China Shows Who the Real Boss Is at USA Inc.
With its huge ownership stake in the American economy, China is beginning to extract concessions from a humbled U.S.
April 26, 2009 - 12:00 am
The nice thing about owning your own business is that you get to call the shots. Want to take the day off? Take the day off. Want to reupholster the office in pink, candy-striped vinyl? Go right ahead and have at it.
Along the same lines, I give you China — an ever-increasing stakeholder and now permanent board member at USA Inc.
Over the past few years the Chinese have plowed over $2 trillion into USA Inc. And since joining the management team they have been a bold and aggressive partner in shaping the company’s policy both domestically and abroad.
One can only sympathize with the outranked managing director (President Obama) as he tries to keep USA Inc. employees (that would be us) satisfied, while at the same time keeping the Chinese members of the board of directors happy as well.
Case in point: Manager Obama flip-flopped recently and declined to cite China as a country that manipulates its currency to gain unfair trade advantages — which plainly it does.
Just two months ago, Manager Obama said the same thing himself through USA Inc.’s chief financial officer, Tim Geithner.
“President Obama — backed by the conclusions of a broad range of economists — believes that China is manipulating its currency,” Geithner wrote, adding that Manager Obama would “aggressively use all the diplomatic avenues open to him to seek change in China’s currency practices.” He also said that “countries like China cannot continue to get a free pass for undermining fair trade principles.”