US Navy Chief : U.S. Cannot Outspend China, Must Use Allies To Counter

[Darius77]

The US military is a paper tiger with the biggest wasteful military budget in the world that outstrips most of the world spending. These US loser generals keep on creating bogeyman for more defence and weapons spending. The US economy is over $30 trillion in debt and staying afloat by printing dollars. Just the Afghan and Iraqi disaster cost over $15 trillion and now stuck in Syria.

China in real terms spends around $150 billion on all defence related expenses and that money is well spent as there is barely any corruption in Chinese spending. In real terms China is also the world's largest and still rapidly growing economy at about 6% per annum despite the pandemic disruptions. The US is dead broke and can not compete with China as they were able to against the economically and socially weaker USSR. The US has no chance against China in any field. China is also graduating a million hard science and engineering graduates a year and its R&D dominance is also growing. The Chinese J-20 is an excellent example.

 

[mike2000 is back]

Only a fool will.believe this. This just another tactic US military complex uses to scare Congress/Americans to justify the massive amount of money allocated to the military. The US alone alone spends almost as much as the top 10 countries combined. So claiming China is anywhere close to that is just another scaremongering by the military industrial.complex. they want to create this fantasy enemy to justify their huge budget and get an increase in funds.

 

[PakFactor]

USA can indeed print dollars without restrictions. But there must be goods for these dollars to buy, otherwise it will cause global inflation, just like now. Only China can produce enough goods, this is why USA is eager to negotiate with China recently now. Once there are not enough commodities to lead to inflation for a long time, the dollar system is bound to collapse. As long as the dollar system collapses and the world's dollars return to USA, USA will become Zimbabwe.

That is true in a sense as well.

IMF has warned many nations on fiscal discipline when they have severe deficit/debt problems, especially when they fall below -60% (NIIP as of annual GDP), now look where US is by 2021Q2. But of course, IMF can't warn US, it's exceptional.

It's predictable, and has come to reality, and is predicted to sink further with no bottom in sight, perhaps -100% soon? -200% in 5 years? The question becomes: Who can fill this ever-expanding global USD blackhole? Germany can't, they have to feed debtors in Euro zone. Russia has decided not to play this Ponzi Scheme. China, Japan and GCC, there are limits even if they are willing to help. Sooner or later US will have to turn towards US citizens, that includes continue to draw down from the already massive unfunded liabilities (by now ~160 trillion). And like you said, inflation is destined to increase. But perhaps these are minor issues or no concern for US, priority should be military.

From your opinion what would be a safe investment (with return)? Market investment wise?

 

[redtom]

usa war economy of wwii spent something like 40% of gdp on war effort. usa cold war economy averaged between 10-15% of gdp on military budget in the 50s and 60s. Within a decade of high production of military equipment, China can be 10X the size of the rest of the globe combined (xIran and other places like Iran). For China makes the equipment at up to 3X less than Western economies. Only an arms race would reduce this, and still China would have a huge dominance.

In price terms alone, China's manufacturing sector is the size of the G7 combined. If purchasing power is a consideration, maybe the US needs to unite with everyone except China. Most countries don't want to join the conflict at all. Because the biggest partner of most countries is Also China. People should remember how long Southeast Asia enjoyed peace as China's power grew. At the same time, the Middle East, Africa, Latin America, how many wars. Whether Chinese power will bring stability or chaos, history has proved everything.

 

[Shotgunner51]

From your opinion what would be a safe investment (with return)? Market investment wise?

Depends on your age (& number of dependencies say kids), income/expense level, risk taking, retirement/insurance plan and perhaps even investment philosophy, for any plan customized for your specific needs I suggest you may contact a good private bank, or any accredited financial advisor.

In my opinion, China has been very conservative like parking too much on low-yield investment like US T-bills, ending with negative return even being a net creditor. But good news is that I see China gradually rebalance her porfolio and pivots towards SWF. Two very successful examples are UAE and Norway, two countries that need to manage their yearly oil surpluses, and both build SWF (Sovereign Welfare Funds) instead of buying US T-bills. Another example is GIC/Temasek of Singapore, perhaps one of the best managed, and their expertise assistance has been instrumental to our own SWF startup. Currently AUG (asset under management) of our SWFs totals around $2.2 trillion, I believe we will continue to unload US T-bills and move SWFs to center stage in the long run.

Back to your question about investment advice, perhaps you may take a trip to Hong Kong or Singapore and talk to some private banks, I am very impressed with their professionalism.

 

[casual]

That is true in a sense as well.



From your opinion what would be a safe investment (with return)? Market investment wise?

Unless you want to follow market news everyday, I'vd just park money on index ETFs

 

[PakFactor]

Unless you want to follow market news everyday, I'vd just park money on index ETFs

Already do this, but you'll also want to have counter hedges so you don't take a big hit or off set it some how.

 

[redtom]

1, China's shipbuilding capacity is 30 times that of the USA(per year 12 million tons:0.4 million tons)
2, The cost of shipbuilding in China is less than half that in the USA
055's cost is $0.9 billion.
Burke's cost $1.85 billion.
3, The USA lacks manufacturing, their government spending will cause prices to rise. But China will not, our production capacity is seriously surplus, and the government's spending on warships will only stimulate economic development.
4, Chinese warships are 100% domestic, from electromagnetic ejection devices to soldiers' underwear, all made in China. Chinese warships do not need to spend foreign exchange, and all the costs will enter our economic internal circulation. Or maybe we need to import some iron ore from Russia?
5, The most important difference is that China's social stability far exceeds that of the USA. Can American people tolerate a further three fold increase in military spending? Can the greedy Military industrial complex accept that the USA does not enter China's arms race trap?

The biggest problem in the United States is the lack of manufacturing and social instability.
The biggest problem in the USA is the lack of manufacturing and social instability. We will challenge in these two areas.
In Chinese, danger=危机. It has two words. 危 means danger and 机 means opportunity. The Chinese believe that danger and opportunity coexist.
So we think the Taiwan issue is not necessarily a danger for China, nor is it necessarily an opportunity for the United States.
In another 20 years, we will know the answer.


The USA can prepare for the arms race. We will compete who has better manufacturing and social stability.
Don't die in the same way as the former Soviet Union, because it would be a great irony.
I forgot that the USA can print money, or another 4 trillion? LOL

1. Almost all U.S. debt owned by China is in kind. These debts are bearer and transferable.
2. Without goods, all financial assets are waste paper.
3. China's market size has exceeded that of USA, and its GDP will exceed that of USA in a few years.
4. Are U.S. allies really reliable? In addition to aukus, other allies want China and USA to die together.

You underestimated burke's cost. The latest Burk3 cost $3.7 billion to build. Its radar level is still behind 055 and its tonnage is 20% less. Combined, the cost of building a ship in the US is five times that in China.

But destroyers are America's cheaper ships because electronics account for more, reducing the cost differential. If you look at the cost of the LHD, you can build ten 075 class for the cost of one American class.