This would have been much worse news if the USA were not rapidly becoming oil independent.
That is all the bad dollar/usa economy stuff that zerohedge has predicted would happen—would happen because of shrewd chinese currency plays and foolish US over indebtedness —were it not for rising US oil and natural gas production and impending oil independence.
All that’s happening is that the world is moving toward a new balance of economic power.—but it will balance and not unfavorably to the USA.
We are becoming oil independent in spite of Obama, even though he and the greenies fight against it.
The catch 22 is if we don’t import oil(or anything) paid for in US dollar, which in turn is used by the foreign nation to buy treasuries, the gov’t would have to cut its spending deficit, but probably not before forcing retirement accounts to buy treasuries.
Makes a great deal more sense (economic, energy, safety) to ship Siberian gas to China by pipeline than US gas by LNG tanker, which I’ve seen discussed.
One aspect of this deal apparently not mentioned is that Russia’s East continues to empty demographically.
An immense, almost completely empty, resource-rich land right next door on which it is economically dependent will at some point become a nearly irresistable lure for China. Or quite possibly Siberia will remain Russian de jure while becoming Chinese de facto.
Which would be a type of poetic revenge for how Russia handled Manchuria 100 and some years ago.