International Relations: Balance of Power
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The part where they said that they maintain a low foreign exchange rate policy to benefit Singapore is pure bullshit.
It's like claiming something which is beneficial for you done in sacrifice for another person.
It's like you frequent this Chicken Rice stall, you like the chicken rice because it's cheap and it taste good. Then you go tell the stall owner that you are eating his chicken rice and making him rich by sacrificing yourself.
If China raise the value of her RenMinBi (RMB), the direct consequence will be a slowdown in economic growth because investors will find that the RMB is too expensive to make a profitable investment in China, this is especially so for export driven industries, as a strong RMB will discourage exports.
The part about LKY supporting US presence in Singapore is a basic international relations (also political) concept, that no single country should have total dominance over a region or country. That is why Asia needs another strong countervailing force to check the might of China. Since pre-WW2, USA has a presence in Asia and that presence has spurred industrial growth in the region with a small level of conflict. If something has been working so well in the past, why bother changing it with something which is still indeterminate at this point in time.
In international relations, a balance of power exists when there is parity or stability between competing forces. As a term in international law for a 'just equilibrium' between the members of the family of nations, it expresses the doctrine intended to prevent any one nation from becoming sufficiently strong so as to enable it to enforce its will upon the rest.
http://en.wikipedia.org/wiki/Balance_of_power_in_international_relations
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If China RMB strengthens, it's would be even better for Singapore as FDIs (foreign direct investments) will flow to Singapore.
My take is, the author of that article is the Chinese version of "lionnoisy" in sgForums.
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I think this article is nonsense.
