Will China Take Over America because of our debt

No. In ancient Greece prophets whose words did not come to pass had their tongues cut out. Fortunately for me, Greece is many millennia behind and far away. But my prophecy still stands. And here is why.

Yes, China has been racking up America’s bank account but for the following reasons, in no particular order, not much will come of it.

  • The Chinese economy is “managed” which means someone decides what needs to be done and where. This is the same economy as had the Soviet Union, now pretty well dead. In contrast to the American economy when it is working properly, this means not economic but personal goals dominate decisions. For example, local politicians want to look good to others so they build large apartment complexes in open spaces where no one lives, and where no one is expected to live. Frequently the construction is shoddy, bids are based largely on bribes, so the buildings, not being lived in or maintained, soon fall into disrepair. If someone owned them and cared, this would not happen so often. Bad investment wastes resources which no amount of lending to the gringos will alleviate.
  • China is not run by businessmen but by politicians who have no especial interest in the country beyond their own family and future. Communist officials make large salaries but because they have total control and no free enterprise, they can on the side demand large bribes from contractors, businesspeople, vendors, builders and lesser politicians. They then take the money in billions to other parts of Asia, Canada which has an open door immigration policy or even America via anchor babies, now increasingly popular. China is being drained dry of everything but people. Still there are billions to feed, and they need seed corn, fertilizer, equipment and parts which all take money. It’s a recipe for unrest, war, starvation, and revolution.
  • Another important reason is the great unrest in China, particularly the young people who have computer skills and can by-pass many restrictions on the internet. Stuff rigidly controlled by the state leaks out anyway. They know much of the world is better off than they and not just Europeans. They see all kinds of free Asians in train stations and airports. Freedom apparently is something for others and they are not happy.
  • In contrast America is getting back on her feet. She is well on her way to dominating the energy market; technologically she is way ahead of everyone else. China spends a fortune stealing technology and by the time they have made something they can sell, the USA has a product even better to take its place. Finally, the west has a tradition of resilience, innovation and that stiff upper lip. Dependence on the government as a way life has always been lived in much of Asia. Change is hard for a society but changing one’s mind about the patterns of life is a great challenge. I believe China will do well in the long run but not because they have our money.

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