by Phillip Torsrud
China must be congratulated for establishing itself as the world's premier economic superpower. While some might argue GOP numbers, China has positioned itself to be the dominant force in the global economy. America's politicians must now kowtow, since they aren't in a position to file complaints with the World Trade Organization for any unfair trade practices China engages in. The U.S. government is dependent on China to continue extending credit for massive bailouts. The irony is that part of America's economic problem stems from consumers gorging themselves on cheap Chinese goods, while exporting manufacturing jobs to countries like China.
Enabling an addict is straight out of the Western playbook. In the late eighteenth and early nineteenth century, the issues of free and fair trade were a primary concern for Western powers dealing with China. The Chinese exported tea and demanded payment in silver. Soon, there was a drain on silver that hurt the economies of Britain and India. Opium however, banned by the Emperor, could be sold to Chinese merchants for silver. While this does not justify those who traded this vile product, it does show what happens when unbalanced trade practices lead to corrupt enterprises to restore balanced trade. The Opium Wars soon followed.
One of the reasons the West, Britain mainly, pushed the opium trade was, "The Chinese on the whole either despised or had no need for Western merchandises." If nations had personalities, China would be an introvert, and not just because they built the Great Wall to keep everyone out. America is usually an extrovert, but in tough economic times often reverts to a protectionist, introverted personality. The problem is that a global economy, especially during difficult times, demands that nations step out of their comfort zones and be extroverts.
Just as the Chinese Emperor hoarded silver, the Chinese Communist Party is hoarding U.S. dollars and debt. China perceives us as an adversary. The Chinese believe that it is their destiny to come out on top. Repeating the humiliation of the Opium Wars is unacceptable. The barbarians even burned down the Emperor's summer palace!
While it won't be opium this time, the world's resources are shrinking as its population grows. The majority of conflicts in world history are over resources, even those justified by religious rhetoric. Resources now include manufacturing jobs, for they are the means by which resources are converted into a marketable product. Hoarding dollars allows the Chinese government to outbid others when resources become scarce, which can then be used to subsidize Chinese industry. having U.S. debt is an insurance policy that allows China to drag down the U.S. economy, if America tries to sanction them or raise tariffs. Check-mate.
After being lectured for years by the U.S. government on releasing political prisoners, China should return the favor by advising the U.S. to release some of its political prisoners to save some money. Since American politicians have politicized crime to create the largest prison system in world history, a request to reduce our prison population by ten to fifteen percent would show that the Chinese care about human rights and political prisoners too. As a fellow police state, China probably felt it was in poor taste to make this suggestion.
China would benefit from a more efficient, less dependent U.S. government. China relies on the U.S. economy for most of its exports. Continuing to supply our junky politicians with credit will eventually result in an over-dose that kills the world's greatest consumer. However, letting the U.S. government repeat the same business model that crippled America's housing industry, too much debt, could be tempting.
China's goal is to replace the U.S. as the world's largest consumer. With over a billion people, and the need to maintain eight percent growth for political stability, China will have to consume more. With diminishing world resources, only a reduction in U.S. consumption can compensate for this growth. While American politicians avoid dealing with the inevitability of this innate conflict, the Chinese government has predicated their entire strategy on it. American politicians are incapable of grasping the leverage they are giving China by borrowing all their money. So please e-mail the Chinese Embassy and request that they quit lending our government money.
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