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How the World Works?

The Chinese don't give aid to countries; they invest in countries.

Jun 25, 2012

 

Families Protecting The Valley Newsletter
VOLUME 4 ISSUE 40 JUNE 25 2012

 

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Denis Prosperi
Chester Andrew
Bob Smittcamp
Russ Waymire
John "Dusty" Giacone
Joe Marchini
Mark Watte
Kole Upton
Piedad Ayala
Tom Barcellos
Jim Walls

 
How the World Works!

There are more and more people all the time on planet earth, and we are using more and more resources every day. In the U.S. we make it more and more difficult to produce these resources and we continue to pursue ideologies that simply don't make it possible to produce more. While we are focused on our presidential election year and the situation in Europe, the Chinese are busy pursuing the collection of resources from all over the globe, everything from food to minerals to oil. They are not ideological about the environment, not ideological about the political systems of countries they do business with, not ideological internally about political debates about these things.

The Chinese are practical. They know they need things. They need oil. They need copper. They need beef. They need water. They invest in countries to get these things. They make a deal with Peru for mineral rights. They make a deal with Brazil for cattle rights. They make a deal with India for water rights. They see the need for resources for their people and they are making the deals necessary to get them.

The U.S. is a debtor nation. We are $16T in the hole. The Chinese have a $3T surplus. They use their surplus to get what they want. They are the biggest investor in U.S. debt. What do they get for it? They get American consumption. They loan us the money, we buy their stuff, and we still owe them the loan plus the interest. It's a win-win for them.

The Chinese don't give aid to countries; they invest in countries. They get something back. Sadly, part of what they loan to us we give away as aid to other countries like Pakistan and countries in Africa, but don't get anything back. When China invests, they always get something back. In addition, when they invest they actually become partners. African countries and South American countries say they like the Chinese better than Americans in spite of the fact that we give them money, and the Chinese 'invest' and get something in return.

While we are worried about the politics of other countries and whether they are a democracy and whether they 'like' us, the Chinese are busy making deals to make sure their future is secure. The Chinese are taking care of the Chinese, but making deals that make sense to the countries that have resources the Chinese need.

If America doesn't start taking care of America, it will be too late. We need to get our financial house in order. We need to make sure we can use the resources within our borders. We need to form business relations with other countries instead of giving them aid. They don't respect us for the gift. It's not doing us any good. The Chinese are good business partners and are liked and respected for it.

We used to say the business of America was business. We need to get back to business. How is it we are getting 'schooled' in the business of business by the Chinese?



 

Book Review: WINNER TAKE ALL

China's Race for Resources and What It Means for the World
By Dambisa Moyo (Author)

 

Though she is concerned that “the world…remains largely ill-prepared for the challenges of resource scarcity and the evolving dynamics around China's central role,” the author sharply disagrees with those who assert that China is making an imperial-style grab for raw materials. She asserts that China's policy is different and compares statements of leaders and partners from different countries as proof. China is obtaining access to resources to maintain the growth of its own economy, writes the author, who shows how the country's leaders are prepared to offer money, roads, railways, schools and hospitals in exchange.


Moyo contrasts what the Chinese call a “win for all involved” approach with the colonialist approach. She writes that if Western countries “are to have any semblance of standing in the emerging world,” they must cease depending on their traditional policy tools. The author compares current global consumption of foodstuffs, fuel sources and major industrial raw materials with China's consumption of the same materials and contends that China's buying power is comparable, on the level of the global economy, to the effect of Wal-Mart's purchasing policies within the U.S. ("one buyer faces many sellers"). Moyo fears that China may be operating in an international “legal vacuum,” and she discusses the relation between resource supply and demand and financial markets.


Written to clarify important global questions, this book deserves a wide audience.


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