
I don't really like to call it a "war". It is really more of an argument between the 2. A currency war would only occur when the rest of the countries start to get greedy and everyone freaks out.
Do you honestly think that everyone else is looking at China and the US bicker at each other? Every country has a relatively similar investment in both countries relative to their economic abilities, the damages towards each countries would be relatively similar. What that would cause the other countries to freak out is when one of themselves decide to break out and start screwing around with their currencies and join in the fun.
Then all hell breaks loose.
But enough of the other countries, back to the argument between the US and China. This is not the first time that the US has argued over with China over something. From Human rights, to currency and North Korea. The issues are endless. It starts to show the desperation of the United States in reinstating itself as a global watchdog for the world. It has the impression of a 80 year old still attempting to cling on to the title of the alpha-male.
Nothing wrong with that, there has to be confidence still within the country. The last thing the US wants now is to become another Japan or Europe. It has to keep confidence of its own people and the world towards their abilities, be it from its economy or its military. Once the government gets lazy and give it, stagnation will take place in all directions, and it will crumble into the residues of its past.
In today's times, when the United States' Economy has disappointed the world not once, but twice in a decade, it would be throwing in the towel if it was not to pick of the glaring problem of the devalued yuan and label it as another excuse for its failures as well as pulling it away from its current problems, including a high unemployment rate and government deficit.
And now to the East. We have spoken so much about the United States, what about China? Consider this, this is a growing economy. China is probably still decades away from fulfilling its economical potential. And it has been moving at such an extremely bullish pace its ridiculous. We also have Premier Wen, who would be giving way to his successor, Mr Xi Jinping, within the next few years, what could be on his mind but to leave a legacy under his name that would be remembered for years? What better time to carve a legacy but in such turbulent times as today?
Now, an analogy for China would be the new kid by the block, it wants to grow and gain whatever it can. What it does is its own business, and he couldn't care less about what the rest thinks, as long as his friends still support him. It wants to bring its position to way beyond what that could be imagined by his friends as well.
What else but to challenge the alpha male of the pack?
China wants this, they want to be seen as a country that can challenge the wills of the United States without significant backlash. Let it be known to the people that it is no long the country that was sold to the foreigners in the past! It now controls the world, and is the biggest kid in the block.
Consider this, do you think that the situation on the Uighurs is actually good for China? Do you think that they couldn't handle it well? Either way that the coin was played, they could easily propagate itself as a champion for the 'Chinese' Chinese, or as a benevolent country that opens its arms to the world. It might be a stretch, but it seems like China just simply wants to make its point. I can do whatever the hell I want. F*** off.
Just to conclude, back to the question, what do I think of the Currency arguments?
Its like a 80 year old ape, and a new kid of the block comparing their penis size.
Just that the zips a bit tight because of the economical strings that its tied to.
Comments (0)
Post a Comment