Tuesday, February 02, 2010

Pauper's Alliance

From the NYT article Huge Deficits may alter US politics and Global Power:

....the possibility that the United States could begin to suffer the same disease that has afflicted Japan over the past decade.* As debt grew more rapidly than income, that country’s influence around the world eroded.

... Lawrence H. Summers, used to ask before he entered government a year ago, “How long can the world’s biggest borrower remain the world’s biggest power?”

The Chinese leadership, which is lending much of the money to finance the American government’s spending...NYT

Should this turn out to be an accurate guess, then one has to wonder what is the biggest threat, the ones which require the US to keep its forces all over the planet to protect the planet from itself; the one(s) (China?) which require it to keep its forces in Okinawa while debating just where in Okinawa to keep them with the people who own the country; or the continuation of borrowing from everyone until it can borrow no more?

The US-Japan Security arrangement looks like it might have a bright future with each country out of money, but expecting the same or more from one another while at the same time China and others whiz on by.

China has warned the US president that it will harm ties between the two countries if he meets the Dalai Lama.

Chinese Communist Party official Zhu Weiqun said there would be "corresponding action" if the meeting went ahead. BBC

China does not seem to be very cowed.

*OK, this is a bit nonsensical. Japan's problems are not the result of excessive borrowing from other countries. Not much else similar between the two countries and their financial problems that I can see. The always imminent Japan Disease.

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