1. CANADA

1. CANADA

The Toronto Star, June 23: If a corrupt Afghan government and a resilient Taliban insurgency weren’t headaches enough for U.S. President Barack Obama, he now has to worry about “friendly fire” from his own top commander in Afghanistan.

Gen. Stanley McChrystal has just disparaged his commander-in-chief and a raft of senior U.S. officials in an incendiary Rolling Stone magazine profile entitled, fittingly, “The Runaway General.”

That’s a problem not only for the U.S. but also for Canada, because McChrystal commands all 142,000 allied troops in Afghanistan. The prospect of a U.S. war effort at war with itself will demoralize Afghans, unsettle allies and embolden foes, at a time when unity of purpose is essential.

In McChrystal’s eyes, Obama looked “uncomfortable and intimidated” at a meeting with his generals, Rolling Stone reports. He also faulted Obama for leaving him “selling an unsellable position” as the president pondered his request for more troops.

Of U.S. Vice President Joe Biden, McChrystal quipped: “Who’s that?”

Soldiers often diss their political masters behind their backs. That’s life. But most have the common sense and discipline to mind their tongues when they should. McChrystal and his aides witlessly carpet-bombed the White House when they should have held their fire.

2. JAPAN

The Asahi Shimbun, Tokyo, June 21: China has agreed to be more flexible in allowing the yuan, also known as the renminbi (RMB), to appreciate against foreign currencies. This must not simply be a stopgap measure to alleviate friction between China and the United States. We hope this marks the first step toward a more balanced situation for China and the entire world.

The renminbi was allowed to appreciate in 2005, and, following a gradual rise, it was effectively pegged to the dollar. This was because China feared the effects of the financial crisis would dampen Chinese exports. However, the decision to keep the RMB exchange rate artificially low not only irritated the U.S. and other major economies, but also led to inflation in China and the emergence of a real estate bubble.

While international pressure no doubt influenced China’s decision, the latest announcement means that the Chinese themselves finally realized the necessity of the move. In this sense, the Chinese authorities’ decision to allow the RMB to appreciate came too late, but was totally appropriate.

China’s central bank can still intervene in the yuan market to regulate the exchange rate.

There is no need for China, which will soon surpass Japan to become the world’s second-largest economy, to develop a “strong yuan” phobia.