US urged to be patient over China - Watch out, they want Unocal!

snipp

If the only trade the US had was bi-lateral with China then you have a point but with the yuan pegged then the Yuan floats with the US Dollar vs. the EURO, YEN, POUND and all the other DOLLARS out in the market..

Not to mention just how difficult it is to raise a Dollar when the economy is in the shape the US is in now..

This has been going on for a little while now... The term 'Shopping Spree' comes to mind.. There is a fear that the US dollar is going to drop over the next little while (and the Chinese can certainly hasten the process) so the Chinese are looking to take their paper holdings and convert them to tangible assets... securing themselves access to the energy, raw materials, and food supplies they need. Watch for more of this happening. It could be a precursor to either a revaluation of the Yuan or a shift away from the Chinese propping the US Dollar (or both).

Interesting Times (After all the Auriental Empire has LOTS of Gold)

mumbled something like this:

So, as I said, the problem is not the Yuan, it's the worthless Dollar!

Heh heh...

Yep. Plus the fact that Bush has pegged his economic policy on Chinese lending. If the Chinese refuse to buy US treauries we could literally go bankrupt.

Chaina now also is the major supplier of consumer goods to the US. Should Chine implement some sort of trade sanction on us