Tuesday, 8 April 2008

China controls US military capacity

In Napoleon’s famous dictum, ‘an army marches on its stomach’. Maybe, but it keeps marching on its bank balance. Britain would have had to surrender in 1939 had not the US provided the finance for it to continue in the war. A country can fight only to the duration of its economic capabilities.

Poor countries like Russia and Vietnam may have been able to outlast far richer enemies in Germany and the US, but only because their objectives were limited. Namely, making the cost of sustaining the invasion of their lands too high for the invaders. But a foreign war, beloved of the neocons in the US, requires vast financial resources.

The US not only does not have these resources, it's choking in debt. The capacity of the US to wage war is now entirely dependent on the Chinese, and to a lesser extent the Sovereign Funds of the oil-rich Arab states. It’s really shockingly simple.

The Chinese have the ultimate weapon in the trillions of US dollar-denominated reserves they hold. If they were to flood the markets with these, the value of the dollar would collapse. The capacity of the US to then buy oil would be drastically curtailed, and with it the running of its industries, airlines and much of its infrastructure. Add to this the fact that, due to globalization and the avarice of US corporations, there has been a catastrophic reduction in US manufacturing capabilities, especially of the high-tech variety. Most of this is imported at present, but a collapsed dollar would make this prohibitively expensive.

Sure, were China to do this it would cause them considerable damage as well, not least in that their main market would be blitzed, and their reserves would show a corresponding diminution in value. But this brings me to a wise aphorism attributed to Vietnam’s General Giap: ‘victory comes, not to whoever can inflict the most pain, but to whoever can endure the most’.

No US politician presiding over such a rapid and catastrophic collapse in living standards would survive long, irrespective of how much the media would beat the war drums ( as they did with the Iraq adventure). Correspondingly, the Chinese are well used to suffering, have a command economy/society, and haven't that much to lose compared to Americans.

This is not so say that China, still less the Arabs, would take such a measure lightly. However, it would far less painful than a military conflict, especially between nuclear powers. Nonetheless, the fact remains that China has the capacity to strangle American military might. Or just like the US does today, it can quietly exert and ramp up pressure by reducing its uptake of US debt, and/or selling an increasing amount of their dollar-denominated assets.

This is the legace of the Bush regime - the castration of American power. Yet it hardly merits a mention in the MSM..

8 comments:

Jockney said...

Why on earth would the Chinese do this? It would be economic suicide. They are totally dependent on the West economically. China would collapse overnight not the US.

SAVANT said...

China would not collapse. They might revert to something like they were 20 years ago, but that's not collapse.

And it doesn't take away from the fact that they are in this position of power. Don't forget my point that they have an infititely higher endurance level than the Americans.

And it's not an all or nothing. They could gradually apply the squeeze and pressurise that way.

kerdasi amaq said...

Ha ha ha. Have some people in America begun to realise this? Is that why Spielberg stepped down as artistic director of the Olympic Games: as a means of indicating the next target of the people who control the USA?

Anonymous said...

Don't see any connection with the Spielberg decision, or am I missing something?

Anonymous said...

Spielberg stepping down was a signal to the media that China was fair game???

Red Oak said...

Yup, we're boned. The greed-bags have been dismantling our economy for the last decade (and continue even now, as the vultures circle, to pillage what little is left as fast as their sticky little mitts can scam another bailout or "free" trade deal).

"Have some people in America begun to realise this?" Not many - though there has been an increase in the furrowing of brows and befuddled expressions. We're an innocent and slow-witted lot. I have a fond fantasy that when it all implodes only the people who actually give a shit about this country as something other than a casino and a labor exchange will stick around. I mean, after all the pitchforks and torches have been tidied away.

SAVANT said...

Americans are by nature trusting, not slow-witted. I think americans trust their media too much, and the MSM is now totally dominated by large corporations. The 'news' then reflects their interests.

Anonymous said...

Just image the Chinese can squeeze the US immigration to allow say 1 million chinese migrants into the US a year. In a generation or two the population of the US could take on an asiatic or chinese flavor as we know that the chinese migration have a history of interbreeding with the locals. A future US that could have closer relations to China than the UK or anglophile european. Hmmm that would be very interesting.