I guess the question China is going to be asked us; you chose between subjugation of Taiwan or the health of Wal-Mart. How bad would it be if we reindustrialize the USA with all new facilities.
China is faced with an unexpected industrial production increase of 18% from a year ago and now is in a speculative housing market. There is even the talk of foreign manipulation of currency with China, leading to the trade deficit in the USA. China is at the edge of being profoundly destabilized through it grouth–which is going to have a profound destabilizing effect of the whole globe.
In the USA we are seeing many businesses closing moving to china and other low wage countries We got a falling dollar, we got exploding housing prices, got low wages, we got historic gasoline prices ---and take a look at the massive current account deficit of 700 billion dollars.
So the current account and trade crisis is unsustainable for either the USA or China. Say President Bush comes out on a podium saying the planet is in a world of hurt with foreign trade. The continued damage caused by this is going to destroy the USA… China and the world economic system. So, as a result of the prediction of this damage –we are going to severely limit foreign trade to China for a period of time. You can bet on the next election, we would elect all democrats.
So if China’s Hu talked in the same manner with our growth is going to destabilize our country and the planet’s economic system –so we are going to severely limit export to America and certain other parts of the world. I bet you there would be an overthrow of the communist country very soon.
So none of our country’s can regain control of the planet's economic system at this time –and we are sailing for an object failure of the planet’s economic relationships.
So what does the Taiwan war crisis symbolize? It just might be the political cover that both sides need. So China might ramp up the Taiwan crisis blaming American and we might retaliated by limiting trade –so both these countries will be able to blame the other, as trade controls begin forcing profound changes in the character of both these countries –and the whole global economic relationships.
Of course, we might not control this –it could spin into a war for both of this. Of course to do nothing might just be worst than a war.
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