Tuesday, June 20

Shanghai surprise

Shanghai - with a population of 17,000,000 at 2000,
I can imagine why they might be getting nervous
about securing energy supplies.

At the one day annual summit of the six-nation Shanghai Cooperation Organisation (SCO) on June 15, more limelight fell on the leader of an observer country than on any of the main participants. That figure happened to be the controversial president of Iran, Mahmoud Ahmadinejad.

Despite the lowly observer status accorded to his country, Ahmadinejad went on to publicly invite the SCO members to a meeting in Tehran to discuss energy exploration and development in the region. And the Russian president, Vladimir Putin, proposed that the SCO should form an "energy club".

While making a plea that his country should be accorded full membership of the SCO, the Pakistani president, Parvez Musharraf, highlighted the geo-strategic position of his country as an energy and trade corridor for SCO members. "Pakistan provides a natural link between the SCO states to connect the Eurasian heartland with the Arabian Sea and South Asia," he said.

Given this, the old adage "money talks" ought to be modified to "oil talks".

Late addition to this story: The US has been refused observer status to the SCO.

It goes on, but you get the idea. The following comment to this article was rather succint, and I thought you might enjoy it...

Everybody's far too busy watching football or bashing Muslims. Meanwhile, Japan and the SCO are arm-wrestling for the destiny of 4 billion Asians and over $18 trillion of GDP. ASEAN countries are preparing for an Asian currency. By the time the US and EU finally tire of their crusade against Muslims, they will find that they have become largely irrelevant in world affairs.

We might be well advised to look at more
local currency options.

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