Behind today's happy, happy news for investors that the S&P 500 hit a 13-month high is that, among other reasons, China's industrial production soared.

More on China in a moment, but meanwhile, no one believes Treasury Secretary Tim Geithner, currently on a world tour and, as the WSJ says, "sticking to his mantra on foreign-exchange policy as the U.S. currency continues its broad downtrend." The dollar is dolor (despite a small uptick today), but there's probably a method to his madness:

Back to China: Check out Der Spiegel's excellent backgrounder, "Reluctant Partners: Global Crisis Makes US More Dependent on China than Ever."

Are the U.S. and China joined at the hip? Yeah, our two economies are making the springs squeak. And the two countries' inevitable spats will take on more and more importance. A divorce is highly unlikely, but everything just short of domestic violence between the two is, especially when it comes to trade issues.

For Obama, a Chance to Reform the Street Is Fading (NYT)

The president "sternly admonished the financial industry and lawmakers to accept his proposals." Obama says Wall Street is "choosing to ignore" the "lessons of Lehman and the crisis."

Judge Rejects Settlement Over Merrill Bonuses (NYT)

Astonishing, rare, and powerful rebuke of Wall Street by federal judge Jed Rakoff that far outstrips Obama's for-public-consumption scolding — and embarrasses the president and Obama's SEC chief Mary Schapiro. WSJ's "Judge Tosses Out Bonus Deal" points out that the "unusual ruling ... casts doubts about how the [SEC] handles probes of major U.S. companies." Rakoff's ruling strengthens NY AG Andy Cuomo's attempt to file civil-fraud charges against Bank of America's CEO Ken Lewis. Meanwhile, Lewis tells Japan that "there is a potential for a rebound that beats the forecasts." He's talking about the global economy, not his own future.

No Easy Exit for U.S. As Housing's Savior (WSJ)

Housing market's only doing better because the government's propping it up.

Swine Flu Means $25,000 Chartered New York Flights for Senior Executives (Bloomberg)

"Demand for private travel during the swine flu pandemic is boosting the charter business, worth about $33 billion a year worldwide."

For France, a Joie de Vivre Index (WSJ)

"Sarkozy to Add New Indicators, Such as Well-Being, to Measure Economic Health." Clever. Based on Joseph Stiglitz's analysis.

Wells Fargo Dismisses Executive Accused of Using Foreclosed Home for Parties (WSJ)

Bank seized $12 million beach house lost amid Madoff scheme, and senior veep Cheronda Guyton used it to party like it was 1999.

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Tariff on Tires to Cost Consumers (WSJ)

Trade war escalates after U.S. puts sanctions on importation of cheapo Chinese tires. Deflating news for U.S. consumers, because the cheapos are "the bulk" of the 46 million Chinese tires that annually invade America and make up 17 percent of all tires sold here.

Trial and Error Helped Stem Panic (WSJ)

"... debate continues on which of interventions made the biggest difference."

The Hard Truth About Financial Regulation (Forbes, Liz Moyer)

Lots of "talk and hand wringing," but "little real progress on how, or if."

Police Eye Mysterious Death of Financier (WSJ)

Facing fraud charges after the WSJ uncovered what looks like a huge Ponzi, Danny Pang — Taiwan's version of Bernie Madoff, but he denies it — may have committed suicide. More tragically, body of missing Yale bride-to-be Annie Le is reportedly found. Original WSJ investigative piece on Danny Pang here.

Fevers rise over paid-sick-day bill (NY Post)

"Convincing infected workers to stay home is key to controlling the spread of swine flu. But it can be a tough sell for those who don't get paid sick days -- an estimated 1 million city workers."

Top economist: Things are worse (NY Post)

Not just your average schmo, this is Joseph Stiglitz talking. He "echoes" what Paul Volcker (marginalized by Barack Obama) has said. Stiglitz pissed that Obama crew is wary of challenging financial industry: "It's an outrage. ... The administration seems very reluctant to do what is necessary." Obama's coming to Wall Street today to supposedly "try to breathe new life into efforts to overhaul the financial regulatory system," the Washington Post says. But with pals of Wall Street like Tim Geithner and Larry Summers in his top crew, don't count on anything beyond show.

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Madoff Investor's Art Dealer Got $26.5 Million in Rothko Sale (Bloomberg)

Madoff pal Ezra Merkin sells off art for $310 million to unknown buyer. Fee to mysterious agent (believed to be Kyra Sedgwick's stepfather) dwarfs mysterious buyer's agent fee. Cuomo skims off $191 million, puts it in escrow for Madoff's/Merkin's victims.

Two years of pain and mega bonuses are back (Times U.K.)

Investment-banking is back in a big way, and investment bankers are popular once again. "Guaranteed multi-year bonuses, which have been attacked as the worst kind of banking excess, are back. ... It wasn't meant to be like this. Regulators were meant to change the rules to make sure that such bonuses would never be paid again. We had the Walker report on executive pay, and Barack Obama's strictures on remuneration in America. Funnily enough, they do not seem to have curbed banks' behaviour one bit."

US food groups warn of sugar shortage (Telegraph U.K.)

If you consider Hershey, Mars, and Krispy Kreme "food groups."

MADOFF'S MAN DODGES GUN, DRUG CHARGES (NY Post)

Frank DiPascali's deal "shut the door on other skeletons in his closet, including guns and drugs."

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Take a deep breath, if you can. China's actually more and more an environmental disaster (that's Beijing at left), and the costs of doing business (including paying at least some money to keep workers' lungs functioning) keep mounting. Only Tuesday, the NYT pointed out that China's garbage incinerators are a "global health hazard." China now spews out more household garbage than the U.S. and is the world's largest coal user.

Besides, the Chinese government isn't really doing that much about its rapidly expanding pollution of the planet. Christina Larson pointed out in April: "China's Grand Plans for Eco-Cities Now Lie Abandoned." More to the point, the most prominent environmentalist in the Chinese government, Pan Yue, is now practically voiceless.

Not that the news is all bad. Waste Management just agreed to pour $140 million into a Chinese waste-to-energy venture. It and other trash firms could make a real haul.

Hollywood Upstages Beijing: WTO Hands China Its Biggest Defeat in Trade Battle Over Movies, Music, Books (WSJ)

Ruling "could help break open the tight controls that have crippled the ability of filmmakers, musicians, videogame designers and other artists to widely market their creations at reasonable prices." Other major trade clashes between China and U.S. are also coming to a head.

Madoff Had Affair With Ex-Hadassah Finance Chief, Her Book Says (Bloomberg)

Sheryl Weinstein, former chief financial officer at Hadassah, a major Jewish women's organization, fesses up to an affair with Bernie. She and her hubby (and Hadassah) not only lost their asses to Bernie, but she personally lost hers to him. Now we know that Bernie made at least one deposit.

Fed Starts Rollback Of Rescue Efforts (WashPost)

Great. Now how about the rest of the country? Among other woes: another month of record-high foreclosures.

Jackson Earnings Grow by Millions After Death (NYT)

When it comes to the battle of dead pop stars, Elvis has left the building, and MJ has taken the stage. In the 48 days since his death, Michael Jackson has earned $100 million in film and merchandising deals, and his handlers expect another $100 million by the end of the year. Co-executor says, "Clearly that's a new record for estates that likely will not be broken."

Under Pressure, Obama Defends Health-Care Plan (WSJ)

Teabaggers outside, friendly folks inside. Too friendly and too respectful inside, reminiscent of the carefully screened audiences at the "town halls" that Dick Cheney and George W. Bush conducted. Best quote from a teabagger outside: ""Adolf Hitler was for exterminating the weak, not just the Jews and stuff, and socialism — that's what's going to happen." "Jews and stuff" — sounds like a chain of Bar Mitzvah-themed gift shops.

G.M. Puts Electric Car's City Mileage in Triple Digits (NYT)

It took a fucking bankruptcy to make GM get on the stick and finally roll out a fucking electric car.

U.S. economy has bottomed: George Soros (Reuters)

He should know. He's one of the world's most aggressive, barebacking tops.

News from the other meltdown front, which is heating up around the globe: China's factories are really smokin' — it's headed toward a record output of steel (while S&P analysts are colder on the U.S. mining and metals industry). But Chinese officials rip the Barack Obama's clean-energy moves, still insisting that it's the developed nations, not China, that are responsible for cutting emissions.

Meanwhile, Capitol Hill's global-warming deniers are fuming more than ever about that nasty cap-and-trade approach.

But the FT's Clive Crook has a pretty fresh take, calling the cap-and-trade bill a "travesty" because Barack Obama, though he says he wants to tackle climate change (and healthcare reform), is "choosing to be weak."

Western hopes that Iran's stormy presidential election shows glimmers of democracy are well and good, but if the oil giant emerges from the grip of the mullahs, it's more likely to cast its lot with the East than the West.

Practically overlooked over the tumultuous events in Iran was this weekend's meeting of the Shanghai Cooperation Organization in Yekaterinburg. (See Moscow-run Russia Today's video above.) This was kind of an anti-G20 summit. Iran has observer status at this Russia/China-dominated version of the UN. China's the real power behind the SCO.

Meanwhile, while the SCO grows in political and economic clout, here in the West it's more of the same, as the Financial Times says this morning in "Greed, fear, interest rates and bond yields."

In 2005, I noted, "While the Bush regime sinks into Iraq quicksand, China and Russia remake the world order."

Yes, this is a cross-sport deal cooking between the NBA and the English Premier League, both of which use round balls. It doesn't matter that the NBA outlaws kicking the ball, and the Premier League outlaws handling the ball.

American fans can desert pro soccer in droves, and sportswriters can sneer at soccer if they want ; the NBA's money men don't take lightly what the rest of the world considers to be true football.

The league's heady David Stern, whose emissaries have traveled to London for a summit, is quoted by the Financial Times as saying, "We are unapologetic imitators. The Premier League's ability to negotiate their [media] deals and the way they split their packages [of media rights] . . . is something we can learn from."

As if the NBA doesn't already think outside the bun. For instance, the L.A. Lakers' online page of player profiles is sponsored by Taco Bell.

A Chinese consortium is said to have invested in LeBron James's Cleveland Cavaliers. But the British soccer league is more savvy about foreign investors than the NBA:

Can't wait to see the new uniforms for the Memphis Mullahs.