James A. Fok - Financial Cold War

1 Cover

2 Title Page Financial Cold War A View of Sino-US Relations from the Financial Markets James A. Fok

3 Copyright This edition first published 2022 Copyright © 2022 by James A. Fok. Registered office John Wiley & Sons Ltd, The Atrium, Southern Gate, Chichester, West Sussex, PO19 8SQ, United Kingdom For details of our global editorial offices, for customer services and for information about how to apply for permission to reuse the copyright material in this book please see our website at www.wiley.com . All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, except as permitted by the UK Copyright, Designs and Patents Act 1988, without the prior permission of the publisher. Wiley publishes in a variety of print and electronic formats and by print-on-demand. Some material included with standard print versions of this book may not be included in e-books or in print-on-demand. If this book refers to media such as a CD or DVD that is not included in the version you purchased, you may download this material at http://booksupport.wiley.com . For more information about Wiley products, visit www.wiley.com . Designations used by companies to distinguish their products are often claimed as trademarks. All brand names and product names used in this book are trade names, service marks, trademarks or registered trademarks of their respective owners. The publisher is not associated with any product or vendor mentioned in this book. Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. It is sold on the understanding that the publisher is not engaged in rendering professional services and neither the publisher nor the author shall be liable for damages arising herefrom. If professional advice or other expert assistance is required, the services of a competent professional should be sought. Library of Congress Cataloging-in-Publication Data is Available: ISBN 978-1-119-86276-5 (hardback) ISBN 978-1-119-86278-9 (ePub) ISBN 978-1-119-86277-2 (ePDF) Cover Design: Wiley Cover Image: © suns07butterfly/Shutterstock

4 Dedication For Peter & Harry

5 Preface Note

6 Acknowledgements

7 Abbreviations

8 Chapter 1: Introduction Legacy of the GFC Modern History of Sino-US Relations The Financial Roots of Sino-US Conflict The Financial Path Out of Conflict Notes

9 PART ONE: THE COLOUR OF MONEY TURNS GREEN Chapter 2: How the US Dollar Took Over the World An Ad Hoc Position The Barbarous Relic Two Competing Plans A British Innovation The Coupon Express Plumbing the World's Financial Markets Niksonu Shokku Volatility ‘Risk Free’ Assets Boom and Bust Notes Chapter 3: Whose Problem? The Unipolar Moment The Almighty Mr. Market Emerging Markets Crises The Weakest Link The Music Stops Anyone for Tea? A Tipping Point? Notes

10 PART TWO: CAPITALISM WITH CHINESE CHARACTERISTICS Chapter 4: From First World to Third and Back Again Maritime Power The Milk of Paradise Wars and Revolutions A Leap into the Abyss Herding Cats Crackdown Journeys to the South A New Path The Bird's Nest Notes Chapter 5: Two Steps Forward, One Step Back Going Public The Protection Racket The Price of Money Still Building, But Will They Come? Alien Attack Who Will Look After Grandma? Connecting China and the World Can't Buy Me Love Notes

11 PART THREE: THE FINANCIAL COLD WAR Chapter 6: A New Cold War? A Close Call Fly Me to the Moon Tax Me If You Can A War of Words? Geo-economic Warfare Notes Chapter 7: The Role of Markets in the 21 stCentury Selective Efficiency What Happens When Competition Dies Wrong Incentives Bubbles and Cycles Funny Money We're All in the Same Boat Notes Chapter 8: Avoiding the Thucydides Trap Admitting the Problems A New Bretton Woods? MAD for Markets It All Starts with Leadership Notes

12 Afterword Notes

13 Cast of Characters

14 Bibliography

15 Index

16 End User License Agreement

1 Cover Page

2 Table of Contents

3 Title Page Financial Cold War A View of Sino-US Relations from the Financial Markets James A. Fok

4 Copyright This edition first published 2022 Copyright © 2022 by James A. Fok. Registered office John Wiley & Sons Ltd, The Atrium, Southern Gate, Chichester, West Sussex, PO19 8SQ, United Kingdom For details of our global editorial offices, for customer services and for information about how to apply for permission to reuse the copyright material in this book please see our website at www.wiley.com . All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, except as permitted by the UK Copyright, Designs and Patents Act 1988, without the prior permission of the publisher. Wiley publishes in a variety of print and electronic formats and by print-on-demand. Some material included with standard print versions of this book may not be included in e-books or in print-on-demand. If this book refers to media such as a CD or DVD that is not included in the version you purchased, you may download this material at http://booksupport.wiley.com . For more information about Wiley products, visit www.wiley.com . Designations used by companies to distinguish their products are often claimed as trademarks. All brand names and product names used in this book are trade names, service marks, trademarks or registered trademarks of their respective owners. The publisher is not associated with any product or vendor mentioned in this book. Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. It is sold on the understanding that the publisher is not engaged in rendering professional services and neither the publisher nor the author shall be liable for damages arising herefrom. If professional advice or other expert assistance is required, the services of a competent professional should be sought. Library of Congress Cataloging-in-Publication Data is Available: ISBN 978-1-119-86276-5 (hardback) ISBN 978-1-119-86278-9 (ePub) ISBN 978-1-119-86277-2 (ePDF) Cover Design: Wiley Cover Image: © suns07butterfly/Shutterstock

5 Dedication For Peter & Harry

6 Preface

7 Acknowledgements

8 Abbreviations

9 Begin Reading

10 Afterword

11 Cast of Characters

12 Bibliography

13 Index

14 End User License Agreement

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