Thursday, May 28, 2015

F. William Engdahl — China’s New Roads to Russia

Some idea of the scope and scale of the New Silk Road project.

Engdahl is a decent geopolitical analyst, but he is way out of paradigm with MMT in his understanding of the monetary system.

New Eastern Outlook
China’s New Roads to Russia
F. William Engdahl

When completed, like the ancient Silk Road, it will connect three continents: Asia, Europe, and Africa. The chain of infrastructure projects will create the world's largest economic corridor, covering a population of 4.4 billion and an economic output of $21 trillion.
New Silk Road Could Change Global Economics Forever

Could The New Silk Road End Old Geopolitical Tensions?
Robert Berke, energy financial analyst with experience as a government consultant to the State of Alaska


Roger Erickson said...

China constitutes ~20% of the world's population. It's a simple question to ask whether 20% of the human population can realistically expect to keep a positive export balance with the rest of the world.

Seems unlikely ... unless they voluntarily submit to a strategy of keeping themselves very poor (or seriously reduce their own population).

Regardless of all the details, and the endless degrees of freedom, Germany on a Chinese scale just doesn't seem very sustainable.

Tom Hickey said...

The chinese are already in the process of rebalancing. An emerging economy should have a preponderance of investment in the growth stage and then level out in the developed stage, indeally approaching about 80% consumption and 20 investment. China is now in the transition stage.