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May 22, 2012

David S. Cloud and Kathleen Hennessey: Obama changes mind on Pakistan invite to NATO summit --- and then gets dissed by country's president
Warren Richey: Can US group challenge overseas surveillance act? Supreme Court to decide
Thomas M. Anderson: Walking Away From a Mortgage
Environmental Nutrition editors: The lowdown on a low-acid diet
The Kosher Gourmet by Megan Gordon: Enjoy a celebration of the most rich and layered flavors: Black bean, sweet potato and quinoa chili
May 21, 2012
Mark Clayton: Cybersecurity: How US utilities passed up chance to protect their networks
Howard LaFranchi: NATO summit: Who will foot the bill for long-term Afghanistan security?
Chris Farrell : Earn Dividends in Emerging Markets with This WisdomTree ETF
James K. Glassman: 5 Stock Picks Among Online Retailers
Stephen Whiteside, Ph.D. : Mayo Clinic Medical Edge: Social anxiety disorder --- or just shy?
Guy Jackson : Victim's father regrets death of Lockerbie bomber
The Kosher Gourmet by Mario Batali: Famed chef's veal shoulder farsumagru: A festive meat course for late spring
May 18, 2012
Rabbi Berel Wein: Striving: The People of the Book's Book for (All of) the People
Caroline B. Glick: Embracing dangerous delusions and not our friends
Steven Goldberg: 5 Great Stock Picks and the Exchange-Traded Fund that Owns Them
Janet Bodnar: How to Teach Kids to Handle Credit Cards
Mary Pickett, M.D.: Ask the Harvard Experts: Don't be forced into gluten-free lifestyle based merely on a doctor's false-positive test
The Kosher Gourmet by Carolyn Malcoun: DIY healthy lunchbox treats: HOMEMADE FRUIT BARS for kids and brown-bagging adults alike
May 17, 2012
Warren Richey: Teacher fired for being unwed and pregnant can sue religious school, court rules
Josh Mitnick: Netanyahu's 'centrist' coalition is already proving it's anything but
Steven Goldberg: Earn Dividends in Emerging Markets with This WisdomTree ETF
Mary Beth Franklin: Retirement Savings Tips for New Grads
Amina Khan: Research links coffee to lower death rates
Chelsea Sheasley: Social media: Is it too feminine?
The Kosher Gourmet by Faith Duran : Cheesy Potato Breakfast Casserole with Cheddar and Sun-Dried Tomatoes
May 16, 2012
Jackson Holahan: The Aleppo Codex
Jonathan Tobin : Iran Declares Victory in Nuclear Talks
Anne Kates Smith: 7 Stocks That Let You Sleep Tight
Carmen Terzic, M.D., Ph.D. : Mayo Clinic Medical Edge: A variety of exercises can help improve balance
Melissa Healy: National strategy on Alzheimer's disease aims to halt it by 2025
The Kosher Gourmet by Joyce White : GOODNESS GRACIOUS: GREENS! 4 winning recipes that are no longer just for down-home folks (Includes expert tips & techniques)
May 15, 2012
Dennis Prager: God and Man at (and for) Liberty
Kristen Chick: Obama administration resumes arms sales to Bahrain despite serious unresolved human rights issues. Activists feel abandoned
Pat Mertz Esswein: Homes are now affordable again and mortgage rates are low. What you need to know before you buy
Kathy Kristof: Our Practical Investor Fights Inflation with These 6 Investments
Sue Hubbard, M.D.: The Kid's Doctor: Lactose intolerant young child? Check again
Environmental Nutrition Editors: Get the facts on palm sugar sweetening
The Kosher Gourmet by Kathy Hunt: Spread a Little Excitement with EXOTIC CONDIMENTS (4 RECIPES)
May 14, 2012
Richard Simon: Purple Hearts for domestic terror victims?
Nando Pelusi, Ph.D.: The privacy paradox: Surrounded by strangers, we risk isolation, anxiety
Chris Farrell: Investing Lessons from the Great Recession
Lisa Gerstner: How to Protect Your Identity, Finances If You Lose Your Phone
Harvard Health Letters: Heart disease and dementia
Tiffany O'Callaghan: New hormone mimics effects of exercise without the sweat
The Kosher Gourmet by Megan Gordon: MANGO COCONUT OAT MORNING MUFFINS are a bright but hearty delight
May 11, 2012
Rabbi B. Shafier: Why happiness will always be elusive
Charles Krauthammer: Echoes of '67: Israel unites
Howard LaFranchi: With G8 snub, US-Putin 'reset' off to stumbling start
Jeremy J. Siegel: Investors, Relax About Rising Interest Rates
Jessica L. Anderson: Get the Best Deal on a Used Car
Jett Stone: Forget face-lifts and fake knees. Scientists have seen the fountain of youth --- and it's broccoli
The Kosher Gourmet by Chef Mario Batali: The famed chef's vegetable dish that tastes true to the season: FAVAS AND SUGAR SNAP PEAS WITH POTATOES AND TARRAGON
May 10, 2012
Clifford D. May: The Real Palestinian Refugee Problem
Sergei L. Loiko: Putin sends warning to U.S., NATO in Victory Day speech at Red Square
Mary Rourke: How being a 'mentch' got Vidal Sasoon his start and fighting in Israel's War of Independence provided him with confidence and a strong sense of his own identity
Harvard Health Letters: Palliative care: Underused therapy yields surprising benefits
Jeff Bertolucci: Get Home Phone Service for Less Than $10 a Month
Rachel L. Sheedy and Susan B. Garland : Make the Right Moves to Boost Benefits
The Kosher Gourmet by Betty Rosbottom: Gleaming with its golden, crimson, and snowy white hues, this silken smooth and creamy STRAWBERRY ORANGE TRIFLE looks impressive, but is easy to prepare
May 9, 2012
John Rosemond: Parents, stop destroying the American male
Valerie J. Nelson: Maurice Sendak, author of 'Where the Wild Things Are,' dies at 83
Bob Frick: Angst Over Annuities
Sharon Palmer, R.D. How you can reduce your risk -- or delay -- chronic diseases associated with aging
Howard LeWine, M.D.: Ask the Harvard Experts: Why did my blood pressure suddenly shoot up?
Lisa Gerstner: Lower the Rate on All Your Loans
The Kosher Gourmet by Emily Ho : Springtime soba with miso sauce offers a coloful mix of fresh textures and flavors
May 8, 2012
Edmund Sanders: Netanyahu suddenly cancels new elections, forms unity government
Frank J. Gaffney Jr.: Farewell to European superstate
Anne Kates Smith: 4 Stocks That Mimic Buffett and Berkshire Hathaway
Gaia Vince and Clare Wilson The Rise of Miniature Medical Robots: Fantasy Fast Becoming Reality
Paul Takahashi, M.D.: Mayo Clinic Medical Edge: Never suffer night leg cramps
Jessica L. Anderson: Extended-Warranty Warning
The Kosher Gourmet by Diane Rossen Worthington: Celebrate National Chocolate Chip Day with the Best Cookie Ever (Includes techniques)
May 7, 2012
Mark Clayton: Homeland Security warns major cyber attack aimed at gas pipeline industry underway
Angus Roxburgh: Putin Decoded: World view of a Russian feeling dissed
Kimberly Lankford: Navigate a Course for Long-Term Care
Kevin McCormally How to Adjust Your Tax Withholding
Celeste Robb-Nicholson, M.D.: Harvard Health Letters: How do you treat a Baker's cyst?
Joanne Capano: Healthy Snacks for Children: The Choices May Surprise You
The Kosher Gourmet by Penelope Wall: Classic Creamy Spinach Dip with a Fraction of the Calories and Fat
May 4, 2012
Rabbi Nathan Lopes Cardozo: Holy 'trivialities'
Jonathan Tobin: Bibi v. Barak will be no contest this time around
Steven Goldberg: Blue Chip Stocks On Sale Worldwide
Art Pine Slow Productivity Growth a Blessing --- For Now
Sue Hubbard, M.D. : The Kid's Doctor: Are Kids Too Wired?
Kerri-Ann Jennings, M.S., R.D: Foods that are good for your smile
Amy Paturel, M.S., M.P.H.: Eating Well: Foods that are good for your smile
The Kosher Gourmet by Betty Rosbottom: Strawberry rhubarb parfaits are elegant yet simple to assemble
May 3, 2012
Michael Freund: Who's Afraid of the Messiah?
Clifford D. May: The Foggiest War
Susan B. Garland: Insurance to Cover Old Old Age
Steven Goldberg 6 Reasons to Bet on a Big Bull Market
Harvard Health Letters: Treating prostate cancer --- no rush to judgment
Larry Gordon: Harvard, MIT partner to offer free online courses
Naomi Nix : Man gets free trip to Chicago after postcard sent by mother in 1957 finally reaches him
The Kosher Gourmet by Diane Rossen Worthington: Intensely Italian vegetable frittata is a seriously simple standby


Jewish World Review April 25, 2006 / 27 Nissan, 5766

Hu and the dog that didn't bark

By Niall Ferguson


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http://www.JewishWorldReview.com | In the old days, Chinese emperors sat in splendor in the Forbidden City and waited for the barbarians to come to them. That only changed in 1979, when Deng Xiaoping turned Chinese history on its head, becoming the first leader of the People's Republic of China to visit the United States — the first emperor to pay court to the barbarians.


In 1979, it was a novelty to see the pint-sized heir of Mao donning a 10-gallon hat. Now, however, when President Hu Jintao visits Washington, he is treated with the respect due an equal.


But is he truly an equal? The answer is more "yes" than "no."


True, the annual output of the American economy is still more than six times larger than that of China when measured in dollars. True, the average American is about 30 times richer than the average Chinese. Yet China's economy is growing at a rate two to three times that of the United States'.


Moreover, the U.S. and the renascent Chinese empire have become deeply interdependent. The U.S. is currently running the mother of all trade deficits, equivalent to about 7% of GDP. A large part of that deficit — more than a quarter — is being financed by China in the form of purchases of U.S. bonds. Why do the Chinese want to accumulate so many dollar-denominated securities? Because it prevents their currency from appreciating against the dollar and keeps their exports cheap. As China's share of global exports has surged from 1% to nearly 8%, access to the American market has been crucial.


So China may be a rival in some respects, increasingly competing with the U.S. for access to the world's reserves of oil and natural gas. But it is also a vital prop of American prosperity, financing the American borrowing habit at a remarkably reasonable rate of interest.


The catch is an inexorable relocation of manufacturing from West to East. Just look at the things Americans import from China. Don't kid yourselves into thinking it's just toys and sneakers, because Chinese exports have been racing up the value chain in recent years. In 2003, for example, more than two-fifths of the U.S. trade deficit with China was accounted for by electrical machinery and power generation equipment. Virtually no new jobs are being created in manufacturing in the United States these days; American firms would rather outsource production to Asia.


And this is where the Sino-American relationship gets really interesting. Because, if history is any guide, we currently ought to be witnessing a wave of China-bashing in the United States.


Of 12 senatorial elections that look to be competitive this November, no fewer than nine are in states with substantial industrial sectors. And yet, to judge by their websites, not one of the candidates is willing to play the anti-China card. The nearest anyone comes to raising the issue is the anodyne phrase "fair trade."


What makes this especially puzzling is that, for two years running, Sen. Charles Schumer (D-N.Y.) has toyed with the idea of legislation that would slap a whopping tariff on Chinese imports in retaliation for alleged Chinese currency manipulation. Why is this idea not seen as a vote winner?


It wasn't like this in the 1980s. Then, American fears of Japanese competition unleashed a wave of Japan-bashing and punitive tariffs. So what's different this time? One answer is that the trade traffic is not all one way. There has been significant growth in U.S. exports to China, albeit not on the scale of Chinese exports to the U.S. Another answer is that American consumers are just too happy with cheap Chinese imports to complain about the erosion of the American manufacturing base. A third possibility is that the Chinese are now using some of their accumulated dollars to invest in the U.S., thereby creating new jobs.


But perhaps the best explanation is that American voters just don't see China as a problem. Polls make it clear that issue No. 1 is Iraq (22% of voters see it as the country's top concern). Only 10% of voters give first place to the economy, and just 7% cite unemployment. The trade deficit is nowhere.


Does this mean that Americans have learned from history not to resort to protectionism when they encounter competition? Perhaps. But another possibility is that the urge to bash China is merely dormant. After all, 85% of voters do regard "protecting the jobs of U.S. workers" as the No. 1 goal of American foreign policy. And the recent storm over immigration has shown how readily members of Congress will strike protectionist attitudes when they see an opportunity to make political hay.


A few years ago, Schumer asked a nice question at a Senate Banking Committee hearing: As more and more manufacturing jobs move to China, "what's going to be left here, restaurants?" My hunch is that more and more of his fellow legislators could soon start asking similar questions.


At this point, China-bashing reminds me of Sherlock Holmes' "Curious Incident of the Dog in the Night-time." But the dog did nothing in the night time, Watson objects. "That was the curious incident," Holmes replies.


It will be even more curious when it starts barking — though let's hope it has the courtesy to wait until the emperor is safely back in the Middle Kingdom.

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Niall Ferguson is a professor of history at Harvard University. He is the author of "Empire" (Basic Books, 2003) and "Colossus" (Penguin, 2004). Comment by clicking here.

04/18/06: Should Americans be less optimistic?
04/11/06: Globalization's second death?
04/04/06: So many ‘special’ friends
03/28/06: Let's get it right about what has gone wrong
03/21/06: Congress is trying to give the world a globotomy
03/14/06: Lame ducks can still bite back
03/07/06: A 19th Century critique of a 21st Century president
02/28/06: The crash of civilizations
02/21/06: Not the president, but close
02/14/06: Want historic trouble? Look south
02/07/06: Greenspan advising Britain? It's housing bubbles, deficits and potential meltdowns all over again
01/31/06: Missing the Cold War
01/24/06: It's a sick, Thick World
01/17/06: Tomorrow's world war today
01/03/06: Scotland, it's over, but keep the accents
12/20/05: History, democracy and Iraq
12/20/05: History, democracy and Iraq
11/22/05: Ghost of Napoleon haunts Tony Blair
11/22/05: Can it happen in Britain too?
11/15/05: Red plus blue equals purple
11/10/05: The fires of disintegration
11/01/05: Triumph of an über-wonk

© 2006, Los Angeles Times Distributed by Los Angeles Times Syndicate

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