To Save Our Economy, Let's Sell Japan to China
Paul Kane, in the New York Times, forwards a bold proposal for saving our economy: Ditch Taiwan.
There are dozens of initiatives President Obama could undertake to strengthen our economic security. Here is one: He should enter into closed-door negotiations with Chinese leaders to write off the $1.14 trillion of American debt currently held by China in exchange for a deal to end American military assistance and arms sales to Taiwan and terminate the current United States-Taiwan defense arrangement by 2015.
This would be a most precious prize to the cautious men in Beijing, one they would give dearly to achieve. After all, our relationship with Taiwan, as revised in 1979, is a vestige of the cold war.
I have no idea why he's thinking so small. Taiwan's GDP is about what, $450 billion? Japan is worth about $5.5 trillion. I bet we could get at least three trillion for it, even in this market. Selling Taiwan won't even make a dent in our debt, but selling Japan to China would be a serious down payment. Hey, we could throw in South Korea for another trillion. Heck, how much is ASEAN worth? Sell them the whole thing, maybe we'll all be able to collect Social Security after all.
How much do you think we could get for Hawaii? That's kind of a vestige of the Cold War too, when you think about it. Do we really still need it?
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Nov '11
Re: To Save Our Economy, Let's Sell Japan to China
And if we can get them to take California off our hands, I say do the deal!
Oct '10
Re: To Save Our Economy, Let's Sell Japan to China
It's time to play the China Card.
Jan '11
Re: To Save Our Economy, Let's Sell Japan to China
Why not sell them Europe while we're at it?
And how about Mars?
Re: To Save Our Economy, Let's Sell Japan to China
Didn't they buy it already?
Apr '11
Re: To Save Our Economy, Let's Sell Japan to China
And how about Mars? · Nov 11 at 11:33pm
Europe is more of a buyer's market. They want Taiwan and Japan.
Dec '10
Re: To Save Our Economy, Let's Sell Japan to China
We stole Hawaii fair and square, long before the Cold War started. Hawaiian statehood might have been part of a Cold War strategy, but the US gained ownership of the islands when we arranged for the dissolution of the Hawaiian monarchy. We could give them back to the Hawaiians, but they don't have a lot of cash to offer.
Dec '10
Re: To Save Our Economy, Let's Sell Japan to China
Look, selling Taiwan is hardly the slam-dunk Kane thinks it is. After all, if reunification is as inevitable as he says it is, why would the Red Chinese pay the US for something they're bound to get eventually? No, the better property to offer and the better buyers would be Israel to the Arabs. Certainly we could get many trillions of dollars from the Arab nations in return for letting them wipe Israel off the map - just the appeal to Arab pride would make the deal irresistible. I mean, while we're talking about selling sovereign nations like they were America's to sell.
Oct '11
Re: To Save Our Economy, Let's Sell Japan to China
and to complete the circle of Irony, lets have Goldman Sachs hold the auction in which the USA sell its allies.
Jan '11
Re: To Save Our Economy, Let's Sell Japan to China
Claire Berlinski, Ed.
Didn't they buy it already?
I think the sale was handled through the PBOC. If we move fast enough we might be able to convince some mid-level schmuck in the army or somewhere else that buying a whole continent at a discount would be a great career booster, hopefully before all the paperwork goes though on the original sale. You know how slow those vast governmental bureaucracies work…
Dec '10
Re: To Save Our Economy, Let's Sell Japan to China
While pitching off Taiwan is a temping offer, appealing to monetary measures can be just as useful.
Popular Mechanics, of all publications, did a very interesting piece on the war to come, depicting the U.S. becoming embroiled with the Chinese in a spat over Taiwan. The crux of this piece is that China's has designed a new missile to sink an aircraft carrier, currently the lynch pin of U.S. global military dominance. The most likely target, would be, as I'm sure Kane noted, Taiwan, a country whose continued independence exists solely because of U.S. potential threat and the arms they supply, primarily jets.
So, while selling off the liberty of population of a small Asian country for a little breathing room on the issue of deficits seems appealing, threatening to cancel the $1.1 Trillion debt obligation we owe to China in the instance that they attack one of our allies seems like a more potent deterrent, because it is a lose-lose for China.
Dec '10
Re: To Save Our Economy, Let's Sell Japan to China
After all, we could always save our economy by cutting spending...right?
No, no, no, I'm sorry, I know that fairy tales have no place in economics. How long would it take to process the paper work for the Taiwanese transfer again...
Mar '11
Re: To Save Our Economy, Let's Sell Japan to China
We sell them Taiwan and either Korea or Japan, but then they have to take Europe as well, or at least the PIIGS. It would be sort of a Toxic Asset derivative, but with countries instead of mortgages.
Jun '10
Re: To Save Our Economy, Let's Sell Japan to China
Destroying other peoples lives to escape our own responsibilities sure is fun. It seems to have everyone's creative juices erupting.
Nov '10
Re: To Save Our Economy, Let's Sell Japan to China
What would happen to US debt held by China if we went to war with each other? Could the US simply then write it off? Does that possibility cause any sleeplessness in Beijing?
Apr '11
Re: To Save Our Economy, Let's Sell Japan to China
Yes I believe if we go to war with China our debt is canceled at least if we win...All the more reason to have a strong army. Maybe if we threaten to sell out our allies we can just offer them the chance to buy back our friendship. This could be the money making deal of a life time.
Feb '11
Re: To Save Our Economy, Let's Sell Japan to China
Claire, you've been th(dr)inking. Big. Surrendering our commitments to Japan AND Taiwan would be worth total cancellation of our debt AND an agreement to keep buying. Though both nations will disappear soon anyway because of population collapse, it would be a great victory for the current Chinese rulers. It would boost the U.S. economy and validate the world's belief that that's what we think friends are for. As a bonus, we can throw in Israel. Talk about a win-win!
May '11
Re: To Save Our Economy, Let's Sell Japan to China
I think we should let our "allies" decide. Whichever one is first to hold an anti-American protest gets sold off. My money is on South Korea. They are always demanding that we get out, unless we threaten to actually get out.
Oct '10
Re: To Save Our Economy, Let's Sell Japan to China
Since the left has already sold it's soul to satan, Taiwan and Japan are simply a bonus side dish to the Chinese. Just give China the whole damn world. As satan's landlord they would be merely settling the future in one swell foop.
Aug '10
Re: To Save Our Economy, Let's Sell Japan to China
Taiwan's GDP may only be $450B but if you look at the lifespan of the bonds held by the Chinese, $450B/ per year yields a substantial increase over both the rate of return and the ultimate value of the debt the Chinese hold.
Claire, you undervalue $450B GDP by a considerable margin.
May '10
Re: To Save Our Economy, Let's Sell Japan to China
Taiwan already owns a critical mass chunk of the Chinese manufacturing sector. One reason that so much of the belligerent posturing and empty words over the Straits are just that- empty- is that one of the worst things that could happen to China is for Taiwan to disinvest and thus tip over the applecart.
China needs Taiwan in a stable orbit just as much as they need the US. Which iu why the smartest strategic position we can take is to step up the relationship with Taiwan, not reverse it.