tag:blogger.com,1999:blog-8774131.post8365071215630155906..comments2023-06-24T11:57:48.459-04:00Comments on larrylivermore.com: "We Hoped For The Best, But Things Turned Out As Usual"Larry Livermorehttp://www.blogger.com/profile/11948659387575597910noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-8774131.post-49033879700849745812007-04-28T21:26:00.000-04:002007-04-28T21:26:00.000-04:00----we seem far more prepared to accept totalitari...----we seem far more prepared to accept totalitarianism in the former than the latter.----<BR/><BR/>You are correctly pointing out a double standard when it comes to Western media and political condemnation of Chinese totalitarianism as compared to milder forms of the same in Russia.<BR/><BR/>The difference in treatment, however, is not the racist view that we don't mind totalitarianism in Asia (after all, look at our relationship with North Korea). The difference in approach, I believe, is strictly economic. <BR/><BR/>Economically, the Chinese government is playing ball with the West, and, at this point, has a greater amount of integration (and hence clout) with Western governments and busines than does Russia.<BR/><BR/>In recent years, the People's Republic of China has also become a holder of over $1 trillion in dollar denominated assets, of which about $349.6 billion are U.S. Treasury securities. That's second only to Japan. In other words, China is the #2 creditor in the world for the U.S. government.<BR/><BR/>U.S. government debt has soared and inflation has stayed low in part because China has been willing to accumulate reserves denominated in U.S. Dollars. Should China decide to discontinue this practice, or hold reserves in Euros or Yen, or dump dollars for other political reasons, the U.S. government would be in trouble. Russia, in comparison, has no such economic leverage over us.<BR/><BR/>Here's a good article on the subject.<BR/><BR/>Debt Weakens U.S. Hand on China <BR/>http://abcnews.go.com/Politics/International/Story?id=1867118&page=1Anonymousnoreply@blogger.com