The United States owes a great amount of money to China. This is in addition to numerous problems with our domestic fiscal policy. That being said, there is a relatively simple approach to dealing with the deficit. We have to take a hard line against China. Raise tariffs and keep China back on their heels. For some reason people fear an extreme backlash from China over any potential trade war. In reality, China could do very little to hurt the United States. While they may be an economic superpower, they are not the military power that we are. They possess only a single aircraft carrier as opposed to our ten. And even this carrier is outdated and possesses mediocre planes to launch. Add to this the fact that this carrier isn’t even fully operational yet, and China looks more like a scared housecat than an Asian Tiger. They also lack the officers, especially admirals; necessary to operate the complex felt operations which go along with utilizing an aircraft carrier. Add this entire up and you come to three conclusions. One: they could not enforce any of the debts which we owe them should we choose not to pay them. Two: if a trade war escalated into a shooting war the American Navy would be more than a match for its Chinese counterpart. Three: A vast majority of Chinese trade goes through their ports. If we decide to close their sea lanes, they lack the power to do anything about it. They are relying on our goodwill to avoid becoming economically crippled. We hold the upper hand. We should act like it.
Sunday, February 19, 2012
Budget Problems
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