LA Pro Express January 20 2011

8/8/2019 LA Pro Express January 20 2011

1/3

Issue No. 2 3 Thursday, January 2 0, 2011

US officials believe Iran now hasthe "technical ability" to make highlyenriched uranium, an essential steptowards building a nuclear bomb,according to a leaked US diplomaticcable.

At a meeting of internationalnuclear experts in Vienna, a USrepresentative said that "Iran hadnow demonstrated centrifuge oper-ations such that it had the technicalability to produce highly enricheduranium (HEU) if it so chose". Themeeting in April 2009 was hostedby Britain's ambassador to Austria,Simon Smith.

The revelation comes as nucleartalks resume between Iranian offi-cials and representatives of sixworld powers in Istanbul tomorrow.Expectations of compromise are

low.Not all western governmentsshare the US conclusion, but if trueit suggests international sanctionshave failed to deny Iran the know-how required to make a nuclearbomb. The production of HEU isgenerally agreed to be the mostserious obstacle any aspiring nucle-ar state must overcome.

Diplomatic efforts to persuadeIran to curb its programme havealso failed to produce results. In thedays running up to the two-daymeeting in Istanbul, Iranian officials

have repeated they will not bow toUN security council demands tosuspend uranium enrichment. Iraninsists its programme is entirelypeaceful.

Western strategy is increasinglyfocused on delaying Iranian pro-gress, buying time in the hope thateconomic pressure will eventuallylead to a change of mind in Tehran.The campaign has had some recentsuccess in the form of covert sabo-tage the Stuxnet computer worm,reportedly a US-Israeli project,slowed down Iran's uranium enrich-ment last year. Other efforts haveinvolved finding bottlenecks in theIranian programme and trying totighten them.

Leaked US cables describe theoutline of this containment policy.

They reveal: Russia has vowed never to allowIran to make its own fuel for a Rus-sian-built nuclear power station atBushehr. British officials have predicted Iranwill amass 20 tonnes of low en-riched uranium by 2014 enough, iffurther enriched, to make 19 war-heads. In 2008, Washington launched aworldwide campaign to cut off Iran'ssupplies of a high-strength steel,known as maraging steel, and car-bon fibre. Access to these materials

has been identified as a bottleneckin its enrichment programme.

Iran has always maintained itsprogramme is intended for thegeneration of electricity, but its onenuclear power station, at Bushehron the Gulf coast, is licensed to useonly Russian-made fuel rods for itsfirst 10 fuel loads, enough for justover 10 years.

At the April 2009 meeting inVienna, Russian officials assuredtheir colleagues that even after thatperiod "Russia expects to supplyfuel for the lifetime of Bushehr and itwould not agree to provide Iran thenecessary technology/licence tomake its own fuel for the Bushehrreactor".

The experts at the Vienna meet-ing from Britain, the US, Russia,

France, China and Germany noted that Iran had almost exhaust-ed the original 531-tonne stock ofthe yellowcake it bought from South

Africa in the 1980s.According to the 2009 US embassycable: "The French explained thatI-ran's current uranium stockpile wasdwindling, with less than 100 tonnesof uranium remaining."

By Edgar Tenebaum | Staff [email protected]

TEHRAN HAS 'TECHNICAL ABILITY' TO MAKE

HIGHLY ENRICHED URANIUM, SAY EXPERTS

Mahmoud Ahmadinejad, the Iranian president, inspects gas centrifuges used to enrich uranium .

From our Dearest Sex Advisor

LA(id) Realationship Advice

The global economy has becomeso unbalanced that even govern-ment ministers who would normallyhave trouble explaining supply ordemand clearly recognize thatsomething has to give. To a verylarge extent the distortions arecaused by China's long-standingpolicy of pegging its currency, theyuan, to the U.S. dollar. But asChina's economy gains strength,and the American economy weak-ens, the cost and difficulty of main-taining the peg becomeever greater, andeventually outweighthe benefits thatthe policy suppos-edly delivers toChina. In the first

few weeks of 2011fresh evidencehas arisen thatshows just howdifficult it has be-come for Beijing.

Twenty years ago,China's leaders decidedto ditch the disaster ofeconomic communism in favorof privatized, export-focused,industry. The plan largely worked.Over that time, China has argua-bly moved more people out ofpoverty in the shortest amount oftime in the history of the planet.But somewhere along the way,China's leaders became addictedto a game plan that outlived itsusefulness.

In order to maintain the peg,China must continually buy dollarson the open market. But theweaker the dollar gets, the more

dollars China must buy. And withthe U.S. Federal Reserve pullingout all the stops to create infla-tion and push down the dol-lar, Beijing's task becomesnearly impossible. Lastweek, it was announcedthat China's foreign ex-change reserves, theamount of foreign currencyheld at its central bank(mostly in U.S. dollars), increasedby a record $199 billion in 4th quar-ter 2010, to reach $2.85 trillion.These reserves currently accountfor a staggering 49% of China'sannual GDP (if the same propor-tional amount were held by theU.S., our measly $46 billion inreserves would have to increase163 times to $7.5 trillion).

In order to buy these dollars,the Chinese central bank must printits own currency. In essence, China

is adopting the Fed's expansionarymonetary policy. In the U.S. the

inflationary impact of such a strate-gy is mitigated by our ability toexport paper dollars in exchangefor inexpensive Chinese imports.

Although prices are rising here,they are not rising nearly as muchas they would if we had to spend allthis newly printed money on do-mestically produced goods. The bigproblem for China is that, unlike theU.S., the newly printed yuan are notexported, but remain in China bid-ding up consumer prices. As a

result, inflation is becomingChina's dominant political

issue.It was recently an-

nounced that in No-v e m b e r C h i -na's consumer price

index rose 5.1%from the same timea year earlier, with

food prices risingmore than 10%. As

unrest builds, the Chi-nese government has

unleashed a series of poli-cies to address the symptoms

of the disease while ignoringits root cause.

The feeblest of these at-tempts is the imposition of pricecontrols in many Chinese cities.But as President Nixon foundout in the early 1970s, the lawsof supply and demand cannotbe suspended at will. The Chi-nese leaders realize this andhave more recently implement-ed a raft of seemingly moresophisticated responses.

Informed by the mistakenKeynesian economic principle

that inflation is created by astrong economy rather than byan expanding money supply,

China is hoping to solve itsproblems by restraininggrowth. To do this it has just raised interestrates and has moved to

restrict bank lending.On Friday, the central

bank said it will raise theshare of deposits banks must keepon reserve by half a percentagepoint. This comes after six suchincreases last year (the fourth hikein just two months). On the interestrate front, the People's Bank ofChina is mulling further rate in-creases, which many analystsexpect to come in the first quarter.However, if these moves are notaccompanied by a cessation ofdollar purchases, they will do noth-ing to control inflation.

This week, Chinese president HuJintao arrives for a summit in

Washington, where he will get anearful from President Obama andTreasury Secretary Geithner aboutthe importance of letting the yuanappreciate. On this point, the Ad-ministration actually has it right. Butthey fail, of course, to grasp the fullimplications of how a falling dollarand a rising yuan will hurt the U.S.economy. If the Chinese stop buy-ing dollars, Americans will facehigher prices and higher interestrates. If Geithner thinks we cantake such changes in stride, he is infor a rude awakening.

The real awakening will occurwhen China realizes that it hastethered its economy to an un-tethered currency. There are plentyof signs that many in the Chinese

leadership are beginning to fullygrasp the problem.For example, Zhou Qiren, an

academic adviser to the People'sBank of China, said in an interviewin the latest edition of China ReformMagazine that China should find amethod of valuing the yuan thatdoes not involve the printing ofmore yuan to maintain exchangerate stability. He argued that raisinginterest rates won't solve the funda-mental problems behind inflation.To do that, China must controlits money supply. I think he's on tosomething.

He also commented that the U.S.dollar, which became a substitutefor gold as a result of the 1944Breton Woods agreement, can nolonger be serve as the anchor forworld currencies. He further sug-gested that the yuan be linked tosomething objective. It sounds to

me like he's talking about a certainyellow metal.The bottom line is that the Chi-

nese are finally waking up. Whenthe dollar was backed by gold, itwas a reliable anchor. However,once that anchor was cast aside,the dollar was set adrift, and is nolonger positioned to provide stabil-ity. For a while, even without gold,the strength of our economy andthe competitiveness of our exportsgave stability to the dollar, butthose moorings have snapped.

For now the old guard in Chinastill holds sway and the status quoremains intact. But new leaders areexpected to be in place by 2014.When fresh hands take the wheel,we may finally see some meaning-ful change in the global monetarysystem.

By Peter Schiff | CEO & Chief

Global Strategist at Euro PacificCapital.

CHINAS INFLATION

PROBLEM LOOMS LARGE

Ive always wondered how its possi-ble that girls want respect if theysexually wish to be treated like bitch-

es?-Dr Apollo G.

Im sorry Dr, but I just cannot cum-prehend your question. There is ahole in the brozone layer, its repairrequires a supreme level of meta-phortitude.The ace of the dna freebase pre-sents to you an open and shut case.Emoceans flow wildly, through thestreets, a sacrifice of false stereo-types. I think death was my nextdoor neighbor.

REMEMBER THAT WEEKEND INVEGAS?!(High Fives All Around). We have

gathered here today to overcome acollective supeeriority complex moti-vated by an infeari(sor)ority com-plexus convertibaloon ride throughthe halls of our insTITutions of high-er l-earning.I yelled and it echoed from the sar-chasm that had formed before me,unfathomable depths. Am I readingfrom a scrypt? GET in my priv89,10JET and fly away to a secret hideoutbeneath the stars and stripes.This is an obamanation. The treebarked at me as I sat in the shadows

trying to take a nap. It woke mefrom my american dreams and I wasdeafened by the screams of my

children being razed in mold.WE ARE MAKING BROZILLIANS.WE CONTROL THE CIVILIANZ.SWEEP YOUR GENERALIZA-TIONS UNDER THE (D)RUG, andlets go on a magic carpet ride,Freudian slip n slide. I can barelycontain my tiers of joy.

Insincerely,Vitus Hearn

Additional reading:

A MULTIWAVE PUBLICATIONCOMPLIMENTARY

THE LOS ANGELES Professional ExpressLAProfessionalExpress.com

IRAN HAS 'NUCLEAR TECHNICAL ABILITY'


2/3

January 19, 2011White House Press Conference

PRESIDENT OBAMA:

Good afternoon. It is my pleasureto welcome President Hu to theWhite House and to return the hospi-tality that he showed when I visitedChina last year. This is our eighthmeeting. .

The positive, constructive, cooper-ative U.S.-China relationship is goodfor the United States. We just had avery good meeting with the businessleaders from both our countries.They pointed out that China is one ofthe top markets for American ex-ports. Were now exporting morethan $100 billion a year in goods andservices to China, which supports

more than half a million Ameri-can jobs.

In fact, our exports to Chinaare growing nearly twice asfast as our exports to the restof the world, making it a keypart of my goal of doubling

American exports and keeping America competitive in the21st century.

Cooperation between ourcountries is also good forChina. Chinas extraordinaryeconomic growth has liftedhundreds of millions ofpeople out of poverty. Andthis is a tribute to the Chi-nese people. But its alsothanks to decades of stabilityin Asia made possible by Ameri-

cas forward presence in the re-gion, by strong trade with Ameri-ca, and by an open internationaleconomic system championed bythe United States of America.

Cooperation between our coun-tries is also good for the world. Alongwith our G20 partners, weve movedfrom the brink of catastrophe to thebeginning of global economic recov-ery. With our Security Council part-ners, we passed and are enforcingthe strongest sanctions to dateagainst Iran over its nuclear program.Weve worked together to reducetensions on the Korean Peninsula.

And most recently, we welcomedChinas support for the historic refer-endum in southern Sudan.

As we look to the future, whatsneeded, I believe, is a spirit of coop-eration that is also friendly competi-tion. In areas like those that I justmentioned, we will cooperate -forging partnerships and makingprogress that neither nation canachieve alone. In other areas, wellcompete - a healthy competitionthat spurs both countries to innovateand become even more competitive.Thats the kind of relationship I seefor the United States and China inthe 21st century, and thats the kindof relationship that we advancedtoday.

I am very pleased that weve com-

pleted dozens of deals that will in-crease U.S. exports by more than

$45 billion and also increase Chinasinvestment in the UnitedStates byseveral billion dollars. From machin-ery to software, from aviation toagriculture, these deals will supportsome 235,000 American jobs. Andthat includes many manufacturing

jobs. So this is great news for Ameri-cas workers.

I did also stress to President Huthat there has to be a level playingfield for American companies com-peting in China, that trade has to befair. So I welcomed his commitmentthat American companies will not bediscriminated against when they

compete for Chinese governmentprocurement contracts. And I appre-ciate his willingness to take newsteps to combat the theft of intellec-tual property.

Were renewing our long-runningcooperation in science and technolo-gy, which sparks advances in agricul-ture and industry. Were movingahead with our U.S.-China cleanenergy research center and jointventures in wind power, smartgrids and cleaner coal. I believethat as the two largest energy con-sumers and emitters of greenhousesgases, the United States and Chinahave a responsibility to combat cli-mate change by building on theprogress at Copenhagen and Can-cun, and showing the way to a cleanenergy future. And President Hu

indicated that he agrees with meon this issue.

We discussed Chinas pro-gress in moving toward a moremarket-oriented economy andhow we can ensure a strong andbalanced global economic re-covery. We agreed that in Chi-na, this means boosting domes-tic demand; here in the UnitedStates, it means spending lessand exporting more.

I told President Hu that wewelcome Chinas increasing theflexibility of its currency. But Ialso had to say that the RMBremains undervalued, that there

needs to be further adjustment inthe exchange rate, and that this

can be a powerful tool for China

boosting domestic demand andlessening the inflationary pressuresin their economy. So well continue tolook for the value of Chinas currencyto be increasingly driven by the mar-ket, which will help ensure that nonation has an undue economic ad-vantage.

To advance our shared security,were expanding and deepeningdialogue and cooperation betweenour militaries, which increasestrust and reduces misunderstand-ings. With regard to regional stabil-ity and security in East Asia, Istressed that the United States has a

Issue No. 2 3 Thursday, January 2 0, 2011



CHINA DEVELOPS STEALTH BOMBERPRESISDENT OBAMA: CHINESE RISE GOOD FOR THE WORLD | ADMINISTRATON TAKESFREE TRADE STANCE IN FACE OF INTERNET PHOTO ENTITLED CHINESEONE1.JPG

MONROVIA, CA -- The day afterUnited States Secretary of DefenseRobert M. Gates, a PresidentGeorge Walker Bush appointeeserving under current PresidentBarack Hussein Obama, met withPeoples Republic of China Presi-dent Hu Jin Tao, China demonstrat-ed its ability to become the secondcountry after the U.S. to develop astealth bomber. Confidentialsources state that former PresidentWilliam Jefferson Clinton shared thestealth technology to China to ame-liorate relations between the twonations.

The revelation of Chinese stealthcapabilities substantiates concernregarding the rapid quantitative andqualitative growth of the already

large Chinese military. AmericanWest Coasters have expressedworry that Chinas continued growthtests American strength to remainthe worlds hegemon and, also, thatChina could make undetected unin-vited visits in the middle of the nightto the United States.

According to The New YorkTimes, Secretary Gates asked Presi-dent Tau about the coincidentaltiming Chinas test flights upon hisarrival in China. Tau played thedemonstration off as happenstance.

Meanwhile, President Obamagreeted President Hu in WashingtonD.C., with a state dinner. JackieChan, Michelle Kwan and Democrat-ic darling Barbara Streisand attend-ed. The event has been cited in part

to make up for lack the same duringPresident Hus 2006 visit.In Los Angeles one asked, Why

should we favor U.S. hegemonyover Chinese? Another replied,Because our government is run bya democracy, not a single partydictatorship.Some Americans dont welcome theChinese rise: They think their stuffis better than ours. Our stealths arenamed B-2 Spirit, F-117 Nighthawk,F-22 Raptor and F-35 Lightening II.China calls theirs the J-20. F pre-cedes J in the alphabet.

To others, the development sig-nals a threat to the American borderother than drug trade and terror-ism.

By Zein E. Obagi, Jr.

U.S. Defense Secretary Gates:

"I've watched this sort of cyclicalview of American decline comearound two or three times, perhapsmost dramatically in the latter halfof the 1970s," Dr Gates told report-ers en route to China.

"And my general line for thoseboth at home and around the worldwho think the US is in decline isthat history's dustbins are filledwith countries that underestimated

CHINAS J-20

U.S.A.F. Northrop Grumman B-2 SPIRITS (Stealth Bomber)

U.S.A.F. Lockheed Martin F-117 NIGHTHAWKSMiddle: U.S. leaks a peak at a sample stock.

U.S.A.F. Lockheed Martin F-35 LIGHTENING

U.S.A.F. Lockheed Martin/Boeing F-22 RAPTOR (Stealth Bomber)

A note from the editor: Thank you China for prompng the need for thriving American defense producon facilies.


3/3

[CONTINUED FROM 2ND PAGE]

I welcomed the progress thats been made on both sides of theTaiwan Strait in reducing tensions and building economic ties.And we hope this progress continues, because its in the interestof both sides, the region and the United States. Indeed, I reaf-firmed our commitment to a one-China policy based on the threeU.S.-China communiqus and the Taiwan Relations Act.

I told President Hu that we appreciated Chinas role in reducingtensions on the Korean Peninsula, and we agreed that North Ko-rea must avoid further provocations. I also said that North Koreasnuclear and ballistic missile program is increasingly a direct threatto the security of the United States and our allies. We agreed thatthe paramount goal must be complete denuclearization of the

peninsula. In that regard, the international community must contin-ue to state clearly that North Koreas uranium enrichment programis in violation of North Koreas commitments and internationalobligations.

With respect to global security, Im pleased that were movingahead with President Hus commitment at last years NuclearSecurity Summit for China to establish a center of excellence,which will help secure the worlds vulnerable nuclear materials.

To prevent the spread of nuclear weapons, we agreed that Iranmust uphold its international obligations and that the U.N. SecurityCouncil sanctions on Iran must be fully enforced.

Along with our P5-plus-1 partners, well continue to offer thegovernment of Iran the opportunity for dialogue and integrationinto the international community, but only if it meets its obliga-tions.

I reaffirmed Americas fundamental commitment to the univer-sal rights of all people. That includes basic human rights like free-

dom of speech, of the press, of assembly, of association anddemonstration, and of religion rights that are recognized in theChinese constitution. As Ive said before, the United Statesspeaks up for these freedoms and the dignity of every humanbeing, not only because its part of who we are as Americans, butwe do so because we believe that by upholding these universalrights, all nations, including China, will ultimately be more prosper-ous and successful.

So, today, weve agreed to move ahead with our formal dia-logue on human rights. Weve agreed to new exchanges to ad-vance the rule of law. And even as we, the United States, recog-nize that Tibet is part of the Peoples Republic of China, the Unit-ed States continues to support further dialogue between the gov-ernment of China and the representatives of the Dalai Lama toresolve concerns and differences, including the preservation ofthe religious and cultural identity of the Tibetan people.

Finally, we continue to expand partnerships between our peo-ple, especially our young people. Today, my wife Michelle is high-

lighting our efforts to increase the number of American students

studying in China to 100,000. And I am very pleased that Presi-dent Hu will be visiting my hometown of Chicago.

Mr. President, you are brave to visit Chicago in the middle ofwinter. I have warned him that the weather may not be as pleas-ant as it is here today. (Laughter.) But I know that in the studentsand the businesspeople that you meet, you will see the extraordi-nary possibilities of partnership between our citizens.

So, again, I believe that weve helped to lay the foundation forcooperation between the United States and China for decades tocome. And Michelle and I look forward to hosting President Hu fora state dinner tonight to celebrate the deep ties between our peo-

ple, as well as our shared hopes for the future.

PRESIDENT HU:

(As translated.) Friends from the press, ladies and gentlemen,good afternoon.

First of all, I want to express sincere appreciation to PresidentObama and the government and people of the United States forthe warm welcome accorded to me and my colleagues.

Just now I have had talks with President Obama in a candid,pragmatic and constructive atmosphere. We had an in-depth ex-change of views and reached important agreement on China-U.S.relations, and major international and regional issues of sharedinterest. We reviewed the development of China-U.S. relations inthe last two years. We positively assessed the progress we madein dialogue, coordination and cooperation in various areas. TheChinese side appreciates President Obamas commitment toa positive and constructive China policy, and to stable andgrowing China-U.S. relations since he took office.

Both President Obama and I agree that as mankind enters thesecond decade of the 21st century, the international situationcontinues to undergo profound and complex changes and there isa growing number of global challenges. China and the UnitedStates share expanding common interests and shoulder increas-ing common responsibilities.

China-U.S. cooperation has great significance for our two coun-tries and the world. The two sides should firmly adhere to the rightdirection of our relationship; respect each others sovereignty,territorial integrity and development interests; promote the long-term sound and steady growth of China-U.S. relations; and makeeven greater contributions to maintaining and promoting worldpeace and development.

We both agree to further push forward the positive, cooperativeand comprehensive China-U.S. relationship and commit to worktogether to build a China-U.S. cooperative partnership based on

mutual respect and mutual benefit, so as to better benefit people

in our own countries and the world over.

We both agree to strengthen exchanges and cooperation in econ-omy and trade, energy and the environment, science and technol-ogy, infrastructure construction, culture and education, counterter-rorism, nonproliferation, law enforcement and other areas so as toachieve mutual benefit.

During my current visit to the United States, the relevant de-partments, institutions and enterprises of the two countries havesigned a number of cooperation agreements and reached agree-ment on a series of new cooperation projects. These will injectfresh momentum into our bilateral cooperation and create a great

many job opportunities for both countries.We discussed some disagreements in the economic and trade

area, and we will continue to appropriately resolve these accord-ing to the principle of mutual respect and consultation on an equalfooting.

The President and I agree that China and the United Statesneed to establish a pattern of high-level exchanges featuring in-depth communication and candid dialogue. President Obama andI will stay in close contact through meetings, telephone calls andletters. The two sides believe that the expansion of exchangesand cooperation between our militaries contribute to deepeningmutual trust between our two countries and to the growth of ouroverall relationship.

We also agreed to encourage all sectors of our society to carryout various forms of exchange activities. In particular, we havehigh hopes on the young people, hoping that they will better un-derstand each others country and be more deeply involved in thepeople-to-people exchanges between our two countries.

President Obama and I exchanged views on the internationaleconomic situation. We believe the world economy is slowly re-covering from the international financial crisis, but there are still afair amount of unstable factors and uncertainties. Both sidesagree to strengthen microeconomic policy coordination and ac-tively pursue opportunities for greater cooperation in this process.

The two sides support the G20 playing a bigger role in interna-tional economic and financial affairs. We agree to push forwardreform of the international financial system and improve globaleconomic governance. We champion free trade and oppose pro-tectionism, and we hope the Doha Round of negotiations canmake early and substantive progress.

President Obama and I exchanged views on major internationaland regional issues, including the situation on the Korean Penin-sula, the Iranian nuclear issue, climate change and others. Weagree to strengthen consultation and coordination on major issuesthat concern peace and development in the Asia Pacific region

and in the world.

BARACK & JINTAOIssue No. 2 3 Thursday, January 2 0, 2011



Documents

LA Pro Express January 20 2011