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NASA Banned From Working With China
astroengine writes "In the wake of the Chinese cyber-threat and claims of espionage, a clause included in the US spending bill approved by Congress to avert a government shutdown a few weeks ago has prohibited NASA from coordinating any joint scientific activity with China. The clause also extends to the White House Office of Science and Technology Policy."
This actually hurts NASA more than China, and as NASA gets hurt and sheds jobs where do you think the best are going to go if they want to get paid? I really do not understand why some in politics are trying to replay the end of the cold war and get the USA to play the part of the crumbling USSR.
The US already made china the next superpower. It doesn't need to steal US research, it can do everything on its own in probably a more efficient manner.
This way the US cripples its research, and we'll cut off another reason for the US to exist for this economy.
And the Chinese economy would collapse as the $1.4 trillion of US debt that China currently holds would quickly become worthless. Sort of like ripping off the nose to spite the face.
- what a huge misunderstanding of economics, that the education systems of the West have perpetrated upon their population. Very sad.
Chinese economy is not about the cash, the money. Chinese economy is an actual real economy - producing economy.
You see, when the Keynesian gods tell you that economy is about consumption, they are full of it, completely wrong. Consumption is a trivial consequence of production. If nothing is produced, nothing will be consumed. Production IS economy.
When USA borrowed money in 19 century, it borrowed the money to build factories and infrastructure, and when it used the money to build, it started producing, and the products it built were then sold to pay off the debts. Today, when USA borrows money, it only uses the money to consume, and it consumes foreign made products.
Irony is of-course that it borrows money from China and buys the Chinese made products, and the population of USA is convinced by their useless 'economists', who are really charlatans, that the US consumer is the actual engine behind this entire economic activity.
No. What China needs to do is to let their currency appreciate, so that it becomes cheaper for Chinese to both: buy raw materials (as they are hit hard with price inflation, which in the case of producers follows immediately after the self inflicted money inflation) and it becomes cheaper for the Chinese to buy foreign products and their own manufactured products as well, and China has plenty of potential for consumption, they do have over a billion people after all.
What is funny, is how Geithner calls China to let their currency appreciate, and it looks like he is just trying to play reverse psychology game (if he understands anything about economics at all), because either US dollar can be strong or Chinese currency can be strong, but they both cannot be strong at the same time.
If China lets the currency appreciate, it will become nearly impossible for the US consumers to buy Chinese products. That's good for USA in the long run, because USA has to be hit with very high interest rates on their money, Americans need to start saving and creating capital that can be applied for building things again, so that it starts producing again. But in the short term it's going to be disastrous for USA, not for China.
Sure, China will lose that debt. But it's going to lose that debt ANYWAY!
Do you think USA can pay that debt back? EVER? :)
USA doesn't produce anything of any value except for the raw materials, that Chinese would want to buy. USA can NEVER pay the debts back. These particular debts need to be restructured, but instead US Fed will keep printing, and all that useless paper, that ends up in Chinese banks, and causes the Chinese to print their currency as well only is hurting China right now.
USA has it great as long as other countries keep buying its debt and keep printing their own currencies into oblivion and keep price inflation inside their own economies and don't export it back to US.
However this will stop. Sure, many manufacturers in China and other exporting nations will cry murder, but they will have to deal with this, as their own currencies appreciate, they will start selling in the country rather than exporting so much. There will be some pain for China as well, but they have the production - which is what matters.
Do not be mistaken - US debts will never be repaid in anything that's valuable. US can print the dollar and 'repay' in worthless paper, but that's just as much of a default as a real bankruptcy would be.
You can't handle the truth.
US technology doesn't originate from the US government. It originates from bright individuals that live in the US. They can migrate to other countries, just like they have all their technology mass produced in other countries.
Lumber is available from Russia. As for technology, you have South Korea, Japan, Great Britain, and Germany to name a few. I think you don't grasp the gravity of the situation.
These comments are my own and do not necessarily reflect the views or opinions of my employer or colleagues...