Mutually Assured Destruction

I've gotten rather obsessed with China as it relates to US economic prospects (my hubby and I joke that we should start practicing with chopsticks now!) I heard this illuminating report by the superb journalist, James Fallows (I read his excellent book, Breaking the News, years ago) who was discussing his recent Atlantic Monthly article, The $1.4 Trillion Question, on NPR today. Among other things, he points out that China could destroy our economy, but it would seriously impact theirs, much like the balance between the Soviets and the US during the Cold War. Here's the article (quite eye-opening, if you can get through it):

http://www.theatlantic.com/doc/200801/fallows-chinese-dollars

At this link, you can listen to the NPR discussion or read a transcript:

http://www.npr.org/templates/story/story.php?storyId=18518903

All Things Considered
January 29, 2008
China's Trade Deficit: 'The $1.4 Trillion Question'

China's investment in the global economy is huge — especially its investment in the United States. The U.S. trade deficit with China increases by $1 billion a day, and that has some people concerned. In the current issue of Atlantic Monthly magazine, correspondent James Fallows calls it "The $1.4 Trillion Question." Fallows talks with Robert Siegel about China's economy, the U.S. reaction to it and how long China's policy can be sustained.