Monday, February 20, 2012

China Threat?

Now that we are in the middle of political craziness the threat of China’s military power is sure to come up. However, no one seems to consider the two greatest deterrents are not the military might of the United States nor the nuclear arsenal of the United States. The two factors that are most likely to prevent any military action on the part of China against the United States are debt and sales. The United States is China’s biggest customer. Any military action between the two countries would cause all of China’s sales to the US to come to a stop. That, alone would be devastating to China. Millions of Chinese would not have work, income, or the ability to feed and shelter their families. China pays for most of their foreign purchased with U.S. dollars that would not be available in the event of war. The cessation of all US sales would be more destructive than a nuclear attack on China. Secondly, China is the largest holder of US debt. At the first sign of action, all payments to China towards this debt would surely stop. Without US interest payments on the debt and US dollars from sales to the US, China would not have a source of US dollars used to purchase oil and other needed commodities. Business rather than bombs is a far greater deterrent to war. If US political leaders were really smart they would find some way to buy products from N. Korea and Iran as well as soliciting loans from both countries. Getting these two countries as well as any other “rogue nations” dependent upon America’s purchasing power and ability to borrow and pay interest on America’s debt is a far better way to deter military action. It probably costs a lot less than the military budget presently expended to serve this purpose.

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