China is making infrastructure transformations that leave the US in the crumbling dust of hot air and broken roads. They’ve built 12,000 miles of high-speed rail in a mere decade. The secret: financing via their state-owned Public Banks, a solution we need to study and adopt before it’s too late.
Ellen writes in her recent TruthDig article:
“One Belt, One Road,” China’s $1 trillion infrastructure initiative, is a massive undertaking involving highways, pipelines, transmission lines, ports, power stations, fiber optics and railroads connecting China to Central Asia, Europe and Africa.
According to Dan Slane, a former adviser in President Trump’s transition team, “It is the largest infrastructure project initiated by one nation in the history of the world and is designed to enable China to become the dominant economic power in the world. … If we don’t get our act together very soon, we should all be brushing up on our Mandarin.”
“Chinese state-owned banks are not going to need a Wall Street-style bailout from the government. They are the government, and the Chinese government has a massive global account surplus. It is not going bankrupt any time soon.
Rather than regarding China as a national security threat and putting our resources into rebuilding our military defenses, we might get further ahead by studying its successful economic policies and adapting them to rebuild our own crumbling roads and bridges before it is too late. The U.S. government could set up a national infrastructure bank that lends just as China’s big public banks do, or the Federal Reserve could do qualitative easing for infrastructure as the People’s Bank of China does. The main roadblock to those solutions seems to be political. They would kill the privatization cash cow of the vested interests calling the shots behind the scenes.