Posted on 10/14/2013 6:52:23 PM PDT by TexGrill
“As U.S. politicians of both political parties are still shuffling back and forth between the White House and the Capitol Hill without striking a viable deal to bring normality to the body politic they brag about, it is perhaps a good time for the befuddled world to start considering building a de-Americanized world,” writes Liu Chang in Xinhua, China’s official news outlet. But can China build a de-Americanized world? Can China lead the global economy?
As we wrote in previous pieces, the answer is most likely not, as China lacks four conditions that make its economic growth sustainable.
First, China doesn’t have an “infinite” world market frontier for its manufacturing products, as its genuine expansion to world markets comes at a time when capitalism is already approaching its last frontier, having conquered almost every market around the world.
This means that China is pushing against capitalism’s last frontier, and, therefore, it has little room to maneuver before clashing with other world market players that are already well positioned in the global market.
But what about China’s domestic frontier?
(Excerpt) Read more at forbes.com ...
They wont have to Obama is doing it for them
The current dictators of China are fairly benign. There is no such guarantee the next cadre will be the same.
Don’t know if they can, but I’m sure they plan to try.
I’m game, let’s all help them by not buying Chinese products whenever possible.
Can China lead the global economy?
In word: NO!
They’ve de-industrialized America so far, with the help of the sell out your country for a buck crowd, so it’s probably going to happen.
I’m game, let’s all help them by not buying Chinese products whenever possible.
If it means we can become some backwater republic that is forgotten about amongst the world with fewer immigrants, asylum seekers, and interlopers, there might be merit to this.
IMHO as long as the Fed Reserve prints dollars to buy up the unsold T Bills, China and Russia will attempt to set up an alternative to the US dollar for trade settlement. I do not think China and Russia can replace the widely used US dollar, but they can set up a competitive system, that will grow as more US dollars are printed and the world slowly realize the US cannot pay back all their debt.
The US gov does have an option to continue financing the deficit without printing more money. It is call financial repression. It was used after WW2 to pay off the US war bonds. It simply worked by offering average Americans two investments, basic savings account and T Bills. Japan sort of practiced this method in the last 25 years without her economy having hyperinflation despite her gov debt is equal to 200 percent of her GDP. Ninety percent of Japanese T Bills are brought by her citizens. The US can prolong the world reserve currency of the US dollar by scaling back printing of dollars and making the US citizen buy the T bills financing our deficit. The amount of money that Americans put into IRA and 401K plans if diverted to T Bills, plus the huge pile of money in these funds were converted to T Bills, the US Fed Reserve can cut down the dollar printing and finance the US deficits for decades.
Add the revenues the US gov can collect from fracking oil/gas plus financial repression, the US maybe able to maintain deficit spending for decades and still defend the reserve currency status of the dollar. This approach will allow the Fed to keep interest rates low for a long time and help the banks to de-leverage any bad investments. Some experts feel the Fed Reserve has not disclose all the liabilities of US banks in unofficial overseas exchanges like Dark Pools, Boutique Banking, etc etc that are not monitored by the SEC or Treasury. The biggest obstacle for the US gov to carry out this policy is the US gov has not figure a legal ground to force Americans to convert their pension funds and savings into T Bills.
Pretty much anyone can. zero and the Senate are pushing us to irrelevancy so fast our heads are swimming!!
Chinese position today is a result of hard work of US administrations since 1970s.
US government still works for Chinese interests.
In fact both nations depends on each other. China is compensating reducing factual wealth of US customers delivering substandard products to the market at rather low price for an illusion of galore, US delivers fiat money to China in exchange.
Chinese population is vast and middle class in growing. It is not easy but they are potentially able to overcome loosing America as a client.
I’m not sure if US ruling class and Walmart people are able to lose China on their part.
I hope not and that any attempts fail. It would represent a net loss of freedom instead of a net gain. Despotic countries like China would gain undeserved legitimacy with nobody to rightfully repel them.
Then again, it doesn't help that some would rather help develop the PRC for their 30 pieces of silver. While it is their choice to do so, they act without knowing the full consequences of their actions.
If it means we can become some backwater republic that is forgotten about amongst the world with fewer immigrants, asylum seekers, and interlopers, there might be merit to this.
No thanks, but I'll pass on throwing away the last 60+ years of the US generally promoting freedom across the world. Stepping out like that would leave a vacuum - one that would likely be filled by someone without the same desire to promote freedom.
Been in Walmart, Kmart, Kroger, or any of about 100 “American” stores recently?
Almost all the stuff is made in China.
We need to bring back American production. Protect American manufacturing, and bring it back.
Now.
In a bit of irony, I live right next to a WalMart in Beijing where I often go to buy ‘Made in the USA’ products.
AFAIK, Chinese are very warm hearted to US-made things.
Jeep Wrangler is bad engineered and rough by European standards to be a seller in Germany but for the Chinese it’s cheap plastics smells like freedom itself:)
Yes sir! Where should I start?
You’re right. I’ve been overly negative recently but I certainly don’t want to cede power to china or any other country. I just get tired of sending billions to countries full of people who hate us and being the relocation destination of people who hate us.
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