Sino-US Realestate Relations

Should We Worry About Chinese Land Purchases in the US? || Peter Zeihan

For a while I've thought the hype about China overtaking the US was overwrought because it's the over-rot in the US we should worry about. In fact, the ones who wanted to promote the rot were the ones promoting China.

There was a year during the Obama administration when DC came up with 90,000 pages of new regulations -- that's what they mean by an increase in productivity. Does this add to inflation? No. Because it all makes things better. When you factor in the qualitative improvements this quantitative improvement has brought about, there is no inflation (see car prices). Since Sputnik, the Federal government has injected itself (and our money) into the education of our children, and achievement scores have gone way down. But when you factor in that the young folks are much better people these days (ask'em), well, it's all good. And now that the Federal Government is in charge of the climate, Wall Street will only be flooded with cash.

In the 1980s I read that the USSR's rate of capital investment was growing yearly and way higher than in the USA, and I thought "Uh-oh for us." Then I read that all that capital investment was producing a negative return -- that they weren't just running on a treadmill to get ahead, but running on a treadmill and falling behind -- and I thought "Uh-oh for them." As regards Communist China, we've transitioned into the "Uh-Oh for them" stage but we are still in the "Uh-oh for US."

The Chinese leadership blamed political reform in the USSR for the collapse of the communist regime and vowed not to make that mistake. This is like blaming the cancer on the desperate remedies used to slow its spread. Now they've tossed that politically convenient "two systems" pledge (allowing limited political and economic freedom) onto the Ashheap of Chinese History. What desperate measures will Xi Jinping use to avoid that same fate?