THE NEW PAX SINICA
China isn’t going to come out of the first depression of the twenty-first century unharmed, but it is clearly going to emerge as the new economic leader.
With history as a guide, the transition to the new Chinese peace won’t be without conflict.
What does China’s emergence say about capitalism versus communism?
Not much; remember, European communism collapsed in 1989.
The Pax Americana downfall, like Pax Britannica before it, rather suggests Shakespeare’s Lord Polonius had it just about right in Hamlet: “Neither a borrower nor a lender be”. More particularly, maybe a borrower of the impossible trillions of dollars the United States of America owes the world? She couldn’t even pay the interest on her debt were she to garnishee the wages of every US citizen. Here’s a Wikileak secret: the US has been an example of government in complete disarray. (Keep that to yourself, because the media has been doing so.)
Don’t hold your breath if you are Tea Party-inclined, or a ‘money as debt’ person. If government, not private banks, were to strictly control the issue of money, we’d be no better off if we continue to provide credit against the so-called ‘security’ of land price.
To the collapse of each civilisation before ours, to every economic depression, we may accurately assign the lending of money against ephemeral land price, i.e. failure to capture its rent for necessary government, as its cause.
You’d think we’d learn, but Jews and Christians alike are slow learners. History’s millennia demonstrate Moses wasn’t just whistling Dixie with “The land shall not be sold forever, for the land is mine, and you are but strangers and sojourners with me.” (Leviticus 25:23)
Now the baton is being passed to China, I wonder whether she’ll do any better in this regard.
She’s had a couple of great people point her in this direction:-
“Once, natural resources were fully used for the benefit of all, and not appropriated for selfish ends. This was the age of the Great Commonwealth of peace and prosperity.” – Confucius (551-479 BC)
“The land tax as the only means of supporting the government is an infinitely just, reasonable, and equitably-distributed tax, and on it we will found our new system.” – Dr. Sun Yat-Sen (1866-1925)