"Washington observers speak of the incompetence of the Obama administration – not just its ability to waste money, but also to target funds so badly. There is very little to show for the $787billion fiscal stimulus of 2009. A fraction of it could have been used to create serious sea defences around New York and New Jersey, to avoid the devastation of last week’s storm, for example. ....And as America subsides into a welfarist, subsidy culture, so will its paranoia about China – already running at near-hysterical levels in some manufacturing regions – grow. America increasingly fears China both as an economic and a military titan – the two components of being a superpower.
Defence cuts in America are inevitable once the borrowing binge brings serious damage to the economy – as it will by mid-term, if not before – and that will increase the nation’s sense of vulnerability towards the Chinese.
And America’s intractable unemployment problem – it was 8 per cent when President Obama assumed office and is 7.9 per cent now – is increasingly perceived as the result of a highly disciplined and well-trained workforce in China that systematically undercuts over-regulated American business."