http://www.huffingtonpost.com/2011/08/06/china-blasts-us-over-cred_n_920094.html
This story is interesting for the fascinating issues it raises about the nature of addiction. What does it mean for China to declare the US addicted to debt? Is it a genuine effort to convince a neighboring country to make better choices? Or is it an attempt to make the American government seem immature and irresponsible?
Given the political climate, with so many formerly powerful and prominent Western nations now going through tremendous financial hardships, does this feel like an attempt to assert more power for the Chinese government? Or is it a terrible mistake to believe that this must be about one country trying to one-up America despite the fact that it would seem to be fairly sound advice?
Does it mean something different when foreign politicians tell us we are addicted to debt as opposed to when the message comes from domestic politicians? How does declaring American "addicted to" debt help China ease into the case for replacing the dollar as the world's reserve currency? What else might China (or any other political entity for that matter) feel compelled to do to deal with the problem of debt addiction?
I believe China is simply stating a fact and declaring to the world that the United States has a serious problem. When China owns $1.2 trillion of the United States debt, they have a since of dominance over the country. China's declaration of our debt problem means more than an average politicians. The politicians are the ones responsible for the debt in the first place. Because China holds so much of the United States debt, it would be easy for them to demand the U.S. to pay it back, and with interest. Our economy would essentially "belong" to China more than it already does. The United States politicians have a money spending problem and CHina simply called them out.
ReplyDeleteYou can definitely look at the article in two ways; honest or diminishing. I think it is both. China has the right to be honest and it may take the United States to feel a little diminished in order to take China seriously and start action. It is not the nicest way to bring attention to an issue and comments such as “…the good old days…are finally gone” and “addiction to debts” may have implicit meanings. However I believe these are caused by Chinas’ frustration and not because they are attempting to “one-up America.”
ReplyDeleteI agree with Jeremy that it is different coming from foreign politicians. An outsider often has a greater impact. As a power the United States can’t have other powerful Countries questioning it’s ability or developing so much distrust. Also it is easier to ignore domestic politicians and doesn’t signal as big of an issue. It is sort of like getting a correction from a family member and then receiving the same one from a friend. The statement will hit harder from someone on the outside.
Calling the United States “addicts” does established uncertainty with the United States ability to make appropriate decisions and that is why the currency was brought up. It is an opportunity to question whether or not a global reserve currency might work despite what the United States thinks.
As America being the ideal "dream country" being the world's currency holder, land of the free, glory land or whatever else it may be called having 1.2 trillion debt being owed to China shows that it isn't the perfect country. With this being said I believe China was trying to show the inside view of America to the world. China is a main source of our materials and have a lot of preeminence on America. This debt doesn't necessarily prove America to be addicted to debt, but it can support the fact of American politicians being so focused (obsessed) on what they want that it causes much debt.
ReplyDeleteI agree with Jeremy about the fact that China does have a large amount of control over the US just because of the debt issue. This should be a huge concern for the US government.
ReplyDeleteAfter reading the article I came away with the impression that China is using this fact as a way to demean the US. In no way does the US deserve to be placed on a pedestal when the country clearly lacks in money spending strategies, however I found it unfair for China to claim that the US is "addicted to debt." I think of addiction as something that someone feels compelled to do, or something that they have a strong want to do. Why would the US want to put themselves in debt? I think a better way to put it would be to say that the US might just simply be addicted to spending money.
I think that China is trying to become the next United States by holding down United States while they develop rapidly. They have the population, they have the money, they just need the people to work together to speed up the process. I also think that it is unfair to say that United States is addicted to 'debt' since I think that no one would want to be addicted to 'debt' of all things. Also I don't think blaming the politicians is going to solve anything as it's the same all around the world. All the politicians are spending tons of money looted from the taxes that we pay the country for their comforts.
ReplyDeleteI agree with Samantha about the idea that it is unfair to say that the United States is addicted to debt. Honestly, I think that this issue came about after the United States got used to the idea of borrowing money whenever they needed to. The government originally borrowed money from China when we were in desperate need; but in recent history, the government has borrowed money for things that many people would say that are unnecessary. After reading this article, I think that the United States has not an addiction to debt, but an addiction to putting things off and sticking to the mentality of "We'll get to it someday." It seems, however, that China is tired of waiting and is trying to make the "someday" happen sooner rather than later.
ReplyDeleteAfter reading this article, it seems that China just wanted to share their frustration about an economically powerful country that isn’t handling their finances in a responsible way. Perhaps China feels like they are ‘in the shadows’ of many financially prosperous nations and want to come out of the shadows by making bold statements. China’s comment may have been said with the intentions of motivating the US to start paying off their debt. However, it gives off a negative message that the United States can’t control themselves from spending. No country wants to have a substantial amount of debt. To say that the United States is addicted to debt is to say they lack self-control.
ReplyDeleteAs a Chinese, I dare to say that China will never, at least in a foreseeable period of time,truly believe that RMB can take the dollar's place as the world's reserve currency even though they indicate they are the largest financier of U.S. deficit spending by declaring that the US is addicted to debt.
ReplyDeleteIt is true that the US is confronted with some financial problems and there is nothing wrong for China to tell a truth. But, in my point of view, if China did say this for some particular purposes, it just pretended to be competitive and aggressive in front of those counties without a clear standpoint. You know, one needs to let others believe that he or she can one-up another before really being able to do it. Faith is something really matters.
Actually, I'm a little bit surprised that American are so sensitive to what Chinese say. I consider that this is a reflection of american's worry to some extend. In all likelihood,they do believe that their government relies on debt too heavily. No need to say, pessimistic expectation will aggravate their financial problems.
Saying that what China declared is a kind of advice is also reasonable. China also worries about this huge amount of debt. America can pay it easily buy printing money but that doesn't make too much sense to china. Also, the unstable economic situation of U.S. is the least thing that people would like to see, no matter they are american or not. Just watch was there anyone happy during the financial crises in 2008..
I do not belive this is an actual addiction. This is just a way forChina feel more powerful and more prominent
ReplyDeleteNobody cares about China and China KNOWS IT. The up and coming superpower has taken a back seat in world news and is getting jealous of the attention being given to the new democracies in the Middle East and Africa, the continuing global economic crisis, and Palestine and it’s attempts to join the U.N. as a state.
ReplyDeleteAll that China is doing is trying to stir up some scandal to increase it’s klout rating. China knows what’s popular over here; it’s seen our reality TV shows. They know about our obsession with addiction and apparently obesity, too, for they call us ‘bloated’ and ‘gigantic!’ By labeling us as addicts they are using our own lingo to degrade us, and position themselves as the new, cool super power on the world scene.
To have it’s currency replace the U.S.’s as the world reserve currency China knows that it must not only be stable and powerful, but popular. This is why China called the U.S. an addict, it’s just another scheme to take our spot at the lunch table.
I do not think that it is right to say that America is addicted to our debt. Though it is a huge problem for us, there are plenty of other issues that we have to focus on too, such as our troops in the middle east or natural disasters that devastate communities and our economy. I think that China declaring us addicted to debt is their way of putting more emphasis on the problem so we take more action fix it. To hear this from foreign politicians lets us know that our debt problem is not just affecting our country but many others too
ReplyDeleteShuyan Sheng is right—we as Americans are reacting too sensitively to what others, like China, say about our debt addiction. In truth, however, the United States has always had debt (except for periodic surpluses like in the nineties) and throughout the history of the U.S., our debt has been a natural part of how our economic system works. Most of you responded to this debt addiction accusation as if they were accusing our representatives in office for spending. Brad Granville commented, “…[I]n recent history, the government has borrowed money for things that many people would say that are unnecessary.” This only reinforces China’s accusation of the United States’ addition to debt. The citizens themselves, the politicians’ constituents, are the ones to blame—we are the ones that borrow money for things that many people would say that are unnecessary. Therefore, China is right. We are so addicted to debt that we do not realize it’s ourselves and that our representatives in office are trying (with wrongful, misleading opposition) to balance the recession we are going through.
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