Saturday, November 22, 2008

The sixfold path to Chinese hegemony

The Mogambo Guru does a (tragi-) comedy riff on a Chinese piece he's read. Here's a list of tunes that the Chinese author is calling the piper to play:

1. The US should cancel the limits on high-tech exports to China, and allow China to acquire advanced technology and high-tech companies from the US

2. The US needs to open its financial system to Chinese financial institutions, allowing all Chinese financial firms to open branches and develop business in the US

3. The US should not prevent Europe from canceling the ban against selling weapons to China

4. The US should stop selling military weapons to Taiwan

5. The US should loosen its limits on numbers of Chinese tourists and allow them to travel freely to the US

6. The US should never restrain China’s exports to the US and force RMB appreciation in the name of domestic protectionism and employment pressure

Given the relationship between government and journalism in China, I half-suspect that the article may have had input, shall we say, from official sources. Looking at the implications of these demands, we may begin to tremble.
Below, I put in graph from the statistics quoted in that article. To my layman's mind, it's clear that bailouts transferring debt from other piles to the national pile, are a waste of time: it's debt cancellation that's needed.

6 comments:

Anonymous said...

And if I understand him correctly, debt cancellation, through forcing the miscreants into bankruptcy, is what Karl Denninger has been advocating for quite some time.

Sackerson said...

Yes, definitely, Fred.

Anonymous said...

I like China so much that I think it's a pity that there are only two of them (or three, if you count Singapore). I expect there to be more quite soon.

Anonymous said...

Dearieme, don't forget Malaysia whose entire commerce is Chinese controlled. The Malays do the government bit, the Indians tag along for the ride, and the Chinese make the millions.

Anonymous said...

How about this instead. Looks a lot simpler:

1] The US defaults on its debt to China and China alone

2] The US gets China kicked out of the world trade organisation on the basis that China doesn't believe in free trade

3] The US watches and laughs as once again it gets the better of a developing country and stays rich at its expense - next stop India.

4] The Chinese wonder what they are going to do with those 1million cheap circular saws they were going to sell to B&Q. They wonder why making cheap circular saws didn't turn them into an economic super-power.

Sackerson said...

Except it'd be pretty much an act of war, wouldn't it? Of course, itf they stuffed the UK instead... Much better to ruin weak friends than powerful enemies.