THE NEW CHINA'S BIG STICK

Chongqing, China

AS WE HAVE BEEN predicting for several years now, this nation's economy is facing assaults from not just the jihadists but on several other fronts as well, particularly Saudi Arabia and China and their war on the dollar.

China roiled financial markets around the globe yesterday when it asserted that the dollar is losing its luster as the world's reserve currency and that Beijing will swap some of its $1.4 trillion in reserves out of U.S. dollars and into stronger currencies like the euro and Canadian dollar.

China's verbal assault on the dollar helped trigger a 360-point plunge in the Dow Jones Industrial Average and came as French President Nicolas Sarkozy warned in a speech to Congress that the "disarray" caused by the dollar's steep fall could lead to "economic war."

We must stop this trade surplus misery right now, George Bush. Fair trade, not libertarian-styled free trade is the ticket for global stability. With the euro soaring against the dollar, the Europeans themselves are feeling the same painful assault on their economies but for different reasons. Presently, they are feeling the pinch of not being able to sell their suddenlly higher priced goods, stagnating their own economies. Meanwhile China and Saudi Arabia are running the table with a host of unfair practices from A to Z.

Read it all.