The debt of western countries, especially America and England, is supported in large part by the central banks of developing and eastern countries– most of all China. China holds hundreds of billions of dollars and pounds and euros as their currency reserve. While it has been true for a long time that the dollar is the ‘reserve currency’ of most of the world, the US debt has skyrocketed in the last decade and has mostly been picked up by Asian countries. And now that the US economy is crashing and the stimulus bill is vastly scaling up the debt and deficit, SOMEone has to keep lending America the money. Japan, South Korea, Singapore, and other countries have also been major purchasers of US debt, but China is the biggest. All of their economies depend on export trade to the US; thus the theory, or assumption, is that they cannot let America fail.
But people forget that they may not have the same goals, desires, or ideology as America or the west. China is STILL run by the Chinese Communist Party. Since the 70’s when they began to snap out of the insanity of Mao’s Great Leap Forward and Cultural Revolution, the communist leaders actually went back to their sources– and discovered what Marx had actually said: capitalism must precede communism. It must grow, peak, and collapse- and from that place of ‘highest development’ would be ready to be succeeded by true communism, and the state would wither away. So the Chinese decided to try it: roll with world capitalism until it’s ready to collapse.
And boy have they ever. Workshop for the world, skyscrapers, hundreds of millions of people brought into the world middle class, the most rapid industrialization the world has ever seen– as big as all previous ones combined. But their leadership is still the same. Quietly but certainly, it’s still the same communist leadership. They still openly believe in a communist future. And somehow, all the western capitalist countries have become dependent on China for capital? Doesn’t this strike anyone else as odd?
February 19, 2009 at 9:19 pm |
Theoretically, the communists would face the problem that capitalism works — except that we have Obamba as the U.S. president saying that capitalism doesn’t work. The “middle-class” in China would be reluctant to relinquish their wealth — except they may buy into the idea that America was actually operating under a free market system. We have not been.
In any case, it is interesting times.
April 20, 2009 at 10:19 pm |
Anyone who relates Obama to socialism or communism is a racist and Unamerican。Only idiots would believe the brain-washing teaching and guileful image of China government. China’s economy is projection of delusion and fake GNP.