As this OilPrice.Com article points out, it is unusual for this kind of a statement to be made with such bluntness. But we should expect to see a lot more statements like these in the coming years.
Thanks to 3 deacdes of Rushpubliscum sellouts of this country’s commons (aided and abetted by spineless, go-along dems,) our economic position is toast. The fact that we are still theoretically the “world’s largest economy” is a pleasant fiction, since we can no longer exist without huge infusions of foreign money.
A lot of that money, of course, is coming from the People’s Republic of China. As does most of the gadgetry we have. We don’t make anything anymore, and we have a military that can be shut down almost overnight by China, since if they don’t give us money, we can’t even pay the electric bill. But hey, billionaires aren’t bothered with those evil damn taxes, right?
Australia is going to have to give this question serious thought. Which I’m sure they are already doing, actually.
It is rare in diplomatic circles for governments to speak bluntly, particularly in the Orient, where manners are highly prized.
The exceptions to this rule are retired military officers, who are often able to voice sentiments too impolitic for other channels.
One of the more startling pronouncements in this vein occurred last week when Song Xiaojun, a former senior officer of the People’s Liberation Army, warned that Australia cannot juggle its relationships with the United States and China indefinitely and “Australia has to find a godfather sooner or later. Australia always has to depend on somebody else, whether it is to be the ‘son’ of the US or ‘son’ of China. (It) depends on who is more powerful, and based on the strategic environment.” Noting the rising importance of China as an export market Song added that Australia depended on exporting iron ore to China “to feed itself,” but “Frankly, it has not done well politically.”
What is also notable about Song’s remarks is that they coincided with Australian Foreign Minister Bob Carr’s first official visit to China, where Foreign Minister Yang Jiechi urged Australia to dismiss its alliance with the United States, a decades-old bipartisan and central pillar of the nation’s foreign policy, as ”the time for Cold War alliances has passed.”
The year 2012 is significant for the two nations, as it marks the 40th anniversary of the establishment of Australian-Chinese diplomatic relations.
Australia is one of the few countries to actually run a trade surplus with China, which for the period January-November 2011, amounted to $15.15 billion, a 274.2 percent increase over 2010. Last year Australia-China bilateral trade rose to $80.73 billion, up by 44.2 percent. Australia’s exports to China were worth $47.94 billion growing 59.7 percent over the previous year, accounting for 25 percent of Australia’s total exports. Last year Australian imported $32.79 billion of goods from China.
Those surpluses won’t last, since they never last; eventually China owns you. But the fact that trade is so heavy between China and Australia means that the Australians aren’t in a position to argue with the Chinese.And that’s by design.
Remember back when Chimpy slammed through the “deferral” rule, that let American corporations pay absolutely no taxes on any profits kept outside the country? Oddly enough, that was about the same time that the Chinese started making an aggressive push for new markets outside the US to sell their products to. So while Chimpy was slashing our wrists, China was hitting the clubs, looking for new dance partners. And they found a whole bunch of them. In addition to Australia, countries like Argentina and Brazil now have deeper economic ties with China than they do with us.
We’re done. We can’t stop this, and quite frankly maybe we shouldn’t. Maybe what we should be doing is turning inward, and correcting the problems the Rushpubliscums legislated on us. Get rid of the “deferral” rule, and set up a Manhattan-sized project to give us energy independence. Start tying the PERSONAL tax rates of American corporate officers to the percentage of their goods and services that are coming from outside the United States. If a bunch of them do a Severin, fine: do we really need THEM here anyway, considering their “success” in running this economy?
And, most importantly, we have to do what the Rushpubliscums are always saying we should do, and downsize that military. We can’t afford it as it now exists, and it simply doesn’t make any sense for us to continue the way we’re doing things. Either we’ll accept reality and do it on our own, or China will do it for us later.
I think I’d rather deal with it on our terms.