Meep! Meep!

wile310.jpgFor some time I’ve been reading Op-Ed pieces here and there regarding the vulnerability of the US economy particularly under Chinese weight. China has certainly upped itself as a version of a superpower, ballooning into a figure that bears leverage. The scenario always reminds me of Wile E. Coyote vs Roadrunner cartoons– the plot typically begins with the ingenious Coyote hatching a plan and executes; the Roadrunner, on a steady course, eludes. At the last second, the bird turns around to look the Coyote in the eye, “Meep! Meep!” and zooms away, leaving a wide-eyed Coyote bracing as his machination backfires.

Paul Craig Roberts, former Assistant Secretary of the Treasury in the Reagan administration and former Associate Editor of the Wall Street Journal editorial page, writes a succinct article In the Hole to China that should concern everyone, not just Americans, as the reprecussions will consequently quake globally.

The Meat: “Strategic thinkers, if any remain who have not been purged by neocons, will quickly conclude that China’s power over the value of the dollar and US interest rates also gives China power over US foreign policy. The US was able to attack Afghanistan and Iraq only because China provided the largest part of the financing for Bush’s wars.

“No country on earth, except for Israel, supports the Bush regimes’ desire to attack Iran. It is China’s decision whether it calls in the US ambassador, and delivers the message that there will be no attack on Iran or further war unless the US is prepared to buy back $900 billion in US Treasury bonds and other dollar assets.

“The US, of course, has no foreign reserves with which to make the purchase. The impact of such a large sale on US interest rates would wreck the US economy and effectively end Bush’s war-making capability. Moreover, other governments would likely follow the Chinese lead, as the main support for the US dollar has been China’s willingness to accumulate them. If the largest holder dumped the dollar, other countries would dump dollars, too.

“The value and purchasing power of the US dollar would fall. When hard-pressed Americans went to Wal-Mart to make their purchases, the new prices would make them think they had wandered into Nieman Marcus.

“This is a grim outlook. We got in this position because our leaders are ignorant fools. So are our economists, many of whom are paid shills for some interest group. So are our corporate leaders whose greed gave China power over the US by offshoring the US production of goods and services to China. It was the corporate fat cats who turned US Gross Domestic Product into Chinese imports, and it was the ‘free trade, free market economists’ who egged it on.”

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One Comment on “Meep! Meep!”

  1. maggggg Says:

    I LOVE road runner !!!!!!

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