What has this got to do in ANY way with China's monetary policy and economic global domination? You really don't know? Could be you live in Wascilla, Alaska then.
But, at any rate, there is a lot of security for China in 'overseeing' the Brinkmanship of North Korea. China and to a less role, Russia, are important voices both for the USA and for North Korea. China leverages power for North Korea and considers itself an ally to North Korea.
In the interview with the Chinese Premier Wen Jiabao it seems all to clear to me there was a naivety on China's part as to 'the DEVELOPMENT' of their own 'domestic' marketplace. In other words, while China wanted to be a strong economic power in the world, which it is all too clear it is, it has not addressed the domestic growth of its own markets for its own products produced in its own manufacturing sector. It also seems very clear to me the reason for that was the advice China was receiving in order to grow its domestic markets was grossly missing. Why? BECAUSE 'cheap labor' controlled by a communist government was a Capitalists dream come true.
Basically, why would all the Western and European companies that came to China to exploit dirt cheap labor actually encourage the Chinese to improve the quaity of life of their citizens when it served their CEO bonuses so well.
There is also a postive feedback for the communist government in China to continue cheap labor and domiante global markets. It is a lack of being able to ENVISION their sovereign authority as 'secure' in the absense of nuclear war or the threat of same. What occurred with permission of Western and European Captialists was a substitution of global economic domination for 'real' possibility of nuclear war.
That 'economic brinkmanship' by China is very dysfunctional and lacks 'real world' meaning. After all, why would a country like China that continually 'pulls the plug' on its own currency actually believe that is not as much a threat to global stability as nuclear confrontation? Would such fiscal policies perhaps lead to a confrontation war? I believe there is an element of that which would track with any reality, simply because if hte economic base of the USA was dictating it was facing a National Security Problem, the obvious 'action' in the face of intractible international cooperation in currency markets and export markets would dictate a certain path.
