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consumes daily approximately 20 million barrels of oil out of a acquiring more purchasing power, and the industrialised world is total world consumption of 84 million barrels. At $50 a barrel, gaining a foothold in their domestic economies by targeting them the aggregate oil bill for the US comes to $1 billion a day, $365 for cheap exports. billion a year, about 3 per cent of 2004 US gross domestic product Further discussion on China was led off with a series of (GDP). About 60 per cent of US consumption is imported at a rhetorical questions from the speaker. Is China really abusing its cost of $600 million a day, or $219 billion a year. competitive advantage, or is it being victimised by the US and the A short, stout man asked if the surging oil price would influ- EU? Is a trade war imminent? Should China revalue the yuan (its ence economic growth. Someone sitting in the front row noted currency), and, if so, how should it do this? that higher energy prices do not take money out of the economy; An American Bilderberger noted that China in 2005 is one of they merely shift profit allocation from one business sector to the leading world economic powers whose actions influence the another. After further discussion, a US General commented that — world economy. Another American, believed to be but not posi- war spending helps jump-start the economy, noting that the trick tively identified as Michael Ledeen of the American Enterprise to keeping the opposition at bay is to limit collateral damage to Institute, said that if China doesn't revalue the yuan it would cause foreign soil. the entire world trade system to go out of whack. Someone men- A British Bilderberger noted that oil at $120 a barrel would tioned that the current situation could be dangerous for the greatly benefit Britain and the United States, Chinese economy due to the creation of excess but Russia and China would be the biggest liquidity. winners. An expert in international relations Elena Nemirovskaya, founder of the and policy studies noted that for the Chinese Moscow School of Political Studies, asked this would be a real bonanza. The Chinese what would happen if the yuan were allowed import energy not for domestic consumption to float freely. An economist responded that but, instead, to fuel its growing cheap AB iti h this could bring about serious consequences to exports—a cost that would be duly passed on . rus the world's financial markets. China's foreign to foreign buyers. A European banker pointed Bilderberger noted exchange reserves are to a large extent made out that Russia could effectively devalue the that oil at $1 20 a up of US Treasury bills. An appreciation of dollar by re-denominating its energy trade the yuan would cause its dollar reserves to with Europe from dollars into euros, forcing barrel would greatly depreciate. Europe's central banks to rebalance their . “tat A German Bilderberger pointed out that this foreign exchange reserves in favour of the benefit Britain and could force the Federal Reserve to have to euro. Jean-Claude Trichet, Governor of the USA, but raise interest rates, thus causing the cur- the European Central Bank, was present . . rent housing boom in the US to come to a during the debate. Russia and China screeching halt. An oversized Dutchman would be the biggest winners. pointed out that the International Monetary Fund needs to play an active role in helping the yuan. "Is there a real danger, then," asked an Italian Bilderberger, "of this dispute deteriorating into an all-out trade war?" "Not likely," according to an unidentified blond man from Scandinavia, believed to be a Swede, "because China has totally integrated itself into the market economy.” Globalised Trading and the Rift with China European and American Bilderbergers, realising the most urgent of needs to expand into developing markets in order to help sustain the illusion of endless growth, have agreed to name Pascal Lamy, a French socialist and fanatical supporter of a European super-state, as the next World Trade Organization (WTO) president. It should be remembered that Washington gave An American Bilderberger and a member of the US conditional support to Lamy's nomination in exchange for Government noted that all the posturing is part of the act to keep European support of Paul Wolfowitz as head of the World Bank. the voters back home happy. According to insider sources within the Bilderbergers, Lamy China's moves into the Mekong region did not go unnoticed at was chosen to help steer the global trading system through a time the conference. William J. Luti, US Deputy Under-Secretary of of rising protectionist sentiment in rich countries such as France Defense for Near Eastern and South Asian Affairs, explained that and Germany, both reeling from high unemployment and reticent China's rapid expansion into the Mekong region, comprising to accept increasingly muscular demands for market access from Cambodia, Laos, Myanmar, Thailand and Vietnam, could threaten emerging economies. Third World States, for example, are insist- US interests in the area. Such moves by China would give it an ing on cuts to EU and US farm subsidies. The WTO liberalisation enhanced role in South-East Asia. drive collapsed in acrimony in Seattle in 1999 and again in Over the last several years, China has invested heavily in Canctn in 2003. transport infrastructure development linking China's southwestern The Bilderbergers have secretly agreed on the need to force the © Yunan province and the Mekong region. poor countries into a globalised market for cheap goods while A European Bilderberger pointed out that China is heavily simultaneously forcing the poor into becoming customers. The dependent on oil imports. Someone asked for a figure. A tall, current rift with China is a good example, as the Chinese have lanky man with glasses, believed to be Jeroen van der Veer, flooded Western countries with cheap goods, amongst them tex- Chairman of Royal Dutch Shell, responded that some 40 per cent tiles, driving down prices. As a trade-off, the Bilderbergers have of China's supply is imported. In fact, China's move into the entered into an emerging market ripe and vulnerable to superior Mekong region is the result of acute awareness that the country's Western know-how. Similar developing countries are slowly energy supplies are vulnerable to interference. Overall, 32 per A British Bilderberger noted that oil at $120 a barrel would greatly benefit Britain and the USA, but Russia and China winners. NEXUS #15 would be the biggest AUGUST - SEPTEMBER 2005 www.nexusmagazine.com