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Topic ClosedWhy are we learning Chinese?

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Direct Link To This Post Topic: Why are we learning Chinese?
    Posted: 21-Feb-2006 at 14:02

I understand what you are saying, but think if it in another way.  China does not have to buy weapons from anybody.  The can and have developed weapon systems themselves.  They can also buy from the Russians & Eurpoeans.  Who help the Chinese develop the nuclear bomb?  Russia, maybe limited assistance but I highly doubt it. 

Well, then they'll have cash to build weapons factories, whether they buy them or make them is not really the important thing.

Every country will try to better themselves militarily.  It is a process that no one country can prevent.  

Just because they will try to doesn't mean we have to cede the advantage to them.  Your idea is one that will lead to decay and vulnerability through thinking "well, there's nothing we can do, so we might as well do nothing."  It was people thinking like that that failed to stop the remilitarization of Germany after World War I.

Lets say China will take the Spratly Island.  Who are we to stop them. 

We would be moronic not to stop something that runs contrary to our interests, and letting the Chinese get away with military adventurism and conquer one of the most oil rich areas in the world would most certainly be contrary to our interests.

Most "terrorist" are recruited from economically depressed regions globally.  That is the problem & solution.  Job opportunities gives an individual an avenue to lead to a better life.  When one has no other options they resort to more "unconvential" means. 

Most terrorists are actually from pretty wealthy families, most members of Al Qaeda are disillusioned middle class members.  Bin Laden was from the richest family in Saudi Arabia with the exception of the Al Saud family.

However, to pick a fight with someone just because we have to be big man on campus is ill advised.  Especially when that someone has not threaten us.

If we are number one, and they are number two, and they are trying to become stronger, that makes them our enemy in and of itself.

Trying to retard someone growth willl lead to resentment by many.  Sooner or later, those we supressed will get together and plan our undoing.  The U.S. has to realise that we do not rule the world and we have to be willing to reconcile with difference we have with others in a non military way.

I'm not saying we should suppress the entire world, just China because they're trying to take over our mantle of superpowerdom.  Just as I don't believe it would correct to think that the world consists of USA vs. the rest of world, it would just as inaccurate to think the world sees it as everyone vs. the USA.  Even with China, we have plenty of people who are equally if not more worried about them, Japan, Taiwan, Vietnam, and India to name a few.  We even suppressed two of those aforementioned countries and now one is our greatest ally in the region and the other is warming up relations with us because of trade and the China threat, among other things.  I can also think of very few times a collection of little states that were oppressed by a large one banded together to attack a hegemon, and even fewer when they were successful.  Alliances are notoriously difficult to forge and maintain.  It took about a decade of German saber rattling for the nations of Europe to form the Entente, and it took German attacks on the USA, UK, and USSR for them to ally against Hitler, it also took Napoleon's debacle in Russia for Prussia, Russia, Austria, Sweden, and Britain to all unite against the French empire.



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Direct Link To This Post Posted: 21-Feb-2006 at 14:29

Genghis,

Your points are well taken.  However, on your points about the terrorist, the "foot soldiers" are from poor families. 

On the China issue, I don't see China trying to take our position as the world superpower.  In fact the greatest beneficary of China's econmic boom is the U.S.  What I get from your post is that even though China or any other nation is not our enemy, we should make them our enemy because they are passively threatening our global position.  The prudent way would be to make our potential enemy our friend/ally. 

I also noticed you did not reply to the Florida comparison.  I really would like to get your view on that. 

I am not advocating to cede the advantage.  We have to pick our fights. Those islands are not important to us.  If we pick a fight with them, they may do the same with other issues like the Panama Canal, Venezuela, etc...  then it becomes a cycle where military conflict will become the only solution.  I am advocating that we find ways to de-esclate the situation. 

Also we do not have to be the world police.  We cannot afford to be the world police.  That is the reason why we have this ballooning budget deficit.  We have to pick our fights.  We fight every little battle around the world, we will collapse in a New York minute.  Look at it this way, the foreigners are financing our military endevours.  That is really what it boils down to & how long will this continue. 

Another case in point.  Iran and Iraq.  Now that we are essentially in a mudfest in Iraq, do we have the military ability to deal with Iran and N. Korea?  See my point, we have to take prudent decisions before we barrel into a situation.  In hindsight, Iran has a greater ability to acquire WMD than Iraq & we would have found out. 

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Direct Link To This Post Posted: 21-Feb-2006 at 14:42

Genghis,

As I recalled, I stated to you, every collapse of every great civilization had one common component.  Economic/budgetary collapse.

The U.S. is in a situation where if this current trend continues, the Great Depression will look like a walk in the park.  The solution is what I expressed on the earlier post about economic development.

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Direct Link To This Post Posted: 21-Feb-2006 at 15:03

I really don't think the US is in a bad economic position, debt as a percentage of our GDP is less now than it was after the Second World War and much less than many other countries.

About the Florida comparison, sure China has some "right" to that island, but it would be dumb of us to let them exercise that right.  As long as we keep Taiwan as a thorn in their side, they will be distracted from doing other things.  I really don't care about whether something is "right" or "wrong" in international politics, those are hollow terms that are only useful in so far as people can be tricked into believing in them to our advantage.

And China is not passively threatening our position, they are actively doing so.  Much of their military modernization is directed solely against us and our allies, their emphasis on assymetric warfare to defeat a much bigger opponent in particular, who would that be except us, and their new power projection capabilities like in-flight refueling aircraft and long range bombers.  Look at their military exercises with Russia, they were a aimed at "taking control of a country where civil order had collapsed" (i.e. invading Taiwan) and "preventing foreign powers from taking advantage of the situation" (i.e. preventing US reinforcements from reaching Taiwan).



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Direct Link To This Post Posted: 21-Feb-2006 at 15:19
Originally posted by Genghis

I really don't think the US is in a bad economic position, debt as a percentage of our GDP is less now than it was after the Second World War and much less than many other countries.

About the Florida comparison, sure China has some "right" to that island, but it would be dumb of us to let them exercise that right.  As long as we keep Taiwan as a thorn in their side, they will be distracted from doing other things.

And China is not passively threatening our position, they are actively doing so.  Much of their military modernization is directed solely against us and our allies, their emphasis on assymetric warfare to defeat a much bigger opponent in particular, who would that be except us, and their new power projection capabilities like in-flight refueling aircraft and long range bombers.  Look at their military exercises with Russia, they were a aimed at "taking control of a country where civil order had collapsed" (i.e. invading Taiwan) and "preventing foreign powers from taking advantage of the situation" (i.e. preventing US reinforcements from reaching Taiwan).

Their military endevours are on Taiwan & not the US.  Being we support Taiwan, we are in the crossfire. 

The GDP is very bad.  It would be mildly bad if we (US consumers) saved money.  However, we don't, so a large portion of our debt is held/financed by foreigners.  Look what happenned a couple of months ago to the dollar when the BOJ and the Bank of Korea misspoke about their intention to diversify their dollar holdings.  It is a two prong problem.  The US government spends too much and the US consumer saves too little.  I read you advocated that we cut or reduce some government programs.  But has it occur to you that those are the exact programs that make the American customer confident about the future, thus translating into higher consumer spending.  Take the corporate pension, social security, medicare, medicate, etc... out, that will compell consumers to save more, but spend less.  Thus causing a recession if not outright depression.  The consumer is the pillar of the US economy.  The consumer has to save because they know when they grow old, the government will not look out for them.  Consumers spending less will result in lower tax revenue, thus compelling the US government to rely more heavily on foreigners.  The cycle will eventually spiral to a point where the foreigners become uneasy with the level of our debt.

Hear everybody talking about the pending housing collapse.  Is that not what I predicted a couple of months ago.  The foreigners are slowly & quietly reducing their positions of US treasuries.  You may think I am just ranting, but I am currently a MBA student majoring in Investment Analysis. 

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Direct Link To This Post Posted: 21-Feb-2006 at 15:30

Actually that was very well said, JiangWei; I would appreciate your input in this thread:

http://www.allempires.com/forum/forum_posts.asp?TID=8987& ;KW=MBA

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Direct Link To This Post Posted: 21-Feb-2006 at 19:40

Wouldn't lower tax revenue be fine if spending were also less, which it would be if we got rid of things like social security?

And if nonstop spending is what's keeping our economy buoyant then how do you reconcile that with successful high savings countries like Japan?



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Direct Link To This Post Posted: 21-Feb-2006 at 19:45
Originally posted by jiangweibaoye

Their military endevours are on Taiwan & not the US.  Being we support Taiwan, we are in the crossfire.

Why do you think we support Taiwan? Because it's fun?  We support them because they are a good ally and serve to keep the Chinese distracted from doing other militarily adventurous things.  If China also took over Taiwan (and/or the Spratlies), that would put them in a strong position to interfere with global trade in an important region of the world.  Following your logic we should have said "Why should we protect Poland from Hitler, protecting Poland will just put us in the crossfire"

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Direct Link To This Post Posted: 21-Feb-2006 at 20:01
Originally posted by Genghis

Originally posted by jiangweibaoye

Their military endevours are on Taiwan & not the US.  Being we support Taiwan, we are in the crossfire.

Why do you think we support Taiwan? Because it's fun?  We support them because they are a good ally and serve to keep the Chinese distracted from doing other militarily adventurous things.  If China also took over Taiwan (and/or the Spratlies), that would put them in a strong position to interfere with global trade in an important region of the world.  Following your logic we should have said "Why should we protect Poland from Hitler, protecting Poland will just put us in the crossfire"

u support them because there's nothing to lose and everything to gain when china is not reunified. if taiwan was reunified with mainland china, china would be in the best strategic position to challenge us domination in the pacific.

the example of polland and germany is inappropriate. a better, but not perfect, example / circumstance would be to prevent west germany to from being reunified with east germany.



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Direct Link To This Post Posted: 21-Feb-2006 at 20:04
Originally posted by Genghis

Wouldn't lower tax revenue be fine if spending were also less, which it would be if we got rid of things like social security?

And if nonstop spending is what's keeping our economy buoyant then how do you reconcile that with successful high savings countries like Japan?

not necessarily. it's a misconception that lowering tax will always result in less tax revenue. in some cases, lowering tax can encourage economic expansion, which, in term, not only result in economic growth but also higher tax revenue. so i beleive bush's policy of lowering tax is right. altho this is debated among economists with different views.



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Direct Link To This Post Posted: 21-Feb-2006 at 21:30
Originally posted by Sino Defender

Originally posted by Genghis

Wouldn't lower tax revenue be fine if spending were also less, which it would be if we got rid of things like social security?

And if nonstop spending is what's keeping our economy buoyant then how do you reconcile that with successful high savings countries like Japan?

not necessarily. it's a misconception that lowering tax will always result in less tax revenue. in some cases, lowering tax can encourage economic expansion, which, in term, not only result in economic growth but also higher tax revenue. so i beleive bush's policy of lowering tax is right. altho this is debated among economists with different views.

I agree with you there, but Jiangwei doesn't and I was asking him to reconcile the apparent contradiction in what he said.

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Direct Link To This Post Posted: 21-Feb-2006 at 21:32

Originally posted by Sino Defender

u support them because there's nothing to lose and everything to gain when china is not reunified. if taiwan was reunified with mainland china, china would be in the best strategic position to challenge us domination in the pacific.

I agree with you there as well, Taiwan distracts the PRC from spending their energies on other, more grievous, projects.

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Direct Link To This Post Posted: 22-Feb-2006 at 11:40
Originally posted by Genghis

Wouldn't lower tax revenue be fine if spending were also less, which it would be if we got rid of things like social security?

And if nonstop spending is what's keeping our economy buoyant then how do you reconcile that with successful high savings countries like Japan?

Lower tax revenue would be fine if it was dollar per dollar vs spending, but that is not the case.  Look just recently the budget plan that the Bush Admin just gave to Congress.  Record Budget.  Now bear in mind that the tax cut that just past about two to three years was suppose to spur investment and increase tax revenue.  It did (to a degree) but was offset by spending.  A large part of the spending increase was the military endevour in Iraq.  The U.S. Treasury had to reintroduce the 30 year bond because of the budgetary needs of the U.S.  It was retired during the Clinton period.

Yes, if you eliminate Social Security, you can pay for the military endevours, but it is highly unlikely that there is any political support for that.  Also, the end result of that is that the U.S. consumer will stop spending.  Think about it, you know you have no social security, so you have to save a lot more for your retirement .  Your savings translates into less spending.  Less spending will equate to less corporate profit and tax revenue for the government.  Less corporate profit equates to layoffs.  Layoffs equate to unemployement compensation & drop in home values and drop of consumer confidence.

The Japanese economy has been in a recession for over a decade.  Only recently has it seem to be stabilizing.  Almost solely due to increase exports to China.  Their economy is a export driven economy.  Their economy is a manufacturing economy while the US is a service economy.  Basically for a service economy, you have to spend.  For a manufacturing economy, you have to sell the good.

And why are the Japanese saving, because their economy has been in a recession.  If you know that the job market is bad, you save every penny.  Right?  And that is exactly what will happen to the U.S. if we eliminate Social Security.  That will compell the consumer to increase savings (for retirement) and reduce spending.

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Direct Link To This Post Posted: 22-Feb-2006 at 11:59
Originally posted by Genghis

Originally posted by jiangweibaoye

Their military endevours are on Taiwan & not the US.  Being we support Taiwan, we are in the crossfire.

Why do you think we support Taiwan? Because it's fun?  We support them because they are a good ally and serve to keep the Chinese distracted from doing other militarily adventurous things.  If China also took over Taiwan (and/or the Spratlies), that would put them in a strong position to interfere with global trade in an important region of the world.  Following your logic we should have said "Why should we protect Poland from Hitler, protecting Poland will just put us in the crossfire"

Your approach is very heavy handed.  Different strokes for different fokes.

I would befriend somebody who can be a potential ally vs putting them down.  In my professions, you make friend and build alliances or you become obsolete and forgotten.

And the reason why I prefer this method is because the U.S. cannot keep on spending. 

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Direct Link To This Post Posted: 22-Feb-2006 at 12:03
Originally posted by jiangweibaoye

Originally posted by Genghis

Originally posted by jiangweibaoye

Their military endevours are on Taiwan & not the US.  Being we support Taiwan, we are in the crossfire.

Why do you think we support Taiwan? Because it's fun?  We support them because they are a good ally and serve to keep the Chinese distracted from doing other militarily adventurous things.  If China also took over Taiwan (and/or the Spratlies), that would put them in a strong position to interfere with global trade in an important region of the world.  Following your logic we should have said "Why should we protect Poland from Hitler, protecting Poland will just put us in the crossfire"

Your approach is very heavy handed.  Different strokes for different fokes.

I would befriend somebody who can be a potential ally vs putting them down.  In my professions, you make friend and build alliances or you become obsolete and forgotten.

And the reason why I prefer this method is because the U.S. cannot keep on spending. 

The Chinese and Americans both want the same thing, pre-eminence in East Asia, tell me how we can be friends when this fundamental conflict of interests exists.  Give me a concrete plan and quite using abstract musings about different strokes.

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Direct Link To This Post Posted: 22-Feb-2006 at 12:04

Genghis,

Additional statement about my scenario about higher savings by the US. consumer.  If our economy enters into a recession, that will prompt increase in savings, which is good for the US budget deficit because we will be less reliant on foreigners financing our debt.  But that will also prompt the foreigners to dump our treasures because our economy is not growing.  That will prompt interest rates to go up.  Good time to be a saver (if you have a job).

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Direct Link To This Post Posted: 22-Feb-2006 at 12:07
Originally posted by jiangweibaoye

Originally posted by Genghis

Wouldn't lower tax revenue be fine if spending were also less, which it would be if we got rid of things like social security?

And if nonstop spending is what's keeping our economy buoyant then how do you reconcile that with successful high savings countries like Japan?

Lower tax revenue would be fine if it was dollar per dollar vs spending, but that is not the case.  Look just recently the budget plan that the Bush Admin just gave to Congress.  Record Budget.  Now bear in mind that the tax cut that just past about two to three years was suppose to spur investment and increase tax revenue.  It did (to a degree) but was offset by spending.  A large part of the spending increase was the military endevour in Iraq.  The U.S. Treasury had to reintroduce the 30 year bond because of the budgetary needs of the U.S.  It was retired during the Clinton period.

Yes, if you eliminate Social Security, you can pay for the military endevours, but it is highly unlikely that there is any political support for that.  Also, the end result of that is that the U.S. consumer will stop spending.  Think about it, you know you have no social security, so you have to save a lot more for your retirement .  Your savings translates into less spending.  Less spending will equate to less corporate profit and tax revenue for the government.  Less corporate profit equates to layoffs.  Layoffs equate to unemployement compensation & drop in home values and drop of consumer confidence.

The Japanese economy has been in a recession for over a decade.  Only recently has it seem to be stabilizing.  Almost solely due to increase exports to China.  Their economy is a export driven economy.  Their economy is a manufacturing economy while the US is a service economy.  Basically for a service economy, you have to spend.  For a manufacturing economy, you have to sell the good.

And why are the Japanese saving, because their economy has been in a recession.  If you know that the job market is bad, you save every penny.  Right?  And that is exactly what will happen to the U.S. if we eliminate Social Security.  That will compell the consumer to increase savings (for retirement) and reduce spending.

We already can't spend that money because it's taxed to pay for social security, now it will just be saved.  Higher savings would also eliminate much of a current account deficit.  You also don't have any proof that the drop in savings will be enough to destroy the economy like you say.  Sure some extra workers might be laid off, but until you actually do a thorough research study you can't prove that it will be the death knell for the US economy.

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Direct Link To This Post Posted: 22-Feb-2006 at 12:13
Originally posted by jiangweibaoye

Genghis,

Additional statement about my scenario about higher savings by the US. consumer.  If our economy enters into a recession, that will prompt increase in savings, which is good for the US budget deficit because we will be less reliant on foreigners financing our debt.  But that will also prompt the foreigners to dump our treasures because our economy is not growing.  That will prompt interest rates to go up.  Good time to be a saver (if you have a job).

What would happen after that?

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Direct Link To This Post Posted: 22-Feb-2006 at 12:33
Originally posted by Genghis

Originally posted by jiangweibaoye

Genghis,

Additional statement about my scenario about higher savings by the US. consumer.  If our economy enters into a recession, that will prompt increase in savings, which is good for the US budget deficit because we will be less reliant on foreigners financing our debt.  But that will also prompt the foreigners to dump our treasures because our economy is not growing.  That will prompt interest rates to go up.  Good time to be a saver (if you have a job).

What would happen after that?

What might happen is that if U.S. treasuries are "dumped" the economies of the dumpers will follow ours into depression.

It is not likely they will "take that dump."

 

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Direct Link To This Post Posted: 22-Feb-2006 at 13:00
Originally posted by Genghis

Originally posted by jiangweibaoye

Genghis,

Additional statement about my scenario about higher savings by the US. consumer.  If our economy enters into a recession, that will prompt increase in savings, which is good for the US budget deficit because we will be less reliant on foreigners financing our debt.  But that will also prompt the foreigners to dump our treasures because our economy is not growing.  That will prompt interest rates to go up.  Good time to be a saver (if you have a job).

What would happen after that?

The dollar would tank.  Our real interest rates will skyrocket.  We would enter a global depression. 

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