Chinese and US China Trade – Assured Mutual Dominance Or Destruction?
During the Cold War the United States and Russia were playing a game of chicken with nuclear weapons. This was something that was absolutely insane, and eventually it became labeled MAD which stood for Mutually Assured Destruction; meaning if one of the countries launched a nuclear weapon on the other, the other would retaliate and destroy the nation that launched first. This would mean both nations would be destroyed.
Game theory predicts that that’s not a game worth playing. Thank God no one played the game, but in reality no one should have ever been sitting at that table anyway.
Now consider the present period, where the United States and the US are locked together in trade. China produces goods to help us nation grow, and then with the money China buys U.S. Treasury notes, which helps finance our debt. If the United States stops China buying products, China will stop China buying our treasury notes. If the US consumer decides to boycott Chinese goods, the Chinese economy will collapse, but then the United States government will not be able to perform the services promised to the citizens or consumers that didn’t buy the products.
Currently the United States of America has a GDP of between 14 and $ 17 trillion, China has a GDP which comes in number fourth or fifth in the world. Thanks to all the products that the US buys from China – their nation has experienced nearly a 10% year-over-year growth rate for the last two decades. At this rate eventually China and the US will have equal GDP. Some say, that by working together we are assured Mutual Dominance of the planet.
Others say, if we are not careful with the way we do business we both are insuring ourselves mutual economic destruction. And that of course is the topic of the day at The Online Think Tank. Perhaps you will think about it as well, please consider all this.
Lance Winslow – Lance Winslow’s Bio. Lance Winslow thinks everyone should learn about trade and visit all the trade sites online, even this one; mistrade.com