Problem loans at China’s banks are significantly worse than initially thought, according to Moody’s Investors Service’s news release on July 4th. This raises concerns already expressed about China’s continued ability to grow its economy at annual rates approaching double-digits. The weakness is so pervasive that Moody’s “views the credit outlook for the Chinese banking system as potentially turning to negative. ” It added:

We assume that the majority of loans [by the banks] to local governments are of good quality, but based on our assessment of the loan classifications and risk characteristics, as provided by the NAO [China’s National Audit Office] and other Chinese agencies, we conclude that the banks’ exposure to local government borrowers is greater than we anticipated…

Recently, The New American published an article chronicling the concessions being consistently made to our named enemy in Afghanistan, the Taliban.

The story in the Telegraph (of London) reports:

Just last year, the Obama administration more than doubled direct American military aid to the regime ruling Yemen. The U.S. Senate voted unanimously for a non-binding resolution basically urging Obama to “use all appropriate measures” to ensure the dictatorship’s survival. And American forces were conducting secret air strikes on villages in the areas of North Yemen since late 2009 under the guise of the terror war.

Few, if any, understand what is happening in Afghanistan and Pakistan better than Republican Congressman and retired Army veteran Allen West of Florida (photo, left). In a speech Tuesday to the Heritage Foundation, he declared:

For longtime readers of The New American, the fact that President George W. Bush immediately looked to Pakistan as the prime ally in waging the War on Terror after 9/11 was an eye-opener.

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