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For a long time now, China has been investing in the U.S., and the U.S. has been buying Chinese exports. Can concern about currency manipulation and inflation borne of and then exacerbated by the recession derail that relationship?
Getting its notoriously frugal population to start consuming is one of the problems China faces going forward, and despite its reputation as a growing world power, there are many other challenges on the horizon, too.
Wall Street Watch: If market volatility is bad, economic volatility is worse. It threatens our financial assets, diminishes our confidence, and undermines our standard of living. China's newly aggressive stance doesn't help, especially given our burgeoning deficit. The key to our salvation? A little austerity punctuated by the very rich and robust Friday Funnies.
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