The Conservative Cave
Current Events => General Discussion => Topic started by: formerlurker on August 20, 2010, 03:58:57 PM
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China Wealthy? That’s Rich!
And even if it was, it’s time to realize that an affluent China could economically benefit the US.
It was big news around the world: China has “overtaken†Japan as the world’s second-richest economy.
Except, well, it’s not really news, it’s not really big, and it’s not entirely true.
Let’s take the last part first. Yes, technically, China’s gross domestic product is now slightly ahead of Japan’s.
But GDP is a gross statistic. It doesn’t tell you nearly as much as you might think. In a very real way, China is still poorer than Japan. It’s also poorer than Tunisia, Ecuador, Gabon, Kazakhstan, and Namibia.
http://www.nationalreview.com/articles/244273/china-wealthy-s-rich-jonah-goldberg
I have been saying this for a very long time. Ditto the Heritage Foundation.
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And if the Chinese wanted their bonds cashed out, and we actually had the balls to cut off imports of ALL of their goods, their economy would collapse faster than cotton candy in a monsoon.
Our trade deficit with China is on the order of $300 Billion. That's 10 percent of their GDP. It's also about 6 times the interest they get on our T-Bills. Think they don't know that?
I've said it before, I'll say it again--the Chinese need us more than we need them. WalMart be dammed.