Monday, November 15, 2010

Fareed Zakaria Discovers Hedging In China

Everyone's global international relations guru, Fareed Zakaria, has an Op-Ed in the WaPost this morning in which he--wait now--reveals to the waiting world the value of a hedging strategy with respect to China.  Permit me to share some of his brilliance with you:

"I would propose thinking of American policy toward China more in terms of a "hedge" strategy. Many investment funds buy stocks hoping that they will rise in value, but they also bet against some companies (or other financial instruments) to ensure that if the market turns downward, they will be protected. (Hence the name hedge funds.) Similarly, the United States should maintain a close and productive relationship with China, hoping that this will ensure a peaceful and prosperous Asia. If, however, China's rise becomes threatening and destabilizing, America should also have in place strong alliances with other Asian powers such as India and Japan - which Obama's trip sought to accomplish - as building blocks to balance Chinese expansionism."

 Thus endeth the lesson, students.  Uber-Professor Zakaria has dispensed with his indispensable global wisdom, and the US must now pursue it.  We will all now add "hedging" to our lexicon, and from Turtle Bay to Foggy Bottom, the new intelligentsia will   appear on CNN and Bill Moyers' Journal to extol the virtues of "hedging".

Oh--what's that you say?

We are already hedging?

And folks have been talking about hedging behavior for years in places like this, and this?    And this

Ok.  Never mind.  Go back to thoroughly ignoring Fareed Zakaria.


"The Hammer" said...
This comment has been removed by the author.
"The Hammer" said...

Well of course. They dismiss everything conservative out of hand and then when they reinvent the wheel (so to speak) they fall all over themselves at their brilliance.

I'd be mortified publishing a column like that. And that goes for both the Post and the coolie.

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