LONG BEACH— State controlled media of China has released an assessment of the world.
The assessment speaks rather glowingly of the potential fall of the United States, and the perceived weakness in international power.
In addition to the perception of the fall of the United States, China speaks of great things concerning Russia’s rise. In the article it sites the successful incursion of neighboring Georgia, and military exercises carried out by Russia in South America.
TennesseePaul
Stephen VanNuys
Brooklyn Daniel
The Freedom Thinker
It’s interesting that you use the word “perception”. I agree and I do hope we are not as weak as they think we are.
Well they own a significant portion of our debt. Look at what they have successfully accomplished in Africa buy purchasing up municipal debt. They effectively legislate the human rights of the population that way. People dig in trash heeps to find cobalt and to find precious metals for Chinese manufacturers generally for less than a few dollars a day.
Singapore, Dubai, and so many other sovereigns control significant investment capital funds. As these begin to control more corporate shares, I think you are going to see far more drastic changes in the business environment. Maybe I just a negative nancy though…
Yes. They do have massive amounts of US debts. I used the word perception as that’s all this can be classified as right now. Time will tell if the Chinese are correct, that Russia is the new power and the US is falling into second place. Or it could all be part of their propoganda machine. The article did still paint Iraq as a terrible mess. I haven’t read one liberal or conservative thinker who would label the current status of Iraq as such. Previous status, yes. Decision to go, yes. But the current ground conditions, no.
I think this is the Chinese propoganda machine. It’s the same machine that is blaming our adherence to “free markets” for all of our ills. China will get theirs soon enough. Things to watch in 2009 include how quickly China can rebound from falling demand- will they pick back up or will they sink further and possibly melt into mass riots and chaos?
I’m also curious to see if they start unloading some of their holdings in US treasuries. They may need to get back some of their reserves in cash so they can fund “stimulus packages.” Will be interesting.
If they dump some treasuries, that might hurt the US dollar somewhat. I kind of expect 2009 to be the year of the bad dollar. I could go either way though- either people will flee the dollar b/c we have so much debt, the Fed Funds rate is at zero, the Fed Reserve has taken on trillions in assets, etc. Or they may continue to lap the dollar up b/c most of the other currencies are doing so poorly. We’ll see…
But I don’t think we need to continue to rely on foreign powers to finance our economic recoveries. This is very bad long-term. We steadily lose more and more of our sovereignty by taking on so much foreign debt.