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...create trade surpluses but to carve out a bit of stability in turbulent global currency markets. During the emerging-market currency crises of 1997 and 1998, China's success in keeping the yuan fixed at 8.3 yuan to the dollar was applauded in the West as a major contribution to averting financial chaos. Since 2005, China has been willing to allow the yuan to appreciate a bit (the current exchange rate is 6.8 yuan to the dollar). It just hasn't been willing to do this on any but its own extremely conservative terms...

Author: /time Magazine | Title: U.S.-China Trade: Prepare for Continued Imbalance | 11/17/2009 | See Source »

Palestinian Authority President Mahmoud Abbas' decision not to stand for re-election in January casts a pall over U.S. hopes to broker a two-state peace agreement with Israel. But it could also have dire consequences for the security situation in the West Bank. That's because Abbas' possible resignation threatens the future of the U.S.-funded Palestinian security forces that have begun to play a key role in preventing militants from launching attacks on Israel...

Author: /time Magazine | Title: Would Palestinian Forces Survive an Abbas Exit? | 11/17/2009 | See Source »

...defense officials. In its two years of existence, the security force, derisively termed "Dayton's men" by the Palestinians, has managed to soothe Israeli fears that it could be used as a resistance army against Israel and has impressed the Israelis with its willingness to enforce calm on the West Bank. But Dayton and others have warned that the force derives its motivation - and its ability to withstand charges by fellow Palestinians that it is doing Israel's work - from the belief that is the security nucleus of an emerging Palestinian state. Absent the prospect of imminent statehood...

Author: /time Magazine | Title: Would Palestinian Forces Survive an Abbas Exit? | 11/17/2009 | See Source »

...Palestinian security forces could come a lot sooner than Dayton's two-year deadline if Abbas steps down. Abbas is threatening to walk because he says Israel is not serious about achieving a two-state solution, citing as Exhibit A its refusal to halt all settlement construction in the West Bank and East Jerusalem. But his departure could cause the collapse of the Palestinian Authority. As chief Palestinian peace negotiator Saeb Erekat explained, Abbas "sees no state coming ... so he really doesn't think there is a need to be President or have an Authority. This is not about...

Author: /time Magazine | Title: Would Palestinian Forces Survive an Abbas Exit? | 11/17/2009 | See Source »

...collapse of the Palestinian Authority could spell the end of Dayton's painstaking efforts to create a security force that can enforce law in the West Bank and stop militants from launching attacks on Israel and its settlers. Many Palestinians view the security force as collaborators carrying out Israel's bidding, and a crisis in morale could result if Abbas and the Palestinian Authority leadership signal that no Palestinian state is in the offing...

Author: /time Magazine | Title: Would Palestinian Forces Survive an Abbas Exit? | 11/17/2009 | See Source »

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