2/21/09

Hillary 'visits' China

Hilary Clinton is visiting China to talk about the financial crisis, trade, and human rights.

The US needs access to the wealth of US dollars owned by the Chinese which is the by-product of years of running a trade deficit. The Chinese need the American economy to run to achieve their economic goals, and stop the declining growth of their industrial expansion to avoid local unrest.

By borrowing Chinese dollars, the US has again grow their debt, but might also have set up future generations with an enormous task of paying back interest. American 'winner' mentality dictates that this cannot happen.

Nothing is what it seems. China is hardly a communist nation. In essence, it is closer to a imperialistic feudal technocrat society where in a one-party system the biggest manipulative technocrat 'entrepeneur' ends up on top. By standards, it more resembles one big capitalistic Coca-Cola Inc. than a European social state.

I have little doubt what will happen. The Chinese will keep on investing their money in the US but will strike a hard bargain in diplomatic currency. And not even improbable, given Chinese tradition, the actual ROI on their supplied capital will never be known.

A new Chinese-American symbioses will grow if the Chinese will agree to the right bargain, and the Europeans risk being not part of that profitable deal.