Friday, June 29, 2012

Why the United States Does Not Have to Worry About China’s Military Ambitions Against America

They Have Concluded It’s Much Easier and Cheaper to Simply Buy Rather Than Take

A major fear of Conservatives, one no doubted pushed by those who would benefit from even more U. S. spending on defense is that this country must build a strong military to protect us against China.  After all, China could put a couple of million soldiers on ships and take a two week cruise across the Pacific and invade Pismo Beach.  Yes it could happen.

Of course the reason it won’t happen (aside from being a complete fantasy) is that China can do very much better by just using its vast dollar currency reserves (that they earned by selling us the junk one finds in dollar stores) to buy what it wants in the United States.  Case in point, Chinese investment in major housing projects.

Lennar Corp.,  one of the U.S.'s largest home builders, is in talks with the China Development Bank for approximately $1.7 billion in capital to jump-start two long-delayed San Francisco projects that would transform two former naval bases into large-scale housing developments, according to people familiar with the discussions.

The negotiations aren't final and the financing arrangement could still fall through. But if completed, the deal would reflect a changing dynamic between the U.S. and Chinese economies, as an American company turns to China for help funding a long-delayed and partially publicly funded project that otherwise wouldn't get done.

Of course, until now the Chinese have concentrated primarily on the developing part of the planet.

In recent years, Chinese state money—in large part provided by CDB and its counterpart the Export-Import Bank of China—has been pivotal in funding major infrastructure and resource projects around the world, but the bulk of that activity has been in developing countries in Africa, South America and Asia.

But maybe this means that the United States is looking more like a developing rather than a developed nation. 

With Chinese firms increasingly eyeing opportunities in the U.S. and other developed markets, CDB will likely find itself being approached to fund more deals in the U.S. People familiar with the negotiations said CDB was using the Treasure Island and Hunters Point projects—which both include "green" building and affordable housing components that are of interest to Chinese builders—as a test case to become familiar with what's required for doing such deals in the U.S.

But that’s ok.  If Republicans succeed in adopting the austerity programs they so want to do, with massive cuts in government spending and the fiction of stimulating the economy by massive cuts in taxes for the wealthy the U. S. will look more and more like a developing nation.  And China may then feel they have a moral imperative to send aid to the U. S.

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