What kind of threat is China? by gimleteye

A fascinating book by former Wall Street Journal reporter Erik Larson focuses on American diplomacy in Germany, in the years before the outbreak of World War II. The story of the ambassador at the time, William Dodd, and his family is called "In the Garden of Beasts". The historical backdrop is as important as the insight how the Roosevelt White House fumbled its response to Hitler. Wall Street's preoccupation with the potential default of German's debt was primarily responsible for muddying the waters through which a tough US stand against Hitler never emerged until it was too late to avert war.

Arm-chair quarterbacking doesn't count for much. On the other hand, there is enough resonance with the current economic dependencies on China to cause concern. Today's front page of the Financial Times, "China says 'peaceful rise' policy holds firm", questions whether words match the belligerence of the Chinese military in the South China Sea. Hitler famously strung along the United States and western allies while consolidating his power within Germany and laying the groundwork for re-arming its military. 

It does not help that partisan posturing-- mainly by Republicans anxious to take the US Senate and contest for the White House -- is stringing along the national dialogue that should be taking place on China's role in the US economy. The debate about increasing our national debt limit could rock Wall Street, but Wall Street does not care who owns that debt. Our political leadership should, but on that score all you can hear are the leaves blowing in the trees.