Open Thread Friday 6-26-2020
When we started this conversation on China it may have seemed a little over the top to mention the US might be involved in a war with China. It is not a new concept and it did not begin with Trump and his appointment of Peter Navarro a China hawk.
This article "We Are Already At War With China" published in 2017 by CommonDreams highlights a 2015 video from The Daniel K. Inouye Asia-Pacific Center for Security Studies (DKI APCSS), a US Department of Defense institute.
The professor did not use the word war. I suppose that word would be a bit awkward when talking about an adversary that holds over a trillion dollars worth of our bonds. But if it looks like a war, sounds like a war, and acts like a war, why not just call it a war?
This is not a war with weapons of the traditional kind, the ones that shoot bullets or explode, the professor explained. But it’s war nonetheless, being fought every day in many arenas, such as international financial institutions and economic organizations, foreign aid, telecommunications systems, ocean beds, outer space, cyberspace, as well as political maneuvering for control of the South China Sea, Tibet, and other lands on China’s rim.
We are at war with China. Who knew? Apparently, the Pentagon knew. So did all the “security practitioners” from friendly nations in the Asia-Pacific region who come to Waikiki to learn the arts of this new kind of war. The rest of us may not yet have gotten the memo.
But the seeds of our violent conflicts, and how we planted them, go unseen by the general public at the time. The conflict is always blamed on “the enemy” who wants to do us some evil—like, for example, challenging the U.S.-led order and subverting overwhelming U.S. military power? That was often given as a reason to wage four decades of cold war against the communist bloc, including mainland China.
(full video 45 mi)(about a 4 min segment on South China Sea and 2020 targets)
This article gives a fair explanation why US is trying to not have China be a leader in 5G technology.
If you look carefully, you will find that underlying major economic developments are fundamental innovations in communications.
One of my favorite examples is the development of railroads in the second half of the 19th century where telegraphic communications integral to railroad operation enabled the building of efficient transportation systems that transformed the industrial world.
Telegraphy enabled the control of the railroad traffic and the efficient operation of the trains over long distances. This network made possible the integration of resources, industrial and agricultural, over vast areas of the US, enabling the building of the world’s premier economy.
Fast forward to the 20th century and the development of digital wired and wireless communications. More recently the Internet was combined with other new technologies to transform the world.
5G wireless technology now being implemented will have a comparable transformational impact on industry and commerce. It enables powerful and flexible wireless access to a ground-based communication system able to handle enormous amounts of data. In particular, 5G enables reliable and ubiquitous machine-to-machine networks
How we spend our money effects the economics of our communities. This author explained how very clearly.
Many people and even economists have real misconceptions as to how the economy works. Where money flows and who it enriches is a key component of economics, the failure to consider this is a blind spot many people have. After years of being told everything revolves around spending, this diminishes the important role savings plays in the scheme of a balanced economy. Fans of Keynesian economics that encourage government spending to stabilize the economy during a downturn tend to discount the importance that where and how money is spent matters a great deal.
The following examples highlight this matter. Just for fun imagine the money allowing for these purchases is flowing from the recent 2.3 trillion dollar CARES Act.
Consumer one decides to put a new roof put on his home. This includes tear off and re-shingling. This labor-intense job pays a lot of local workers from those delivering and hauling away the old roof to those selling the shingles, those installing them, and even some folks at the local landfill. As a bonus, the shingles are made here in America. Putting even more ceiling on the cake is that it improves not only his property but raises values in his neighborhood enriching those living nearby.
Consumer two uses their money as a down payment on a new Hyundai. The Hyundai Motor Company is a South Korean multinational automotive manufacturer headquartered in Seoul. Hyundai builds the vast majority of its vehicles at its plant in Ulsan, South Korea. It also operates plants all over the world with one in Mexico and a plant in Alabama. When I tried to research how likely the car was to be made here I hit a wall. One thing for certain is that it is packed full of South Korean parts and with each sale a bunch of dollars heads overseas.
In the final example consumer three slaps, small businesses, brick and mortar retailers, and the 30 million-plus Americans recently unemployed in the face. His online purchase from Amazon of products made in China and shipped from a facility located in another state. Just like in the case of consumer two a bunch of the money heads overseas but real disaster for the community is absolutely none of the money stays there. This sets the area up for a new wave of store closings, prolonged unemployment, and declining real estate prices.
Open thread all discussions are welcome.
My participation will be limited today. I may not be responding until this evening or tomorrow.
edited - grammer