Perhaps I had my sense of humor zapped by aliens or something, but I don't see why this story is funny. Please explain. BTW, how is this splurge being paid using US Treasury "funny money"? China is selling more to than it's buying from the rest of the world. That allows it to buy US bonds, just as a profiteer or capitalist can accumulate money. It can then use these to buy other things. It's the trade surplus that allows it to buy a lot of resources, not the "funny money" (which is only a tool). And the latter is backed up by the US military-financial- economic power, which is still pretty strong even though Dubya has gotten it into a fine mess 'o' potamia. Even though it's quite possible that the market price of T-bonds will fall drastically outside the US if there's a speculative flight from the US$, that doesn't mean that China will lose its shirt. After all, it still has an economy that can prosper by offering cheap-as-dirt labor-power. If the dollar _is_ going to fall, then it makes total sense for China to convert its dollar-denominated assets into raw materials, real estate, etc. Jim Devine [EMAIL PROTECTED] http://myweb.lmu.edu/jdevine
________________________________ From: PEN-L list on behalf of Shane Mage Sent: Sun 12/12/2004 9:12 AM To: [EMAIL PROTECTED] Subject: Re: [PEN-L] insecure China >[this should have been in the comics section] especially because this "splurge" of real asset acquisition is being paid for with funny money printed by the US Treasury! > >http://www.nytimes.com/2004/12/12/weekinreview/12fren.html >December 12, 2004 >China's Splurge on Resources May Not Be a Sign of Strength >By HOWARD W. FRENCH > >SHANGHAI - Over the last year, the Chinese government and some of its >largest companies have hopscotched the globe, from Australia to Angola and >Canada to Sudan, writing huge checks. The idea is to secure supplies of >oil and other raw materials with which to prime China's formidable industrial sector....
