Thursday, July 21, 2005

The China Syndrome

Adding to the disscussion in this post at Vodkapundit.
This story a raises some important questions about the intentions of our Chinese friends:

" The Chinese government said it would replace the link between the yuan and the dollar and instead allow the exchange rate to be set by a basket of currencies it has yet to name. The government immediately strengthened the state-set exchange rate of the yuan to 8.11 to the U.S. dollar, up from 8.277."

Hmm, I for one would not want my currency tied to a Nation I was about to engage in outright hostility against (Taiwan and it's US allies) or at least tried to openly hurt by driving up the cost of oil. Maybe some of the boys in DC knew what they are doing when they all but quashed the Unocal deal!

I know this has been the problem with US Chinese trade relations for some time, but I question the timing of the announcement. Couple this with the proclamation that China is prepared to use nuclear weapons against the US and the recent problem our two nations have had such has: Arms Sales to Taiwan and tensions over trade. If i did not know better, I would say that the China was treating the US like a Rival Superpower.