To: lorne who wrote (58368 ) 2/1/2009 10:34:08 AM From: SGJ 2 Recommendations Respond to This sounds like a lot of fiction to me lorne. China is in the bull eye because ironically, they are now the biggest capitalists at the table. Showcasing them as evil greed doers, dressing too fancy, throwing tantrums at those who dare speak against them, or the worst sin of all?: There is no question that Beijing has pursued a mercantilist strategy of conquering US and European markets by holding down the yuan/renminbi. It has a monthly trade surplus of $40bn, the highest ever recorded by any country. Or put another way, China is exporting its surplus capacity to the rest of the world. It has become a global deflation machine. skipping over the role of Asia in stoking a credit bubble (Takes two to tango). The IMF's chief economist Olivier Blanchard said it was unwise to "obsess" over the exchange rate in this fragile climate. "It is probably not the right time to focus on the Chinese exchange rate, given that it is not a central element of the world crisis. There are many other things we should be thinking about. It is an item on the list, but it is not at the top of the list." Stephen Roach, head of Morgan Stanley Asia, offered a harsher verdict, calling it pure folly to pick a fight with Beijing. He pleaded with the West not to retreat into protectionism. Washington - and above all Capitol Hill -- would be well advised to listen.
