China, Europe, United States discussed on Lars Larson
There's always goes to the head of the live on the LARs Larson show. Welcome back to the LARs Larson show. It is a pleasure to be with Dr Martin Jake's from Great Britain, the author of when China rules the world, and you know, the title of that book is gonna make it solemn the United States doctor because an awful lot of people are concerned about that. So let me frame this for you at the same time that China's becoming this economic powerhouse of the world, the United States and much of Europe is burying itself in so much debt. If twenty twenty five years from now, China is, you know, the preeminent economic force on the planet and the rest of us are so buried deep in debt because most of us can't see a way that the United States or Europe could turn around and say we're going to start living within our means. And we're gonna not only do that. But pay off all the trillions of dollars of debt. We have some of which we owe to China, which as you say is going to become the economic powerhouse. So what happens then? I think that the the western countries have to put the house in order. I mean, you know, we did become addicted to that. And we have to wean ourselves off it it hasn't always been true. And we we have to we we we we have to stop living night that I think that. This is absolutely necessary. And it requires all kinds of shifts in mentality at all levels from the individual to to government and corporations and saw the credits. And and it also requires a kind of longer term view, you know, to to longer term view, particularly the economy, which is, you know, if you can have a decent infrastructure, which America in my view, no longer has then you would how'd you get a decent infrastructure. You have to save for the future will actually what they're gonna have to do is big enough to borrow some money as well. I mean, you're going to have to borrow some money in this situation to to reconstruct it infrastructure, but the good thing about infrastructure is it requires long-term planning long long time conception, you know, station period for infrastructure is very long, and I think one of the things we've lost actually in western societies minute deaf being treated is this sense of you know, of the future. You know, we we sort of we we live for the national. Exactly. Day of worship the president. That's that is a very bad mentality. I agree with you. But here's what I wanted to get to. Dr Jake says that you said China will be the economic powerhouse of the planet by twenty fifty if not sooner when they hold the debt and we owe the debt do I want. I'm more curious in the context of your book as to what that means for the rest of us. Do we become effectively colonies of China? No. I think much too extreme putting it. I think that what what what what what will happen if? I was trying to become the the the financial center of the country with these resources, which even support country. It certainly has now is that it gives China lots of bog boggy pattern that I'll give you unconscious look to China. So one of the things that's happening. Now is that you know developing. Well, you know, I mean who's funded? Africa's recent transformation. No question is being the Chinese and this is happening not just in Africa. But it's happening in some MO modest way in Latin America, and it's happening in East Asia, notably in south East Asia. And so, you know, China is making is is making significant loans. Now, let me just remind you of a very interesting Macha in this context. We remember cereal summits to save the euro. Yeah. Well at the end of October. There was a particularly sort of heavyweight and at the end of it President Sarkozy is he was in the French president rang who's in town and said would be prepared to make wasn't. To to save the euro. Well, actually, the Chinese what he decided not to. I think probably only grounds they'd never get the money back. The interest. The interesting thing is the Europe which down on China, the average European until this narrows look down on Chinese is poor and undemocratic and all the rest of it. You know, suddenly then conscious does he is turning to China and save you now? Well, he's a back. You know? You're being in debt and China having the financial group the last time this happened, of course, was at the end of the second World War when Europe turned to America for Marshall aid. Yes, America doesn't have the money anymore. So that is wrong in thinking that Tom's extreme tons and tons of colonization. It's just the whole terms of of a Balkany negotiating relationship will terms a path begin to shift when China has money, and we don't have it. We'll see. And that's the thing. I'm wondering about when they become the economic powerhouse. And we I assume are still buried in so much debt. We can't see daylight if we don't become a colony or a I don't know if there's a correct political term for it, a Member State of the Chinese pyjama than than than what happens at that point. Because does China a seemingly fairly disciplined kind of population that sees itself as as as all Han Chinese one one entity and very loyal to the? The family to the state that is the press preserver of Chinese culture. Do they start to look at welfare case states, like the United States and Europe the way the Germans are looking at the Greeks right now. As as a big drag on their economy, and oh, that's my deadbeat brother-in-law who sleeps on the couch and doesn't go out and find a job. I mean, I I can't imagine the discipline. Chinese looking at us and say, oh, we're happy to keep paying your bills. There'll be beer in the refrigerator, and you know, and and you don't have to go find a job because because I have a feeling they're not gonna take that attitude toward a deadbeat debtor. No, I think they'll be they'll be in that probably have the typical mentality of banks at least as banks used to be about banks days. But as they used to be which is the, you know, then expect us to pay. Pay the decks and when we can do. Well, we, you know, eventually, you do have to pay state you. I mean, I think that I don't think the Chinese you're absolutely right. I think the Chinese have a docu to towards saving towards frugality on work concern. I mean, you know, they the old what we used to say ability only Toyin Victorian ethic you but at the same time. I think that they, you know, if they if they're in a situation of of what you're describing which is a certain predominance in the world, you know, that you've also go to make it work. You know, I mean, take the German case now with Greece. I mean, I mean, Germany, I think has to think twice about driving the Greeks to the wool because that's actually what's happening. Terrible. What's happened to doctor? Dr. That's what I'm wondering. If they're gonna do. And that may be the greatest fear of Americans that while we've enjoyed all this liberty and freedom, and we've abused it to a certain extent that at some point a Chinese will say to us, we're going to pay your bills, but you're going to live your life, you know, economically, and that which affects everything the way we tell you to the same way, the Germans, and and the rest of Europe have tried to say to Greek Greece that we'll pay your bills, or we'll bail you out this time, but you need to change the way you live. And when the Greek say, well, we're not gonna do it. Then you come to loggerheads where well if you're not going to change the way, you live, you know, the amend you're you're crazy spending patterns than we're not paying your bills. And that's that's one of those where I think Americans aren't gonna take kindly to the idea of being told what to do. But as a debtor, I don't know if we'll have any choice. I think I think you put it'll be you know, I mean, it's the way that if the Chinese did behave as you say. There's nothing new about this gentleman's have been doing in your. You know, the Americans have done it in the pasta countries. And so on you know, if you know, if you call if you out we'll give you some Asia is a helping hand, you know. But you know, we won't continue to do it. I mean, it's the classic mentality of a band banker, isn't it? Yeah. They come and take the title to your house, where I'm I'm I've got.