An item in Renewable Energy News deals with the rapidly growing US trade deficit with China in relation to solar energy.
http://www.renewableenergyworld.com/rea/news/article/2012/03/u-s-solar-trade-surplus-with-china-turns-into-gaping-deficit-says-coalition-of-manufacturers
I made a comment:
@macafrican: "China just has a different approach to capital(ism): they don't mind if state backed enterprises operate for a decade at cash cost without servicing any debt or equity. A decade is more than enough to close down the foreign manufacturers."
This is crucial. China uses capitalist economic techniques but runs a non-capitalist state financing operation. Which means the return on investment can be calculated over a decade (or more) and over an entire sector, or even in the case of priority infrastructure (rail, energy, telecoms) the entire economy. Just one of the advantages of a non-capitalist system that purely capitalist states will never ever be able to emulate.
The US is extremely protectionist, and Big Energy is extremely dependent on state subsidies, but when it comes to running the economy for the good of the whole nation neither protectionism or subsidies US style make the slightest difference - except to cripple and distort development. And when the debt bubble really bursts, this will become painfully obvious. 100-0 in 2 seconds.
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