Who Needs Who?

Since this economic turmoil hit the US and other countries, China -among others- has taken a hit from the lack of exports to the US. They blame us for all the perils of their now ancient system which has proved a failure (see Soviet Union)

(stop with the Chinese economy becoming the largest. its a houses of cards. the government controls everything...all the data coming out has been censored for their protection)

So they like to say our capitalist system is hurting the world. Too bad. It hurts here too, but we will rebound. The funny thing is, China needs the US more than ever and why we are playing nice to them is beyond me. Recently, a blurb in the US news stated our growing interest in India. This is a great idea for 3 main reasons:
1. India is the worlds largest democracy. That's right. Democracy. They elect their leaders. Capitalism is alive and well in the subcontinent. People have the right to choose. (spare me the caste system argument) They are not as closed as China is and I have yet to hear of Google, or Yahoo, or any service being banned in India.

2. Since they are a former British colony (and current member of the Commonwealth) Indian law is based largely on British Common Law, like the US. Easier to maneuver around the Indian justice system.
3. They speak English! Heavily accented, but its the same tongue that we speak. Easier to do business with.
I guess we could argue the food tastes betters. My Taiwanese wife can attest to that!

Sad but true and it still holds true today, as the US goes so goes the world. If we start dumping money in India and they start making our goods for us (I am willing to bet they will be safer too!)
other nations are sure to follow. China has built its economy around manufacturing, if we stop buying then who will? I see a price war looming...and a report on the AP wire stated just that...the Chinese have ramped up manufacturing and lowered prices...nothing builds an economy like deflation!

China has no natural resource to speak of that we would be interested in. Manufacturing is all they really have. Some think that is all they really need, but I guess they can talk to the citizens of Detroit about how wonderful it is to base your economy on manufacturing.

On the political front, China has been our go between with Iran and North Korea. Iran is set to implode and North Korea, well, they are just being North Korea. China was pivotal during the Cold War as leverage against the Soviets. Among other things, that system collapsed as a result of Reagan getting OPEC to drop the price of crude. (oil being the #1 Russian export) See where this is going? If we start dealing with other nations on the manufacturing front, then we can deflate communist China into nonexistence...or at least into letting go of their ridiculous claims to Taiwan.