While admitting that reaching agreement between the two countries will be difficult to achieve, George Soros - speaking at The World Bank's Bretton Woods conference this week - warned that unless the U.S. makes 'major concessions' and allows China's currency to join the IMF's basket of currencies, "there is a real danger China will align itself with Russia politically and militarily, and then the threat of world war becomes real."
Much in global geopolitics depends on the health and trajectory of the Chinese economy, was the undertone of George Soros' comments as he spoke this week, but as MarketWatch reports,
Billionaire investor George Soros said flatly that he’s concerned about the possibility of another world war.
...If China’s efforts to transition to a domestic-demand led economy from an export engine falter, there is a “likelihood” that China’s rulers would foster an external conflict to keep the country together and hold on to power....
To avoid this scenario, Soros called on the U.S. to make a “major concession” and allow China’s currency to join the International Monetary Fund’s basket of currencies. This would make the yuan a potential rival to the dollar as a global reserve currency.
In return, China would have to make similar major concessions to reform its economy, such as accepting the rule of law, Soros said.
Allowing China’s yuan to be a market currency would create “a binding connection” between the two systems.
An agreement along these lines will be difficult to achieve, Soros said, but the alternative is so unpleasant.
“Without it, there is a real danger that China will align itself with Russia politically and militarily, and then the threat of third world war becomes real, so it is worth trying.”
That is why it is important to elect good men and women to high office.
How would you go about preventing a war with China?
This is a scare tactic for Soros to make money. It is typical of leftist tactics.... scare the hell out of people and many will agree to anything, especially politicians, i.e., "Gee, we had better let China in or there will be a war".
The real question is what , are the advantages and disadvantages of letting China in or keeping them out.
China and Russia were close at one point in history when Russia was the USSR, but there was no world war. Does China really want a war? China has 1.3 billion people to feed. Russia is on the Chinese border and poses a threat to China, real or imagined. Just how would China start a war? Would it risk a nuclear war? If not how would it get its forces to the United States?
Ifd China joins the basket of currencies it will compete with the dollar. Obama would probably like to do it, but he has other bad-deal "legacies" he is more concerned for at this time, like Iran and Trade. On the other hand this might be the opening shot by Obama with Soros as a proxy mouthpiece to add another bad-deal legacy.