How China will defeat America - The Daily Reckoning
The Daily Reckoning by Bill Bonner
On This Day - 22 November 2011
PRINTER FRIENDLY | ARCHIVES
How China will defeat America A  A  A

Baltimore, Maryland

The Dow fell 248 points. Oil dropped to $96. And gold down a whopping $46. Why?

"Deficit Effort Nears Collapse"

So did yesterday's Wall Street Journal describe the latest Congressional failure. To put it into perspective, a group of well-meaning, intelligent members of Congress had been asked to do something very simple. Every head of a household in the nation does it. Every businessman does it. Even college students do it.

Members of Congress are very good at cashing checks. They are very bad at balancing the national check-book. They haven't done it for 10 years. They're out of practice.

The situation is simple. The feds are spending too much. Every half-wit and democrat can see that they can't go on like this.

But they couldn't agree on how to cut back. So, they ducked. They put the matter to a "super- committee." If the committee couldn't do it, then some "automatic" cuts would come into play:

The deficit-reduction super committee, stuck in a partisan deadlock, faces an almost certain collapse-raising the threat of disruptive military spending cuts and a resurgent public anger at Congress as it struggles with the basic tasks of governance.

Barring an unlikely, last-second breakthrough, the committee is expected to announce Monday that it failed to reach its mandated goal of writing a bipartisan bill to reduce deficits over the next 10 years by at least $1.2 trillion.

Well, so far...so good. We don't care if the cuts are automatic or manual... But if they don't make some kind of cuts the country will go broke... Heck, the country's already broke.

"You are very negative and pessimistic," said Elizabeth this weekend. "You're cynical. You may be right, of course. But you should at least give them a chance. There are good people in Congress. They are trying to get control of spending. You can't fault them for that. And they may succeed."

But what's this? Surprise, surprise! Senators McCain and Lindsay announced that they weren't going to allow no stinkin' automatic cuts to "devastate" the Pentagon.

The zombies are in control now. And after the next election they'll still be in control.

Newt Gingrich is now leading the Republican pack. The man's think tank got $35 million from the health industry. You'd think that $35 million would pay for a lot of thinking. But what kind of thinking? About ways to reduce the power, influence and profits of the health industry? Not likely. Instead, they were hoping the former Speaker of the House could help them gain more power, more influence and higher profits.

Mr. Gingrich also got $2 million consulting for Freddie Mac. Nice work if you can get it. And what do you think? Did the folks who run Freddie want the ex-speaker's sage advice on how to get the US government out of the mortgage finance business? Of course, Mr. Gingrich could have given that advice for free. But corporate executives do not pay $2 million for advice that would make them more vulnerable to the creative destruction of the free market. They pay politicians to protect them from creative destruction.

They pay money to stay on the right side of the political establishment. And they known they can trust Mr. Gingrich to do his job. He's an honest politician. Once bought, he stay's bought.

---------------------------------------- Have an enriching Saturday! ----------------------------------------

Can Europe find a solution to end the current economic crisis?

Will the new economic reforms drive the stock markets?

Are we paying a price for bad democracy?

Get answers for all such complex issues straight from Jawahir Mulraj.

Click here to sign up for J Mulraj's 'Straight From The Hip' e-letter! It's Free!

------------------------------------------------------------------------------------------------------

*** How China will defeat America.

Don't expect spending on the pentagon to decrease. Not with our nation's security at stake. And not with China posing an ever-greater threat.

An article by Yan Xuetong, translated from mandarin, tells "How China can defeat America." The gist of Mr. Xuetong's thought is that rising hegemons are a lot nicer than declining ones. Besides that, history is on the side of the rising power.

The US has become a tyrannical power, he insinuates, throwing its weight around wherever it can. China, on the other hand, is a helpful hegemony...a "humane authority." While the US has military alliances all over the world...China has none. While the US has fought numerous wars over the last two decades, China's military hasn't been involved in conflict since 1984.

China has been preoccupied with her own internal issues...mostly related to employment and growth. But China's economy grew 71 times faster than the US over the last 4 years. At that rate, it won't be long before US output is actually lower than China's.

Mr. Xuetong believes China should do as it did during the Tang dynasty, when it brought it foreigners as high ranking officials to help it take its place on the world stage.

No doubt there are other Chinese who are more hardnosed about it. Rarely does one empire give way to a successor peacefully. There are bound to be Chinese thinkers, whose works aren't translated, who are speculating about the Chinese can defeat the US in a real war. They're surely devising a strategy...and developing new technologies...right at this very moment.

How could China defeat the US? Easy, it could spook US lawmakers into spending more money...wasting more military resources...and driving the nation into bankruptcy. In short, it could just wait.

Bill Bonner is the President & Founder of Agora Inc, an international publisher of financial and special interest books and newsletters.

Disclaimer:
The views mentioned above are of the author only. Data and charts, if used, in the article have been sourced from available information and have not been authenticated by any statutory authority. The author and Equitymaster do not claim it to be accurate nor accept any responsibility for the same. The views constitute only the opinions and do not constitute any guidelines or recommendation on any course of action to be followed by the reader. Please read the detailed Terms of Use of the web site.

Get The Daily Reckoning directly
in your mail box.
Just enter your e-mail address » 

Read our Privacy Policy and Terms Of Use.

Equitymaster requests your view! Post a comment on "How China will defeat America". Click here!

7 Responses to "How China will defeat America"

SUDHEER S MEHTA

Nov 26, 2011

Effluance, materialism & easy availability of raw materials, minerals, precious materials has made Americans arrogant & intolerant. President Obama comes to India & preaches Indian Nation to be responsible - this from the mouth of head of a country which invaded other countries for the sake of its convenience like oil ( sic. Iraq, Afghanistan etc.) although I am no admirer or friend of Middle East countries. Americans stopping India from any action on the terrible terrorism, India faces, but go into Afghanistan, Pakistan etc. against organisations acting against it. Americans harbour & shelter likes of David Headly and not allow India rightful action against him. All the while Americans mouth their support against terrorism, and also give lecture on responsibility to India, but it is Americans who need to be responsible and not act as if they rule the world or are the only policemen.

Like 

LS Ullal

Nov 23, 2011

The US is networking with countries around the world to attain strategic superiority, had been investing huge amounts on security and weapon system development. They and their allies are combat ready in the event of war. If we look at China, they are very late into the game; it will take them at least 20 more years to match military might of the US & Allies. Moreover, China fought a last war in 1984 against Vietnam and their armed forces are not combat ready. That is why they are proponents of bullying tactics. They might become a leading economic force in 15-20 years but we don't know what is in store in that front. Be that as it may, no country in the world wants a war - the costs involved will be humongous - and crave for peaceful co-existence. In the ultimate analysis, human beings wants to avoid war at any cost and to this end all countries should work tirelessly.

Like 

dayanand

Nov 23, 2011

The views expressed are true and it is US realised its
real strengths both militarily and economically. Mostly its foreign policies need to be reviewed to counter China's threat not to only Us but to all the countries.
No one is aware its space programme plans. In comparison they are more cruel when companed to Germans

Like 

aasheem

Nov 23, 2011

try to rite in a more simple and understandable way focusing on the main topic. regards

Like 

joe

Nov 22, 2011

not sure about the underlying study... but history has always proved that open societies will win at the end. Autocratic rules typically will be successful for a while but then true open societies survives at the end...
Hence difficult to agree with ur shallow assessment!!

Like 

manoharkantak

Nov 22, 2011

It appears China is paying US in its own coin.

Like 

Arvind Malhotra

Nov 22, 2011

It beats all prudence & national interests that Americans are hell bent on a course of self destruction. The utterly futile, hugely expensive wars in Iraq & the ongoing in Afghanistan have not the least done americans proud rather raised serious doubts about any strategic thinking on the part of its state apparatus. Towering personal egos of its Presidents(Bush in Iraq) & now Obama in Afghanistan have taken precedence over any logical & intelligent application of Policy aimed at preserving the National interests first & foremost. The achievement so far in Afghanistan has been ZERO, with Taliban as strong & effective as ever before if not stronger. It seems an aimless war bleeding the American economy, & still more resources are being pumped into the theatre. Can any action be more absurd, ridiculous & self defeating as this absolutely unwarranted, wasteful, futile effort to secure their National security. Only Americans can do this. God bless this country & their leaders.

Like 
  
Equitymaster requests your view! Post a comment on "How China will defeat America". Click here!

Recent Articles:
Trump Takes a Beating
August 18, 2017
Donald J Trump, a wrasslin' fan, took a 'Holy Sh*t!' blow on Tuesday.
Which Gods Will Bring Down the US Empire?
August 17, 2017
Mr Trump is in the White House and the gods are in their heavens; what's not to like?
Will They Haul Off Trump's Statue, Too?
August 16, 2017
All across the country, the old gods become devils. New, gluten-free gods take their places...
Farm Loan Waivers: Why Bad Economics Makes for Good Politics
August 14, 2017
It is because the negative effects of the waivers aren't clearly visible.