Bottom Line: China and the sleeping giant

UPI ^ | Sep 12, 2003 | GREGORY FOSSEDAL

[Heartbreak of Psoriasis]

In regards to Japan and the smaller tigers, the answer was to make sure they were prosperous so communism would be kept at bay.

Of course you're right about that, but this ceased being an issue for Japan by the late 1960's at the latest.

It doesn't explain our enormous trade imbalances with them for the past 30 years or so.

The problem is much deeper than we most of us care to admit - which is the concentration of huge amounts of wealth and power in a handful of gigantic corporations, the managers of which use soft money to buy off both parties.

In my humble opinion.

[bert]

.....Bill Clinton made the strategic decision to cease trying to isolate the communists......

Not exactly......Richard Nixon and Henry Kissinger saw that moving China out of isolation could be beneficial. They were correct. Driving a wedge between USSR and China was to our benefit.

The current problems result from success. When the Chicaps feel comfortable playing the games of the big central bank nations, the situation will be resolved.

They hold our debt. They are holding ther bag..... the bag is empty!!

[Eric Paul]

I don't think that this analysis is very good. I admit that I started to question the validity of his analysis when he noted that the yuan was pegged at 'about 8.5-1.' Now this is close to the truth but why hedge is it so hard to type 'about 8.2-1.' This is quibbling though so I gave him the benefit of the doubt and kept reading.

This analysis ends up much too soft on the current administration though. Snow mishandled this summit before he even arrived. I think everyone can agree that this problem is larger in relation to China than Japan but Snow visited Japan first. The Chinese since the end of WWII have been confused by the United States' actions in Japan. Why did the United States aid the enemy after WWII, rebuilding Japan, and allow China, the Ally, to fall further apart. By visiting Japan first Snow made this a matter of face. It is no wonder that he only was met by minor funtionaries like, "the top leadership at the People's Bank of China and the Finance Ministry." In Japan he was meeting with the President, who incidently ticks off every nation in Asia by visiting the shrine for Japanese soldiers every VJ-Day, not bank and treasury officials who only can do what the administration tells them to do and cannot make real decisions of this magnitude.

The author continues noting that an aide said the meeting was like a scene from Star Wars? Obviously this aide is bucking for a promotion from Snow with a little flattery. Please, this is ridiculous. Snow did not go over there as a tough guy and posing as one would be a charade that anyone would see through. At the same time this meeting was going on there was speculation that Bush needs and is going to ask for help in Iraq. In addition where was the recent summit with North Korea? The Chinese know the current administration needs their help and the administration is offering nothing in return. The Chinese, along with most of the rest of the world have been complaining about and fighting against Bush's steel subsidies. Almost since FDR started them the entire world has complained about farm subsidies but this hasn't changed either. And there does not appear to be any change on the horizon. In other words this administration really is not going to try to change anything.

The author is right, this is a major problem. As an earlier poster noted though, he is dead wrong about awakening a giant. The Chinese see this administration with its hand out and its head in the sand. This administration is not looking for agreement but a handout. On September 10th When asked about requesting troops and money from other countries Bush noted at a recent press conference that "I will once again make that plea." This statement came through to Beijing loud and clear they know what 'plea' means and guess who holds the IOUs and is ready to buy up some more. The sword isn't just dangling over this administrations heads it has already fallen and they just can't figure out where their headache came from.