This is a very long article, but worth the read, as it details China's plans to build a new 'Silk Road' (not the underground deep web tor website) that will link 3 continents and 4.4 billion people by creating new highways and sea ports that will link China with the Persian Gulf and Mediterranean Sea through the Indian Ocean, new energy, distribution and fiber optic networks expected to generate an economic input of over $21 TRILLION. Couple that with the $1 trillion China owns in U.S. T-Bills and it doesn't take Nostradamus to see what's happening. Part of the plan is to establish the Asian International Infrastructure Bank and establish the Yuan as the new international currency, which would cripple the value of the dollar. The impact this could have on our own economy is devastating and in a way, China could destroy our standing as a super power without even firing a shot. Is this a legitimate threat and if so, why isn't it be covered more? Thoughts? http://time.com/3893977/new-silk-road-global-economics/
It would be if left unchecked. Something I don't see the US doing. China also has to worry about their own growth. They are heavily propped up by their government. China also has their own debt issues. http://www.wsj.com/articles/chinas-central-bank-cuts-benchmark-interest-rate-1431251731 The biggest factor for China IMO is the growth of their middle class.
If left unchecked, but is there anything we can really do about it? We've already failed at persuading our so called allies against joining their bank and over 60 nations have already signed on. I guess we could join too, but I see that more as helping China then helping ourselves.
Yes, the more our economy grows and the stronger we become the harder it is for China. Don't forget, we are a nation of consumers as well. Look at import export numbers. China needs a strong US. I'd say we need each other.
Wait you mean to tell me government investing money in infrastructure is a good thing? The folks in Washington and in state governments won't touch infrastructure.
They will need us until they don't. We buy their stuff but they don't buy ours. If they build what they propose and make inroads in the entire Eurasiana realm our business will be less important to them.
Exactly.. And with the new bank that they're opening, the international currency will be based on the yuan and the value of the dollar will continue to plummet. I'm not quite sure why this is not more alarming to people. I guess there are more immediate things to be concerned about.
The only thing saving our butts is the "investment" China has in this country. If we go down, so does a lot of Chinese money. At least in the near term.
This is a big reason that we need to have the Trans Pacific trade agreement. China wants the Pacific and south Asian countries to gravitate toward the Chinese economic sphere. We need them to be in our economic sphere. The Yuan is a long way from crippling the US dollar which is very strong at present. No currency, not even the Euro, has the legs to supplant the dollar as the international monetary exchange. But we must no be complacent. The Chinese work hard, unlike most of the third world, and we cannot be lazy. We must stop wasting trillions getting involved in middles eastern civil wars and spend the money where it is important. I think China getting mired in the middle east may be a good thing. Let them assume the role of outside interloper to jihad against. The ragheads are not going to turn into good Chinese communists any more than they will turn into western democracies.
China is very much a paper tiger. Looks good on the outside, but remember, they are as transparent as we are. They rely on HEAVY stimulus. Also, they do rely on FDI. SO yea, they need us currently.
