Human beings are prone to self-deception. Often, other people see us more clearly than we do ourselves.
Below are excerpts of an internal document of the Chinese government which pertain to how the Chinese see the United States — which confirms the Conservative analysis of the Obama administration. The American Left are dangerously deluded: They are blind and cannot see, but they are in charge.
Save America! Vote all Democrats and RINOs out on November 2!
By Gonzalo Lira – Business Insider – Oct. 4, 2010
We all have a sense of what the Chinese are thinking about the rest of the world — but we don’t really know. Of course, they tell us what they’re thinking — but that’s as polite and meaningless as when you ask your dinner guests how’s the food: They might look green around the gills, but they’ll invariably say, “Why, it’s wonderful — thank you!”
So getting an actual document which spells out in black-and-white what the Chinese are really thinking is an eye-opener: Not so much for what it sas — which on the whole is predictable — but for the emphasis it has.
Recently, I got handed a copy of the Chinese economic evaluation of Japan, the European Union and the United States. The document was written for and by Chinese government officials who will be attending the G-20 summit in Seoul next November. This document will be the basis for their discussions with their trading partners, and outlines China’s concerns about those countries.
I wouldn’t be surprised to learn that the document was deliberately leaked—in fact, I am treating it as such. The material does not contain any sensitive or actionable information…. The document shows what the Chinese economic leadership is thinking, vis-à-vis the current economic situation of their major trading partners.
[…] Regarding the United States, the Big Kahuna: The Chinese are very worried—but they also view America with a bit of contempt.
In their very first sentence, the Chinese state that U.S. fiscal deficit reduction is based on “over-optimistic and unrealistic growth assumptions”—that’s diplomat-speak for “Are you outta your fucking mind?” The second sentence tears apart U.S. GDP growth projections for 2010 and 2011, both the U.S. government’s, and that of leading U.S. economists.
U.S. debt reduction is the big bugaboo of the Chinese—it permeates everything they write about America. They see it as an “imbalance” that will eventually affect all of the world’s economies. They think that American government claims that the deficit will be reduced by 50 percent by 2012 are “not entirely realistic”—again, diplomatic politesse that masks a real contempt for American self-deception.
The Chinese are really exasperated that the U.S. does not seem to have the political will to tackle the enormous deficit. They do not think that the U.S. can achieve fiscal deficit reduction by spending cuts alone—they see the need to increase fiscal revenues. They worry that the U.S. fiscal deficit—which they believe will deteriorate in the medium term—will lead to increase interest rates.
Most crucial of all, they see the U.S. failure to take concrete policy steps to curb the deficit as having a greater impact on the world’s economies than any trade issues American officials might be bitching about. It’s hard for a third-party observer to disagree with this assessment.
Furthermore, the Chinese point out—sensibly—that the U.S. talks about increasing exports and reducing dependence on consumption—but the U.S. makes no mention of concrete steps as to how to achieve this, besides talk of “reducing foreign barriers to trade”. The most striking point here is, the Chinese view as “misdirected” the U.S.’s blaming foreign trade barriers for America’s failure to export. Again, third-party observer says? Score for China.
Though they superficially laud the financial reform package the Obama administration recently passed, the Chinese are very worried about the TBTF banks, Freddie Mac and Fannie Mae. They think that the U.S. government has no exit strategy for its meddling in the financial system, or a clear directive as to the role of the intervened institutions in the financial system, or how they will be regulated. (Yes, I can see the irony: The Chinese genuinely worried about America’s meddling in its financial institutions. WTF?)
Finally, they characterize both the U.S. government’s fiscal policy and the Federal Reserve’s monetary policy as “doubly-slack”. They wonder how the U.S. will ever fix its trade deficits and fiscal deficits, if both the government and the Fed are—to their eyes—asleep at the wheel.
In other words, they don’t see the Fed’s and the government’s bailouts and stimuli (TARP, QE, and all the rest of it) as heroic measures that saved the system—they view the bailouts as policy weakness: Gymnastics that kicked the can down the road, but didn’t solve anything. Which, again, seems accurate: It was easier to save Fannie and Freddie and the Too Big To Fail banks, rather than letting them fail and going through the painful process of cleaning and purging the system.
Bottom line: They don’t see either the Federal government or the Federal Reserve actually implementing concrete steps to achieve medium- to long-term solutions to the problems at hand, especially deficit reduction. And this makes them really nervous.
[…] the Chinese think America is a basket case—and they’re worried about a spike in interest rates crashing the American house of cards. Furthermore, they have a palpable contempt for American policy slovenliness—they don’t like the American self-deception, or their habit of blaming everyone but themselves, or their habit of outlining broad policy goals yet doing absolutely nothing to achieve them.