How America's Economic Crisis May Be Beneficial to China

I have been following with great interest Tyler Durden’s articles on the various cheap tricks and accounting mumbo jumbo that AIG (NYSE: AIG and Goldman Sachs (NYSE: GS) have pulled off in recent weeks in order to report profits while simultaneously being recipients of the government dole. Tyler asks the question “has the whole world gone crazy?” to which I am tempted to reply “no, just American economic theory.”

In connection with my upcoming film, China: The Rebirth of an Empire, I had a chance to interview Professor Chalmers Johnson, author of Blowback, The Sorrows of Empire and Nemesis, about China’s rise and what it means for the United States. Dr. Johnson believes that the economic crisis may ultimately be beneficial to China while exposing the flaws in the American school of economics via the failure of such firms as Bear Stearns (my former employer) and Lehman Brothers, among others.

Criticizing neo-classical economics is a dangerous sport, but Dr. Johnson, an expert on the Japanese model of economic growth - what he terms the “Developmental state” - does so logically and glibly.

I present his video below:

As well as a trailer from my upcoming film in which his comments also appear:

Disclosure: Long Japanese Yen and gold

Comments

[HaavBline:]

Thanks for the interview clip with Dr. Johnson. His three books about the American empire and its potential decline is very thought provoking. He also have a very deep and pragmatic understanding about Asian affairs especially Japan and China that are not restrained by American idiological taboos. That makes his views very worthy and original.

Your upcoming film looks to be an excellent one. I will be waiting to see it.

Apr 15 11:40 PM

[Dustinian:]

Always love to see Chalmers.

Apr 16 11:02 AM