All the world knows about the Iraq about-face: having squandered our military strength in a war he felt like fighting even though it had nothing to do with terrorism, President Bush is now begging the cheese-eaters and chocolate-makers to rescue him. What may not be equally obvious is that he's doing the same thing on the economic front. Having squandered his room for economic maneuver on tax cuts that pleased his party base but had nothing to do with job creation, Mr. Bush is now asking China to help him out.
Not, of course, that Mr. Bush admits to having made any mistakes. Indeed, Mr. Bush seems to have a serious case of "l'état, c'est moi": he impugns the patriotism of anyone who questions his decisions.
If you ask why he diverted resources away from hunting Al Qaeda, which attacked us, to invading Iraq, which didn't, he suggests that you're weak on national security. And it's the same for anyone who questions his economic record.
However, he's decided to plead with the Chinese for help.
But he got no satisfaction. A quick look at the situation reveals one reason why: the U.S. currently has very little leverage over China. Mr. Bush needs China's help to deal with North Korea another crisis that was allowed to fester while the administration focused on Iraq. Furthermore, purchases of Treasury bills by China's central bank are one of the main ways the U.S. finances its trade deficit.
Nobody is quite sure what would happen if the Chinese suddenly switched to, say, euros a two-point jump in mortgage rates? but it's not an experiment anyone wants to try.
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