But with what money? I have yet to read or hear anywhere how China is paying for these massive purchases of world resources: oil, copper, timber. China is the #1 or #2 holder of USA debt instruments, which are liquid and negotiable. It would be fascinating to learn if China was unloading these instruments in exchange for resources. It would at once unwind their position, and spread the USA debt worldwide, further undermining USA reputation worldwide, if and when (necessarily when) the debt goes bad.
What is wonderfully bad about this as well, USA taxpayers are on the hook for $2 billion in loans to Brazil to transfer USA technology to Petrobras to help Brazil make these sales to China. (The story is only controversial in that the right wing press is blaming Obama for the loans, when he was about as involved as I was. But then, if we blame Obama enough, we'll forget the Bush policies.)
It is clear to me our system serves up strictly third, fourth, fifth rate talent into power... whereas the Chinese are fielding first stringers. We are relentlessly stupid in trade and policies, but then, perhaps, results reveal intentions. Like the Soviet Union, the game is over, now it is a question of just stealing what is not nailed down on your way out. Sigh.
Sunday, October 3, 2010
China Buying Resources Worldwide
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