Time tip-toeing with a Tiger

              A 100 strong delegation of American business and government officials are in China this week, dancing with the Tiger. In the book,  “ The Coming China Wars, “ by Peter Navarro, China is portrayed as soon to be at war with America and the rest to the world. But not with a sword and military as you might first think; but in regards to economic issues the world over, and he is right! So while most Americans wonder why we can’t seem to spring back from our economic depression alone and can only grumble at the slow pace we are recovering at, we all need to realize the fist shots have been fired and we aren’t at all prepared to defend ourselves!

             While we fought wars with borrowed money, the Chinese built roads in the Congo and Africa and helped emerging countries develop their infrastructures to get at their wealth of raw materials. Subsequently making deals that once mined that those raw materials would go back to China to get processed or at least processed locally in a factory the Chinese helped build and run. While we played policeman to the world, they minded their own business; literally their businesses around the world and it has paid off handsomely.  

             Our shift from a factory economy to one dealing in-services and financials has hurt us in the short term. That we now make the majority of our money on trading things like securities and various finance instruments seems odd, but it is true.  One may question that such things are such a large part of the American economy, but in reality the trading of derivatives almost collapsed our entire financial system.

             Timothy Geinter and Ben Bernake, looking more like two front guys for an aging mafia group, are trying to get the Chinese to revaluate the currency there so that the debts we owe and products we by cost less. Like going to the bank and asking for a better rate. The reason of course being that while Europe’s economy has yet to recover, the American economy is showing signs of new life and could use a little bit of help! Reminds me of something Sawyer said last week on the last episode of Lost; “it’s a long way to go for such a weak con!”

            The goal of The Obama Administration for sure is to get China to help us out. The Chinese apparently feel they have done enough already and any more action on their part must really be thought out and be in line with party thinking. They bought our securities and hold a large part of our debt in their hands. Granted an American government backed security doesn’t have the glow about it that it once did, but its still backed by the good ol USA! They don’t seem that moved by the argument!

            Hard to discuss money matters with astute bankers who see that any efforts to establish new regulation to reel in bankers and investors has stalled in our Congress. In their eyes, the banking industry may have survived this time, but knowing full well that it could happen all over again, the Chinese appear hesitant to our requests for more support.

              Face it; China likes making money. And if they can’t make it abroad, they will make it at home. As for talks about things North Korea is doing or Iran the talks seem stalled as well. Again, old friends with similar ideologies are a lot tighter than any need to bolster USA money markets.  And that may be toughest lesson these bureaucrats learn on their trip, as they tip toe with the tiger calling the tunes!

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About grantman

Welcome to the Time Pieces. 299 word short essays on a variety of subjects as varied as free thinking will allow! All only 299 words long. Enjoy the archives and thank you for following and sharing my pieces with your friends... Grantman
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