Not a lot of time to write or do much. Much critique of analysis of the "statism" to come, it will be a fun side project during Spring Break. In the mean time, interesting articles I found on Drudge about China and our EU allies:
http://technology.timesonline.co.uk/tol/news/tech_and_web/article7053254.ece
China cyber warfare increases cyber attacks; the EU most prone to infiltration.
http://www.ft.com/cms/s/0/6cd3a766-2925-11df-972b-00144feabdc0.html
Discusses some debate in China about possibly letting the renminbi appreciate (something that has been pushed by the US since Bush to mitigate the massive trade imbalance).
http://www.reuters.com/article/idUSTRE62605720100307?feedType=RSS&feedName=topNews&rpc=22&sp=true
very short article about Chinese Foreign Minister stating ties with the US have been seriously disrupted. Blame the US.
I'm caught between propensity to support Free Trade as well as my utter fear of the rise of the Chinese counter-weight. Overall, I think my security fears win out, as well as my unwillingness to accept their artifical mechanisms to keep the renminbi weak so as to dominate trade market as fair practice in the WTO.
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Something that I didn't realize from the FT article was that the Renminbi has only been pegged to the dollar since the financial crisis began in '08. So, their great trade imbalance with the US was built without that artificial advantage, so maybe this is not as big a deal as it first seemed (ie, letting the Renminbi float will not greatly correct the imbalance).
ReplyDeleteI don't know much about the effects that allowing the yuan to appreciate will have on trade imbalances. I read this article http://mises.org/daily/4130 it is loosely related to this topic.
ReplyDeleteAs a result of holding a lot of America's debt China will have a lot more influence and control over American foreign policy. China is a growing threat; but due to their demographics as noted by Bud-D, the fact that a lot of Chinese are living in poverty, and the fact that America's and China's economies are tied together, it doesn't seem like their will be a major conflict between the two countries.
I don't see the Chinese system that is a mixture of state control and capitalism working out in the long run. Although this is what America is becoming.