Dear China

2010 December 10

Dear China,

I hope this finds you all well and I realize that it is a little awkward of me to be writing to all of you at once, but such is the glory of the internet age.

I write today to let you in on some things the way that I see them.  Further, I don’t believe that the views I express here today are going to be that abhorrent to the majority of the American, even Western, people.

Yes, yes we did award this year’s Nobel Peace Prize to one of your political prisoners.[1][2] Yes we know that upsets you.  Yes, we know that should put you in a difficult position as you are trying to connect more deeply into the world business community to find markets for your products.  Yes, we did award him the Nobel Peace Prize with full knowledge that China holds a large amount of US debt, is a manufacturing base for untold millions of products, and growing rapidly to soon take over the size of the United State’s economy, becoming the World’s largest.[3][4]

Yes, we know all these things, and we did it anyway.  In a way, we did it because of those things.  You see, China, we know that you are a growing bad ass and have been for many years. We recognize that, while you did not take the approach to your government or fiscal policy that we would have envisioned for you, neither did you fully travel down the road leading towards true Soviet style Communism.  We applaud your ability to construct a hybrid out of a single party government and a market-ish controlled economy.  In fact, I would think that being considered America’s next greatest threat in the world, as was the thinking among military planners, etc. prior to September 11th, 2001, would be taken as a compliment.  Because, in a way, we mean it as such; we admire the incredible economic engine you have created, and continue to create.  We admire it so much that it threatens us and, therefore, we plan to destroy that threat, but it really comes from admiration, but I digress.

We do things like award your political prisoner the Nobel Peace Prize because even though you know how to create an incredible economic market (admittedly, though, you are cheating at that, but you have the balls to cheat and not care who knows that you are cheating, kudos[5]), you still don’t know how to create a free society and value your citizens as though they truly held the power in your country.  Because of this fact, we, your customers and debtors, choose to pick a citizen of your country who is demanding that this system of freedom be constructed in your country.

Is this a wise choice for us to take, especially with the wide variety of leverage you, China, hold against us?  Well, that leverage certainly exists, but it’s akin to the economic equivalent of Mutually Assured Destruction, in that, you can completely destroy the world economic system by cashing in the trillions of dollars you hold in U.S. dollars, but you will lose your entire customer base in the process.  Just like either the U.S. or U.S.S.R. could have wiped the other off the face of the map, but in turn, would likewise be destroyed.  So you see, there’s peace in that knowledge, a dangerous, razor’s edge peace, for certain, but peace nonetheless.  So, yell all you would like, grumble to whomever you please.  You’re not going to dump your dollars, because your currency is pegged to ours (again, not really playing fair, admit it) and you need us to buy your products, just like we need you to loan us the money with which to buy them.  It’s tenuous, we understand, and the situation will need to change if we both want to prosper from our arrangement.  We are where we are.

Rest assured, however, that we will continue to focus on the fact that you have not been welcomed into the fold, there is no equivalency between the liberty we enjoy and the “freedom” experienced in your country.

Yours,

Mike Parmele


[1] http://www.nobelprize.org/nobel_prizes/peace/laureates/2010/announcement.html

[2]http://www.google.com/hostednews/ap/article/ALeqM5igViik3GHQLufj5NjPuZomnX1epQ?docId=cc973c635bce4b5c9ed2951ccd8aa671

[3] http://www.businessweek.com/news/2010-12-02/china-is-scared-of-u-s-monetary-policy-rogoff-rickards-say.html

[4] http://www.dailyreckoning.com/japan-agrees-with-us-on-chinese-monetary-policy/ ,

[5] http://www.finfacts.ie/irishfinancenews/article_1018447.shtml

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