Give China’s Olympics a chance – they own us

This opening-ceremonies scene says it all: The Chinese were No. 1 4,000 years ago and they are No. 1 again in 2008.

By GERALD CARROLL
geraldcarroll@hotmail.com

When the opening ceremonies of the 2008 Summer Olympics unfold Friday, better pay attention. Our conquerors want to make a good impression.

Yes, China owns America. The nation’s billion-strong labor force has long since gobbled up most US paper debt and quietly underwrites a lot of US money interests (even moreso than Dubai). And China also owns the world’s industrial production in almost every area of the global economy.

“Assembled in China,” it says on the bottom of my newly purchased Gateway laptop computer. No wonder it cost only $400 at Wal-Mart. Hmm. My nice little $40 Alltec speakers and woofer? Made in China.

Just as China's naval superiority was unmatched in antiquity, its economic superiority is unmatched today.

Remember NAFTA, the North American Free Trade Agreement that was supposed to be an economic boom to Mexico? Well, it appears that all the “cheap labor” in Mexico was not cheap enough. As NAFTA has flourished, the Mexican work force has been brutalized by even cheaper Chinese workers.

Yes, all that work destined for Mexicans is now being done in – China. So much for the NAFTA prosperity promise.

But there’s another little problem with the Beijing miracle: The collapse of the US real-estate market and the draining, into a monetary black hole, of $12 trillion in US loans from Freddie Mac and Fannie Mae. Congress, with President Bush’s blessing, has already approved a bill to extend $300 billion credit to Freddie and Fannie which will dilute the dollar overseas.

This legion or oarsmen is a reminder of China's strength: A labor force that is 1 billion strong.

China won’t budge and its currency value never fluctuates (same deal with Japan and the yen though they are less obvious about it). Which means the Chinese will be forced to liquidate its US paper assets, at tremendous loss, and remove its backing of the US economic system.

That leaves us with insects and grass.

Have a happy Olympics.

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