11/15/2010

The waning of an evil Empire

Three failures marked the Asian tour of Obama and Hilary. They had some success in India with offers of more biz and an UN Security Council seat dangling at the end of the stick. And India was salivating. The Security Council seat is nothing but a red herring as the US knows that China or Russia will definitely veto it. In Indonesia, it was just testing water as the fear of a muslim state is apparent. Other than promises, nothing tangible came out of it. The Indonesians too are conscious of the US intent and are wary of being dragged into the bigger evil scheme precipitating in conflict and disorder. Asean too gave a slap to Hilary by sanctioning the election in Myanmar. And with China taking the same stand as Asean, it became a left and a right slap. It must be very disappointing after painting Myanmar in thick black to see Asean and China saying otherwise. The third defeat was in the APEC Summit when nothing came out in favour of the Americans. Increase protectionism and the attack on Chinese Yuan no longer receive support from other nations. Both were not seen as worthy causes for support. A strong Chinese Yuan would mean higher cost and higher price for Chinese products which the rest of the world, including American citizens will have to pay. And it will do nothing to help unemployment and trade imbalances. The real problem is cheaper labour cost and infrastructure cost in China. When the Chinese workers are prepared to eat less and live simply, and produce more, no amount of currency manipulation can turn that around to favour the US. The US must reexamine itself and its belligerent policies towards other nations. They cannot impose leadership on the rest of the world when it can’t even solve its own domestic problems. And no country will want to be embroiled in warfare at the beck and call of the evil Empire.

2 comments:

  1. Not as simple as you put it. What goes on behind closed doors - or what is discussed "off the record" -- you never know.

    Other countries are pissed of with the low (due to plenty of money printing) value of the Yuan -- but no one has the Balls to make a fuss for fear of "upsetting" the Chinese. So Big White Daddy America stands up for the rest of the trading world. Like I said, we may never know what was really discussed behind closed doors -- away from the media.

    > A strong Chinese Yuan would mean higher cost and higher price for Chinese products which the rest of the world, including American citizens will have to pay.

    Not necessarily. It'll make other manufacturing cuntries like Thailand, Malaysia, Africa and Vietnam more competitive. The low Chinese Yuan hammered the textile industry in Africa, for example. Perhaps now those tribal savages could become more competitive and actually make a buck to spend on American rap music videos so they can be more "black" -- i.e. "hip" black, with fancy cars, bling, bitches and 'ho's.

    > The real problem is cheaper labour cost and infrastructure cost in China. When the Chinese workers are prepared to eat less and live simply, and produce more, no amount of currency manipulation can turn that around to favour the US.

    No problem. The Chinese have a lot, I mean ALOT of cash. Productivity increase ==> the amount of capital investment. They have plenty of capital so there is no reason why the Chinese can't rise to the "new reality" and compete.

    > The US must reexamine itself and its belligerent policies towards other nations.

    Of course they will. It is called US Foreign policy and deals strictly and specifically with US interests ONLY.

    The US are masters at the geo-politics game. They don't "win" every encounter, but they "win" a helluva lot.

    > They cannot impose leadership on the rest of the world when it can’t even solve its own domestic problems.

    It seems from media reports that the US "imposes" leadership. But actually they use carrot and stick -- the only real way to negotiate with species homo sapiens.

    You will find that what passes for "imposing leadership" is nothing more than bribery and threats to foreign governments. US Foreign policy is all about US interests -- i.e. keep the US "free" even if it means supporting a brutal dictator in some foreign land, who will screw and brutalise his own people.

    Capitalism is pretty "free" in China. There are less "hurdles" to investment than in the over-regulated west. It won't be long before China becomes an even fiercer competitor.

    Surprising what you can do if you have Money :-)

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  2. Behind closed door I believe the Americans would have pulled the Chinese by the collars and behave like the gangsters they were. Unfortunately the Chinese would have brushed it off and stood in a wing chun pose and waiting to hit back if the Americans try to do it again.

    There is a kind of stalemate at the moment.

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