Deliman8 (< 20)

OUR TAX MONEY GOES TO CHINA

July 10, 2008 – Comments (1) | RELATED TICKERS: CHN , LFC

I found this comment in the blog.mises.org site by a user named "a Duoist"

This summer, China's foreign reserves will hit 2 trillion dollars. By next spring, they will reach 3 trillion dollars, the largest fortune in world history. Currently, China earns in excess of 60 billion dollars in interest per month on its reserves; the overwhelming percentage is from American taxpayers. On a daily basis, China purchases one billion dollars of US government debt, because Americans no longer save their money in order to purchase Chinese-made goods.

How official socialism will survive in China with such an enormous fortune is the question of the century. If slowly increasing freedom over the past twenty-five years and resulting economic growth rates continue, China emerges from 'impoverished' status by 2011, jumps from 'lower' to 'upper' middle income by 2024, and finally achieves 'prosperous' levels by 2029, at the latest.

What form of governance China uses to achieve such explosive economic growth will become the world-wide model for the next five hundred years, whether it is some form of 'modified' Marxism or 'controlled' capitalism. The key--as always--is the Chinese peasant. If the peasant is Included, or is continued to be Excluded (property rights given in the 2004 amendment to the Chinese Constitution were not given to China's 850 million rural peasants), will determine whether China becomes the wealtiest nation on the planet as a free people, or as 'controlled' authoritarians.