subject: Obama Hulk Tells China to Stop or He Will SMASH [print this page] Sometimes moves by the Obama administration seem like comic book issues and the latest, however relevant to our economy, is just another "big talk" play that I doubt will have any positive effects. Other than driving the media train, moves on China usually don't turn out how we want them too simply because China has just as much power as the USA and will not be bullied or manipulated any longer.
The Obama administration is moving to take a harder stance on the Chinese government's trade and currency policies, with anger toward China rising in both political parties ahead of midterm elections.
The United States brought two cases to the World Trade Organization on Wednesday, accusing China of improperly blocking imports of a specialty steel product and denying credit card companies access to its markets.
So now the WTO is being petitioned to "spank" China and I'm laughing as I write this because everyone knows what the outcome will be once a ruling is made. Whether for or against China, the ruling will not matter and more than likely do more harm than good with already shaky foreign relations between the USA and China.
Also, Treasury Secretary Timothy F. Geithner, in separate hearings before House and Senate panels, plans to acknowledge on Thursday that China has kept the value of its currency, the renminbi, artificially low to help its exports and has largely failed to improve the situation as it promised to do in June.
We can only wait and see how the latest issue of the Obama Hulk turns out, but we can certainly guess from the results of past issues that it ends in something getting "smashed."
Now I must at least mention some of our China SmallCap stocks for reference:
Shares of China Shuangji Cement, Ltd. (OTC:CSGJ) were up more than 3 percent at $0.59 per share on heavy volume of 609,000 shares compared to a daily average of only 50,000 shares.
