CHINA
HAS THE BOMB
by
Dr. David B. Axelrod
Well, obviously, you say. They have had it effectively since their first
test,
16 October, 1964
.
Their last atmospheric test, also on 16 October in 1980, sent a
radioactive cloud drifting across
the United States so potent parents were told not to let their children drink
fresh milk for fear of the strontium 90 the cows absorbed eating grass after the
cloud drifted by. But it isn’t
China
’s nuclear bombs that now
endanger the world and it won’t help to build a shelter under the back yard
and hide there.
China
is waging capitalism like
nuclear war and they are going to win.
There is absolutely no question that
China
has discovered and already
deployed a new and powerful “secret” weapon. They have taken over the world
economy with the most aggressive and headless proliferation of products that the
world has ever seen. The goods that altered the Western world flowing over the
Silk Road
were a mere trickle. The
ports of call opened through British, Portuguese, American aggression—humorous
adventures.
China
is now a master of capitalism.
They have gone beyond sheer imitation of those who “trained” them. Truly
they are waging capitalism as a war.
It was duly ironic when President Richard Nixon, on an errand for his
boss David Rockefeller, went to
China
and in February of 1972,
shook hands with Mao Tsetung. This was particularly strange given Nixon’s own
rise to power destroying people accused of being Communists. It is also
increasingly suspect since the founding of the Trilateral Commission in 1973,
soon after Nixon’s trip, essentially sought to crown the dollar emperor above
all else. Now,
China
has muscled its way to the
top—by chance or by choice?
When Deng Xiaoping declared it glorious grow rich, he demonstrated a
flash of genius which his successors seized and magnified. Consider that
China
is, to begin with, the
world’s most populous country with 1,299 billion out-sizing
India
in 2004 by nearly 230
million people.
China
has nearly five times more
people than the
United States
which has a mere 293
million. None of this is news to any observant world citizen.
Clearly
China
is now the largest and
fastest growing economy in the world. The major media present it as a great boon
to
America
as
China
’s population seeks out our
goods and services, American companies are rushing there. The
U.S.
may still be, by far, the
richest economy but
China
has leverage we dare not
talk about. What seems to escape notice is that
China
, through its ruthless
pursuit of profits, is about to win a world war.
The proof is in at least two significant indicators. First, the rumblings
surrounding the imminent revaluation of
China
’s currency ignore the fact
that the Bank of China has amassed such a reserve or wealth, held in so many
currencies, that should it chose to stop supporting the U.S. dollar,
America
’s currency would simply
collapse.
Imagine
a scenario in which the yuan (renminbi),
China
’s currency, was not simply
allowed to float and find a level against the dollar, but that
China
’s banks began to sell
dollars. The flood of un-supported dollars into the currency markets would cause
a total collapse of the world’s
banks and financial markets. So great is
China
’s cash reserves that it
now has a threat far more powerful than nuclear weapons which it could unleash
at any moment. The “fallout” would be catastrophic but the winner in such a
war would be
China
which is far more prepared
to tolerate the consequences of such a war than the
U.S.
.
But
not only is the United States no longer in charge of its own fate because of
China
’s potential to bring down
the dollar. In a famous election slogan coined during the
U.S.
presidential race, it was
pointed out that “it’s the economy, stupid.” Here “it’s the balance of
payments deficit, stupid.” According to the New
York Times, “last year, the Chinese government bought more than $200
billion dollars in Treasury notes and its total foreign reserves ballooned to
$650 billion.” Imagine if they chose not to make such a reciprocal investment.
The
second major indicator that
China
is about to win a world war
is in the balance of payment deficits between
China
and
America
. In any given month now,
China
drains $13 billion of wealth
from the
United States
’ pockets. There is no way
that the Chinese Government hasn’t noticed that they now own the
U.S.
. By holding upwards of at
least $500 billion in dollar
reserves, not to mention $650 billion in Treasuries, the Chinese central bank
has a death ray aimed at not just the American but the world economy.
Growing
up in the
United States
in the Fifties and Sixties,
children were taught to fear the “Red Menace.” Somehow we knew that
China
could never really overwhelm
us with its hordes of soldiers but somehow we imagined them transported to
California
’s shores to work their way
like locusts across the land. Nuclear war, however, was more fearsome. It meant unfathomable
losses from radiation which could last thousands of years. Who would have
thought destruction could come in the form of children’s toys, cheap clothing,
endless products swelling on the docks of American ports.
When
I lived in
China
for a year in the
mid-90’s, one of the most popular books for sale everywhere was entitled
“Thick Face, Dark Heart.” Written, rather interestingly, by a Taiwanese
woman, Chin-Ning Chu, the book set out the rules of economic conquest in terms
that blended the Sun Tzu’s famous Chinese text, The
Art of War, with every capitalist evil. The book, for instance, counseled
that one should invite one’s competition in, draw them up to a higher floor,
then take away the ladder. The
U.S.
has indeed been drawn in;
the levels of trade have been upped, and there is no way out now.
Trapped!
Out-flanked! Ambushed by an enemy so populous, so persistent, so pervasive they
will surely own us, the
U.S.
, openly in a very short
time. No matter that the
U.S.
is still the largest economy
in the world. We are working for
China
now. Our wealth is filling
their reserves and reshaping their world. No one, not even
India
, which threatens to overtake
China
with its population in a
matter a few decades, can ever stop the Chinese hordes. They’ve finally broken
out beyond their own walls and without so much as fallout, have conquered the
world.