How it looks from China

chinalaowai
Shenzhen, Guangdong, China


Your editorial's jingoistic, hegemonic, unrepentant economic narcissism is typical of America's attitude to the world.

Richard Nixon could have written this editorial, prior to his unilateral abolition of the Bretton Woods system of international financial exchange, commonly known in the US as cancellation of the gold standard, and internationally as "Nixon Shock". In 1971, the cost of the Vietnam War and increased domestic spending from Johnson's Great Society programs forced America to print more money. European nations that held American paper asked for gold instead, depleting reserves, and decreasing the dollar's value. Without consulting international trading partners, Nixon removed America from the gold standard. And the world suffered: with no international standard for currencies, oil-producing nations were able to doubled their prices, causing global hyperinflation, recession, and the petrodollar.

America has once again overextended itself. And once again, America will try to convince the rest of the world to follow a policy that will lead to international economic and social disaster. America's alliances with many nations, including the two countries mentioned, Mexico and India, are strictly a political ploy to put pressure on China. If America succeeds, and China complies with America's demands, Mexico and India with find their agreements with America to be worthless - remember the failed promises of NAFTA. Ultimately they will receive nothing. Only America will benefit.

What America does not say is that China's currency policies are in line with the country's GDP and domestic growth. More importantly, the policy is an accurate reflection of China's per capita income: between US$3200-3600 in 2009, depending on the source. This is a statistic rarely cited in America's strenuous effort to force China's compliance.

Historically, America has cherry-picked policy positions based on self-interest, and manipulated other countries for national gain. The world sees this. China knows this. America's loss of influence and credibility are based on broken promises and inability to maintain a clear economic policy, both internally and externally. That China is in the ascendancy is a reality America refuses to accept.

What the world should really be concerned about is what unilateral action America may decide on this time. Will there be an "Obama Shock", similar to the Nixon Shock of 1971? Will America lead Taiwan into war with China? Will Japan be forced into a position of choosing between America and China? These are the types of policies America has historically chosen to enact, either overtly or covertly, when its power base has been threatened.

This is not the time for America to make an economic last stand. America cannot win without causing greater pain to the rest of the world.

Get out of the way and let China lead.