Pay the Price for my Sins
Colonialism at its Worst
One reader commented that China's export-focused economic miracle is now somehow failing, due to unspecified intrinsic flaws, and that China must quickly restructure its economy to focus on domestic consumption (like the US), and naturally concentrate all those billions of purchases on foreign goods.|
Let's reverse the circumstances. If it had been Chinese banks that created the derivative mess and bankrupted China's domestic economy, does anyone suppose that the US and other Western countries, in an hysterical fit of good-world-citizenship and Christian charity, would initiate a stampede to the malls, encouraging everyone to buy Chinese products to help China recover?
Of course not. The West, and most especially the US, would revel in schadenfreud, and arrogantly boast about the superiority of the Western economic system.
And of course, that economic superiority would be founded on the religious bedrock of multi-party democracy - the magic Hogwarts potion that incontrovertibly demonstrates Western moral supremacy. And cures warts, too.
This is colonialism at its worst. China has a responsibility to bail out the US (and the former colonial powers in Europe) because . . . well, because it's a colony. It's inferior. It isn't white. A colony is not permitted to surpass its master and, if after all the looting, it still retains some riches, it has "a responsibility" to use them for the benefit of its masters.
All of the recent statements in the Western press about how China should be a "good global citizen", stem from this colonialist attitude. "I am superior. What's yours is mine. And if you won't give it to me, I have the right to take it."
This is the source of all the critical and moralistic propaganda concerning China's RMB, high-speed trains, trade surpluses, system of government, and much else. It is the source of the constant carping about China's shortcomings - real or imagined.
This attitude may make good press in the US election atmosphere, but uninformed ideologues may be tempted to accept this kind of foolish reasoning.
It is true that China is looking to increase domestic demand as a % of GDP, but that is part of a planned internal restructuring of the economy for China's own sake. It is not being done for the purpose of bailing out the Goldman-Sachs-devastated US economy.
The customers have been spendthrifts and have gone bankrupt, but according to Carney and the WSJ, it is the shopkeeper's fault that he is now experiencing slower sales. The shopkeeper was saving money and investing while the consumers were living on credit and using their homes as ATMs.|
And now that the "immorality" of the shopkeeper's flawed behavior is apparent to all, it is his Christian responsibility to bail out all those bankrupt consumers that "he created".
And how does he bail them out? Why, by becoming a spendthrift himself, of course. Surely that's obvious even to you.
And of course we still have Paul Krugman, the NYT's Renminbi Rambo, as always breathlessly eager to tell us the entire world financial mess occurred because "the Chinese save too much".
Paul, I just had a thought: maybe this process would work in reverse. You want desperately for China's economy to collapse, right? Well, maybe you could convince Americans to begin saving too much. And then (at least, according to you), Pop goes the Dragon.
It's unfortunate that Carney, Krugman and too many columnists seem to pass their thoughts through the typical Western (US) filters of Christian/capitalist white supremacist colonialist ideology. It is this kind of thinking that prevents the painful Western ecnonomic restructuring needed, most especially in the US.
Recently, the media focus has been cleverly placed on Europe, but let's not forget that the US troubles are far deeper and structurally far more difficult to repair, than are those of Europe.
It is not Europe that has almost totally deindustrialised itself to the point where it has nothing to sell that anyone cares to buy; it is not Europe whose infrastructure maintenance has been ignored for at least the past 40 years; it isn't Europe whose education system has been "dumbed down" to the point where their citizens can't find their own country on a world map.
And it isn't Europe that has borrowed trillions of dollars to fight illegal wars in the pursuit of world domination.
And let's not forget that the world's financial mess was entirely created in the US and only then propagated wordwide.
Let us also not ignore the fact that Europe is taking serious remedial action, even if it is stumbling around, while the US has taken no effective action, neither to remedy its own critical structural deficiencies nor to improve the lot of its own citizens.
Actually, that's not quite true. The US did take three stunningly meritorious actions. One was the 7.7 trillion dollar bailout of the bankers who, unlike the people, were "too important to fail". The second was the series of "quantitative easing", ostensibly to prod the US economy, but actually to simply inflate itself out of debt and pass the pain to the rest of the world - especially the developing world.
And of course the third was to launch a totally illegal and unjustified war against Libya, and to then begin beating the drums for World War III by attacking Iran. If that isn't being a responsible world citizen, I can't imagine what would be.
The enormous flood of QE cash was eagerly grabbed by the US banks and sent abroad, creating stock and real estate bubbles in other countries and putting enormous pressure on weaker developing currencies.
And, lastly, let us not forget the US has engaged in a special kind of Economic Vandalism with some frequency in recent history.
Every world financial crisis, including the Great Depression, began in the US in the same way and for the same causes: excessive liquidity fueled by easy credit rather than savings, low to zero interest rates, excessive consumption and speculation fueled by that credit and leading to one kind of asset bubble or another, and a huge helping of just plain greed.
Those same characteristics in the US were the foundation for repeated economic disasters that freely spread throughout the world. And, as always, the US was able to mitigate domestic effects by inflating itself out of danger and passing the adjustment pain to the rest of the world.
And that's the advantage of having the world's only reserve currency.
The world will never have a stable economy until the US government kills the FED. But several US presidents have been assassinated (or suffered assassination attempts) arguably and plausibly for acting on, or even for having, these thoughts. International bankers are far more powerful than the 'leader of the free world'.
Read "Who owns the US dollar? The Federal Reserve is NOT a US Government Entity" Click here
Read "Let's Have a Financial Crisis" Click here
Read "The dollar is our currency, but your problem." Click here
Read "US Harry Potter-Nomics" Click here
Read "Scrap Dollar as Sole Reserve Currency: From a UN Report" Click here
Read "Paul Krugman Appears to have Lost his Marbles" Click here
Read "Paul Krugman, Anti-Inflationist: I have no Inflation - Because I sent it to You" Click here
Read "The Structure of the US Economy Today" Click here
Read "A brief look at Trade Surpluses and Deficits" Click here