Would You Buy a Used Currency from this ManDate?

Bonddad at Kos notes our Asian bondholders are getting a little uneasy about Bu$hCo's long term economic strategery .

Perhaps that's why Bu$hCo has decided to push for Wolfie to head up the IMF.

Asian regimes who don't tow the line know they would face repercussions with Wolfie in charge.

Which might be a workable- if unethical and evil- approach for the little guys.

But China could care less.

China currently is lending the US the money to buy Chinese production.

For example, as the "boom" of President George W Bush takes off, puzzled American commentators are asking where are all the extra jobs that the apparently positive indicators should be creating. In fact, they are being created abroad - mostly in China.

China recycles trade surplus into US Treasury bonds
American companies may have forgotten what Henry Ford propounded when he first built his Model T: If you do not pay high enough wages to your workers, they can't afford to buy your product. One simple basis for that Bush boom is that China is recycling its US$100 billion-plus trade surplus with the US back into dollars, and especially into US Treasury bonds. Almost half of the US Treasury bonds are now owned in Asia. So China is financing Bush's bold economic experiment: running two or more wars simultaneously with a huge budget and trade deficit, and equally huge tax handouts for the richest Americans.

One has to question the long-term economic rationale for China of putting its long-term assets into very low-interest bonds in a currency that has already dropped recently by a third - and is going to drop even more. It certainly makes strategic sense: if push came to shove over, for example, the Taiwan Strait, all Beijing has to do is to mention the possibility of a sell order going down the wires. It would devastate the US economy more than any nuclear strike the Chinese could manage at the moment.

If the Chinese don't care, and are sympathetic, and have an increasingly strong economy, do we really think the Little Tigers would rather deal with us?

While our currency value is tanking?

Again, is our current government totally clueless or the most corrupt in American history? Or both?

So Bu$hCo's pushing either Wolfie or the woman who ran Hewlett-Packard into the ground.

Which would you like to run your henhouse- a Wolf or a Hyena?