We have too many hot stuffs on our plate
Why bring "Mongolia" to the fore?
Mongolian forex reserves are down to $1.3 billion. Mongolia has $1.08 billion in foreign debt due in the next three years.
Since Mongolia is dead broke, now is a good time to strike a deal.
China should offer a First World living standard of $20,000 US dollars to all three million Outer Mongolians in exchange for an American-style state-federal government structural relationship.
The reincorporation of Mongolia into China will enable China to establish close physical ties with Russia.
The threat on the horizon is the ever-expanding European Union, which is a stalking horse for the United States.
If the EU would just stay in Europe, things would be fine. However, the West is changing the status quo. The EU is expanding and determined to own the Silk Road countries.
Thus, China must pull the 144 million Russians into the Chinese camp. A +144 into the Chinese camp means no +144 for the European Union. The total difference is +288 million "net effect" for China. If China can also pull Kazakhstan into a federation or alliance structure then the buffer states will be solid and China should be safe from NATO.
The worst possible outcome is to stay complacent until Russia and/or Kazakhstan join the EU/NATO. At that point, it will be too late and the choices are all ugly.
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Mongolia’s Bonds Slump With Copper as Rio Spat Stalls Mine - Bloomberg Business
"Mongolia’s Bonds Slump With Copper as Rio Spat Stalls Mine
by Michael Kohn
January 26, 2015
...
Foreign Reserves
Mongolia’s foreign reserves stood at $1.35 billion at the end of November, down 42 percent from a year earlier, according to the central bank’s website.
The price of Mongolia’s 2018 bonds slid to a record low 85.82 cents on the dollar on Jan. 21 from 92.64 at the end of 2014. Dollar notes due December 2022 fell to 78.51 the same day, from 86.47 on Dec. 31, pushing the yield to an unprecedented 9 percent.
The Bank of Mongolia raised its policy rate this month to 13 percent from 12 percent, citing high inflation and low foreign investment. In December, the World Bank encouraged the nation to tighten policy and start preparations to repay $1.08 billion of debt due in 2017 and 2018.
‘Fragile Outlook’
'The central bank’s decision to raise rates also underscores the fragile outlook for Mongolia’s balance of payments,' Ben Shatil, an analyst at JPMorgan Chase & Co. in Singapore, said by e-mail. 'There’s recognition that Mongolia’s fundamentals are being seriously challenged by the decline in commodity prices, as well as the expectation for slower, and less investment-intensive growth in China this year.'"