So why does China lend to us?

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So why does China lend to us?

Post by swiftfoxmark2 on Fri Jul 16, 2010 9:50 am

The knee-jerk answer to that question is because they always wanted us to own us, and this is certainly a reasonable argument. But we could default on our debts at any time, provided Congress has the will to do so (and they won't no matter how many Republicans are elected).

But then I realized something just now. China knows that most of our borrowing right now goes toward 'emergency' military spending with regards to foreign wars. In essence, they are lending us money to fight wars with other nations overseas. There are many benefits to doing this.

For one thing, if you have a nation that is hostile to you and your interests, what better way than to have another nation do your fighting for you. We certainly do this with regards to Israel and several Central and South American countries.

Another benefit is based on the premise that no nation can survive when it is in a constant state of war, especially when it is running a deficit. It is no real secret that China doesn't like our nation and what better way to destroy us than to support us in our constant wars.

Lastly, a nation that is constantly at war and has a large military apparatus will always be viewed with some level of distrust and often outright hostility by many other nations. Following the Civil War (or The War Between States), Canada was incredibly nervous about our large military presence that could easily be employed to go north. Granted, there was some inclinations that the Union victors would retaliate for British support of the Confederates, but those fears ultimately proved to be not justified.

So China wants to lend to us in order to facilitate wars they do not want to fight themselves, destroy our economic capacity, and ultimately tarnish our image with the rest of the world and make them more uncooperative.
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Re: So why does China lend to us?

Post by Doc Trock on Fri Jul 16, 2010 11:46 am

Babylon will fall in a single day......

I suppose the question to be asked: "Is America Babylon? Or part of it?"
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Re: So why does China lend to us?

Post by swiftfoxmark2 on Fri Jul 16, 2010 3:44 pm

I've been reading The Return of the Great Depression by Vox Day and it's fascinating to read about how messed up our economic system is. It is literally based on debt, where production rapid production constantly occurs because companies are in debt and they need to pay it off. But then they take out more debt in order to produce again because they're broke and the cycle continues. Vox's main point on this is that there has to be an upper limit, which any sane person of average intelligence can easily see.

If you think about it, this is how government operates and all the companies that either support government or are supported by it. There are companies out there that don't have debt and therefore don't operate this way (Microsoft is a big one I believe), but this notion of building a better widget in order to prevent the banks from catching up to you is a very unhealthy way to manage a company.
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Re: So why does China lend to us?

Post by imaginethat on Fri Jul 16, 2010 4:11 pm

China enjoys our fighting wars for their benefit.

They got big oil contracts in Iraq.
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Re: So why does China lend to us?

Post by Doc Trock on Fri Jul 16, 2010 4:54 pm

swiftfoxmark2 wrote:I've been reading The Return of the Great Depression by Vox Day and it's fascinating to read about how messed up our economic system is. It is literally based on debt, where production rapid production constantly occurs because companies are in debt and they need to pay it off. But then they take out more debt in order to produce again because they're broke and the cycle continues. Vox's main point on this is that there has to be an upper limit, which any sane person of average intelligence can easily see.

If you think about it, this is how government operates and all the companies that either support government or are supported by it. There are companies out there that don't have debt and therefore don't operate this way (Microsoft is a big one I believe), but this notion of building a better widget in order to prevent the banks from catching up to you is a very unhealthy way to manage a company.

It might be unhealthy for the company, but who gives a crap about the company? The CEO's and officers are only concerned about enriching themselves.....like 3rd world dictators. They work for a couple years, cash out hundreds of millions....and move on. No problem.

Gone are the days of JC Penny, Henry Ford and others, who put the company first.
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