China has made plain their displeasure with the monetary and fiscal policies which threaten to further devalue the dollar and undermine the value of the U.S. debt held by Beijing.   However, as the United States is the largest importer of Chinese goods by a significant margin, and with the ever-present need to maintain a high economic growth rate to employ hundreds of millions, the ability of the Chinese to pull the plug on the U.S. and its insatiable need to finance its debt is limited.The Chinese must keep on financing a good part of the U.S. debt in order to keep the country afloat so it can continue to buy Chinese goods.  The solution to this dilemma is to open new markets and greatly reduce the dependence of the U.S. for Chinese manufactured goods.This process is well underway in Europe as reported in Der Speigel.  The lead from the article:China is seizing on Europe's debt problems to expand its influence on the continent with large-scale investments and...(Read Full Post)