Anton Goryunov reports from Beijing: You know how it happens in life: if you owe the mob any money, they’ll give you a chance to pay it back. But if they owe you, then be prepared to get a bullet in the back of your head at any moment.
So if we assume that governments behave in a similar manner to the mob, especially governments with a lot of military muscle, the Chinese should be very worried, considering how much the US owes them. Some say it’s around $7 trillion, some say it’s closer to $10 trillion and some say it could be much more. (There are lots of ways of hiding foreign national debt these days.)
Washington keeps urging Beijing to buy more of US Treasury’s IOUs, claiming that if China keeps the American economy afloat, the US will continue to buy Chinese-made goods and keep China’s industry going. It’s rubbish, obviously, as the Chinese are buying pieces of worthless paper mostly which are losing their value with the mighty quantitative easing that the US Federal Reserve, a private entity by the way, is conducting, but it seems to work at the moment. In order to cling to power, Chinese communist rulers are prepared to do anything – and the cunning Yanks know that.
Now, I’m no Milton Friedman or Jeffrey Sax, two fine economists who f..ked up big time, along with other big brains, failing to see the Second Great Depression coming in 2008, but even I understand the rule of big debts that mobsters all across the world aspire to: if you owe a lot of money to people and you know you can’t pay it back, you whack ’em.
So let’s transfer this rule of the underworld to international politics: the US has been known to act in accordance with its own interests, showing two fingers to the rest of the world. America has never been shy when it came to fighting for its economic and financial dominance.
Which brings us nicely to the current US-China situation. Uncle Sam must be tempted to tell China to get lost. The way things are going, America’s debt to China will be growing. So the easiest solution for Washington would be to tell the commies in Beijing that they have as much chance of getting their money back as England winning the World Cup in Brail, or Germany winning a war, if it decides to start one, or Belgium sorting out its political crisis.
And what options would the Chinese have then? None, really. Oh sure, Beijing will issue one threatening statement after another, but the commies will know that nothing will come of it. The US has the nukes and the capability of wiping out all the Chinese in a couple of hours. Everyone knows that the crazed American generals would press the nuclear button with no hesitation. Remember Hiroshima and Nagasaki? There was no hesitation then. Especially with Nagasaki, even though it was already clear from the first bang that there was no need to whack another 200,000 people to make a point.
I can just imagine a scene in the White House where President Obama and his military advisers, most of whom are bloodthirsty Republicans, by the way, toy with the idea of blasting the Chinese to Kingdom Come and sorting out their budget deficit. ‘It’s radical, boss,’ I can see one especially mad general saying, ‘but it’s quick and easy. Bang, bang, and several trillion dollars of national debt are wiped off our balance sheet.’
I bet it would sound tempting to Mr Obama. So if I were the Chinese, I would be very worried at the moment. And even thinking of offering the Yanks to write off their debts myself. To stay alive, that is.
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