Oh’s Zany World

Should China Bail Out the West?

March 2, 2009 on 4:09 am | In Oh Yeah, Poly Tics, The World | No Comments

It has been suggested that China bail out the West: China Should Bail Out the West .  While it is an intriguing idea. Does it really make sense? With the number of jobs that China has been losing them self’s, I believe that the idea that they can bailout the world is at best bogus. At worse it would put them totally over the limit and destroy their culture from within.

 

One that we all seem to forget is that this economic crisis is not just a USA economic crisis or a USA and European economic crisis. But this economic crisis is one that touches the whole world.

 

Yes China does have a responsibility to help the world some economically as they have in the past and will in the future benefit from trade with the rest of the world. But we need to understand that if this $2 trillion dollars of China’s currency reserves is used, it will not as suggested save the day it will only prolong the time to when the world economic systems fail. It will also keep money from going to the poor and working poor in China that so desperately need work and money in China.

 

The West, so long ignored that real wealth comes from the making of material products and from the growing of food, that they have created a make believe world that money really does grow on trees and shows up out of thin air. And while china as a developing country has been doing the manufacturing and growing of food they have overall done it on the backs of the poor and the working poor of their country.  This has created a huge gap between the rich and the poor.  If China does not change their ways they will be ripe for a new revolt of the masses, as many that were lower middle income there are becoming the new poor. In all fairness the West also risks this type of revolt.

 

I would sooner see China spend some of that $2 trillion in currency reserves and improve their citizens’ positions in life.

 

That being said I do believe that China does have a chance at leadership in the economic crises of today.  They can lead they rally cry to have a general forgiveness of corporate, governmental and individual debt worldwide. Yes some would come out of it smelling like roses that should not. But sometimes like it or not, life is unfair. This would immediately make money available for new purchases.

 

We would need to revamp the way money and capital is loaned so that this situation would not happen again!  We would do this by making a general forgiveness of all cash (non collateral) debts every 7 years, which would happen worldwide on the same day in the same year. Second all huge capital debts involving mortgages of buildings such as homes and factories, and land, would forgiven the same day on each 50^th year.  This process would make both barrowers and lenders more realistic in what they could do. And it would protect these that do make a mistake.

 

Let’s change the economic world for the better,

 

OH

 

Copyright 2009