Friday, October 10, 2008

Voodoo economics: China or America?

So, which country is mostly unaffected by the current money crisis? Yes, China. The least capitalist based market of the larger nations, with substantial government regulation, but seems to best now that the credit crunch is getting worse.

But things are worse, China is probably the only nation in the world that can actually finance the bonds that the US will need to cover the 700,000,000,000 US $ that the US wants to invest in their bankrupted (no pun intended) financial system.

The US government was already unable to tell China what to do. Every time a senator or other politician made some waves for reform, for example to limit imports from China, or to prevent jobs from going there, a mid-rank official would appear on Chinese television, and indicate that China was considering to diversify their bonds. And without failure, the stock market would cringe and the US politician would shut up. Now, the sell-out to to China is just going to be worse.

What I really do not get is that many poor people vote for the republicans, because in the end, they are the victims of the voodoo economics of that party. But I guess that prohibiting gay marriage is more important than having money in their wallet.

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