Some who think one belt one road will fail.
http://www.scmp.com/week-asia/opinion/article/1999544/why-chinas-one-belt-one-road-plan-doomed-failFacing a deep slowdown after years of investment-fuelled growth that culminated in a huge property and stock market bubble, the leaders of Asia’s largest economy come up with a cunning plan. By launching an initiative to fund and construct infrastructure projects across Asia, they will kill four birds with one stone.
1. They will generate enough demand abroad to keep their excess steel mills, cement plants and construction companies in business, so preserving jobs at home.
2. They will tie neighboring countries more closely into their own economic orbit, so enhancing both their hard and soft power around the region.
3. They will further their long term plan to promote their own currency as an international alternative to the US dollar. And to finance it all, they will set up a new multi-lateral infrastructure bank, which will undermine the influence of the existing Washington-based institutions, with all their tedious insistence on transparency and best practice, by making more “culturally sensitive” soft loans.
4. The result will be the regional hegemony they regard as their right as Asia’s leading economic and political power.
*** Readers are encouraged to read the original article to get the views of the author.
Here, I shall present my point of view:
1. China can generate as much demand as it desires if it implements Mutual Credits. The key element is – whether China can use the exchanged currency X to help Nation X rich.
2. Almost every Developing Nation is looking at the China State Capitalism Model. Can anything be learned? Can anything be improved? Can any pitfalls be avoided? Is China really willing to provide the capital, the knowledge and technology without a repeat of Imperialism or Colonialism? Is China serious in win-win?
3. China is becoming the number one economic power whether USA likes it or not. China is already the Factory of the World. China is already the number one trading partner with many Nations. The amount of trade will increase with the one belt one road projects.
If a Nation wants its Citizens to get rich, it must increase its Currency Supply appropriately. If there were no increase, one citizen’s gain will be another citizen’s loss. The World Community as One will follow the same principle. Someone must supply the money (from thin-air if needed) so that all Human Beings can get rich. USA has a chance to take on that role. But USA failed as it focused on conditional loans, private multinationals and Return on Investment. It prints money more to benefit its Banks and Rich Citizens.
China must increase the money supply (RMB) appropriately to benefit all Human Beings. One way to do it now is via building Infrastructures in Developing Nations.4. China will become the number one Economic Power by virtual of its population and success stories. The one belt one road projects aim to achieve win-win. Plan together, work together and enjoy the benefits together.
Such moral high grounds will alarm USA and threaten its dominance. It will try all means to prevent the one belt one road projects from succeeding. Some moves include negative reports, rumors, giving bribes to leaders or politicians of some Nations, stirring local Nationalism and going into regional wars.