Monday, November 16, 2009

EU or Asia is more key for US interests at the mo?

Some commentators are noting that so far in his Presidency, as well as in recent days, Obama (and Hilary) seeem to be focusing their international relations energy on Asia much more than on Europe - the EU.

To the extent that this is so, IMO Obama is right to focus on Asia than the EU at the moment.


There are many reasons, most of them purely practical, realpolitik or actually "real-ecokomik". Let me merely mention a few, in passing:

a) The yuan and its effect on Chinese exports and thus the US trade deficit (bad news for September).

b) The 1.5 trillion USD in T-bills held by China (800 mil) and Japan (700 mil) at the end of August

c) Chinese investment in the US and the issue of sovereign wealth funds

d) The ASEAN potential, especially after its decision to pursue an EU like model for 2014, potentially along with other Asian "powers".

It is no secret that many investment banks have in recent weeks and months focusing their main efforts in Asia: Because it is Asia that is where there best new clients are. Because it is in Asia that industry is flourishing.

Now, in addition to that, IMO, EUropeans must IMO realise that the current level of EU integration does not make the EU a serious entity in world affairs, more (intergration) is needed (IMO).

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