china rises

ive discovered that my daily internal monologues tend to be thematic. todays theme: china, the power they hold, and the fragility of a nation on the verge of greatness.

china, it turns out, made one of the wisest decisions ever in terms of economic development. to elaborate- the country intentionally devalued its currency to expand its grasp on the export economy and get cut downs on raw material prices. they proceeded to invest heavily in their infrastructure and in turn their industry. the genius of this plan makes it hard for me to talk straight. seriously.

the situation of china as it stands now:

chinas infrastructure has been improved exponentially
china gets cutbacks on the price of raw materials
china owns the export market
china holds the debts of the greatest economies of the world
china can at any point revalue their currency, call in debts, and buy out the world

scary? you fucking bet it is. but there is a downside for them.

china is a very fragile nation, especially now that the olympics have boosted their ego. domestically, a country of over a billion attempting to to govern from a centralized government is succeptable to inner turmoil. (this is where i cough and shout tibet). theres also an inherent risk in revaluing a currency, deflation. that export industry, the cornerstone of china, will disappear. im afraid that china feels its a super power (it still has low gdp and no major international companies to bring in revenue) and may try something drastic to really establish itself as one. if that happens, they will lose export money, feel civil uprising again, call in american debts we cannot pay, and subsequently collapse (rome proper style).

i trust china because frankly i trust their government to look out for their national best interest. i have an unhealthy obsession with the old scholar-gentry of china. but i wont go into the history.