How can we solve our problem with China?

[lord_carbo]

Re: How can we solve our problem with China?

okay, bu ttaht point leads to a recession, of which we are already in. the dollar is ats its lowest value. and this trade is just hurting it more, cause we pront more and more of it.

Inflation does not make a recession. It's actually a well accepted principle of macroeconomics that it's impossible to tame inflation without causing more unemployment (and with it, a decline in GDP) and vice-versa. When high inflation and low GDP growth go hand in hand, it's called "stagflation." Read this to understand.

About the comment saying trade is aggravating the recession: I bet every economist who knows about the Smoot-Hawley Tariff disagrees with you.

[kzh]

Re: How can we solve our problem with China?

There isn't much of a problem right now as China will definitely not do something so foolish and uncalled for, possibly self damaging. However, there is a problem which might arise in the future, when China overtakes the US in terms of its economy and with its current modernization of its military, it won't be long before they can match up to the technological superiority of the US armed forces though a combination of new, decent technology with their incredibly potentially huge citizen army. And by the way China has nukes too, it doesn't really take hundreds of nukes to shatter the American infrastructure, China has like 500? Nothing compared to US 's thousands, but certainly more than sufficient. All the talk about US 's industrial bases and such, they could be easily wiped out through missile bombardment and Bush's 'Star Wars' program would probably fail, as you see current statistics on missile interception is woeful, not to talk about a sudden attack. Yes and did you realize that China has the capability to strike down satellites in orbit? Pretty sure that would mess up the US.This is in terms of 'threat analysis' , I'm not saying China will attack, but once China comes into this position where chances are that it will succeed, then a problem may arise. Then, if China demands to be paid back, what can the US do? Refuse and have war declared? And US 's pushing around of other countries wouldn't help them get many allies too. Suppose by then China has established good ties with major countries especially in Europe and of course Russia. Even if war does not occur, when China takes the place of US, assuming that US does not do anything dramatic to prevent that, it could then slowly drain the US until US becomes no more like Britain is today compared to its former Imperial and Colonial glory. Things can happen in an instant and if the US isn't prepared for it, their whole foundation based on notions of their superiority will crumble. The Americans are not particularly nationalistic people too and in times of war, do you think they will support a war or favor a peace in which they pay the economic price, just like Venice? Do you know why (IMO) America was able to sustain itself through wars and disasters and such while the colonial powers of the past could not? Because it was big and had a big and committed citizenry with attractive ideals, not like the imperialists who only subjugated the populations of other countries, who had smaller populations of their own and could not coordinate their forces. BIG = WIN. Yeah the Romans could kill 10 for 1, but just happened so that they got weakened to the state of 6 for 1, not bad, but it also just happened that a bunch of barbarians with 9 times their size came along to raze their precious city. How Sad.

[Zythus]

Re: How can we solve our problem with China?

The controversial thing about China's future is their communism. Surely, China will become, or already is, a critical world power. Needless to say that military caliber will parallel or exceed that of the US. The country may be prosperous with building of new infrastructure, new alliances, and new resources, but the poverty and the quality of their citizen lives are unchanged. It is because of their communist policies that the nation is the poorest at its core, with no progression whatsoever. It may be powerful for the entity of China, but down for their denizens, they aren't doing so hot.
So, to upheaval and uproot the source of their innate problems, their communism needs to convert to, hopefully, democracy.