voters want the government to appear to be doing something about the economy
(even if it's government that screwed things up in the first place). They'll accept all kinds
of measures and laws, including those that aren't good for the environment. Massive
corn subsidies anyone? Don't even think about progress on global warming...
Climate Change
1ac — climate change advantage
Thankfully, unlike most aspects of Sino-U.S. relations where tensions are rising, bilateral
cooperation on climate change has made remarkable progress, highlighted by the
historic climate change agreement signed by the two countries in November 2014.
During Xi Jinping’s first state visit to the United States last month, the two sides
announced a new set of policies to combat climate change, including a national cap-and-
trade program in China and a $3 billion fund from China to help developing countries
curb global warming.
The two countries’ commitment on clean energy should not be taken for granted. In the
U.S., the Obama administration certainly has put curbing fossil fuels top of its policy
agenda and has made very real efforts to enact policies and regulations to achieve these
goals. However, whether those measures can survive political opposition remains
uncertain. The 2016 presidential election could be a critical moment in the trajectory of
U.S. climate policy. Moreover, the shale gas revolution not only enables the U.S. to
achieve energy self-sufficiency, it may also make America the world’s top exporter of
fossil energies. This means energy security concerns might no longer be the top policy
issue for the United States, which could then weaken the government’s commitment
towards developing clean energies.
In the case of China, the current economic slowdown, if it persists, could force the
country to rethink its ambitious plans for carbon emission reduction. For years, the
bottom line for China on climate change mitigation has been to strike a balance between
economic development and climate concerns. While in recent years, amid rapidly
worsening pollution, China has been more willing to take decisive action such as
breaking away from cheap coal and closing down energy intensive factories to curb
domestic greenhouse gas emission at the expense of economic growth. However, it does
not mean that climate change concerns will prevail over economic development. With
hundreds of millions of people still living in poverty and per-capita incomes lagging far
behind those of the developed countries, China’s development needs are immense and
the government’s top priority is to maintain stable growth. Therefore, if the economic
situation in China worsens, it will be no surprise if the Chinese government retreats from
efforts to curb emissions in favor of stabilizing economic growth.
Next, as the biggest agricultural producers and traders, the U.S. and China are also
among the world’s top agricultural emitters. This highlights the critical role the two
countries have in reducing greenhouse gas emissions from the farm sector. Moreover,
unlike Canada and Russia, where agriculture may well benefit from global warming, the
impacts of climate change on the agricultural sectors of both China and the United States
are negative. Extreme weather brings uncertainty to future food production and
threatens food security.
China and United States are already deeply locked in the food-climate nexus, given their
strong agricultural ties. Those close ties bring both opportunities and challenges to the
efforts of the two countries to deal with climate change. On the one hand, given that
China’s farm sector is heavily reliant on fertilizers, pesticides, and other chemical inputs
and is dominated small household farming, importing soybeans, corn, and other
agricultural products from the United States, apart from contributing to China’s food
security, allows China to implement its afforestation and land restoration plans, which
are important steps in reducing greenhouse emissions in China. On the other hand, close
agricultural ties also mean that the climate impacts in one country will have
repercussions for the other. To take a somewhat more obscure agricultural product,
alfalfa, as an example, the United States, the largest alfalfa producer in the world,
accounted for nearly 95 percent of China’s total alfalfa imports in 2012. As alfalfa
requires substantial volumes of water, the Sino-U.S. alfalfa trade has come in for
criticism amid a historic drought in Californian the largest alfalfa producing region in the
United States.
The potential climate impact of the evolving Sino-U.S. agricultural ties would not be
limited to those two countries alone; rather, the whole word could be affected. The
United States has long been the biggest supplier of agricultural products to China.
Increasingly, however, there are concerns in China that an over reliance on U.S. for food
will jeopardize China’s food security and even its national security. Thus, China has been
pursuing a diversification strategy. This is especially the case with soybeans. In the late
1990s, China imported more than 80 percent of its soybeans from the United States;
now, it is importing more soybeans from Latin American countries, particularly Brazil
and Argentina. In 2014, the U.S. share of China’s total soybean imports declined to about
40 percent. While diversifying imports away from the U.S. is beneficial to China’s food
security, it has negative repercussions for global climate change mitigation because
China’s soaring soybean imports from Latin America are contributing to deforestation in
the Amazon, considered to be the biggest carbon sink in the world. As deforestation
progresses, it releases carbon, with a direct impact on the entire world, helping to drive
climate change.
The U.S. and China should prioritize agricultural and food security in their bilateral
efforts to combat climate change. The two countries could play a major role in shifting
agriculture from being part of the problem to being part of the solution to climate
change, by expanding bilateral agricultural trade and investment cooperation, stepping
up efforts in agricultural research and technology, and strengthening global food
systems.
Climate change and clean energy highlights of this year’s S&ED outcomes include:
Chapter 1 of the report provides a primer on two topics: climate change and U.S.-China
relations. It describes the climate change threat, concluding that every year of delay in
responding to it puts both countries—and the planet—at greater risk. Because the United
States and China are the world’s top two greenhouse gas emitters, together accounting
for more than 40% of annual emissions, any solution requires both countries to
transition to low-carbon economies. U.S.-China cooperation on climate change would
have not only bilateral but global benefits.
In this connection, U.S.-China relations have evolved and grown enormously since the
Nixon visit to Beijing in 1972. But despite this progress, underlying mutual distrust over
long-term intentions has grown and can over time make mutual antagonism a self-
fulfilling prophecy. U.S.-China relations should now advance to a new stage that has the
two countries consult and cooperate to address the most critical global issues of the 21st
century. Climate change and clean energy, along with the global economic crisis, offer
turning points. Cooperation on climate change can help move U.S.-China relations to a
new stage; failure to cooperate can introduce significant new tensions.
Chapter 2 describes the climate change policies and politics in each country. It explains
that, in the United States, attention to climate change has exploded in the past five years.
Many state and local governments, as well as U.S. companies, have taken significant
action to address this issue. President Obama identifies energy policy and climate change
as top priorities. Significant action by the federal government on climate change is likely
in the years ahead.
In China, energy efficiency has received serious attention, with significant national goals
reflected in the current Five-Year Plan as well as various laws and regulations. Growth in
renewable energy is also an important objective of national leaders. These and other
policies, taken mainly to promote economic growth, energy security and clean air in
China’s cities, have significant benefits when it comes to cutting greenhouse gas
emissions.
The U.S. and China bring very different perspectives to the climate issue, reflecting their
different histories and circumstances
Neither side is likely to abandon its perspective, but each can recognize the legitimacy of
the other’s viewpoint and avoid making these differences barriers to pragmatic
cooperation
Handling different perspectives well bilaterally can help promote the success of
multilateral climate change negotiations
Recommendation #2: Build a clean energy framework for cooperation
When it comes to cooperation on climate change, the U.S. and China should think big
and aim high
It is important to capture the public’s imagination
Candidates for headline programs include efforts to electrify vehicle fleets, maximize the
energy efficiency of buildings, launch pilot projects in carbon capture and storage,
and/or bring together millions of volunteers from each country to work in a new “Clean
Energy Corps”
Recommendation #4: Emphasize co-development of technology
The United States has technical capabilities in areas such as standards setting, regulation
and law drafting, large-scale database management, and instrumentation that can
contribute significantly to Beijing’s capacities to monitor and evaluate energy policy
outcomes
Currently, insufficient capacity in these areas is a serious impediment to achieving the
desired outcomes from China’s national government initiatives
Washington should assist in enhancing Beijing’s capacity to monitor and evaluate its
energy policy outcomes
Recommendation #7: Seek common ground on the nature of future commitments
This is one of the most challenging issues in multilateral climate change negotiations,
typically dividing developing countries from industrialized countries
U.S.-China bilateral discussions cannot resolve this issue, but agreement on approaches
could help significantly to shape broader multilateral agreements to fight global warming
U.S.-China dialogue on the nature of future greenhouse gas emissions commitments can
thus help promote agreement on this topic in multilateral negotiations
Recommendation #8: Use and improve existing structures for cooperation
mutual distrust
different expectations on technology
different expectations on finance
common expectations of high costs
The memo recommends six guiding principles to shape activities of senior leaders on
these topics:
The way the two had cooperated on the issue was a model example of
the new type of relationship sought by President Xi Jinping, said Xie
Zhenhua.
Xie was speaking on the sidelines of the annual Strategic and Economic
Dialogue between top US and Chinese leaders, which is under way in
Beijing.
The two sides are discussing issues including rising tensions between
Beijing and Washington over China’s territorial claims in the South
China Sea.
Ensuring the Paris agreement went into force as soon as possible would
be a major task for China and the US this year, Xie said.
“ Cooperation on climate change between the two countries is a highlight
in the new type of major power relations , as well as an exemplar of a new
global governance system ,” he said.
Since Xi took office three years ago he has called for a “new type of
major power relations”, based on cooperation and respect, to govern
China-US ties. Washington’s response has been lukewarm.
US Treasury Secretary Jake Lew said the US would work with China on
new green finance initiatives that China would launch during its G20
presidency.
“We can only reach the unprecedented levels of funding needed for
climate financing by using a variety of channels, including development
finance institutions, direct bilateral assistance, the multilateral
development banks and new funds, such as the Green Climate Fund
and China’s South-South Climate Cooperation Fund,” he said.
US China Relations are Key to Solving Climate Change, Will Save US China
relations
FlorCruz 15- Michelle, World News Reporter and content producer for IBT media
“Solving Climate Change Problem Rests on U.S.-China Cooperation”(
http://asiasociety.org/blog/asia/solving-climate-change-problem-rests-us-china-
cooperation, 6/21)
On the heels of the UN Climate Summit in Paris, Kevin Rudd, president of the Asia
Society Policy Institute (ASPI), and Orville Schell, the Arthur Ross Director of Asia
Society’s Center on U.S.-China Relations, discuss the pivotal role American and Chinese
cooperation will play in addressing global climate change.
“The climate change problem will not be solved if the U.S. and China don’t get together,”
Schell said during the panel event at Asia Society Northern California on December 18,
2015, which was moderated by Bruce Pickering, vice president of Global Programs at
Asia Society. “Doesn’t matter what the Europeans do, the Japanese … what matters is the
U.S. and China.”
Though cooperation between the two countries may not be easy when it comes to other
topics, Schell says that climate change is one topic that the two economic giants can see
eye-to-eye on.
“We’re not going to find common interest in the South China Sea, the East China Sea,
Tibet, human rights, probably in trade, a thousand things where we’re going to disagree,”
Schell said, adding that “climate change may end up being the kind of the great savior of
the U.S.-China relationship.”
“What has brought these two massive emitters together is I think, an American
recognition that you can’t just walk away from this problem, despite the problems of the
U.S. Senate,” Rudd said. “Secondly, Chinese self-interest at home because of carbon
pollution and air pollution within cities — having a huge impact on mortality by the way
— and then in addition to that, China’s international reputational stakes.”
Rudd says that while the work at the Climate Summit was of global interest, it is not a
coincidence that China has stepped into the role as a leader in the fight against climate
change as the nation solidifies its position as a global powerhouse.
“China doesn’t want to be seen internationally as the global pariah state when it comes to
climate change,” Rudd said. “China deciding that its global reputation, under Xi Jinping’s
leadership, is such that you can’t just stand out there and allow it to be trashed is one
factor in why China has acted.”
Second, as the world’s leading sources of foreign direct investment, the United States
and China, along with the European Union and Japan, should develop a shared financing
and investment framework that complies with best climate practices. Given the
developing world’s enormous infrastructure needs, adopting strategies and technologies
that would limit the impact of development on climate change is essential. The Asian
Infrastructure Investment Bank—despite the lack of formal participation by the United
States—could lead the way.
Third, and most important, both United States and China must ensure that they fulfill
their own climate commitments. As China’s economy slows, some climate benefits such
as falling coal consumption will likely follow. It is also possible, however, that there will
be pressure to relax rather than tighten environmental regulations. In the United States,
President Obama continues to fight an uphill battle with Congress over his efforts to
strengthen the U.S. climate commitment. In his remaining year in office, he needs to
institutionalize his policies. If Presidents Obama and Xi cannot deliver at home, they will
not be able to deliver abroad.
Impact- extinction
North Korea has the capability to launch a long-range missile that could
deliver a nuke to the continental US
Heinrichs 16 - (Rebeccah L., her work has appeared in major newspapers such as The
Wall Street Journal, The Los Angeles Times, The Washington Times, and Investor’s
Business Daily as well as political journals such as Politico and The Hill, served as an
adviser to Rep. Franks (R-AZ), a member of the House Armed Services Committee, and
helped launch the bi-partisan Missile Defense Caucus, holds a Master of Arts degree in
national security and strategic policy from the U.S. Naval War College, March 30,
http://www.washingtontimes.com/news/2016/mar/30/north-korea-nuclear-threat-
more-us-defensive-measu/ “More U.S. defensive measures wise response”)
Does the brutal, provocative and nuclear-armed North Korean regime actually pose a
threat to the United States? In recent weeks, Pyongyang has increased the seriousness of
its threats to include preemptively attacking with nuclear weapons both the United
States and South Korea during the allies’ annual joint military exercises. This comes on
the heels of North Korea’s fourth underground nuclear explosion and yet another long-
range missile test in the form of a satellite launch. Perhaps its most concerning
missile is the mobile KN-08, which Admiral William Gortney, the commander of
Northern Command, recently testified before Congress could deliver a nuclear
weapon to much of the continental United States. Although the regime leader is in
the habit of making empty threats, the United States cannot afford to bank on the hope
Kim Jong-un is crying wolf. Analysts who view international relations with a rosier, more
idealist outlook remain skeptical. They try to tamp down such ominous threat analyses
like that of Admiral Gortney’s, and are quick to point out that the regime has yet to
actually prove it has mastered the ability to deliver a long-range missile. It is true North
Korea has yet to demonstrate a technically challenging part of a missile launch — when
the reentry vehicle reenters the atmosphere as it descends upon the desired target — or
that it can accomplish this feat with a weighty nuclear payload atop. But it has
demonstrated enough technical prowess to give the Pentagon confidence
that it likely could do it, however imprecise its targeting may be. Of course, precision
is less demanding when the intended target is a landmass the size of the United States.
Even with poor accuracy, a long-range missile, especially one armed with a nuclear
weapon, enables the North Koreans to credibly threaten and blackmail the United States.
But! the skeptics insist, even if North Korea were to achieve the ability to attack the
United States with a nuclear weapon, it simply would not, because doing so would be
irrational and counter to its national goals, chief among them “regime survival.”
However, the reality of a regime like North Korea — one of the most repressive
countries in the world, in which its people face murder, torture, enslavement, rape, labor
camps, and forced abortions at the hands of their own government — must cause
analysts to admit their own limitations in predicting with certainty what the
regime leader is or is not willing to do.
Korea is capable and of reaching all of Japan, South Korea, and Guam—it’s
arsenal and capabilities are rapidly expanding.
Klinger 6/22 – (Bruce, a senior research fellow for Northeast Asia at the Asian Studies
Center, http://dailysignal.com/2016/06/22/north-korea-advances-missile-threat-
capabilities/, “North Korea Advances Missile Threat Capabilities”)
After a series of previous failures, Pyongyang achieved partial success with the most
recent launches of its Musudan intermediate-range ballistic missile. On June 21, the two
Musudan missiles traveled 150 and 400 kilometers—far short of a fully successful test
but indicating incremental progress toward eventually achieving its estimated range of
3,500 kilometers. North Korea’s four previous Musudan test flights in April and May
2016 had all exploded shortly after launch. Pyongyang achieved similar partial progress
this year with its submarine-launch ballistic missile (SLBM) traveling 30 kilometers after
several previous explosions immediately after launch. The Musudan missile is assessed
to be North Korea’s means to threaten U.S. bases in Guam, a critical node in allied plans
for defending South Korea. Earlier this month, North Korea’s National Defense
Commission warned that “The Korean People’s Army has long put into the range of its
precision strike the U.S. bases and logistic bases for invading the DPRK [Democratic
People’s Republic of Korea], including the Anderson Air Force Base on Guam where B-
52Hs are deployed and naval bases for nuclear submarines.” Pyongyang’s willingness to
repeatedly test fire the Musudan and submarine-launch ballistic missiles so quickly after
failures is unusual and reflects North Korean leader Kim Jong-un’s commitment to
rapidly augmenting his missile and nuclear arsenal. In addition to the Musudan and
submarine launches this year, Kim has tested a nuclear weapon, an intercontinental
ballistic missile, reentry vehicle technology, a new solid-fuel rocket engine, and an
improved liquid-fuel ICBM engine. While North Korea continues development of the
Musudan and submarine-launch ballistic missile systems, the regime has made greater
progress on other missiles. Adm. Bill Gortney, commander of North American
Aerospace Defense Command, assessed that North Korea is capable of putting a
nuclear warhead on the No Dong medium-range ballistic missile that can
reach all of South Korea and Japan. In April 2015, Gen. Curtis Scaparrotti, then-
commander of U.S. Forces Korea, testified that North Korea “have stated that
they had had intercontinental missiles and they had a nuclear capability,
and they paraded it. As a commander, I think, we must assume that they
have that capability.” Other experts assess Pyongyang will have an ICBM
capability in one to two years. The accelerated pace of North Korean nuclear
and missile tests reflect Kim’s intent to deploy a spectrum of missiles
systems of complementary ranges to threaten the U.S. and its allies with
nuclear weapons. Kim affirmed at the National Party Congress in May—the first held
in 36 years—that North Korea will never negotiate away its nuclear weapons .
Pakistan is continuing to sell nuclear materials to North Korea, while at the same time
urging the international community to accept its membership to the Nuclear Suppliers
Group (NSG), according to highly placed US sources who are involved with the tracking
of nuclear commerce.
In making this dramatic revelation, the sources said that entities of the Pakistan Energy
Commission (PAEC) have been continuing to supply restricted Items such as ‘ Monel ‘
and ‘ Inconel ‘ material to North Korea in violation of UN sanctions.
The sources said that nuclear materials supplied to the PAEC by Chinese entities have
also found their way to North Korea, with the China Atomic Energy Authority (CAEA)
recently receiving a written complaint that supplies of a Chinese company, Beijing
Suntech Technology Company Limited, to Pakistan were being diverted to North Korea
by the Pakistani authorities.
The Chinese Government hushed up the matter as it could have consequences for
Beijing’s bid to support Pakistan at the NSG. But this information leaked out of North
Korea and came to the knowledge Of Western Governments who are members of the
NSG.
NSG entry: 'Any exemption to India must also apply to Pakistan'China pushes ahead
with Pak nuclear plant expansionStanding up to North KoreaPak woos China energy
investmentIndia's N-ambition runs up into China'sUS seeks more info from China on its
N-deal with PakNSG entry: 'Any exemption to India must also apply to Pakistan'China
pushes ahead with Pak nuclear plant expansionStanding up to North KoreaPak woos
China energy investmentIndia's N-ambition runs up into China'sUS seeks more info
from China on its N-deal with PakNSG entry: 'Any exemption to India must also apply to
Pakistan'China pushes ahead with Pak nuclear plant expansionStanding up to North
KoreaPak woos China energy investmentIndia's N-ambition runs up into China'sUS
seeks more info from China on its N-deal with Pak
In another alarming revelation, informed sources said Pakistan has been giving North
Korea equipment which has a direct bearing on producing nuclear weapons. Sources said
the Beijing Suntech Technology Company Limited manufactures Vacuum Induction
Melting (VIM) furnaces which find application in refining hard metals such as uranium
and plutonium, which are used in making nuclear warhead cores. Pakistan is known to
have procured these items from China and has passed them along to North Korea.
When asked if this evidence of Pakistan’s illicit nuclear trade with North Korea has been
brought to the notice of NSG nations, US sources said all proof and evidence which
confirms the violation of sanctions against North Korea and more so the ongoing
dangerous nuclear trade has been brought to the notice of “those who need to be
informed at the NSG level.”
Behind the scenes Pakistan is aware that it’s nuclear trade with North Korea has been
uncovered, but is counting on China to keep the global pressure at bay, said sources.
Relations solves
China & North Korea relations are worsening, China U.S. engagement
Solves relations and North Korea problem
Bandow 15, Senior Fellow, Cato Institute “China Should Propose Discussions with
America to Solve the North Korean Crisis” (http://www.chinausfocus.com/foreign-
policy/china-should-propose-discussions-with-america-to-solve-the-north-korean-
crisis/, 6/22/16,JD)
Many U.S. policymakers see China as the answer to North Korean proliferation. If
Beijing would just tell the North’s Kim Jong-un to behave, East Asia’s biggest problem
would disappear.
China-US-North Korea
Of course, it’s not that simple. To be sure, the People’s Republic of China has influence in
Pyongyang, but the latter always has jealously guarding its independence. Kim is no
more likely than his father to let reason get in the way of his rule.
Still, the current regime does not appear to be as stable as its predecessors. The boy
leader has executed some 400 officials since taking over from his father four years ago.
The list is topped by his uncle, then the North’s most important interlocutor with the
PRC. Powerful Chinese pressure, if backed by economic sanctions, might encourage now
incipient opposition.
The China-North Korea relationship goes back to the Korean War. However, no one on
either side of the Yalu views the two nations as close as teeth and lips, as once was said.
Today, relations appear worse than at any time over the last five decades. Beijing does
little to hide its dissatisfaction. But the PRC has not yet proved willing to abandon its
sole ally. Its reluctance is understandable. Violent conflict within the Democratic
People’s Republic of Korea (DPRK), mass refugee flows across the Yalu, loss of Chinese
investments, and a united Korea hosting U.S. troops are all possibilities no PRC
government desires. China’s interest is almost purely negative, avoiding what the DPRK
could become.
Yet, China also recognizes that the status quo is not just uncomfortable, but untenable.
Despite the PRC’s commitment to nonproliferation, the North continues to move
forward with its nuclear program. Kim almost certainly does not want war, which his
country would lose, but the newbie dictator may not know how to stop as well as how to
provoke conflict. Unpredictable and insubordinate, the DPRK has even proved to be a
dubious economic investment.
In fact, Beijing no longer bothers to hide its dissatisfaction with the North. President Xi
Jinping has met six times with South Korean President Park Geun-hye but has not met
once with Kim. In September, Geun-gye enjoyed a place of honor next to Xi at China’s
military parade, while the DPRK representative, Choe Ryong-hae, was barely seen.
Chinese academics and analysts, as well as advocates on social media, routinely criticize
the DPRK. The People’s Liberation Army still values its relationship with the North—
China’s only ally in the region—but a small buffer state matters little in a world of
nuclear-tipped nuclear missiles.
This leaves just enough room for the possibility of a modus vivendi between the U.S. and
China.
Neither country wins with today’s DPRK. The latter’s hallmarks are proliferation, brutal
repression, instability, and war threats. Pyongyang recently declared that it was
strengthening its nuclear arsenal and denounced the call from other nations, read the
PRC, for “restraint.” Some experts believe the North could construct dozens of nuclear
weapons by 2020. Both Washington and Beijing would benefit from a “new” North of
some sort, whether independent or reunited with the South.
However, a deal will require the PRC to take the lead. Unfortunately, U.S. officials are
inclined to lecture Beijing over each action the country should take. China must tell
Washington that cooperation is possible, but that Beijing requires guarantees before
taking tougher action against the North.
The big issues would be process and endpoint. China should indicate its willingness to go
along with the U.S. to change the North’s behavior, and government, if necessary—if the
PRC is protected from the consequences. Only Beijing could decide on the necessary
conditions, but several obvious issues include financial support for refugees,
acquiescence to Chinese military intervention post regime collapse, guarantees for
existing economic deals, and U.S. troop withdrawal from a united Korea.
South Korea also would have to be brought into any discussions, but the ROK’s warming
relationship with Beijing suggests that Seoul would be receptive to a deal. The U.S. still
would be likely to resist, since it would have to yield its pretensions of regional
dominance, acknowledging that it no longer could dictate relations in Northeast Asia.
It won’t be easy to win such a concession, especially from uber-hawks who imagine that
Washington need only threaten other nations to get its way. However, North Korea has
become one of America’s losing battles. Despite presidents having insisted for at least
two decades that Pyongyang cannot be allowed to become a nuclear state, it has done so.
Despite having no great strategic interests post-Cold War in a peninsula nestled among
several major Asian powers, the U.S. maintains an expensive garrison in the South and
remains a constant rhetorical target of a bizarre, unstable hereditary communist regime
in the North. Despite urging China to deal with the problem, Beijing has shown no
interest in removing the DPRK from America’s hands.
But it would be worth much to the U.S. if the PRC did so. The U.S. could drop North
Korea from its enemies list, turn South Korea’s defense over to the South Koreans,
reduce overall military commitments and spending, ease tensions with Beijing, and
improve East Asian security without pervasive American military involvement. In fact,
this should be Washington’s objective in a world in which populous, prosperous nations
like South Korea should long ago have graduated from America’s defense dole. America
could even avoid the stigma of being a supplicant if Beijing proposed talks.
North Korea is a challenge for both the U.S. and China. While there is no obvious or easy
answer, U.S.-Chinese cooperation offers the best hope for maintaining peace on the
Korean peninsula. Washington has pressed for action without acknowledging the need to
negotiate. Beijing should respond favorably but insist on negotiation. Then the world’s
two greatest powers would have an opportunity to cooperate.
Recent history has indicated that a positive bilateral relationship between the U.S. and
China based on mutual respect and recognition of benefits is possible. Over the past
decades the U.S. and China have developed ever-closer trade and investment ties as
China has embraced free-market economic behavior, leading to profound economic
interdependence between the two nations. In an increasingly globalized world, China’s
integration into multilateral systems of financial governance such as the World Trade
Organization (WTO) have demonstrated China’s willingness to conform to international
norms and standards. In the security sphere, China’s evolving policy towards North
Korea and nuclear proliferation have made positive strides despite recent setbacks.
Despite the victory of the Democratic Progressive Party (DPP) in Taiwan’s January 2016
elections, both the U.S. and China have taken a pragmatic approach to maintaining
current political and diplomatic arrangements. Bilateral cooperation on environmental
policy, highlighted by a series of agreements culminating in last year’s 21st Conference of
the Parties (COP21) Paris Agreement, is another collaborative opportunity for both
countries, as is increasing cooperation in emergent policy fields such as intellectual
property (IP) and cybersecurity.
Despite this recent progress, U.S.-China relations continue to face challenges. The
increasing capabilities of China’s military, which have expanded rapidly in recent years,
have manifested themselves in a number of territorial disputes and other confrontations
with neighbors in the South China Sea over territorial and resource objectives. The
technological superiority of U.S. forces in the region, on whom regional powers like
Japan and the Republic of Korea (ROK) depend for many of their security arrangements,
has narrowed as China arrays increasingly sophisticated naval, air, and missile
capabilities opposite U.S. and other forces in the region. Security issues, and the
uncertainty of how far China is willing to pursue its security objectives, were at the heart
of America’s recent “pivot to Asia.” Despite their close economic linkages serious
disagreements between the U.S. and China remain in some areas, especially regarding
foreign direct investment (FDI) regulations and access to the Chinese market, theft of
intellectual property, and cyber crime. Additionally, a host of macroeconomic questions,
such as whether China will win or lose big by creating a parallel set of financial
institutions such as the Asian Infrastructure and Investment Bank (AIIB), whether its
erratic fiscal and currency policies will finally catch up to it, and whether China’s slowing
growth and market volatility will have global repercussions, remain unanswered.
Although not a major policy agenda item, the cause of China’s poor human rights record
has been taken up by activists throughout the U.S. and elsewhere, pitting global civil
society actors and international laws and norms against a Chinese desire for national
unity, security, and order. These issues present no easy avenue for resolution, which
means that compromise between the U.S., China, and other parties will be essential if
progress is to be made in these areas
Impacts
No amount of U.S – China relations can solve for climate change, we are
past the breaking point
Tayag 16’ (3/7/16, Yasmin Tayag, “When It Comes to Climate Change, It’s Too Late
Now to Say Sorry,” https://www.inverse.com/article/12516-when-it-comes-to-climate-
change-it-s-too-late-now-to-say-sorry// ML)
Any discussion of climate change inevitably boils down to a single phrase: two degrees
Celsius.
The somewhat arbitrary number represents the hard limit to the amount of global
warming we can permit before we hit the point of no return.
Last year, experts at the Intergovernmental Panel on Climate Change contended that
while the window to slow down carbon emissions was closing, there was still time to slow
down the Earth’s irreversible demise by increasing the share of renewable energy to 80
percent up from 30 percent. But a new report from meteorologist Eric Holthaus
in Slate makes it clear that the northern hemisphere has breached that two-degree mark
over normal, pre-Industrial temperatures. We have, it seems, already failed.
He explains that February was somewhere between 1.15 and 1.4 degrees Celsius above
the long-term average, making it “the most above-average month ever measured.” While
the “official” temperature data sets haven’t been released yet — data from NOAA’s
MLOST, NASA’s GISTEMP, and the UK’s HadCRUT are the most highly cited —
Holthaus argues that it really doesn’t matter because the recent numbers are so high that
tiny fluctuations wouldn’t make much of a difference.
Emphasizing that temperatures are not only rising but that the rate at which they’re
increasing is speeding up, he writes:
Keep in mind that it took from the dawn of the industrial age until October 2015 to reach
the first 1.0°C rise. That means we have come as much as an extra 0.4°C further in just
the last five months.
We already know 2015 was the hottest year on record, with the effect of our flagging
efforts at curbing emissions exacerbated by the crazy-strong El Niñoeffect.
If Holthaus is right — that it’s too late to turn back — it signals a need to switch the focus
of our climate change plans from prevention to contingency. Scientists like Stanford
University’s Rob Jackson, Ph.D., already skeptical of the efficacy of the two-degree limit,
have suggested chasing options such as “negative-emission energy,” which will allow us
to retract the emissions we’ve already dumped into the atmosphere. That technology
doesn’t exist yet, but it’s clear that it’s going to have to happen much sooner rather than
later.
“This is a milestone moment for our species,” Holthaus writes. “Climate change deserves
our greatest possible attention.”
Not anthro
The Earth has been decreasing in Tmperature longer than it has been
increasing
Jack Kelley, Pittsburg Post Galette, March 29th 2014, http://www.post-
gazette.com/opinion/jack-kelly/2014/05/29/The-facts-don-t-add-up-for-human-
caused-global-warming/stories/201405290275
The first five months of 2014 have been the coldest since the National Weather Service
began keeping records in 1888. If “climate change” alarmists got out more, they might
have noticed.
Between 1979 — when weather satellites started measuring temperatures in the lower
troposphere — and 1997, they rose about 1.1 degrees Celsius (1.98 degrees Fahrenheit).
Temperatures stopped rising then, have fallen since 2012. The “pause” in warming (212
months) is now longer than the warming trend was (211 months).
The earth has warmed about 16 degrees F since the last ice age. The net increase since
1979 — 0.19 degrees C (0.34 F) — is well within the range of natural fluctuation.
Unemployment rates continue to trend downward, though the pace of hiring has slowed
to some extent in recent months and the economy is at or near levels traditionally
designated as “full employment.” Even so, long-term unemployment (defined as persons
jobless for 27 weeks or more) remains stubbornly high, as does the number of workers
employed part time for economic reasons (sometimes referred to as involuntary part-
time workers). However, through 2040, employment is forecast to grow at a pace faster
than population expansion, leading to tighter labor markets (and, potentially, higher
wages) in the future.
On the domestic front, the Federal Reserve is expected to slowly raise target interest
rates in response to growth in the U.S. economy. However, if conditions deteriorate, the
normalization of monetary conditions will take longer. It is important that the Federal
Reserve proceed with caution in raising rates, as too much too fast could stifle future
growth. At the same time, there is a need to move toward normalcy to improve the
Federal Reserve’s balance sheet and ensure inflation remains under control. It is a
delicate balancing act which will affect long-term economic performance.
The aging of the U.S. workforce will be an ongoing trend, as the large baby boom
generation continues to retire. Skills gaps in some professions and trades are likely to
emerge which could impair future growth, although this risk may be overcome by
technological advances.
In addition, labor force participation will be a persistent problem, and, over time, the
situation could affect standards of living. Currently, almost 95 million Americans over
the age of 16 are neither working nor looking for a job. The labor force participation rate
(the proportion of the civilian labor force either employed or unemployed, but looking)
has been falling for years and currently stands at 62.6 percent, according to June 2016
data from the U.S. Bureau of Labor Statistics (BLS). With a large and growing percentage
of the population not working, pressure will increase for those who do have jobs to
generate output, income, and tax receipts.
Wage stagnation and the larger issues of income inequality and wealth concentration will
also cause future problems if not addressed. However, incentivizing corporations to
invest in employees is challenging, and forcing the issue could make the problem worse.
From an international perspective, economies around the world are struggling with
sluggish growth. Recent projections from the Organisation for Economic Co-operation
and Development (OECD) indicate very slow expansion through the near term for
industrialized nations and only slightly better performance for emerging markets. The
large Chinese economy continues to slow, though the pattern has stabilized to some
extent. Recessions are affecting Russia and Brazil.
Looking out through 2040, my latest projections indicate that US economic output will
more than double from the current level. Long-term growth in real gross product is
forecast to be about 3.08% per year, which would generate expansion of some $18.6
trillion and a 2040 level of $34.9 trillion.
I am estimating that employment will grow by 1.46 percent per year over the period. This
projected rate would result in expansion in U.S. wage and salary employment from 141.9
million to 204.0 million, a gain of about 62.1 million net new jobs by 2040.
It looks like consumer prices will increase slightly, but inflation will remain under
control. Interest rates will likely trend upward (due in part to Federal Reserve policy
normalization, as noted above). Real personal incomes are projected to grow by about
2.57 percent per annum over the long term.
Although I see significant risks from both domestic and international issues, I feel better
about growth prospects than in the not-so-distant past. For one thing, we are finally
working through some of the fallout from the Great Recession and the housing market
problems. In addition, the economy has shown notable stability in the face of significant
upheaval both in the U.S. and across the globe. All in all, my latest forecast leaves me
cautiously optimistic, with the hope that reductions in uncertainty can improve ultimate
performance.
The IMF expects U.S. economic growth of 2.2 percent in 2016, a downgrade from 2.4
percent it forecast in April. But the Fund maintained its outlook for growth to recover to
2.5 percent in 2017, with inflation rising slowly toward the Federal Reserve's goal of two
percent, it said in a statement at the conclusion of its annual review of U.S. economic
policies.
Brexit thumps
Brexit will hurt the world economy in other ways. A big concern is the extent to which a
retreat from financial risk will disturb the existing fault lines in the world economy , notably in
China and southern Europe. Italy has a referendum of its own (on constitutional
change) in October. Matteo Renzi, Italy’s reform-minded prime minister, says he
will resign if the result goes against him. The Brexit vote scarcely helps his
chances. A widening of bond spreads in southern Europe seems likely in the run-
up to the poll. The European Central Bank can intervene to swamp the
symptoms of anxiety by buying bonds, but it can’t do much more to cure the
underlying problem of weak growth.
It is trickier to draw a line from Brexit to China. A weaker European economy will
certainly hurt Chinese exports. Perhaps a bigger risk is a renewed bout of dollar strength,
as Europe’s currencies weaken, which might in turn put renewed downward pressure on the yuan.
Even if some investors have short horizons, tumbling stockmarkets reflect some long-
term worries. If Britain, long a champion of free trade, can vote to revoke a regional trade deal,
how much faith can businesses worldwide put in other international economic agreements? An
EU shorn of Britain’s deregulating influence is a troubling portent for the liberal
world order. Nationalist, populist and protectionist forces in other countries will be greatly
encouraged by Brexit. The WTO recently gave warning that protectionist trade measures in the
G20 are multiplying at their fastest rate since 2008 . In such circumstances, it would be
surprising if the Brexit vote did not have some chilling effect on investment worldwide. It
makes curbs on migration of workers a little more likely, which will be costly for
businesses. And if Europe exports some of its misery to Asia and America through weaker
currencies, it may increase pressure for restrictions on capital flows, too .
A lot depends on the kind of trade deal Britain can negotiate with the EU and how
quickly. If Britain gets a quick deal with no big reductions in its access to the single market, the
grimmer scenarios for the world economy may not come to pass. But markets do not seem to be
counting on it.
US-China not key