China's Economic Change

China has again devalued its currency, the yuan. Not only does this effect China, but the rest of the world, given China's economy is the second largest economy world-wide. But aside from that the real news about the devalued yuan is that it reflects the possible end of the "Chinese economic miracle". It also is a good move by the Chinese government because the old days of arbitrarily keeping their currency at a predetermined value is over. From now on the Chinese economy can be a more real free market one.

Basically, making the yuan cheaper is an attempt by the Chinese government to make their exports cheaper. Nations have not been buying as many of them in recent years an this is hurting that never ending growth in China's economic prosperity. The dictators know that if they can not keep making China a place of more and more wealth and consumerism, the Chinese people make begin to take exception with the dictatorship.

Just think of Asia and the rest of the world for that mater, with a China that is no longer quiet because of economic gifts to its people. It might mean a more hostile China, one in which the government uses a "them against us" mentality in order to keep the people from become dissatisfied with the dictators. In the past China has used nationalism as a pretext for blind support for the government. So with competition for foreign buyers among so many rising Asian economies, the government devalues the yaun in an attempt to get more foreign buyers of its products.

The problem is, what if that doesn't work? Will the failure of the Chinese economy to continue its growth make the Chinese people challenge the right of the dictators to continue to rule them? It would be nice if that happened.