Tag Archives: Problems

America’s Resource Curse, by Eamon McKinney

Ample resources devoted to a problem sometimes don’t solve it, they make it worse. From Eamon McKinney at strategic-culture.org:

As with Americas war on drugs, war on crime, war on poverty, all resources do is obscure the underlying problem and present false solutions.

It was some twenty years after the end of the Vietnam war that a security conference was held between leading military figures from both America and Vietnam. Following the conference a U.S. Air Force General approached a Vietnamese General. The American had been a fighter pilot captain during the conflict, the Vietnamese general had been a Colonel in the N.V.A. The American asked (paraphrasing): “You have to tell me, we knew your Army was continually crossing the Mekong, we flew sorties up and down the river and could never find your bridges.” “I know,” said the Vietnamese, “we built them three feet under water.”

In that instant the American understood why America lost the war. His “Road to Damascus” moment was informed by how the different combatants approached problems. Had that been an American problem, how an Army crosses a wide, deep and fast flowing river, they would have solved the problem differently. They would have built a suspension bridge, they would have had bases on either side to protect it. They would have had Bowling alleys and Burger Kings and would have been flying in Bob Hope to entertain the troops. Why? Because they could, when you have resources they become the answer to every problem. The Vietnamese didn’t have resources, so they were resourceful.

And that, as the American realized, was why the Vietnamese won, and America lost.

The general may have learned a lesson, but if he told anyone, no one listened. Many of the same mistakes were repeated in Afghanistan, with the same results. Resources are not the answer to every problem. As with Americas war on drugs, war on crime, war on poverty, all resources do is obscure the underlying problem and present false, ineffective solutions.

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China: Fragile Giant, by James Rickards

The rhetoric about China has gotten over-the-top. They’re a ten-foot-tall race of super humans who put on their pants both legs at the same time and will soon rule the world. James Rickards provides some welcome perspective at dailyreckoning.com:

I’ve made many visits to China over the past thirty years and have been careful to move beyond Beijing (the political capital) and Shanghai (the financial capital) on these trips.

My visits have included Chongqing, Wuhan (the origin of the coronavirus outbreak), Xian, Nanjing, new construction sites to visit “ghost cities,” and trips to the agrarian countryside.

My trips included meetings with government and Communist Party officials and numerous conversations with everyday Chinese people.

These trips have been supplemented by reading an extensive number of books on the history, culture and politics of China from 3,000 BC to the present. This background gives me a much broader perspective on current developments in China.

In short, my experience with China goes well beyond media outlets and talking heads.

An objective analysis of China must begin with its enormous strengths. China has the third-largest territory in the world, with the world’s largest population (although soon to be overtaken by India).

China also has the fifth-largest nuclear arsenal in the world, with over 280 nuclear warheads. This is about the same as the U.K. and France but well behind Russia (6,490) and the U.S. (6,450). China is the largest gold producer in the world at about 500 metric tonnes per year.

Its economy is the second-largest economy in the world — behind only the U.S. China’s foreign exchange reserves (including gold) are the largest in the world.

By these diverse measures of population, territory, military strength and economic output, China is clearly a global super-power and the dominant presence in East Asia. Yet, these blockbuster statistics hide as much as they reveal.

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