I remember the episode when CIC gave the Venezuelan President a hefty volume (and manual) on how to reform the economy and invest the money.
Sigh.
Plus aren't the Chinese loans in Venezuela all backed up by oil revenues?
Trade War with China
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I remember the episode when CIC gave the Venezuelan President a hefty volume (and manual) on how to reform the economy and invest the money.
Sigh.
Plus aren't the Chinese loans in Venezuela all backed up by oil revenues?
Whilst I agreed broadly with your statement that China needs to up its game and get better at nururing allies.
But the task facing China is much more difficult than the task facing US.
You suggest China should do what the US did to lead, to guide, to nurture allies.
However China is not in the situation as US was. When US was doing their bit in "winning allies". They didn't have the strongest economies, like the US and it's alies amounting to over 40% of the world GDP trying to undermine their efforts in nurturing allies of their own!
Also, just after WWII. US was in an enviable position of having a GDP that's more than 50% of the world. It could use its economic and military muscles at will!
China do not have any of the above advantages.
Furthermore. Even though Japan and Korea is a basket case. It was still better off than half of the world's economies.
The US have spent a lot of dollars in developing these economies.
Simply China don't have the kind of clout that US had.
So whilst I agreed your suggestion is what China should do ( a kind of wish list.) but in reality China need to search for a different strategy in achieving their goals
Agree. But this is a forum for exchanging knowledge and ideals. And to encourage different point of views.
While I agree with much of what you said. I think we need to cut him some slack. He maybe an idealist and is just in a hurry wanting to get things done quickly.
I think you are right. I remember reading somer hing like that. Sadly it looks like libya all over again!
Also I seem to remember hearing some US politician replying to a qustion asked by a journalist as to why US should intervene on a "undemocratic " country when the world is full of "undemocratic " countries.
His reply was without batting an eyelid that Venezuela was in their sphere of influence as it was in the back yard!
Phew! SCS anyone?
Equation
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But he hasn't given any idea or knowledge. I asked him what the specific issue is and how he would improve it an he's silent. I'm all ears. That's where the exchange of ideas should occur.
But maybe he's improving; he used to call the Chinese government short-sighted and blind. I haven't heard insults of the kind in the last 2 posts. Possibly shows on his part a growth in understanding that this is much more complicated then he initially surmised.
What makes you think that? Have opposition parties stated that they will not take any responsibility for public debt to China incurred by the previous administration?
Let's look at Sri Lanka for example when the new incoming government of President Sirisena was going to move away from China and reorientate back to the West Japan and India. Is it happening by way of the Hambantota Port lease with China scrapped by public announcement and a stroke of the pen.
If incoming governments can refuse responsibility for the public debts of the previous administration, then no country will be willing to lend.
Agree.
Depends on what you mean by "poverty".
Yes, if the US loses its reserve currency status, other countries will be spending stashes of dollars, and there will be a brief increase in demand for US products. The American manufacturing base has been hollowed out, however, so the US will have trouble meeting this demand. Which means inflation will increase for years, as that is what inflation is: an excess of money chasing too few goods.
Therefore, inflation will be high and will remain quite high for years -- for more than long enough to be firmly established -- and that will be doom for at least half the country.
A reserve currency needs a stable country and a strong military to back it up. Dollar will remain reserve currency as long as those are true. However, dollar as the reserve currency is in turn the reason why the US military is so powerful. The downward feedback loop will probably take time (weaker dollar, weaker military, weaker dollar...).
China is stable and has a strong military. CCP and Chinese values guarantee stability as long as people aren't starving.
Hard to say what will happen.
China is stable and has a strong military. CCP and Chinese values guarantee stability as long as people aren't starving.
Hard to say what will happen.
Jura The idiot
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The consequences of the US $ looses it's reserve currency status will have a big impact on the US economy.
First. Almost every countries in the world hold some sort of reserves in the form of US $.
If and when US $ is seen as not worth holding as a reserve currency. There will be a massive sell off at worse, which would depreciate the $, leading to inflation spiral. Or countries will try to redeem the $ by buying US goods and services.
Now, before anyone think that's good. Have a think about it. It'll mean US production will be geared to satisfying demands from abroad (and since the US is running at full capacity and full employment as boasted by Trump) leaving little to satisfy home demand leading to inflation spiral!
Either way. It's going to be bad for the US economy.
It's a basic fact that the US who had enjoyed the fruit of as the world currency is in fact doing so on IOUs. And all these IOUs will have to come home to roost sometime, and when it does, it's not going to be pretty!
First. Almost every countries in the world hold some sort of reserves in the form of US $.
If and when US $ is seen as not worth holding as a reserve currency. There will be a massive sell off at worse, which would depreciate the $, leading to inflation spiral. Or countries will try to redeem the $ by buying US goods and services.
Now, before anyone think that's good. Have a think about it. It'll mean US production will be geared to satisfying demands from abroad (and since the US is running at full capacity and full employment as boasted by Trump) leaving little to satisfy home demand leading to inflation spiral!
Either way. It's going to be bad for the US economy.
It's a basic fact that the US who had enjoyed the fruit of as the world currency is in fact doing so on IOUs. And all these IOUs will have to come home to roost sometime, and when it does, it's not going to be pretty!
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