China and radar
2008-09-22
On the same day that U.S. authorities saved the world financial
system (maybe), defense ministers from the U.S. and the CR
signed a key radar agreement in London. On the surface, the
two events are unrelated. Wouldn't it be wise, though, for the
Czechs to consider the possible impact of the financial crisis on
the missile-defense deal? Standard due diligence calls for
looking into the financial strength of a potential partner. Would
the U.S. pass the litmus test after taking on about $6-7 trillion
in new liabilities in recent weeks? It's more than just a question
of whether the U.S. can still afford the missile-defense project.
What happens to U.S. foreign policy when Washington's biggest
creditor, China, decides to impose more-stringent rules on its
borrower, just as banks regularly do with their insolvent
customers? Czech politicians have proven their willingness to
defy Russia in backing missile defense; it might now be time to
assess whether China is worth crossing too.
[Czech Republic United States AIG Fannie Mae Freddie Mac
money-market funds $180 liquidity Chinese]
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