Marty's comments are all well-taken, but I think he understates a tad the Chinese advantage.
Yes the Chinese need to sell into the U.S., but in this vein they are riding the wave of free- trade policy originating in the U.S., plus the U.S. appetite for imports. At the same time they can diddle with their holdings and purchases of U.S. Gov bonds under no restrictions. I would say in this way they have fingertip control of interest rate deviations. They don't have to cause any large change or suffer from it. All they have to do is jiggle the table a bit to neutralize any annoying U.S. overtures. Between this and North Korea, it looks like they have Bush by the short hairs. mbs -----Original Message----- From: PEN-L list [mailto:[EMAIL PROTECTED] Behalf Of Martin Hart-Landsberg Sent: Wednesday, November 17, 2004 6:57 PM To: [EMAIL PROTECTED] Subject: Re: [PEN-L] in hock to the Chinese >
