Wednesday, June 17, 2009

China isn't the problem

I got more mail than usual yesterday from people who are tired of hearing about how great China is. They are missing the point. China isn’t coming to get us, but they are muscling us out of the way in world trade and in competition for resources. They also hold the lynch pin on the US Dollar. We are getting to the point where China doesn’t have to do anything more destructive than ignore us and we tumble into the abyss.

Can we come back from this? Absolutely, but first we have to admit we have a problem. Republican policies over the last forty years caused this and fixing it will be painful. The big threat is that the Republicans will prevail and instead of fixing the problem we will drift into corporate feudalism. We can’t even assume that the Democrats are on our side in this, many clearly aren’t and most of the rest don’t see the real problem.