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Dec. 1, 2008

Max Freidlander, as told to Jacklyn C. Wadler: India Inkings

Mark Steyn: Whodunit!?

Nov. 28, 2008

Rabbi Ahron Rapps: An evil seed that didn't have to be

Melanie Phillips: Carpe diem --- or can we all relax now?

Nov. 26, 2008

Michael Feldberg: Meet the Orthodox Jew who laid groundwork for scientific development of ordnance that undergirds America's current world leadership

Andrea Simantov: Shades of life

Nov. 25, 2008

The Jewish Ethicist by Rabbi Dr. Asher Meir : Getting Emotional For Influence

The Kosher Gourmet by Ethel G. Hofman : Thanksiving feast!

Nov. 24, 2008

Rabbi S. Binyomin Ginsberg: 'I just Became a grandchild!'

Barry Rubin: Don't flatter your enemies, protect your friends

Nov. 21, 2008

Rabbi A. Henach Leibowitz: Money matters?

Caroline B. Glick: Civilization walks the plank

Nov. 20, 2008

Rabbi Avi Shafran: Bronfman's blindness

The Kosher Gourmet By Linda Gassenheimer: Portobellos add a hearty flavor to pasta with pesto

Nov, 19, 2008

The Jewish Ethicist by Rabbi Dr. Asher Meir : Spread the wealth? Jewish tradition and income equality

Elliot B. Gertel: 'Mad Men': Tackling prejudices or reinforcing them?

Nov, 18, 2008

Dr. Debby Schwarz Hirschhorn: The End of the Age of Reason

Jonathan Tobin: Does Barack + Bibi = Disaster?

Nov, 17, 2008

Rabbi Yonason Goldson: The End of the Age of Reason

Diana West: Gulling Americans into making terror legit?

Nov, 14, 2008

Rabbi A. Henach Leibowitz: The Power of Spiritual Inertia

Caroline B. Glick: The perils ahead

Nov, 13, 2008

Stratfor Intelligence Briefing: How Bush and Obama together could change the Middle East dynamic

The Kosher Gourmet by JeanMarie Brownson: Sweet and savory, crispy and meltingly tender bestilla

Nov, 12, 2008

The Jewish Ethicist by Rabbi Dr. Asher Meir : Tyrannical Co-Workers

Michael Doyle: High Court to consider today donated monuments that may have religious messages in public parks

Nov, 11, 2008

Frank J. Gaffney, Jr.: Will Obama stop government officials considering institutionalizing financial jihad?

Jonathan Tobin: They Will Decide Their Own Fate

Nov, 10, 2008

Rabbi Avi Shafran: $8 billion, modern-day Tower of Babel being built?

Barry Rubin: A letter to the president-elect from a Middle East realist

Nov, 7, 2008

Rabbi Francis Nataf: Of Children and Immortality

Caroline B. Glick: Livni's Obama strategy

Nov, 6, 2008

Rabbi Yonason Goldson: How I tricked a classroom of apathetic students into grasping the fallacy of moral relativism

The Kosher Gourmet By Gina Kim: Tips for making the perfect soup --- includes recipes

Nov, 5, 2008

The Jewish Ethicist By Rabbi Dr. Asher Meir: Destitute Debtors

Bruce Weinstein: 'Religulos': Bad title,even worse movie

Nov, 4, 2008

Frank J. Gaffney, Jr.: Treasury Dept. submits to Shariah law

Frida Ghitis: A surprise for Obama in the Middle East

Nov, 3, 2008

Jonathan Rosenblum: Who says Jews are Smart?

Jonathan Tobin: Was He Wrong About Everything?

March 22, 2007

J-Rhythms with Avraham Rosenblum: JWR's cutting-edge music program showcasing performers -- singers, song writers, musicians, and bands -- who learn and live the Torah lifestyle (OUR NEWEST IGODCAST !)

Oct. 29, 2003
Mortimer B. Zuckerman: Graffiti On History's Walls (MUST-READ!)

Jewish World Review June 10, 2005 / 3 Sivan, 5765

Hillary's China charade

By Rich Lowry


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http://www.JewishWorldReview.com | Hillary Clinton has met the enemy, and it is foreign investment. She unleashed a barnburner of a speech at a New York fundraising event the other day and reserved special salvos for China. She warned that we are "giving up our fiscal sovereignty" to the Chinese. Our borrowing from Beijing makes it impossible to "get tougher on China," she said, because, "How do you get tough on your banker?"

This line runs in the family. At the Democratic Convention last year, Bill Clinton lambasted the Bushies for borrowing "from foreign governments, mostly Japan and China. Sure, they're competing with us for good jobs, but how can we enforce our trade laws against our bankers?" House Minority Leader Nancy Pelosi and other Democrats have made similar arguments, as they portray Chinese investment in the U.S. as a national-security threat.

We've been here before. All the same things were said 20 years ago about Japanese investment. Now China is becoming the boogeyman. Somehow it is always pesky ASIATICS who are the focus of this kind of populist roundhouse, which combines economic illiteracy and political demagoguery to make for an irresistible, Clintonian cheap shot.

China-bashing is rich coming from the Clintons. In the 1992 presidential campaign, Bill Clinton called "most favored nation" trading status for China "unconscionable." In office, his conscience quickly gave way, as he embraced most-favored-nation status and sent his commerce secretary to Beijing to grovel for business deals. In 1996, Chinese agents helped raise funds for his re-election campaign. When the Clintons complain of kowtowing to China and dependence on Chinese money, they know whereof they speak.

By rights, Japan should still be the chief "how dare they invest here" whipping boy, but Japan-baiting feels so 1985. Its economy is still four times bigger than China's, and it owns more U.S. treasuries. It has roughly $680 billion to China's $225 billion. If the U.S. economy is threatened by a foreign power it is Japan, which — by the Clintons' logic — should have taken us over long ago.

When other countries buy up our debt, it isn't nefarious. As David Malpass of Bear Stearns points out, Japan owns so many U.S. bonds because its aging population wants to own safe but relatively high-performing assets. The Chinese, meanwhile, link their currency to the dollar and invest their dollar holdings in U.S. treasuries. This dollar linkage has provided a stable environment for robust Chinese economic growth. Democrats who complain about cheap Chinese labor should welcome this, since sustained growth is the only way to boost a country's wages.

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The Chinese also accumulate U.S. assets because they run a $160 billion trade surplus with us. But the surplus is exaggerated, since part of China's trade with America is triangular, with the Chinese importing goods from other Asian countries, then shipping them to us. In any case, foreign ownership of U.S. assets (representing about $2.6 trillion of $80 trillion total U.S. assets, according to one estimate) works to everyone's benefit. Japan and China own higher-performing assets than they would otherwise. If they found, say, French assets more attractive, it would be truly worrisome. And more capital is invested in our growing economy.

Of course, China — the nation's first free-market communist state — bears watching. Hillary aside, it's duly being watched. Don Rumsfeld recently zinged the Chinese arms buildup. Doesn't he know he risks offending his "banker"? The Bush administration has been adamant about defending Taiwan and is (wrongheadedly) pressuring the Chinese to devalue their currency. How can it so brazenly cross its financial masters?

The Clinton China attack is part of a trend. The Democrats are dabbling with a peculiar multilateralist isolationism. They are reflexively in favor of international institutions, but oppose free-trade deals, suggest we cocoon ourselves from foreign capital, complain about the cost of America's engagement in the world, and blanch at the ambition and idealism of President Bush's foreign policy. Hillary's speech should have come with a sign attached: "Warning — more demagoguery ahead."

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© 2005 King Features Syndicate

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