Should China bail out the West?
China Should Bail Out the West
With as much as $2 trillion in currency reserves—by far the most on earth—China could save the day. It could become a lender of last resort to distressed banks and other financial firms across the world, or could funnel some of its money to the International Monetary Fund, which helps stabilize debt-ridden countries. Beijing could even bankroll a large, new “global rescue fund” to help countries hit hardest by the crisis, an idea proposed at one recent world summit.
By investing in a global financial rescue, China could no longer go it alone; its fortunes would now be closely tied to the health of the world. A nation that has helped bail out, say, South Africa—a country hit hard by the global financial crisis—could hardly also continue backing Zimbabwe, where the ongoing political warfare destabilizes its neighbors by sending thousands of refugees streaming into South Africa. A nation investing all over the globe could no longer avoid joining the clubs of major powers, like the G-8 summit of industrialized nations, to which China does not yet belong. And a country that, eventually, might wind up using its massive savings to rescue much of America’s financial institutions would find it harder to, one day, turn around and attack the United States.
With as much as $2 trillion in currency reserves—by far the most on earth—China could save the day. It could become a lender of last resort to distressed banks and other financial firms across the world, or could funnel some of its money to the International Monetary Fund, which helps stabilize debt-ridden countries. Beijing could even bankroll a large, new “global rescue fund” to help countries hit hardest by the crisis, an idea proposed at one recent world summit.
By investing in a global financial rescue, China could no longer go it alone; its fortunes would now be closely tied to the health of the world. A nation that has helped bail out, say, South Africa—a country hit hard by the global financial crisis—could hardly also continue backing Zimbabwe, where the ongoing political warfare destabilizes its neighbors by sending thousands of refugees streaming into South Africa. A nation investing all over the globe could no longer avoid joining the clubs of major powers, like the G-8 summit of industrialized nations, to which China does not yet belong. And a country that, eventually, might wind up using its massive savings to rescue much of America’s financial institutions would find it harder to, one day, turn around and attack the United States.
(comment from user): You guys have some strange ideas anything to take the blame off you right. This problem started and ended with you, the American citizens. You are the materialistic ones who buy whatever you want. Who came up with Fast unhealthy food and prepackaged food that tastes like crap and has half the nutritional value food freshly cooked. Processed easy and fast is the motto of the American civilization today and it sad that it has spilled over into nations closest to you.
You have created a culture where money and materialism is the name of the game and you should do anything to get it. Companies going to other countries for cheap labor to make you happy when if you guys had the jobs there would be so much less unemployment. How much of what you really have on your shelves says Made in America anymore? Made in Canada, Mexico and China yes but America very little or not as much as there should be. I know that living here in St. Lucia I used to see so much on the shelves saying made in the USA but that has changed so much since i have grown up.
What exactly does the USA make anymore? You have become a country of service industries. Where is the farming and the manufacturing. I urge you to do as many of the third world citizens are doing to take some things back to basics. make something for yourself. Cook something for yourself. Because we are also suffering from your bad management practices. We are not strong enough to stand on our feet something which I am not proud of! But we expected you to be strong enough to stand on your. Wake up people and GO BACK TO BASICS! walk the couple of blocks to work.
The picture that The USA has painted of the world is not good you have shown the world that you are not the hard working people we used to know but that you have become materialistic, opportunistic, lazy and stupid. Where is the America people used to dream about visiting or living in with pride. You Blame other people for things you had control over. You made the choices to start buying everything you saw advertised and that you had to everything. A starter house a middle house and retirement home BULLSHIT. A starter house did anyone even know what a starter house was until you guys created it? FODD FOR THOUGHT!
