I don't buy the rhetoric of the Chinese "owning" the US economy. As I have posted before, the Chinese are in a situation of having the tiger by the tail. They have made the US deeply dependent on cheap imports, but they have become deeply dependent on the revenue from those cheap imports. The flexibility of the US economy means that any change in that relationship would be far more damaging to China than it would to the US. We could buy from other sources or make things ourselves again, but they would have no market to push their goods to.
Ultimately, the Chinese government will have no choice but to float the yuan. My theory is that they are slowing letting the currency appreciate so that they can get it to a level where it will not significantly change in value after the float. It looks to me like their window for this change is several years. As that happens, the Chinese economy will become more accessible to Western companies. It's all a matter of time. On 5/10/06, GruGott wrote: > > > They're also building an economic war chest to tie the union together > and the major piece of that is by owning and economically controlling > America. Which Mr. Bush has been happy to allow to occur. > > -- --------------- Robert Munn www.funkymojo.com ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Message: http://www.houseoffusion.com/lists.cfm/link=i:5:206466 Archives: http://www.houseoffusion.com/cf_lists/threads.cfm/5 Subscription: http://www.houseoffusion.com/lists.cfm/link=s:5 Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=11502.10531.5 Donations & Support: http://www.houseoffusion.com/tiny.cfm/54
