China's Giving Us Bread Crumbs, Propaganda To Follow
China's being pressured by the US on a number of fronts. At the moment, their government has their sights on Unocal, the #3 producer of oil and gasoline in the US. However, the US government will have some say as to whether or not the can acquire Unocal.The US also has been pressuring the Chinese government to change their currency policy, stop pegging it to the US Dollar. Recently, they've been magnanimous enough to stop an exact peg to the dollar. Now they've graciously pegged thier currency to a range around the dollar, +/- 0.3% of the US Dollar. Sure...they claim the range is around a "basket of currencies" but they won't say which currencies. It's to their benefit to closely track the US Dollar, so you can be the Dollar makes up a big component of that basket.
Now, the Communist Chinese will proudly state "We've complied with your request to not exactly track the US Dollar, so give us Unocal." When we refuse, you can bet there will be a propaganda storm throughout China and the US, decrying the Obstructionist US Government.
The US Media splashes headlines "China Drops Currency Tie To US Dollar" which is a load of crap, but we can always count on our media to frame stories in the way that sells the most news. We've been wanting to hear that China will finally play fairly, but this is too much to ask. It's also too much to ask the US Media to give realistic headlines. For the foreseeable future, we're stuck with headlines that don't reflect the stories they preceed.
posted by cookies @ 6:27 AM
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