By all accounts, China has been doing very well economically over the past 10 years. Did you ever wonder how they did it and if they had some kind of sophisticated plan? I was a little bored today and made a short list of items that any person with an ounce of brains could just as easily come up with. China has a plan and it is a simple plan. Here goes.
(1) Make things cheaper than the USA
Sounds simple. If you add up the pieces, labor, material, energy and capital you find that they can easily beat us with just labor alone. Obama is making our energy more expensive while it is getting cheaper in China. There is "no" market for our coal here in the USA, so that lowers the price that China has to pay. See where this is going?
(2) Technology
In the past, we have been able to counter act the increases in labor cost here in the USA with new technology, but not any more. The China plan is to "steal" technology and thus get it for free. They have also stacked the deck in our universities with Chinese technical graduate students who we train and then they go back to China with our investment. Nice! Further, China graduates 10 times as many engineers as we do. What do you think the impact of that will be? We peaked in terms of American engineering graduates back in 1986. Surprised?
(3) Work harder and longer
We have done just the opposite. No young American really wants to work. You can't even get a kid to mow your lawn anymore. You have to go out and hire an illegal to do the job. If the Chinese are working harder and longer, what do you think the end results is going to be?
(4) Live cheap
The Chinese might spend a larger % of their income on food, but the number is still a lot lower than here in the USA. In terms of housing, we have gone over the cliff. 90% of Americans are over housed. We squandered much of our national wealth and the future credit of our children on big homes that will cost tons in the future to heat and maintain. Take air conditioning alone for example, we spend more on just this one item than China does on their total housing bill. How do you think we are doing? Not too good.
(5) Minimize health care cost
China has a totally different tradition from the West when it come to health care. They put their money into herbal medicine that has a much lower cost and is just as affective as our million dollar system. Note that they have about the same life expectancy as we do and spend so much less. You need to ask, what are we getting for all the money we are spending? You will not like the answer.
(6) Make trouble for USA internationally
China knows that we spend at least 5 million dollars to kill a single enemy so all they have to do is to drum up trouble some place to get us to go in and squander billions militarily. The interesting thing is that it works. They have us shooting at decoys while they buy our bonds to finance our military. How is that?
(7) Buy or tie up raw materials around the world
We need many of the same raw materials as China does and they know it. With the profits that they have made selling us every thing under the Sun, they go out with "cash" and buy up raw materials. In the case of oil from Canada, Obama killed the pipe line so it made an opening for China. Even if China had to pay more for the oil, the loss of the oil for USA would still be worth it to them. No need to shoot bullets at the USA, when they can just reduce our oil supply. That is how it works. Simple as I told you.
(8) Loan money to the USA so that we can buy their products
If this was not true, I know that you would not believe it. China loans us money so that we can buy our shoes cheaper from them while our friend down the street who makes shoes is out of a job. Now that is what I can a "win-win". China kills a job here with our own money. If they did not loan us the money, we would have to go without or work harder and we would not want to do that.
(9) Move USA companies to China
Here again, if this were not true you would never believe that something like this could happen. GE who is on Obama's Job Council is just one of the companies who is moving jobs from here over too China. These are not low tech jobs either. It is like the saying, "we will buy the rope (on credit) for the Chinese to hang us."
(10) Don't worry about carbon or global warming
While we are running around like chicken little, the Chinese are buying our coal and burning it in their power plants to make "cheap" electricity. While we think we are saving the planet, the Chinese are taking over the planet. Did you ever consider "who" we are saving this planet for? It will not be for our children.
That's 10. I could go on, but I think you get the idea. Now go back thru my 10 and see what we are doing to counteract the actions of China. What you will find is that we are actually helping them. If you think that this next election is not important, you need to re-read my list of 10 items.
