Imagine looking at the world from the perspective of China's leadership. A secluded society of the largest population in the world, Communist China had weathered its own internal problems during the Cultural Revolution with the outside world knowing little of what was going on. Mao passed away and the potential economic power of its people was luring them into flirting with capitalism. Before long they were an economic behemoth, the third largest economy in the world with their former enemy, the United States, their biggest customer. Multitudes were moving into the urban areas to work.
Their initial misgivings of opening their people's mind's to the West were coming to fruition. Liberty was taking hold. Christianity had grown under repression, would liberty do likewise? Nonetheless, they placed great importance on the success of the Olympics, and succeeded. Then the unexpected happened. Part of their being lured into a capitalist economy was the genius of those who had lorded their wealth over them for so long. They didn't factor in human greed. The people that moved to the urban areas for jobs, may soon be without employment, seeds of rebellion, and the Chinese blogosphere is humming. A weak dollar hurts tourism and the Chinese economy in general.
Today, China brought up the idea of a new world currency to replace the dollar, a notion Russia had previously mentioned. Coincidence? China has bought enough of our securitized debt to bankrupt us if they wanted to, only it would do the same to them. They let us know that they were not happy with the economic developments and demanded guarantees of their investments. On the bright side, China has plenty of money in reserve. They still have vast areas that have not joined into the producing/consuming cycle and their banks are relatively safe. On the negative side, they have to maintain their rate of growth which is very high. Even what would be good figures to us can be bad for them. They need increased personal consumption and the Chinese people tend to save. They will not yield with Tibet whom they have dominated since 1950, nor Taiwan. They are strengthening their navy and continuing to build economic "ties" throughout the world. They get offended very easily. Why they continue to flex there military muscles from time to time is confusing, unless, like the Chinese people themselves, they know that economic benefits are not guaranteed so they fall back on the strengths of their early years, just in case.
Their initial misgivings of opening their people's mind's to the West were coming to fruition. Liberty was taking hold. Christianity had grown under repression, would liberty do likewise? Nonetheless, they placed great importance on the success of the Olympics, and succeeded. Then the unexpected happened. Part of their being lured into a capitalist economy was the genius of those who had lorded their wealth over them for so long. They didn't factor in human greed. The people that moved to the urban areas for jobs, may soon be without employment, seeds of rebellion, and the Chinese blogosphere is humming. A weak dollar hurts tourism and the Chinese economy in general.
Today, China brought up the idea of a new world currency to replace the dollar, a notion Russia had previously mentioned. Coincidence? China has bought enough of our securitized debt to bankrupt us if they wanted to, only it would do the same to them. They let us know that they were not happy with the economic developments and demanded guarantees of their investments. On the bright side, China has plenty of money in reserve. They still have vast areas that have not joined into the producing/consuming cycle and their banks are relatively safe. On the negative side, they have to maintain their rate of growth which is very high. Even what would be good figures to us can be bad for them. They need increased personal consumption and the Chinese people tend to save. They will not yield with Tibet whom they have dominated since 1950, nor Taiwan. They are strengthening their navy and continuing to build economic "ties" throughout the world. They get offended very easily. Why they continue to flex there military muscles from time to time is confusing, unless, like the Chinese people themselves, they know that economic benefits are not guaranteed so they fall back on the strengths of their early years, just in case.
