this is radio tabs

When first reported upon, the whole North Korean episode smelled of the Chinese allowing the North Koreans to slip their chain and rattle their swords The whole aim of the Chinese is to force the Obama Administration to come with hat in hand to address Chinese concerns about American deficit spending. As previously stated China does nothing in an overt manner, After the Chinese Finance Minister politely addressed China's concerns about American deficit spending and was not taken seriously the Chinese loudly suggested a change in reserve currency status of the USD. When the Obama administration brushed aside Chinese concerns, they slowed the buying of US Treasuries and started buying Commodities (note the recent rise in the price of oil etc) as a hedge against inflation. Now the Chinese have allowed North Korea* to rattle its saber to finally get the Obama administrations attention and to bring it to heel. For the American economy can not afford to wage an Obama war in Korea. To that end as expected Secretary of the Treasury Geithner is going to China and not the Secretary of State Clinton as would be expected if this were merely a North Korean issue.

The upshot of this whole episode is America has a new and not so silent partner in the world, one that has a direct say over Washington's fiscal policies. To this end the Obama Administrations inability to keep the Stimulus and Budget Bills spending lean and mean has caused the Chinese to exert their influence. Simply put the Obama administration has been played. In the future one can expect the Obama administration to quietly tone down its bold initiatives regarding Health Care, Education, and Carbon Caps etc . They may pass the legislation but funding it will be another matter. .

* North Korea is as close to being a client state of China's as possibly could be, as North Korea receives its oil and food supplies through and from China. The Chinese loudly condemning North Korean action is not missed by Kim Jung and his cohorts as a Chinese reminder not to over play their hand.

The upshot since Geither and Pelosi talked with the Chinese is that the Obama and Pelosi are now touting PAYGO..