I feel I should comment on financial market chaos but maybe I shouldn't feel obliged since Paul Krugman is reduced to saying “Eeeeekkkk!” and writing about Wile E. Coyote.
update: I just realized something and feel like Wile E. Coyote. I was trying to decide if the Peoples Bank of China really means it when it threatens to diversify its foreign reserves. If it does we are in a whole lot of trouble as the PRC's generosity have been the secret to the non catastrophe of Bushinomics. The problem is not so much the decline in the value of the dollar but the increase in interest rates if they dump tons and tons of T-bills on the market.
(by the way, why haven't I ever heard anyone say "I wouldn't do that for all the T-bills in China ?")
I thought well maybe they will, for one thing they probably don't want an insane hawk like Giuliani in the White House
Boing ! Robert J as Wile E. Staring at screen with eyes bugging out over his big nose.
I think it is safe to hazard a prediction. We are going to be hearing a lot about how the Chinese are trying to get Hillary Clinton elected. Why all the talk about Norman Hsu ? Or about ethnic Chinese waiters donating the maximum to Clinton or wasn't there something about that in 1996 (and investigated and investigated until Linda Tripp got wired up).
I do think that some unprincipled political party has decided that they are going to need someone to blame for high long term interest rates, a housing fiasco, and a recession, so they are going to blame the Clinton Chicom Conspiracy.
I haven't read this on the web yet, but it seems obvious.
Now there are problems, including the fact that the Chicoms have us by the short hairs because of the Republicans reckless fiscal policy, and the fact that about yesterday Republicans were demanding that they Chinese allow the Renmibi to appreciate compared to the dollar, but a foolish consistency is the hobgoblin of the party that managed to lose an election to Bush.