CHINA CAUTIONS AGAINST DEVALUATION

Hello America? Were you paying attention as you bought all that cheap garden equipment? China owns part of you. Saudi Arabia has scrambled for whatever's left. You, however, still get to speak English, for now.

CHINA IS TELLING THE US to be careful, not to overspend and keep an eye on the dollar. "There are risks that China cannot control, so they're depending on the U.S. to maintain fiscal prudence and keep the dollar reasonably stable." said Kelvin Lau, regional economist at Standard Chartered in Hong Kong.

Analysts estimate China keeps nearly half of its $2 trillion in foreign currency reserves in U.S. Treasuries and notes issued by other government-affiliated agencies.

"Inside China there has been a lot of debate about whether they should continue to buy Treasuries," said Frank Gong, chief China economist for JP Morgan.

Beijing is trying to increase its leverage at the London G-20 meeting by reminding its partners of its role in financing U.S. spending, Gong said.

"Without China's buying (Treasuries) and continuing to fund U.S. deficit spending, interest rates could have been much higher. That could be very destabilizing in this very recessionary environment," he said. "By attracting a lot of attention to this issue, China is already increasing its influence ahead of the G-20 meeting."

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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.

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FLYING DUST

China continues to fix its own currency against the dollar. The House of Saud tightens its grip on the American economy, holding it hostage with its blood-stained stash of petrodollars, whispering threats to go Euro. Dubai oil sheiks ratchet up the stakes of impending financial doom by purchasing controlling chunks of Western stock exchanges. Hardball. Playing for keeps. Winner take all. The West is rapidly losing its stewardship, and foul friends just laugh and cackle good riddance.

Vincente Fox admits push for a single Western Hemisphere currency. Open borders. Political alliances operating on false presumptions and feckless ignorance. Babies nursed on bombs. Roving gangs well-hidden. Faces ripped off dirty headlines. Motion in recoil. Deceit in motion. No one in control. Welcome to chaos, ugly to its core. Fear in the fingers. Arrogance on the nose. Hatred by the book. Cowards without fright. Opposing thumbnails. Inversions of the rule. The pauper's pose. Hooked on transference. Lies. Damn lies. Peace at any cost. Ugly to its core.

And now of course, our trendy American kids are at it again, proving that ruthless irrationality in any forum always trumps strategic idealism in the hawkish eyes of its declared and undeclared enemies:

Wearing black shirts and covering their faces with bandanas, scores of sometimes unruly demonstrators marched through Georgetown last night to protest the international finance and development organizations meeting this weekend.

Despite the large contingent of officers on scooters and bicycles who flanked and followed the 200 to 300 protesters, violent incidents broke out. A woman bled after being struck in the face with what police said was a flying brick.

Trash cans were overturned in the rain-dampened streets, objects were thrown, and newspaper boxes were overturned. Two protesters were arrested in connection with an incident in which an officer was pushed from a scooter, Police Chief Cathy L. Lanier said.

Many store windows were boarded up in anticipation of the demonstration, which targeted the meetings of the International Monetary Fund and World Bank, but two unprotected windows were struck near Wisconsin Avenue and M Street. It was not clear whether they were broken.

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