Reality Check: ...There is no way America can export itself back to national solvency. As Xi Jiping knows only too well, this is a matter of technology. As soon as American corporations come up with a more efficient new production technology, they ship it to China or elsewhere overseas where it will boost the productivity of foreign workers. Any corporation that wants to sell in China must not only manufacture there but bring its best technology. Then it is expected to export back to the United States. All this means that the American economy has passed the tipping point. It is now simply too hollowed out to make a recovery… In proceeding full steam ahead towards national bankruptcy, the United States is world history’s ultimate example of the triumph of ideology over commonsense. Beginning in the Eisenhower era, succeeding Washington administrations have bet the farm on ever-freer trade. Supposedly this would strengthen American economic leadership. To say the least, the powers that be in Tokyo, Seoul, and Taipei, as well as in Bonn, Frankfurt, and West Berlin, discreetly laughed at such epochal naïveté. No nation has understood the stupidity of America’s trade policy more clearly than post-Mao China. On the one hand, American leaders have thrown the U.S. market wide open to Chinese exports. On the other, they have ignored Beijing’s in-your-face blocking of virtually all advanced American exports to China. The United States has been by far the most serious victim of Chinese protectionism. As Chinese leaders know better than anyone, the ultimate issue is American corruption. Washington is actually far more corrupt than Beijing. If you want to get something done in Washington, you do what you do in Jakarta: just slip some money to the right people. The point was made as far back as a generation ago by the prominent Japanese commentator and author Shintaro Ishihara. From an East Asian point of view, the United States is already, in its political dynamics, a Third World country. Even South Korea, with just one-seventh of America’s population, is a bigger exporter to China than the United States. On a per-capita basis, South Korea’s China exports are eight times larger than America’s. Korea’s exports moreover consist almost entirely of leading First World goods such as highly miniaturized electronic components, whereas the main things America sells to China are Third World-ish items such as iron ore, coal, and wheat….
Posted on: Mon, 24 Nov 2014 18:08:50 +0000
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