The Battle For Africa: Chinese Investments Vs US Military

Tyler Durden's picture

We have been vociferously following the 'battle for Africa' - the last untapped Keynesian credit growth economic region of the world - for a few years. One common theme has emerged China and the US are aggressively chasing down 'assets' - especially in the equatorial region. However, as the following two charts indicate, the two nations are engaged in very difference tactics for that 'takeover' - China's investment versus US brute force and military intimidation (and fake vaccination programs).

Africa is huge...

 

 

Why is everyone so interested in Africa (aside from the vast resources there of course)...

While those in the power and money echelons of the "developed" world scramble day after day to hold the pieces of the collapsing tower of cards in place (and manipulating public perception that all is well), knowing full well what the final outcome eventually will be, those who still have the capacity to look, and invest, in the future, are looking neither toward the US, nor Asia, and certainly not Europe, for one simple reason: there is no more incremental debt capacity at any level: sovereign, household, financial or corporate. Because without the ability to create debt out of thin air, be it on a secured or unsecured basis, the ability to "create" growth, at least in the current Keynesian paradigm, goes away with it.

 

Yet there is one place where there is untapped credit creation potential, if not on an unsecured (i.e., future cash flow discounting), then certainly on a secured (hard asset collateral) basis. The place is Africa, and according to some estimates the continent, Africa can create between $5 and $10 trillion in secured debt, using its extensive untapped resources as first-lien collateral.

But the two major combatants for power over Africa - China and the US - appear to have very different approaches...

 

China - via Investment...

 

 

 

As Stratfor explains:

In late July, Beijing hosted the 5th Forum on China-Africa Cooperation, during which China pledged up to $20 billion to African countries over the next three years. China has proposed or committed about $101 billion to commercial projects in Africa since 2010, some of which are under negotiation while others are currently under way. Together, construction and natural resource deals total approximately $90 billion, or about 90 percent of Chinese commercial activity in Africa since 2010. These figures could be even higher because of an additional $7.5 billion in unspecified commitments to South Africa and Zambia, likely intended for mining projects. Of the remaining $3 billion in Chinese commercial commitments to Africa, about $2.1 billion will be used on local manufacturing projects.

 

While China has proposed $750 million for agriculture and general development aid and about $50 million to support small- and medium-sized business development in addition to the aforementioned projects, it has been criticized for the extractive nature of its relationship with many African countries, as well as the poor quality of some of its construction work. However, since many African countries lack the indigenous engineering capability to construct these large-scale projects or the capital to undertake them, African governments with limited resources welcome Chinese investments enthusiastically. These foreign investment projects are also a boon for Beijing, since China needs African resources to sustain its domestic economy, and the projects in Africa provide a destination for excess Chinese labor.

 

and The USA - by brute force and intimidation

President Obama's announcement that United States has deployed 80 troops to Chad came as a surprise to many. But as my colleague The Washington Post points out, the United States already has boots on the ground in a surprising number of African countries.

This map shows what sub-Saharan nations currently have a U.S. military presence engaged in actual military operations.

It should be noted that in most of these countries, there is a pretty small number of troops. But it is a clear sign of the U.S. Africa Command's increasingly broad position on the continent in what could be described as a growing shadow war against al-Qaeda affiliates and other militant groups.

It also shows an increasingly blurred line between U.S. military operations and the CIA in Africa.

 

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
dryam's picture

Live by the sword, die by the sword.

smlbizman's picture

more democracy...foie gras style...

rubiconsolutions's picture

Must be oil in them thar hills.

Relentless101's picture

People like money more than guns. Pretty straight forward.

McMolotov's picture

The US did the "economic hitman" thing around the world for decades, and now it's China's turn. Uncle Sam is too weak to do anything about it.

Empires eventually end.

disabledvet's picture

by my experience "they'll take both if that's what you're offering."

80 "soldiers" doesn't sound very impressive to me. That's not even a company...did it come with any enlistees as well? Heavan forbid!

I'm sure the folks looking for resource riches in Africa feel like they're in the right place...but the USA really doesn't have any resources outside of the US that they really need. Sound money would be an interesting concept tho! "How African indeed."

If there is one truism in all of human history it's "slave revolts never happen."

BlindMonkey's picture

It doesn't take that many to cause a complete amount of havoc if they are launching drones for the drone pilots back in Kansas.  80 people can fuel and add hellfires to a lot of predators.

kchrisc's picture

It is all the Boko Haram's fault,

GooseShtepping Moron's picture

A handful of troops on the ground to serve as a trip wire. When somebody calls our bluff and we fail to respond, the rest of the poor guys will end up with their heads on poles pretty quickly. Africa is hell.

BlindMonkey's picture

Bengazi as an example?  Fucking tragic thing that was.  I hope Barry wakes in his sleep with the image of that bloody hand print in his thoughts.  

newbie vampire's picture

" I hope Barry wakes in his sleep with the image of that bloody hand print in his thoughts."

Not unless its on the golf bag.

Greenie's picture

 Africa is hell.

Barry knows that  first hand. That's why he got the hell out of there pdq

Emergency Ward's picture

Now he just pokes them and provokes them looking for excuses to drop more bombs, launch more drone attacks and add more uniformed killers on the ground.

Quus Ant's picture

Still waiting to see this "post-colonial world" everyone's always talking about.

Great article, Tylerz.

kchrisc's picture

Pretty funny if one thinks about it.

The Chinese are using the TP-dollars we send them to make investments and secure friends and hard assets in Africa. The creator of those TP-dollars, the DC US, only uses force and violence in trying to steal those same assets.

litemine's picture

The CIA is supported or financed by Big Business and some American Businesses have more FIAT value than most countries in Africa. So with the IMF backing and the world courts in NY>NY the CFR helps Rape these Counties.  No wonder the Police state works well over there, it did wonders in the USA......Like a Magician, people don't see what the other hand has done to them and their Children......Because they must wrap that flag around themselves....It's a Free Country Right?    Right?    

Cathartes Aura's picture

incorporated humans, corporate nationstates, serviced by corporate militias

it's all one big business, this World.

no need to wrap the flags, they're false too.

laws, definitions. . . and who is privileged to make them.

Cognitive Dissonance's picture

"But it is a clear sign of the U.S. Africa Command's increasingly broad position on the continent in what could be described as a growing shadow war against al-Qaeda affiliates and other militant groups."

It seems the USA can, and will, milk the al-Qaeda boogie man for all it's got.

lakecity55's picture

I love your writing, dude, but there are some seriously Bad Guys in that part of the world not controlled by anything but ideology.

Uncle Remus's picture

Just as there are in this country. In fact, a lot of those ideologically driven bad guys in other parts of the world are that way in part because of the ideologically driven bad guys right here in the good ol' US of m'fing A pumping money into other parts of the world to get those ideologically driven bad guys all worked up and foaming at the mouth.

And you know what, it's going to happen here - the stage has been set. I guaran-fucking-tee you there is more than enough ideological hatred, bigotry and blindness in this country to put the Balkans to shame.

And the m'fers are going to think themselves righteous the whole fucking time.

It's going to be a slaughter. And you know it.

RafterManFMJ's picture

Al Quida snuck into my kitchen and fucked up my Souffle.

Fucking savages.

newbie vampire's picture

"It's going to be a slaughter. And you know it."

Europe has had its multi-colored rainbow spring.  Now the US has turned its pivot to Asia, to bring them the ASIAN spring.  As soon as the asian nations have begun their mini wars and excess American cannon fodder has been utilized.  It will be Mission Accomplished where Asia is concerned.  Next on the agenda will be the African spring.

The final mission will be the American Spring where brother will kill brother. 

Render unto Caesar what Caesar demands.  

BlindMonkey's picture

Aparently the administration said al qeada wasn't a threat in 2012.  This was against the advice of those that knew better but I bet this was the cover to arm the piss out of these guys in Libya and Syria.

 

http://www.thedailybeast.com/articles/2014/05/21/over-my-dead-body-spies...

tony wilson's picture

numbnuts al quada is a cia,mi6 mossad front you dumb cunt

 

 

 

 

C.I.A. no al-qaeda ever existed

 

http://vimeo.com/46310516

Monty Burns's picture

More than ten years ago the Interior Minster of a Gulf Arab state told me that AQ was a CIA creation.  I laughed at the time.......

BlindMonkey's picture

Yes Tony. I believe that too. Keep your knickers from twisting and follow for a minute.

The game is played not for those that are paying attention but rather for the masses that might accidentally watch a few minutes of news before the next reality show comes on. These things have a tempo. In the '90s, AQ was ignored while it grew. '01 was the crowning achievement that has made everything else possible. I have zero doubt that was at a minimum allowed to happen and at worst actively aided.

'12 represented a new shift in the tempo. I am not sure where it is going yet but AQ is no longer the boogie man. Figuring out what unfolds next is the critical discussion.

GreatUncle's picture

Doesnt matter which USA or China as both economies are not self sustaining within their own borders. Only to use thier own created money or arms secures it

 

Goldilocks's picture

AVATAR (by James Cameron) Giovanni Ribisi argues with Sigourney Weaver
http://www.youtube.com/watch?v=3PuXMBXSAOc (1:47)

kill switch's picture

All governments know that-Al-Qaeda is a CIA creation!!The U.S. is a scholl boy howwler!!!!! 

Rusty Shorts's picture

Exactly, and they are laughing at the (Akayida) CIA creation...check it out.

https://www.youtube.com/watch?v=YdMAn91wYWU

 

Rusty Shorts's picture

Africa is by far the most amazing place I have ever been, hands down.

https://www.youtube.com/watch?v=ifQ9YsYkAOo

lakecity55's picture

Indeed. It is the Dark Continent.

PeeramidIdeologies's picture

Man I would love to dig into this one, unfortunately there is an issue of a balance owing that needs to be addressed before I can proceed. Is there anyone here capable of addressing this matter tonight?

hero HNL's picture

chinese are hated in Africa.

 

They promised to invest & create jobs but in reality they bring in their own company & cheap labor creating little jobs for the locals. Chinese have no regard for the enviroment & never stop polluting the place with exploiting resources, throwing garbage around, building expensive cities that end up being unoccupied using credit, etc....All they do is exploit as much as they can & move on to the next country as soon as they are finished. The situation is the worst in Angola & Ghana.

 

In the end, Africans got so angry they began killing chinese & throwing them out of the country. You an see videos of Africans killing chinese on Youtube. Old habits never end even outside their country.

SmittyinLA's picture

We* made a deal with China decades ago, we* get to control the Middle East uncontested** & they get Africa, we* even cleared the field of white opposition by first disarming then removing the SA govt to make things easy for the Chinese. 

Like it or not the Aparteid SA govt was the best option for Africa and the whole continent has gone down hill since.

 

**China could push us out of the middle east anytime they please by selling manpads to the locals the same way we pushed the Russians out, except now manpad missles are waaay better than figher defenses. 

 

 

napper's picture

What deal was that? When? by Who? Where? How?

Was the USSR consulted? I don't think the USSR gave US the permission to take the ME uncontested.

 

Manpads alone wouldn't be adequate. THey still need missiles for sinking ships, and good SAMs to fend off modern jets.

Iran is still standing.

UselessEater's picture

This article is OK for its simplistic point -its not for those people aware of history and the bigger context.

If you don't know the history and context of Africa be sure to NOT read this as a difinitive piece - it is clearly not intended to be one.

Africa has been manipulated and fucked with a helping hand from many elites & nations over centuries.

Tracking China vs USA in Africa is kinda infantile given past and recent history but suits the current meme.

hero HNL's picture

Africa would be best under the White Man....it was orderly & disciplined, although I'm not a White Man. Now you see plastic garbage all over the place & the locals cannot deal with it. Chinese use Africa to exploit the resources & bring in their cheap industrial products further destroying the pristine nature.

 

Africa today is looking more like The Dogs of War, The Dark of the Sun, Wild Guess, etc...Under colonialism, civilization existed. Sovereign country is not for everyone....better to be a colony.

 

UselessEater's picture

Sorry I do not quite follow your points or logic.

The Rhodes & Royals are an ongoing part of the sad history. Borders across Africa are contrarian to tribal societies, intentionally slicing them into majority/minority groups across artificially created nations for constant chaos with generous helping hands from cruel elites.

Every PTB  has a piece of Afric unlike any average African. The Chinese siddle upto installed and protected elites just the same as the USA, UK, Russia, China, Europeans, Australian, French and Kiwis - everyone has had an ACTIVE FUNDED opinion and not given a toot about the devestation. Decades of sanctions, armanent supplies etc are only preceded by centuries of the same shit.

The wheel is turning, its all horrible, its all manufactured but we'll fall for the war meme on a global, same as we ever do, we are stupid people. Those who fucked Africa and continue fucking Africa are now fucking you, its a power/wealth game. Period. Sick of it.

Monty Burns's picture

What you say is true but it's also true that Africa would be way better if the White man still ran it.  Many thoughful Africans will admit this privately, some publicly.

paddyirishman's picture

just like what the west did then, and pollution I think the natives are pretty good at that.  no I think the poor darkies are always going to be exploited and destined to live in squalor, look at detroit.

Tipo anónimo's picture

Way to use vociferously in a completely nonsensical setting.

SmittyinLA's picture

The US federal govt just put up $200,000,000.00 of US taxpayer money to fund a flood insurance program for Africans in (Guess) which area: 

A. US investment zone 

B. Indian investment zone 

C. Chinese investment zone 

The correct answer is "C Chinese investment zone"

Kenya, Mauritania, Mozambique, Niger and Senegal

http://www.propertycasualty360.com/2014/05/15/africa-gets-first-ever-nat...

 


 


Son of Captain Nemo's picture

Tip of hat on this read.

This pretty much described the participants to a tee.  As to which ones you would prefer to work with if you are the "indigenous" crowd?

Just ask a Native American, an Indian (under British rule), or a Palestinian how wonderful the last two centuries have been doing business with the Anglo-American chair satans!...

As if the slave trade wasn't bad enough for the Africans during the colonial expansion in the 18th and early 19th Century, the United States military proves every day that it never left!

Bosch's picture

Good, let them have it.  Enjoy the Aids, Muslims & Ebola. 

Son of Captain Nemo's picture

Good, let them have it.  Enjoy the Aids, Muslims & Ebola.

You mean the same "Muslims" that we import and train as Al Qaeda terrorists from Eastern Europe, Saudi Arabia, Jordan and send to Libya, Syria and Ukraine and now of course "Africa" in a vain attempt to dislodge a profitable Asian Country that has all or a good majority of the American commercial technology and manufacturing in it's hip pocket -thanks to the banks and the U.S. Congress?...

teslaberry's picture

this article is taking one small thing happening in africa and ignoring massive u.s. investments all over africa. africa too has its own security in africa. 

this article is kind of an exampel of the saying " a little knowledge is a dangerous thing" 

 

i know i know nothign about africa. this article knows even less. 

Son of Captain Nemo's picture

"i know i know nothign about africa. this article knows even less."..

T

Is that statement of your's what they call an oxymoron?

Just sayin

napper's picture

Indeed. Blatant contradiction.

PeeramidIdeologies's picture

You should reconsider the premise of the article. It is an example of the varying business techniques between the Chinese and Americans. Those who have been paying attention should see a new, large scale trend developing in the global business climate. One that is not conducive to the dollar. To simply read an article is not doing you nor the article justice. Think about it.