Friday, March 17, 2006

India and China according to the Bush Doctrine

mar 17th

translation into plain english:

"we yanks are scared shitless of the bloody chinese because they are inscrutable and focused on becoming top dog, and by god, they'll do it by hook or by crook"

"but we yanks know exactly how to bamboozle the indians, with sweet-talk and flattery that appeals to their inferiority complex, and we have them by the cojones"

---------- Forwarded message ----------
From: Ram Narayanan <>
Date: Mar 17, 2006 6:07 AM
Subject: India and China in President Bush's new National Security Strategy --  March 2006**

Dear Rajeev Srinivasan:

The White House yesterday released America's new National Security Strategy March 2006.

It may be recalled that in the previous National Security Strategy document published in September 2002, President Bush had said:

"The United States has undertaken a transformation in its bilateral relationship with India... We are the two largest democracies, committed to political freedom protected by representative government. We have a common interest in the free flow of commerce, including through the vital sea lanes of the Indian Ocean. Finally, we share an interest in fighting terrorism and in creating a strategically stable Asia".

In the latest National Security Strategy March 2006, President Bush says:

"India is a great democracy, and our shared values are the foundation of our good relations..... 

"We have made great strides in transforming America's relationship with India, a major power that shares our commitment to freedom, democracy, and rule of law. In July 2005, we signed a bold agreement – a roadmap to realize the meaningful cooperation that had eluded our two nations for decades. India now is poised to shoulder global obligations in cooperation with the United States in a way befitting a major power".

And this is what the National Security Strategy March 2006 has to say about China:

"China encapsulates Asia's dramatic economic successes, but China's transition remains incomplete. In one generation, China has gone from poverty and isolation to growing integration into the international economic system. China once opposed global institutions; today it is a permanent member of the UNSC and the WTO. As China becomes a global player, it must act as a responsible stakeholder that fulfills its obligations and works with the United States and others to advance the international system that has enabled its success: enforcing the international rules that have helped China lift itself out of a century of economic deprivation, embracing the economic and political standards that go along with that system of rules, and contributing to international stability and security by working with the United States and other major powers. 

"China's leaders proclaim that they have made a decision to walk the transformative path of peaceful development. If China keeps this commitment, the United States will welcome the emergence of a China that is peaceful and prosperous and that cooperates with us to address common challenges and mutual interests. China can make an important contribution to global prosperity and ensure its own prosperity for the longer term if it will rely more on domestic demand and less on global trade imbalances to drive its economic growth. China shares our exposure to the challenges of globalization and other transnational concerns. Mutual interests can guide our cooperation on issues such as terrorism, proliferation, and energy security. We will work to increase our cooperation to combat disease pandemics and reverse environmental degradation.

"The United States encourages China to continue down the road of reform and openness, because in this way China's leaders can meet the legitimate needs and aspirations of the Chinese people for liberty, stability, and prosperity. As economic growth continues, China will face a growing demand from its own people to follow the path of East Asia's many modern democracies, adding political freedom to economic freedom. Continuing along this path will contribute to regional and international security.

"China's leaders must realize, however, that they cannot stay on this peaceful path while holding on to old ways of thinking and acting that exacerbate concerns throughout the region and the world. These old ways include:

*Continuing China's military expansion in a non-transparent way; 

*Expanding trade, but acting as if they can somehow "lock up" energy supplies around the world or seek to direct markets rather than opening them up – as if they can follow a mercantilism borrowed from a discredited era; and 

*Supporting resource-rich countries without regard to the misrule at home or misbehavior abroad of those regimes. 

"China and Taiwan must also resolve their differences peacefully, without coercion and without unilateral action by either China or Taiwan.

"Ultimately, China's leaders must see that they cannot let their population increasingly experience the freedoms to buy, sell, and produce, while denying them the rights to assemble, speak, and worship. Only by allowing the Chinese people to enjoy these basic freedoms and universal rights can China honor its own constitution and international commitments and reach its full potential. Our strategy seeks to encourage China to make the right strategic choices for its people, while we hedge against other possibilities".

To read the full text of the National Security Strategy document, please log on to US-India Friendship website at, turn to "Important Issues in US India Relations" and scroll down to the bottom.

It's a document worth careful reading by all who have an interest in America's emerging foreign policy in the 21st century.


Ram Narayanan
US-India Friendship

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Kaunteya said...

Unrelated , but one of the most interesting article i read in recent times. Thought i should share it with the forum. And quite frankly i agree to most of what is written in it...
Ever since i read this i am on a spending spree much to the discomfort of my wife...




-- Written by an Indian Economist

Japanese save a lot. They do not spend much. Also Japan exports far more than it imports. Has an annual trade surplus of over $100 billions. Yet Japanese economy is considered weak, even collapsing.

Americans spend, save little. Also US imports more than it exports. Has an annual trade deficit of over $400 billion. Yet, the American economy is considered strong and trusted to get stronger.

But where from do Americans get money to spend?

They borrow from Japan, China and even India. Virtually others save for the US to spend. Global savings are mostly invested in US, in dollars. India itself keeps its foreign currency assets of over $50 billions in US securities. China has sunk over $160 billion in US securities. Japan's stakes in US securities is in trillions.


The US has taken over $5 trillion from the world. So, as the world saves for the US, Americans spend freely. Today, to keep the US consumption going, that is for the US economy to work, other countries have to remit $180 billion every quarter, which is $2 billion a day, to the US! Otherwise the US economy would go for a six. So will the global economy. The result will be no different if US consumers begin consuming less.

A Chinese economist asked a neat question. Who has invested more, US in China, or China in US? The US has invested in China less than half of what China has invested in US. The same is the case with India. We have invested in US over $50 billion. But the US has invested less than $20 billion in India.

Why the world is after US?

The secret lies in the American spending, that they hardly save. In fact they use their credit cards to spend their future income. That the US spends is what makes it attractive to export to the US. So US imports more than what it exports year after year.

The result:

The world is dependent on US consumption for its growth. By its deepening culture of consumption, the US has habituated the world to feed on US consumption. But as the US needs money to finance its consumption, the world provides the money. It's like a shopkeeper providing the money to a customer so that the customer keeps buying from the shop. If the customer will not buy, the shop won't have business, unless the shopkeeper funds him. The US is like the lucky customer. And the world is like the helpless shopkeeper financier.

Who is America's biggest shopkeeper financier? Japan of course. Yet it’s Japan which is regarded as weak. Modern economists complain that Japanese do not spend, so they do not grow. To force the Japanese to spend, the Japanese government exerted it self, reduced the savings rates, even charged the savers. Even then the Japanese did not spend (habits don't change, even with taxes, do they?). Their traditional postal savings alone is over$1.2 trillions, about three times the Indian GDP. Thus, savings, far from being the strength of Japan, has become its pain.

Hence, what is the lesson?

That is, a nation cannot grow unless the people spend, not save. Not just spend, but borrow and spend. Dr. Jagdish Bhagwati, the famous Indian-born economist in the US, told Manmohan Singh that Indians wastefully save. Ask them to spend, on imported cars and, seriously, even on cosmetics! This will put India on a growth curve. "Saving is sin, and spending is virtue." Before you follow this neo economics, get some fools to save so that you can borrow from them and spend.

This is what US has successfully done in last few decades.

someone said...

Rajeev: You should feature this on your blog:
It's a call to stop censorship of blogs in Pakistan.
And here's a petition:

Kalyani said...

"Ever since i read this i am on a spending spree much to the discomfort of my wife..."


Well,Gurumurthy also had written extensively along the same lines in a Thamizh weekly,some time back.Too abstruse for me.

The gist,as I understood was,America is the world's richestesetest Debtor and is never going to repay the debts.

One more thing.When I read India has given generous amounts to (Hindu inimical)afghanistan and more such Hindu inimical people and countries,I cannot but wonder...why not give to our own Kashmiri Pandits,our ArmyPersonnel's Families,our own exploited Farmers...on infrastructure development...

Reminds me of the behaviour of my caretakers,who would bemoan "lack of money & resources" when I asked for an apple or orange..or an illustrated storybook...but would ply & stuff an unwanted, unwelcome *relative*(most "relatives" were inimical/hostile) with instantly made sweets & savouries!

When quizzed by me about money that did the 'Houdini' exclusively for me, all I got was a tight slap on the cheek.

I suppose,this is what is so professorially discussed by *qualified economists* as "micro & macro economics".

No wonder,I have no regrets about lack of qualifications in economics,mathematics,logic etc..You can bet on that:))

Kalyani said...

Talking of GDP.,the following is a MUst,Must read:-