This is quite problematic. The US foreign policy should be takeing a 'we're sorry' tact, not a 'do as we say' tact.

For the most part Obama seems to have understood this but the agressive nature of the currency manipulation accusations are out of line and even dangerous. China owns the US, China let the US have years of over consumption, and now the newly elected administration fires a salvo right off the start???

It's clear that the Chinese have been worried about the US intentions regarding geostrategic responses to the shift in global power but there is no need to inflame these tensions further.

quote:

The Chinese government was responding to claims by Tim Geithner, President Obama’s choice for Treasury secretary, who told a Senate nomination hearing on Thursday that China was “manipulating” the renminbi. http://www.ft.com/cms/s/0/75d83aca-...00779fd2ac.html

It is also extremely important for the US to keep on China's good side because with the stroke of a pen the Chinese can burry the US. One order to sell it all, for any price, and the Chinese leadership absolutely runin the US. Game over.

Yesterday I was discussing this scenario with an economics prof.

"... but that would be the end of capitalisim." he gasped at the thought of the US defaulting.

With the nationalization of banks being considered in the two most capitalist societies my question is... what's left of it?