China rebuffed on Friday a U.S. plan to set target limits for trade imbalances and Germany dubbed the Fed's money-printing policy "clueless," setting the stage for what could be a fractious G20 summit next week.
Washington believes an undervalued yuan is a major cause of economic imbalances and has pressed Beijing, largely in vain, to let the currency rise more swiftly to reflect the strength of what is now the world's second-largest economy.
The waters of the debate have been muddied by the Federal Reserve's decision to buy $600 billion in long-term bonds with new money in an effort to revive the flagging U.S. economy.
Blaming China for the US's financial woes is an absolute case of attempted "misdirection", much as a stage magician uses, but it's not fooling the world, nor should it be fooling thinking Americans.
The Federal government is spending way more than it is taking in, and squandering much of the money on immoral and illegal wars without end. The deficit is soaring, because Congress cannot seem to get its hands around defunding these wars, which would go a long way toward curing the problem.
But perhaps what is most troubling about this situation is the historical aspect. What the US government has done to get itself out of financial quagmire, historically, has been to go to war.
Unfortunately, because so much of our manufacturing has been offshored to take advantage of cheap labor and production costs, the US doesn't have the manufacturing capacity to sustain anything more than what amounts to a blitzkrieg attack against the perceived "enemy du jour" , and praying it is successful.
And of course, there is no end to the list of potential "enemies" who mist be "neutralize" (particularly those on the Israeli "to-do" list).
I would like to hope that saner heads in Washington would not see such a gambit as the right move to get the country out of a tight economic squeeze; sadly, an examination of US history indicates otherwise.