China Trade War!

Toning Down The Talk of (China Trade) War
SEPTEMBER 15, 2009, 8:27 AM ET
By James Altucher

Excerpt:

Finally, everyone is saying, “China could dump dollars”. Ha! This is unrealistic:
A) They have too many of our dollars. Heck, with $2 trillion sitting in their banks they have more dollars than we have. Bernanke is almost as much the Chinese Fed Chairman as much as he’s the U.S. one. China cares more about the value of the US dollar than we do. We’re happy to devalue it and make our goods cheaper to the rest of the world.

http://blogs.wsj.com/financial-adviser/2009/09/15/toning-down-the-talk-of-china-trade-war/

Now, in every geopolitical discussion it is important to consider all the factors underlying the dynamics between the two countries. The New York Times, forever succinct, sets the stage with this:

"We have these jumbo, juicy paws the Chinese really love, so I don’t think they are going to cut us off." - PAUL W. AHO, an economist and consultant, arguing that the quality of America’s chicken feet — a delicacy in China — will serve as leverage in the nations’ battle over tariffs.

http://www.nytimes.com/