Posted on 03/15/2010 7:15:09 AM PDT by SeekAndFind
The long-simmering clash between the world's two great powers is coming to a head, with dangerous implications for the international system.
China has succumbed to hubris. It has mistaken the soft diplomacy of Barack Obama for weakness, mistaken the US credit crisis for decline, and mistaken its own mercantilist bubble for ascendancy. There are echoes of Anglo-German spats before the First World War, when Wilhelmine Berlin so badly misjudged the strategic balance of power and over-played its hand.
Within a month the US Treasury must rule whether China is a "currency manipulator", triggering sanctions under US law. This has been finessed before, but we are in a new world now with America's U6 unemployment at 16.8pc.
"It's going to be really hard for them yet again to fudge on the obvious fact that China is manipulating. Without a credible threat, we're not going to get anywhere," said Paul Krugman, this year's Nobel economist.
China's premier Wen Jiabao is defiant.
"I don’t think the yuan is undervalued. We oppose countries pointing fingers at each other and even forcing a country to appreciate its currency," he said yesterday. Once again he demanded that the US takes "concrete steps to reassure investors" over the safety of US assets.
"Some say China has got more arrogant and tough. Some put forward the theory of China's so-called 'triumphalism'. My conscience is untainted despite slanders from outside," he said
Days earlier the State Council accused America of serial villainy. "In the US, civil and political rights of citizens are severely restricted and violated by the government. Workers' rights are seriously violated," it said.
"The US, with its strong military power, has pursued hegemony in the world, trampling upon the sovereignty of other countries and trespassing their human rights," it said.
(Excerpt) Read more at telegraph.co.uk ...
Days earlier the State Council accused America of serial villainy. “In the US, civil and political rights of citizens are severely restricted and violated by the government. Workers’ rights are seriously violated,” it said.
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I see they’ve been reading Rules for Radicals: accuse your enemy of the precise things you’re doing. Laughable, if it weren’t so potentially devastating to the world.
Colonel, USAFR
Hah, Federal Reserve minutes going back twenty years explicitly and openly talk about schemes for manipulating the dollar.
Au contraire. The Chinese know a weakling when they see one, exactly like how the Iranians recognized the inherent weakness of Jimmy Carter and held our embassy staff hostage for a staggering 444 days.
Now is the best time with a wussy boy in the White House.
China is right. See the Slaughter Solution.
Looks to me like they are correct on those counts.
The same crap is also coming out of Russia, with Putin accusing the US for the economic crisis and calling us an “imperial power”. He also blamed us for the collapse of the USSR.
Take a number china. Every other shark in the water smells the U.S. weakness and is waiting to attack.
It has mistaken the soft diplomacy of Barack Obama for weakness
No mistake there. Every US President who has attempted to engage in “soft diplomacy” has rightfully been seen by the rest of the planet as weak.
Jintao smells the weakness. Putin smells the weakness. Hugo Chavez smells the weakness. That dude in Iran smells the weakness.
Yup, just like dogs can "smell" fear.
Correct!
The question is whether this bubble can be turned into sustainable wealth by any means. If it’s more asses than assets, some small perturbation can bring the whole thing ignominiously to the ground.
“If it’s more asses than assets, some small perturbation can bring the whole thing ignominiously to the ground.”
Means of production = power.
It worked for the USA, now we’ve transferred those means of production to China.
China can make cheap junk exceedingly well.
However, a country has to be built on more than you can get from Wal-Mart.
“However, a country has to be built on more than you can get from Wal-Mart.”
Like bullets? Oh right, made in China.
Like auto parts? Yep... Chinese.
Japan started out making cheap crap we laughed at. Having the factories is 90% of the battle, the quality will come. As for us, how do you tool up what is non existant?
I’ve read in more than one place that one of the reasons the recession in America is lasting so long is that we no longer have a large enough manufacturing base to pull us out of the recession.
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