How China is faring

(Tell us about the headline that caught your eye today.) One headline said the financial crisis is a global tsunami and what’s needed is financial order and this crisis has exposed massive loophole in the U.S. investment system. It said the world needs to create a diversified system and a fair and just financial order that’s not dependent on the U.S. (Dependent on who?) Well China is now pegging itself to a number of currencies including the Euro. (What’s been the fallout of that?) one good thing for the Chinese is as the dollar has lost value, other currencies have gained value against the dollar and allows for more maneuverability. China is saying the world needs to be a multi-polar world, politically and economically, so this boosts that ideology as well. (Given this latest financial crisis and knowing that China is not totally a free market, what’s the bottom line?) This is still a Communist government and uses such tools from time to time, including controlling the band when the currency fluctuates and also bailing out its banks when they need it. there could be social instability if there will bank failings, so people trust the government to prevent that from happening. (What does the government in China make of American bail outs for banks?) I think they’re sitting bank and having just hosted the Olympics and feeling good about themselves.