Chinese
trade surplus
Bob Choi
Having a huge
trade surplus is not necessarily a good thing. Look at Japan, it has a huge surplus (and
still does) and its economy is going nowhere.
Which is better? Printing paper money (like the US) and buy goods and services
essentially on credit, or produce goods and services and exchange for paper
money (like China)?
China should
invest its huge surplus in commodities such as oil and precious metals, things
that the country would need and will use. There is much that China can do with the surplus: improving education,
health, the environment and other infrastructures. Buying up US treasury or bonds (all paper money!) is not wise!
Let's face it, the US is NEVER going to redeem all the treasury bills and bonds it has issued. It will just keep on issuing new ones to cover the old ones when they mature. It's the greatest con game in the world today!