Our fading 'superpower'

The Pittsburgh Post-Gazette ^ | Wednesday, September 29, 2004 | Dan Simpson

[Willie Green]

With an overstretched military and economic vulnerability, America can be eclipsed by China in key ways

It could simply be this year's edition of the morose introspection that sometimes accompanies autumn. But it could also be the case that the relatively short epoch of the United States as the world's sole superpower is drawing to a close.

A U.N. Conference on Trade and Development report released last week indicated that China was the largest recipient of foreign direct investment in 2003, having overtaken the United States. In the past year, foreign investment in the United States had dropped by 53 percent, taking it to the lowest level in 12 years.

The Chinese growth rate is now projected for this year at 9.6 percent. The U.S. economy is estimated to grow only at a respectable but unexciting 4.4 percent, less than half the Chinese rate.

U.S. manufacturing and service jobs are being outsourced to China and India. China is graduating thousands more engineers and scientists per year than the United States.

The United States is dependent on huge dollops of Chinese purchases of U.S. Treasury bonds to be able to continue to finance the soaring Bush administration budget deficit. A precipitous drop in Chinese confidence in the health of the American economy would be disastrous in financial terms for the United States.

[kabar]

If you have an asset like that (your tongue), no sense hiding it.

[Lazamataz]

If you have an asset like that (your tongue), no sense hiding it.

I cut mortals to pieces with this sharp, deadly weapon.

Fear me.

[Lazamataz]

By the way, sugar, you a single guy? ;^)

[RightWhale]

America's greatness comes from the freedom of enterprise that we have here in this country and the innovation in product and process that it engenders.

It is so powerful we can't even think outside the meme.

[WestVirginiaRebel]

More doom and gloom BS. China is still a dictatorship. Nazi Germany was also considered an "Economic miracle" during the Great Depression-but which country won WW2? China is one of the most polluted countries in the world. Their standard of living does not and will never match ours even if radical political reforms are adopted, for the simple reason that their "Economic miracle machine" cannot sustain the majority of their overstretched population. Most of the "Special economic zones" are for show. They do not reflect the way of life for most average Chinese. Part of the reason that jobs are being outsourced is the high costs incurred by having to deal with labor unions. And Willie Green's statement that this war is all about oil shows that he cannot be taken seriously.

[ninenot]

Regrets I mis-read your post.

So--what's the diff? If PRChina dumps $150Billion of TBonds into the market, who's gonna buy? and at what price?

Ummmmm. lesseeee. Price goes down, interest rate goes up. Dollar goes down, oil goes up in $/bbl.

Alternate: Fed runs the hell out of presses, inflation goes up but we monetized the drop in the value of the dollar, eh?

Makes no diff who owns them, or who sells them. What counts is the price.

[ninenot]

I am a 55 year old mother of two.

I knew that Harpseal's untimely death had some effects on you, but I never imagined.....

How's things, anyway?

[RightWhale]

which country won WW2?

Final score is still not in. Either Egypt or China at this point, although Germany is not out of the running.

[wideawake]

Makes no diff who owns them, or who sells them. What counts is the price.

Which is the point I was laboring to make in the first place.

Thanks for a lot of nothing.

[A. Pole]

Nazi Germany was also considered an "Economic miracle" during the Great Depression-but which country won WW2?

Soviet Union? They got half of Europe and became a superpower for 40 years.

[tm22721]

The Chinese have a demographic advantage that we can't dream of matching.

As for technology, they don't believe in IP so we must guard our secrets (but we don't).

They have 500 billion of our dollars and are actively purchasing all of the world's natural resource companies as we speak.

Now, who's going to prevail ?

BUMP

[RightWhale]

They also claim to be the oldest people and claim ownership of the entire planet. Being a Chinese Aryan myself, I can't say I have a problem with this.

[johnnycap]

You are right about that. If we want to compete we should dwell less on the Chinese and what their doing and address the very things you mention.

[ninenot]

OK.

You admit that the USBond may be in a precarious position.

Why is this so? Because debt, both US and personal, is too high.

Why is debt too high? Because the US imports more than it exports, and the Government insists on spending beyond its means.

Why does the US import more than it exports?

Go ahead. Answer the question.

[Jorge]

Willie Green has a lot of good points, IMO.

I'm sure he does.
I just take acception to the steady diet of negativity and doom and gloom, and the silence on good news, that seems to be Willie's trademark.

I've lived through hard times and good times and have learned that attitude is more important than circumstances.

I make it a rule not to associate with people who are habitually a discouragement to people around them.

And if there are truly problems that need to be solved, I doubt those who are sitting around whining will be the ones to solve them.

[Lazamataz]

How's things, anyway?

I am ever-amazed at how good life is getting.

I shoulda quit drugs YEARS ago. :o)

[Cronos]

It's the same article with Japan replaced by China....

[Cronos]

I would mostly guess that China and India -- the two big population centers will spend the next century bringing their entire huge populations to a decent standard of living. They won't be a threat.

[Cronos]

China is still a developing economy.

Quite correct. This article is sucha bunch of hooey -- like the stock market 'players' who shoot down Intel because it has forecast growth of only 60% this year.

[ApesForEvolution]

BTTT for later read