01-02-2020, 07:28 PM
** 02-Jan-2020 World View: Navies and reserve currency
Relating the currency to the two navies is an interesting way of
looking at it.
I've done several dozen articles on China's Belt and Road Initiative (BRI)
and each makes me feel more strongly that China is vastly overextending
itself.
Kenya is a good example. Kenya is caught in a debt trap, and is in
danger of losing Port Mombasa to the Chinese. Even worse, the
way the one-sided contract was written, the Chinese could take almost
any Kenyan asset in lieu of debt payments, even Kenyas embassies in
other countries.
On top of that, the Chinese workers loathe the Kenyan workers in
Kenya, and pay themselves huge salaries out of the money that China
lent to Kenya, and forces the Kenyans to take menial jobs in their
own countries.
It's amazing. The Chinese lend Kenya the money. Kenya uses the money
to pay the Chinese workers, who spend it on their own Chinese
businesses in theor own Chinese enclaves. Kenya has to use the money
to purchase parts and equipment from factories in China. So China
lends the Kenya the money, Kenya sends the money back to China in the
form of salaries and equipment purchases, and then still has to repay
the money to China, along with exhorbitant interest, or else lose
their ports, infrastructure and assets.
This is happening in country after country. China is spending a lot
of reserves with all these BRI projects -- money that they won't give
back -- and also is overextending its navy. Furthermore, they're
pissing off a lot of people in a lot of countries, and they are going
to target Chinese families in Chinese enclaves. Remember the "ugly
American?" At least we don't think we're the Master Race, and
everyone else is a barbarian. The "ugly CCP" is much worse.
(01-01-2020, 12:48 PM)Warren Dew Wrote: > It's not just figurative "mass and momentum", either.
> The US has the only navy capable of guaranteeing sea lanes world
> wide. While we currently guarantee them for everyone, we don't
> have to do that. I could easily imagine a situation where the US
> tacitly permits pirates open season on nondollar trade.
> China is currently trying to develop the capability to protect her
> own transport lanes to Europe. However, that's not sustainable,
> because China has no domestic need for more than a coastal navy.
> Even if Xi manages to build a blue water navy, the next leader, or
> the next, will decide it's a waste of money and take it out of
> commission.
> The US, however, needs a blue water navy capable of controlling
> most of the world's oceans - north and south Pacific, north and
> south Atlantic - just to keep its own coasts connected. Once that
> navy exists, it's relatively easy for the US to patrol all of the
> world's oceans, and reap the benefits of controlling the world's
> reserve currency.
Relating the currency to the two navies is an interesting way of
looking at it.
I've done several dozen articles on China's Belt and Road Initiative (BRI)
and each makes me feel more strongly that China is vastly overextending
itself.
Kenya is a good example. Kenya is caught in a debt trap, and is in
danger of losing Port Mombasa to the Chinese. Even worse, the
way the one-sided contract was written, the Chinese could take almost
any Kenyan asset in lieu of debt payments, even Kenyas embassies in
other countries.
On top of that, the Chinese workers loathe the Kenyan workers in
Kenya, and pay themselves huge salaries out of the money that China
lent to Kenya, and forces the Kenyans to take menial jobs in their
own countries.
It's amazing. The Chinese lend Kenya the money. Kenya uses the money
to pay the Chinese workers, who spend it on their own Chinese
businesses in theor own Chinese enclaves. Kenya has to use the money
to purchase parts and equipment from factories in China. So China
lends the Kenya the money, Kenya sends the money back to China in the
form of salaries and equipment purchases, and then still has to repay
the money to China, along with exhorbitant interest, or else lose
their ports, infrastructure and assets.
This is happening in country after country. China is spending a lot
of reserves with all these BRI projects -- money that they won't give
back -- and also is overextending its navy. Furthermore, they're
pissing off a lot of people in a lot of countries, and they are going
to target Chinese families in Chinese enclaves. Remember the "ugly
American?" At least we don't think we're the Master Race, and
everyone else is a barbarian. The "ugly CCP" is much worse.
