Archive for the ‘deficit’ Category

China Wants U.S. Out of Asia’s International Waters

March 10, 2009

The incident at sea between China and the U.S. Navy this last weekend indicates a growing truth among Chinese military officers: the seas adjacent to China wherever they extend are de facto Chinese terrirtory and the U.S. needs to leave.

This is in violation of international law which grants free passage to all who operate in international waters.

China is complaining saying the U.S. ship, while not in their territorial waters was in their “economic zone,” a claim that also pits the Chinese directly at odds with 5 countries (Taiwan, Philippines, Brunei, Vietnam and Malaysia) who would like to have their own territorial waters.

But China now has repeatedly expressed and demonstrated distain for international law — a a certain ability to push people around.

“They seem to be more militarily aggressive,” National Intelligence Director Dennis Blair told members of the Senate Armed Services Committee.

“I think the debate is still on in China whether as their military power increases they will be used for good or for pushing people around.”

But the Chinese say all the fault for this weekend’s incident belongs to the U.S. 

“Go and ask the Americans, ask their embassy,” China’s Vice Admiral Jin Mao, former PLA Navy vice commander in chief, told Reuters on the sidelines of parliament when asked about the incident. “Ask their officials what their ship was doing in Chinese waters.”

The fact is, the American ship operating in international waters is protected by international law — even if it is searching for submarines.

Related:
http://news.yahoo.com/s/ap/2009031
0/ap_on_go_ca_st_pe/us_china_incident

Beijing will take a tougher stand against other nations as its naval ambitions grow, said analyst Shi Yinhong.

“The United States is present everywhere on the world’s seas, but these kinds of incidents may grow as China’s naval activities expand,” Shi, an expert on regional security at Renmin University in Beijing, said.

Analyst Shi said the seas off Hainan were important to China’s projection of its influence with a modern naval fleet.

“The change is in China’s attitude. This reflects the hardening line in Chinese foreign policy and the importance we attach to the strategic value of the South China Sea.”

See a report from Reuters:
http://news.yahoo.com/s/nm/20
090310/pl_nm/us_usa_china

See also:
http://wok3.wordpress.com/2009/03/10/chin
a-the-dragon-stirs-and-strips-down-to-its-underwear/

Chong-pin Lin, Professor at the Graduate Institute of International Affairs and Strategic Studies at Tamkang University in Taiwan says, “I think the objective of the grand strategy of China is to squeeze out, very slowly and very gradually, the influence of the United States in East Asia, without war.”

A budget analyst at the U.S. Navy in the Pentagon told Peace and Freedom, “Our futue problem is this: with our current and projected budget deficits and debt, the U.S. will not be able to afford the navy it has now — while China will grow and improve its navy and take whatever it wants in the world.  That is the trend we see.”

Related:
 Era of Obama, American Weakness Emboldens Russia, China, Iran, North Korea, Terrorists
.
 Pentagon: Chinese Ships Harassed Unarmed U.S. Navy Craft in International Waters

What’s China’s Long Term Global Strategy?

China uses naval showdown with U.S. to flex muscle

China Says U.S. Ship Was Breaking Law

http://edition.cnn.com/2009/WORL
D/asiapcf/03/10/us.navy.china/ind
ex.html

China Says U.S. Ship Was Breaking Law

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Audacity, Hope and Obama’s Spending Stimulus: Once Discredited Theory Gets A Real Try

January 11, 2009
President-elect Obama proposes an unparalleled test of Keynes’ decades-old idea: that deficit spending on a grand-enough scale can inspire the confidence to right a sinking economy.
By Peter G. Gosselin
The Los Angeles Times
January 11, 2009
Reporting from Washington — In a measure of how quickly its options are shrinking, the United States is about to embrace an economic theory that was widely thought for most of the last generation to have been discredited: the idea that great bursts of deficit-funded government expenditure can jolt an economy back to growth.

And the nation is poised to put this theory to the test on a scale untried in peacetime by any developed country on Earth.

President-elect Barack Obama will soon unveil a package of tax cuts and spending increases that, combined with already planned spending, would push Washington’s 2009 deficit to between $1.5 trillion and $2 trillion — more than 10% of the economy’s output. And he will argue that this tidal wave of federal expenditure should continue into next year, and perhaps beyond.

Only during World War II did U.S. government expenditures account for a greater share of economic activity, according to federal statistics. That’s also true for virtually every other developed country.

“There’s been nothing of the magnitude of what the incoming administration is contemplating — certainly not as intentional policy — in the modern era,” said Adam Posen, deputy director of the Peterson Institute for International Economics in Washington.

Related:
Obama Pressed From Left on Stimulus
.
Obama Stimulus: Trapped Between Too Little Rock and Paul Krugman Nightmare

Read the rest:
http://www.latimes.com/business/la-fi-
econ11-2009jan11,0,2730452.story

According to Keynesian economics the state should stimulate economic growth and improve stability in the private sector – through, for example, interest rates, taxation and public projects.

Read:
http://en.wikipedia.org/wiki/Keynesian