KAL and the Chinese reserve
Posted by Dave Bath on 2007-08-14
The Economist (2007-08-11) cartoonist KAL describes beautifully the scenario of China’s power to blow away the US economy, as outlined in my 2007-03-03 post "Wargamer’s view of Shanghai market jitters". The sluice gates will be opened, 2010 is my current thinking, sooner if the US plays tough-guy.
For those without graphics: The title is "USA and China Talk Money" A buoy with "1.33 trillion reserves" floats in a dam that looks like the Great Wall of China. Uncle Sam, in the ravine in front of the dam, holding a sign "Fix the Yuan" says "I’m terribly sorry… but if things don’t change I may be forced to bring trade sanctions to bear…" On top of the wall, a Chinese dragon, one hand pulling on the gate marked "DANGER" at the front of the dam, says "Thanks ever so much for the warning! Just one question… did you bring your swimming trunks?"