China and its opportunity costs

  China every year has the option to choose domestic consumption or exports. They could be building new schools and hospitals. Health care and education, nuclear submarines and ICBMs. But instead, they are producing exports.

  The CCP makes these decisions because they know they can not collect foreign interest on a new school or hospital if its built in China. They can not collect interest on a nuclear submarine or a missile silo. They can collect foreign interest on treasury bonds. Thus greed dictates their decision making process.

  Every 10,000 tons of goods China exports, could have been a new school, a new hospital, a new SSBN. But they will forgo national interest if they can profit.

  But the problem with the profit is that these profits are printed out of thin air. The federal government of the united states, prints bonds out of thin air, prints dollars out of thin air, prints the interest rate payments on treasuries out of thin air. And those payments do not even keep up with the returns made on gold and silver.

http://www.youtube.com/watch?v=zgaytKcx2NI&feature=channel

  The CCP is fooling themselves if they think they are coming out ahead. All they are doing is sacrificing national and military interests in order to accumulate fictional wealth.