Realistically the U.S. is already bankrupt, since it has
no capability to pay back the debt; but technically, the
U.S. is not and will not be bankrupt, not for a while, as
long as the US dollar is still the dominant international
currency, since the U.S. can always print more notes when
needed. On the other hand, if this is the case, it will inevitably
cause the US dollar to lose its top credit rating hence lose
its reserve currency status.
So let’s face it. There are only two credible ways for the
US to move out of the current economic dilemma: either to
get more money or to spend less money, which means Americans
will have to work harder, pay more tax and lower their living
However, if history is any guide, we shall know in no time
that it is virtually suicidal for any US administration to
increase tax, since American people hate it and will not
vote such administration into office again. By the same token,
Americans will not re-elect a government that makes them
lower their standard of living.
During the election campaign, Barack
Obama inspired the Americans with his message that
“Time for change has come”, and that “Yes we can do it.”
Yes, the time for Americans to change their way of living
has long come. But no, they can’t do it, since they are unwilling
to. So the United States is doomed, unless, well, it makes
an ultimate change at its roots, which means to change its
Speaking of culture, there is a fundamental difference between
of the West, which is the foundation of the American
culture, and that of the East, that is represented by
The former is based on the crude law of the jungle while
the latter is a result of the sophisticated social study
and experiment over a period of thousands of years with a
vision of an universal humanity.
Since the Western culture worships the idea of "survival
of the fittest", the mainstream thinking in the U.S.
is that "As long as I can get by, I am doing
the right thing". That explains why in their
dealing with the West, Chinese are frequently disadvantaged.
[Western historians often lament on the fate of China’s Song
Dynasty and attribute its demise to the fact of being
over civilized in the world of 11th century when it was
surrounded by the early form of Manchurians and the Mongols
who were still in a blood-thirsty stone-age hunting culture.
So you’ve got the idea.]
To Americans, it is nothing wrong to live a debt-live luxury
life. In fact, they are proud of being able to do so, and
you should be the one to feel ashamed if you can’t get your
While over 100 million people are still struggling below
the poverty line in China, Chinese government spent $700
billion to purchase U.S. treasury debt that has helped to
support Americans' first-class lifestyle. Do you think Americans
will ever be grateful to Chinese? Not a chance! Americans
only consider Chinese government a fool. They are willing
to borrow, and you are willing to lend, and business is done.
They owe you nothing.
If one day Americans fail to repay the debt, do you think
they will ever be troubled by their conscience? Again, not
a chance! You offered a bad loan and it’s your problem. And
Following this line of reasoning, we know we should not
assume Americans will feel embarrassed to ask for more money
from China. They will not, never. So long as China keeps
lending, they believe it is an evidence that they’ve done
a right thing by making a good business proposal.
Credit consumption is a way of life in the U.S. and has
bee promoted by American economic gurus as an advanced economic
model, which is explained through complicated mathematic
computation based on an invalid assumption. The fake model
had tricked the whole world, including Chinese, even though
this is at odds with their thousands-year old practice, largely
due to the undeniable reality of U.S. prosperity.
But the bubble finally burst in 2008. For this, I think
year 2008 is a turning point in human civilization.
Over the years, the first task for a new Secretary of the
Treasury of the U.S. is to sell U.S. Treasury bond to the
world. There was no difference after Timothy Geithner took
his portfolio last January. But when he addressed the students
at Beijing University during his visit to China, and declared
that it is safe to purchase T-Bill, he was greeted by a burst
of laugher which rocked the hall.
Americans were very upset over the incident. They did not
feel embarrassed for Geithner trying to mislead Chinese,
but feel insulted by the students who refused to believe
in the lies.
When I heard the news, I was delighted and thrilled. Finally,
Americans’ scam has been uncovered by Chinese, and by Chinese
students who no longer blindly worship the West and follow
the celebrities. China
has regained the confidence in their tradition and China
has the future.
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Excerpt of the original post in Chinese written by YST:
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Tiger Bites (2)
Tiger Bites (4).