Washington Brief

Communication Links, Inc.

Funding China

Washington, DC. Feb. 23rd, 2005 ---- The projections we made five years ago are looking pretty way out when it comes to the emergence of China and India, and the potential to be a threat to the United States. The factor we underestimated was the desire of US leaders to fund the Chinese at the expense of their own workers and managers.

It's not that these mega corporations need the money to survive. No they want their huge profits to be even larger, and for the handful of "influencers" get their cut, often many times the yearly wage of several dozen workers.

In 2000 my predictions of the ability of China to confront, and fight a bloody war with America between 2010 and 2025 were met with howls of laughter in Washington. "These peasant farmers cooking their rice over brown coal don't stand a chance against the world's only Superpower." said a former DoD leader. Sadly he believed it.

Today we are funneling as much money to China as we can transfer. We are destroying American industries to help finance and build new factories in China. Run down factories in New Jersey and Pennsylvania show the scars of a consumer society without heart, or brains!

Protected by crooked lawmakers and legions of lawyers the big importers such as WalMart use carefully crafted media messages of employing retired people to put on a happy face. They are the conduit of billions of dollars to China, as well as the modernization of their factories. In their defense they are providing cheap Chinese imports the public demand. Unfortunately the general public has no understanding of the scenario unfolding.

The problem is that China is not using the profits of this production bonanza to uplift the living standards of it's peasants. It is using much of it to buy US Treasury Bills, and key US companies such as IBM PC Division, and Global Crossing. The Chinese are using the US greed for cheap consumer items to buy the US critical infrastructure, economic and financial lifeline. The same people who are laid off from US manufacturing plants are the ones fueling their demand for their jobs in China.

This is being condoned by politicians of both parties. With one face the US demands the EU not provide military technology to China, and with the other supplies it themselves. President Clinton allowed, even encourage massive transfer of military technology, and guidance systems for China's Long March Rocket. That ensures it can hit Los Angeles with a bullseye and not mess up the Strip in Las Vegas.

After going out of their way to equip the Chinese the Bush Administration is sounding the alarm. The right wing Republican Administration has found what Mr. Goebels found over seventy years ago that "the way to control a people is to keep them in a state of constant fear" It does look like the politicians are fueling an ongoing campaign of "Fear factor". Few remember that it was Daddy Bush, Cheney and Rumsfeld who armed and trained Saddam Hussein. They knew what weapons he had. They supplied them all.

But playing "Bogeyman" with Al Qaeda and Iraq is one thing. Destroying American industry and jobs to make a fast billion bucks is another. Again this is a bipartisan effort with the Democrats doing their part whilst they were in office.

The US is annoyed at the EU. That is the place with universal healthcare and grants or low cost loans to develop new factories, products and create jobs. That is the place where government funds are used to turn the vacant and derelict works into new revitalized employers. In the US we funnel the same funds into buying sophisticated weapon systems, more nuclear aircraft carriers and stealth fighters. Now I know Capitalism is supposed to be the dream of every one in the world, but is there a flaw in our thinking.

Anyway the same global scenarios mean Europe need not be too concerned with what America thinks, with a weak dollar and an eager Chinese market to unload US stocks and shares this is no longer the powerhouse of the 1940's and 1950's. In fact just cut out the middleman and deal direct with the source, China and India.

It's time to stop funding China and start funding the crumbling economic infrastructure of the United States. Let WalMart and the other "Big Box" stores open an enterprise zone in every town they have a Super Store selling mainly Chinese goods. Then we have progress.

I know the Chinese market is 1.5 billion potential customers, but why would the Chinese want their own goods shipped back to themselves with a 1000% markup? Just because it has a much hyped brand label. Don't fool yourselves, if the Chinese want products sold in their stores with a specific brand label they will go ahead and just produce them. At the end of the day are US companies going to sue 1,500,000,000 people.

Start rebuilding America!

Alan Simpson brings you regular commentary from the corridors of power in Washington DC and New York. With experience of working in over 80 countries he looks at events from a global perspective.