China's weight in the world economy has been rising and was made excruciatingly apparent by the turmoil in U.S. equities markets over the past few weeks. Much of current stock market anxiety was at least "assembled" in China.
The Central Bank of China moved last week the decision to devalue the country's currency, the yuan, leading to a three-year low against the dollar. The cause of the devaluation was the slowdown in growth of the Chinese economy to 7 percent in the first two quarters of 2015.
A specter is haunting Washington, an unnerving vision of a Sino-Russian alliance wedded to an expansive symbiosis of trade and commerce across much of the Eurasian land mass -- at the expense of the United States.
In the absence of any realistic alternative to replace the supremacy of the dollar, it is likely to remain the dominant global currency for many years to come. No other currency is more widely accepted or used.
The world's biggest exporters, led by China, are ganging up on the United States in advance of the G20 meeting against quantitative easing. Free trade and globalization are grand ideas when the playing field is level, but it isn't.
There are few areas of economics more boring than accounting identities. This is unfortunate, since it is virtually impossible to have an understanding of economic policy without a solid knowledge of it.
There is a wisdom in delay that is rarely acknowledged in this age of the 24-hour news cycle. The Obama administration is now busily attempting to apply this insight when it comes to dealing with Beijing.