Your point is well taken about China, however one must remember and certainly consider that China now holds over $1 TRILLION dollars in debt based on US securities (in other words, they are financing a large part of the US accumulating debt.) It is true China has an aging population, so does the U.S.. But the U.S. also has massive legacy costs, namely Medicare, Medicaid and Social Security. All of those programs will go bankrupt, the first being Medicare in probably no more than 15 years. The U.S. has gone from the largest creditor nation in history to the largest debtor nation, in approximately one generation. China indeed has problems in auto parts industry, but the U.S. is looking down the barrel of a financial meltdown of biblical proportions, the social programs and war costs are and will do us in. Now back to autos, Ford and GM are toast.
Source: Mutual Differences
Unfortunately, we don’t have any economists in the BU household but the quote above piqued our interest nevertheless. It is no secret that the Barbados dollar has been pegged to the US dollar for ‘eons’, and a significant portion of our imports does originate from the United States. We expect the adage ‘if the USA sneezes, countries like Barbados must catch a cold’ was born from this state of affairs. It seems to us that in recent times the foreign policy of the Owen Arthur administration has shifted significantly to a deepening of the longstanding relationship with China. Chinese involvement in the economy of Barbados has been the source of vigorous debate of late. We are beginning to wonder whether Prime Minister Owen Arthur has a similar view to the author above and the move to expand relations with China is a precursor to a bigger move to wean Barbados from its dependence to the US economy over time.
Historically United States of America has shown a willingness to use her military might to protect its status as the lone ‘Super Power’. As China continues to increase its economic dominance on the world stage, how will the USA respond?
Further questions for the BU family, including our friends from the University of the West Indies:
Is there any credence to the statement quoted and if the answer is yes, why are we not discussing this matter to get a better understanding of the implications it would have on the economy of Barbados?
Why is it that foreign policy issues did not factor high on the list of concerns when it was polled recently by CADRES? Should we not reasonably expect that an educated Barbadian should appreciate the symbiotic nature of the relationship with the world economy, especially with China and the USA?
In the last two decades there is a sense on our part that the interest shown by Barbadians to issues related to foreign affairs has lessened. This is ironic given that we now live in a world which is intrigued by the movement towards globalization.