China, The 800(0) Lb. Panda (November 20, 2006)
As a consequence of WW II, Germany and Japan learned that it is easier to take by investment than by invasion. China is learning that it is easy to take by investment. China also is preparing for but may never need to mount an invasion. China may elect to foreclose on its investment when the United States is unable or unwilling to challenge an invasion.
The United States refights its past wars (Vietnam, WW II). Other countries learn from them.
[Milton Friedman passed away on November 16. Federal Reserve Chairman Ben S. Bernanke observed: “Among economic scholars, Milton Friedman had no peer. The direct and indirect influences of his thinking on contemporary monetary economics would be difficult to overstate. Just as important, in his humane and engaging way, Milton conveyed to millions an understanding of the economic benefits of free, competitive markets, as well as the close connection that economic freedoms bear to other types of liberty. He will be sorely missed.”]