I recall the same level of alarm back in the 80's, although that time around it was Japan. Well, we all know how that ended. Sure, we all drive Hondas and Toyotas, but now they're made in Mexico...heh.

As for the treasury debt, who's better off when that house of cards collapses? Remember the old saying: If you owe the bank $100,000 you have a problem. If you owe them $100B, THEY have a problem. Well, who's the "bank" in this case?

My next argument comes from the Canadian side, but it's much the same story. Back when the first wave of Chinese immigrants arrived they were calling this place Hongcouver and the popular slogan was, "the Chinese are taking over one house at a time." My answer to that was "yeah, but we're taking them over one teenager at a time." Time has proven me right. Not only do these kids consider themselves Canadians, but they do well in school and many of them start businesses or go on to university with help from their parents. Just like "our" good old days. So, who got the best of that deal? China, or Canada?

Which raises a key point. Do you see Canadians or Americans emigrating to China? The general rule is, people flow in the direction of greatest opportunity, so what does that tell you? And what the hell was America founded on in the first place, if not immigration?

There will always be some sleepy little valley full of sleeply little people who don't like change. Likewise, there will always be demagogues who pander to that sentiment, but you know what? The only real constant in this world is change. Change for the better, or change for the worse, but there's no avoiding it. Either you deal with it or get swept aside, and that's just as true for China as it is America or anywhere else.

I don't fear China (or India) taking over. Quite the opposite. I fear a general collapse of both economies and the impact it will have on us all. Growth in both places has happened way too fast and is very lopsided. A narrow segment of the population has benefitted while the great majority have not. Resentment is building and will one day spill over. People see this and are getting out while they can. Not waves of uneducated peasants mind you, but the best and brightest - the very people China and India need to make their so-called economic miracles work.

I wouldn't be so quick to write off America. Which part of the world is most accustomed to change and adapts more easily? Which part of the world has most of the resources, and thanks to immigration, most of the intellectual and financial capital? Sure we're going through a bad patch, but like everything else, this will pass. Don't waste your time worrying about this group or that group "taking over." Let 'em come. We'll take the best of what they have to offer and make it our own, just like we always have.

Sushi, anyone?

ebear