People are always saying that China owns the United States. Here at Business Insider, we’ve gone over all the ways that that’s not true.
Now a new book goes even farther, it says that the United States owns China. And because of that, the United States will rise up and dominate in the coming decade.
The book is called “The American Phoenix,” and it was written by Hong Kong based economist Diana Choyleva, and Charles Dumas.
“When you look at the problems facing the world, the bubbles and imbalances, America’s are easier to fix than most,” Choyleva said. “It says a lot about the state of things globally.”
Choyleva and Dumas think about it like this: Foreign investment in China has only created the illusion of wealth. Once investors go away, that money will be gone because most of it actually is wasted by the people and the government. That, combined with inflation and social unrest, means it’s only a matter of time before China defeats itself.
And then there’s the fact that China has bought a lot of U.S. Treasuries. That doesn’t mean that they own America. Quite the contrary. It means that China is subject to the decisions of the Federal Reserve. When Bernanke lowers interest rates, Chinese inflation worsens.
The authors of American Phoenix say that China would’ve been better off just letting the yuan appreciate.
But they won’t, and that means their on the road to regret — a road that Europe has been on for the past two years.
The United States, though, has top Universities, and a great fertility rate. The country need only re-establish the strengths that have weakened over the past fifteen years to reclaim its place at the top.
Basically, this sounds like the opposite of everything we’ve heard over the past few years. So it could be a good read whether you like economics, or Sci-Fi fantasy.