At 3/23/09 6:21 PM On IN THE NEWS: VOLUME ONE, Groveton said…
“…….. there is a slightly more important story in play:
“From the article:
“This is a clear sign that China, as the largest holder of US dollar financial assets, is concerned about the potential inflationary risk of the US Federal Reserve printing money,” said Qu Hongbin, chief China economist for HSBC.
“I never thought I’d live in a world where the only people making economic sense are the Communist Chinese.”
Groveton is right to be concerned.
The Chinese have been using their trade surplus to buy up US Treasury Bonds. Now they are threatening to sell them and / or not buy any more unless they have “assurances”…. In effect controlling the US of A economy.
There are, however, other problems:
China is using the excess profits from burning through its own Natural (and social) Capital and the Mass OverConsumption of its trading ‘partners’ to buy up resources on the cheap.
“China Gains Key Assets In Spate of Purchases: Oil, Mineral Are Among Acquisitions Worldwide” 17 May 2009 WaPo
China is also suggesting that nation-states importing its manufactures provide China with carbon off-sets so they can continue Business-As-Usual.
“China Seeks Export Carbon Relief: China has proposed the importers of Chinese-made good should be responsible for the carbon dioxide emitted during their manufacture.” 17 March 2009 BBC
EMR would amplify Grovetons observation (“I never thought I’d live in a world where the only people making economic sense are the Communist Chinese.”) with this:
“China governance structure is far more effective than the nation-states that purport to have democracies with market economies when it comes to managing what might be called “Libertarian Capitalism” or “Top of the Ziggurat Capital Selfishness” that characterizes Supercapitalism and widens the Wealth Gap.
As EMR spelled out in The Shape of the Future:
In the quest to find a sustainable trajectory for civilization, THERE ARE NO VILLAINS.
The vast majority of humans on the planet do not yet have governance structures or the information that would allow them to seek their individual and collective best interest.
Much worse, the vast majority of citizens in US of A and other quasi-democracies with quasi-market economies are badly informed and thus do not understand the cumulative impact of their actions and do not take actions to further their individual / Household enlightened self-interest.
Will China give other trading blocks, nation-states and Regions the incentive to undertake Fundamental Transformations?
Or will China control because others fail to make Fundamental Transformations?
The answer may be in the hands of the 20,000,000 who have lost their jobs recently in China. Will they understand the need for Fundamental Transformation in China?
As Louise Omundson of Great Falls (Montana) said some time back:
“Want Change (Fundamental Transformation)?
“Keep it in your pocket.
“Your dollar is your vote.
“Oppose the empire: Buy Local (Regional, “local” is a Core Confusing Word)”
NB: This issue is key to the future of the Commonwealth and thus a candidate for discussion on this Blog. For those interested in the settlement pattern issue, the prior post has generated several useful perspectives.