Archive for May, 2011

Herman Cain

Many economists have estimated that if China’s Gross Domestic Product (GDP) continues to grow at approximately 10 percent annually, and the United States continues to grow at its anemic rate of 2.5 percent or less, then China’s GDP will be bigger than ours in 15 to 20 years.

Last week, the International Monetary Fund released an analysis showing that if the differences in exchange rates between the two countries are factored out (purchasing power parity), then China will surpass the USA in economic strength in less than five years!

Neither of these observations sets well with the American psyche, and losing our economic dominance in the world is not who we are. But more importantly, China’s economic dominance would represent a national security threat to the USA, and possibly to the rest of the world.

Look at the facts. China has a billion more people than we do. They aspire to have a greater military might than we do. They currently hold over 25 percent of our national debt. And they have a different view of human rights and how to maintain peace in the world.

It would be naïve to think that China would not be tempted to flex its worldly might if it were bigger than us economically and militarily. And it would be equally naïve to think we could influence their actions on currency or anything else with diplomacy or two verses of Kumbaya.

Appeasement is not a strategy. As Ronald Reagan proved, strength is the strategy. Both the Bush and Obama administrations have shown that appeasement just buys the Chinese more time to talk until they can equal us in size and might.

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