Is Morici's argument about China-US relations correct?

Comments on Peter Morici “China's illusory power”, 29/07/2009, http://www.businessspectator.com.au/bs.nsf/Article/Chinas-illusory-power-pd20090729-UDTEW?OpenDocument&src=sph

This is a very interesting article from a professor at the University of Maryland School of Business and former chief economist at the US International Trade Commission. No wonder the US has been in trouble economically, when one thinks about the quality of its economic professionals like this one.

It is a cooperative game between the US and China, given the current need of the US for funding of its unprecedented government deficits and debts, and China’s very large official reserves and possibly increasing. In such a game, the outcome will need to be win-win following cooperation by both sides. Otherwise both are likely losers, with the US likely to be the main one.

China should have other options or avenue to pursue for additional or new increases of its official reserves. For example, it can lend them to other nations that need US dollars, or sell them for other major currencies to buy other countries’ official debts.

It is silly to think that China has no other options, now that China has realised the potential danger with ever large reserves in US dollar and large holding of US Treasury bonds. It is the US, not China that has fewer options.

It does not take a professor who served as the chief economist of the US International Trade Commission to make such a poor argument to confuse himself and others. Anyone with a sane mind that can do elementary logic would understand the issue and come to a more sensible conclusion than what he did.

A remarkably poor professor, or economist, indeed!

The US needs much more competent ones to get it out of recession now, with some urgency. The welfares of the Americans are at stake now.