Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
In the case of the West vs. China, the stuff we give them via our current accounts deficit is largely the colonial tribute that we're extracting from the Southern Hemisphere.

From the perspective of The WestTM, that train has sailed. If the dollar crashes, we'll lose the third-world debt service colonial tribute just as surely as if we simply hand it to China.

From the perspective of China, keeping the US$-based system, even beyond its useful life as a trading framework, allows them to kick the Weimar-style currency meltdown in the US a little bit down the road. And, probably more importantly, avoid being seen as the people who pulled the trigger on that meltdown.

As for green technology being expensive... well, that depends on what you mean by expensive. If they get the production licenses gratis from Europe, then the only resource in which high-tech energy sources are more expensive is man-hours. In terms of basically everything else - steel, coal, copper, rubber, etc. - rail is cheaper than car, efficient power plants are cheaper than inefficient, wind is cheaper than coal, solar is cheaper than oil, and so on and so forth and etcetera. And China has a lot of man-hours to go around.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Fri Aug 7th, 2009 at 07:40:49 PM EST
[ Parent ]

Others have rated this comment as follows:


Occasional Series