The Marriage of China and the U.S. (Till Debt do us Part)

It’s like a bad marriage.  The U.S. and China are tied to each other in more than a trillion ways.  For the time being, both endure this partnership for the sake of their dependents and their own well-being.

The two countries will make nice today at the World Economic Summit in London.  They will smile at each other through clenched teeth, but the dislike and distrust between the two are painfully obvious.   They fool no one.

It was a marriage of inconvenience right from the start.  A divorce is inevitable.  The
question is how long will it continue and, when the inevitable breakup occurs, how much damage will be inflicted?

Opposites attract but this paring is ridiculous.  China is pushy and domineering: The U.S. mild-mannered and reserved, generous to a fault.

China rules its citizens with an iron hand.  They have no rights.  Our citizens have plenty of rights, including the right to change and control our government.

“Who, me?  I can’t be bothered with the affairs of government.  It’s time for my favorite reality TV show!”

We live like kings.  We have exhausted our vast resources and allowed our government to run up a debt it may never be able to repay.   China keeps its dependents on a tight leash.  They live on the edge of poverty and, even the most productive of its citizens, have few luxuries.

Most of us, like our government, spend all that we earn and then some.   We have no reserves.   China and its citizens are savers.   They invest most of what they earn.  It is not surprising that China is now the U.S.’s biggest creditor.

The U.S. needs China in order to survive the current economic crisis and beyond.   It is hopelessly dependent and getting more so each and every day.   China, on the other hand,  needs the dollar to remain strong in order to make good on its investments.

China would like to crush the U.S.   It hates capitalism and all that it stands for but it doesn’t dare rock the boat.  The U.S. has little choice but to play along.  We are broke.   We have destroyed our manufacturing base and have given away what resources we have not squandered.  We allowed our superior technology to be transferred both overtly and covertly.

China has become a manufacturing giant.  Some of her products are made by people she has enslaves in her prisons, while we look the other way.   Our companies prop up this brutal regime in order to have their products manufactured in China at a fraction of what it would cost in the U.S.  Our citizens do the same in order to obtain cheap luxuries we cannot afford.

The U.S. is a powerful world leader, largely due to the amount of money we spread around the world and our powerful military.  That is about to change: Much of the money we have been spreading around is owed to the Chinese.   By necessity, our military is shrinking while China is in the process of a massive military buildup.

Let’s kick this can down the road.  If this marriage were to dissolve and things get ugly, which country likely would survive?

Solomon is regarded as one of the world’s wisest men.  Who can argue with the wisdom in his book of Proverbs?

The wealth of the rich is their fortified city, but poverty is the ruin of the poor. (10:15).

Solomon’s admonition against borrowing holds this sobering truth:

The rich rule over the poor and the borrower becomes the lender’s slave.  (22:7)

We have been partying like there is no tomorrow.

He who loves pleasure will become poor;
Whoever loves wine and oil will never be rich.  (21:17)

Can we grow our way out of this recession?  We’ve done it before but our problem is that, during the good times, unscrupulous politicians spend the surplus.

Go to the ant;, you sluggard;
Consider its ways and be wise!
It has no commander, no overseer or ruler,
Yet it stores its provisions in summer
And gathers its food at harvest. (6: 6-8).

Why do our elected representatives spend the surplus?  They play into our desire to have something for nothing.

The sluggard’s craving will be the death of him, because his hands refuse to work.  (21:25)

How do we stop this madness?  By taking our responsibility for oversight over those we send to Washington, seriously:  Watch them.  Call them to accountability and, when they fail to heed the call, dump them.  It’s not about political parties.  It’s about survival!

Diligent hands will rule, but laziness ends in slave labor.  (12:24)

4 thoughts on “The Marriage of China and the U.S. (Till Debt do us Part)

  1. Jane,
    Our government has become so powerful that it is almost impossible to change anything. Oh, yes we see a win here and a win there, the Republicans may even make gains in the next election, but Republicans have become Democrat “light”. No matter which party is in power government growth continues and we are all headed for a place on that BIG government plantation.

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  2. When Nixon went to China,to legitimize a virulent communist regime, known for its brutality, and for its most recent facing off against our forces in Vietnam, he chose to discard the promise of three or four administrations, the aid we gave the free Chinese, to fight off the Japanese in the second world war, and to abandon the only ally we had in that area, when we needed one.
    He finished off the job congress did, when it refused to finance the free movement that had helped us win victory in China against the Japanese, and he officially turned over the entire Nation to the Communists.
    He did it for one reason, and one reason only: money. Taiwan, free China, as had been recognised since the war, was discarded like yesterday’s garbage, and the promise of wealth bought our complicity in ensuring China would remain totalitarian, and we fulfilled our end, they still are.
    The good news is that the world no longer believes creditors must pay off those who lent them money, except when it’s their own that is being discussed, so if we simply come to the end, where China says “no more without implementing our directives”, we can simply default, and we shall be shunned by the world, as defaulters, and therefore not capable of playing in the world of finance build on debt.
    We have the same resources we had when we were mere colonies, and broke, so at that point, all we have to do is accept no one will sell to us, nor buy from us, and simply go back into business supporting our own needs, from our own resources. Of course if we do so without moving on Congress, and making the government conform to the Constitutional requirements for money, we will be welcome back in the international community again when we start showing a profit, after all, if we still have a fiat currency, they will still want us to pay old debts.
    On the other hand, if we stand back up with a commodity based currency, establish its value by exchange in our markets, for real things, and then are invited back to the world market, we are on different footing then.
    We would be able to dictate the terms of conversion, and we could easily dictate no terms that did not include accepting commodity based currency as the only acceptable medium of exchange.
    Since our “debt” was run up in parallel to every other first world nation, on the basis of baseless monopoly money, it would be both fitting, and fully legitimate to refuse to give full faith and credit to any numbers carried by those still using fiat currencies, and there is no reasonable way to suggest a fiat debt should be paid with a solid currency.
    Essentially, we can allow the whole world economy collapse around the foolishness of everyone’s fiat currency, and simply start fresh, ignoring past debt, and pulling all our armed forces back into the Nation to ensure no attempt is made to collect by force.
    The fact that fiat currency is nothing but a lie, is reason to call it such, and simply deny its legitimacy, or the legitimacy of the recorded debt.
    We only have to pay it back if we refuse to call a spade a spade, refuse to back off the notion that fiat currencies are in fact money, and if we simply refuse to take up the cry of the boy who has said for all to hear “The Emperor has no clothes!!!”.
    If we do what is right, no nation has in fact lost anything, as all are in debt that cannot be calculated because it is all based on manipulated currencies which have been used and abused for social, political and influencial purposes, so the debt does not reflect real values, but only current supposed values.
    When the guy I rebuilt his motor for, never paid for the work, sold his bike, spent all his money, and still owes me, tells me he’s sorry, I still can’t get any money out of him, he’s broke, and I can’t afford to spend ten bucks to collect five bucks, by acosting him every week, by driving forty miles to do so. Just as I wrote that debt off, so must all nations, if we break the fiat system.
    John McClain
    GySgt, USMC, ret.
    Vanceboro, NC

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  3. Jane,

    The world has been turned upside down with the United States now heavily dependent to the point of its economic survival at stake upon Communist China continuing to fund its immense debt. This cannot go on indefinitely, and it could have been a “Twilight Zone” episode with Rod Serling narrating it, except that this whole scenario would have been unthinkable to even “The Twilight Zone” writers back in the early 1960s.

    Clay Byrom

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