Re: Re: Syria: Assad no longer legitimate, says Clinton

[Guest guest]

China has been playing the long game. They have been planning for decades to soak up manufacturing capacity from the US and Europe in order to help its economy, weaken potential enemies and get an economic hold on them. What a lot of people don't understand is that these trade deficits mean the holding nation owns production or assets of the issuing company. By that I mean its not just dollars China has in the bank, it is a claim to things made in the US, or real property like companies or land and resources. China has been buying up both and most people don't realize it.

By the same token, since the claim is in the national currency, it can only be spent in that nation, or the currency can be traded for other currencies. However, usually it is spent in the issuing country. So, when the US gives aid to another country, say military aid, that money is usually spent buying US weapons and other gear. Same goes with other kinds of aid. China knows this and has been trying to get into the international arms game for this same reason. They know that if they make a good enough product that people will buy, particularly the more fed up with the amateurs in the US now. It will also draw them closer to China which will mean more of other kinds of business as well, and less for the US.

In a message dated 7/11/2011 10:10:37 P.M. Eastern Daylight Time, no_reply writes:

What I have been noticing lately is that contries that have economic problems are suddenly finding themselves with a new and wonderful friend: China. They tend to buy up debt to prop up faltering economies. I'm also thinking that selling weaponry to foreign countries might be a great idea for China. Presumably, all arms manufacturies are goverment run, and so while they are claiming to produce weapons for a buyer, they can run their factories full bore and stockpile those weapons for themselves without anybody really noticing what they are doing. They can break armaments treaties that way.Administrator