What an irony! We wouldn’t give a hoot about what happens to China’s real estate market if we had our own house in order, but given the weakness in our own economic system, we have no choice but to be worried about what happens in China or so it seems. So, why are the so called “experts” worried? If China’s real estate market collapses then this could cause China’s economy to collapse given that real estate is about 10% of China’s economy. To dig themselves out of the economic crisis, the Chinese, as the theory goes, will have no choice but to liquidate the trillions in US government debt that they’ve accumulated in order to repair the damage from the real estate bubble that burst. As the theory goes, this then makes borrowing costs much higher for everybody in the USA, including corporates and individuals.
So, is there any reality to this theory? Yes, there is. However, I would point out some things. First, if we weren’t borrowing so much money because of all of the entitlement spending that we’ve had to do to get politicians re-elected and try to satiate libs/socs blood-thirst for other people’s money then we wouldn’t have to sell so much US government debt and the Chinese wouldn’t have the ability to hold us hostage! Second, there is good news, and that is that we don’t have to worry about the Chinese real estate markets collapsing for another 15-20 years. Third, if the Chinese economy does collapse, imports from China will be much cheaper and this should have a positive effect on our economy. Fourth, it is unlikely that the collapse of Chinese economy would trigger a mass transfer of jobs from the US to China; most of that has probably already occurred with not many more jobs available for transfer.
Therefore, the bottom-line is that we don’t need to worry about China, for now. Yet, the specter of such things being possible in the future have grown-ups, who are supposedly smart, educated, knowledgeable, and insightful running around like a chicken without a head screaming like little boys and girls at a very fun birthday party. All this means is that we are too indebted to the Chinese and we are in this position because we spend too much money on social programs, which is an endless pit.
However, it’s not too late. We have 15-20 years to fix the problem, and to fix the problem, we have to start with the truth: Most Americans believe that stealing is moral.
For more, please read my books, “… Under the Constitution with Liberty and Justice for ALL,” available at http://www.CreateSpace.com/3978962 and also available on Kindle, and “The New Constitution for Modern America,” available at http://www.CreateSpace.com/4281897 and also available on Kindle. Please don’t forget to rate this post. Any comments or questions are welcome and can be left for me on this blog, @Ahmedinejahd on Twitter, on Facebook or via email at AlexAhmedinejahd@Yahoo.com. Thank you in advance for buying my books, and rating this post. And, thanks for visiting my blog; I hope you get an opportunity to read my other posts. Have a great day!