Doomed America: China the Dominant Nation

The Dollar's Demise

I was watching the Larry Edelson\Weiss Research video about how President Obama was in cahoots with China to bring on the demise of the US dollar through out debt and how the rise of the China's yuan will eventually become the world's currency that financial institutions and markets use. According to them, the IMF projects that the "Age of America" will end by 2016, when China will reign supreme on the world markets. Others, claim is happening now and that many expert are simply in denial about the inevitable facts. All great powers in history have declined at some point and now it is America's turn. The IMF is already calling for world markets to trade not in the devalued US dollar but China's yuan. If the yuan's value is increased, as Obama wants, it actually makes the dollar weaker and America's debt of $145 trillion, much of it owned by China. The weakened dollar will cause inflation to double or triple while China's inflation is reduced. Even the UK and France are saying that the world's financial market cannot be only done in dollars and suggest alternatives are a must.

Since 2009, the US has spent $10.6 trillion, to do that, we borrowed 4 billion from China. Some 50% of every dollar is subsidized or borrowed from China. Scary. I know, it is a sort of invisible demise of the American economy because China does own much of our debt. China is booming largely because of the West, yet the US does have $145 trillion in debt and no cash reserves, per se, while China has $32 trillion in cash.

China is a monster nation and hungry. One could say it a beast with 810 million workers that are 80% employed compared to America's 160 million with 14% unemployed, and we know why that is: China is the cheapest and best place to build everything. Its growth is around 9% a year, the US is 1.7%. It is growing seven times faster than the US economy and we all know why. This is not rocket science. Just about everything you buy from any store in the US is not made in America, but China or other Asian nation.

China can conquer America without ever using military force-they are already quietly dictating and controlling using their economic clout. Through this, they can alter and change policy to a degree. It seems, in 2012, the two nations are fairly equal. The American century seems to be waning and slowly ceding power to a new world power, China. Both will continue to respect one another, but as time moves on, China will become increasingly powerful until one day it will elect to use its economic or military strength on the world stage heavily influencing politics in all regions of the world. This is another, "duh". China is still a Communist regime, not different than the USSR that America battled for 40 yrs. While Russia tired to use blatant and brunt force to conquer, China is far more careful using economics as a tool of war or mastery. It is working well.

As for investing, because of China's hunger for natural resources, it makes total sense to find stocks or funds dealing with natural resources such as, coal, copper, steel, tin, zinc, uranium, gold, silver. It makes sense to do the same with food stocks or funds. Investing in China Petrol, Cnooc, Nucor, Southern Copper, Yanzhou coal, Novagold and others are worth looking at.



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Comments 21 comments

Civil War Bob profile image

Civil War Bob 4 years ago from Glenside, Pennsylvania

Well done hub, Perrya. Lincoln said we'd be the ones to do ourselves in way back in the 1860s and de Tocqueville pretty much called it in the 1830s/40s with Democracy In America. I guess we're going the way of all countries ...rise for a while, then diminish. Krushchev said we'd be 'ripe fruit' back in the 1960s...seems he was right, sadly.


lucidrealty profile image

lucidrealty 4 years ago from Chicago, Illinois

By and large I agree with you and have been a long term investor in China. However, the one thing I worry about as an investor is their command and control economy. That never works in the long run. They are mis-allocating resources and will continue to do so. I've cut back my exposure by about 25%.


kschang profile image

kschang 4 years ago from San Francisco, CA, USA

The internal stress in China will change things. The inequality of income in China is MUCH MUCH WORSE than in the US. Their economy may be growing, but almost nothing have trickled down to the outlying areas. Graft is rampant and ethics almost non-existent (just look at the milk scandal not too long ago).

China right now managed to keep a lid on by spreading out the wealth a little, and keep a tight lid on the media and dissidents, but how long can it continue to do so?


ib radmasters profile image

ib radmasters 4 years ago from Southern California

You didn't mention that China and the USSR were the reason that the US lost the Koren War, and the totally lost the Vietnam war. China is also backing North Korea and Iran today. So while they are not directly coming to blows with the US, they are once again exerting their might on us.


LHwritings profile image

LHwritings 4 years ago from Central Texas

Unfortunately, your sources are deceiving you. It's Washington that wants to conquer China and overthrow its socialized system, not the other way round. That's why Washington repeatedly holds military exercises off the China coast. You never see China holding military exercises off the U.S. coast, unless you're high on something...

Besides the drive by America's wealthy power structure to overthrow China's socialized system and open up the Chinese market for unbridled penetration by American companies, the other big problem is Sinophobia, a disease that's basically a subset of xenophobia. This seems to infect many otherwise intelligent people, causing them to revert to racist and bigoted attitudes more akin to very ugly periods in U.S. history.

Sinophobia has raised its evil head in this country over the last couple of years, particularly in TV commercials portraying the "yellow menace" that is somehow absorbing the American economy. Utter mythology and bigotboogers.


perrya profile image

perrya 4 years ago Author

well, thanks for your take, but there some truth to it, actually as time does passes, more truth regarding the economics with limited resources.


ib radmasters profile image

ib radmasters 4 years ago from Southern California

Wow what a tangent, bye


Civil War Bob profile image

Civil War Bob 4 years ago from Glenside, Pennsylvania

ibradmasters: There's a book, Unheralded Victory, that points out the US did not lose the Vietnam War. We lost 58,000 men to 1 million ARVN and Cong troops. America's politicians threw a victory away once the head of the ARVN decided to start killing Americans instead of attacking South Vietnamese targets. He made a reality what Robert E. Lee was hoping to do when he invaded Maryland at Antietam and Pa. at Gettysburg.


perrya profile image

perrya 4 years ago Author

Many feel if there is conflict with China one day, it will be over oil because their hunger for it grows more and more. They are the major importer of Iranian oil, which is why they and Russia are on Iran's side. China's numbers are simply staggering. while the US may be #2, America will always in the back of China's mind because we do have power.


ib radmasters profile image

ib radmasters 4 years ago from Southern California

CW Bob

That is my whole point why the US never really won a war. We have had numerous military victories, but a war is more than a military victory.

The politicians especially the liberals don't let us win. War is horrible, but if we go into it, it should be to win. From WWI the politicians have given away the military win, and at the same time allowed the regeneration of the enemy to start another war.

The USSR and China played chicken with the US liberals and won. I suspect that if JFK had lived the Vietnam situation would have turned out better for us, and S. Vietnam. Johnson was no JFK neither was a good president.

Thanks

Perrya

The liberals given enough time will weaken the US Defense, and they will also further weaken the constitution so that you can only use it if you are not a US Citizen.

Thanks


pramodgokhale profile image

pramodgokhale 3 years ago from Pune( India)

Sir, Hub is fine. I suspect that China has some shortcomings and geographically has no presence like USA. USA has allies in all continents and Anglo-Saxon occupied resourceful area such Australia ,South Africa( European dominance in economy)

USA and Canada, England. They can easily swap resources in emergency,China has no such contingency provisions and neighbors, i mean Indians and other Asian nations have no links with China and China is always doubtful and hostile with Asian neighbors.

Yes economically China is far ahead but can sustain?

pramod gokhale


perrya profile image

perrya 3 years ago Author

I keep thinking that China is a wolf in sheep's clothing, as the saying goes.


tuteramanda profile image

tuteramanda 3 years ago from beijing china

you chinese?


perrya profile image

perrya 3 years ago Author

You Russian?


tuteramanda profile image

tuteramanda 3 years ago from beijing china

chinese


tuteramanda profile image

tuteramanda 3 years ago from beijing china

'I keep thinking that China is a wolf in sheep's clothing, as the saying goes." that really makes me laugh ,chinese cultural is one of most peaceful amog the world ,confucious value highlight the harmony relationships with others ,we face so much internal problems such as the inequality of income ,pollution ,economy bubble and low birth rate,china is not a strong nation though its huge economy


tuteramanda profile image

tuteramanda 3 years ago from beijing china

china will never be a threaten to western world,at most be a hegemony in eastern asian


bizarrett81 profile image

bizarrett81 3 years ago from Maine

I was going to mention the pollution, as tuteramanda pointed out... I don't know alot about China and while this scenario may seem possible or inevitable, as tuteramanda states, China has many other problems... From things I've read and seen, the air is so bad that people wear masks to be outside and cancer rates are extremely high. Everyone may be employed, but since so much is made in China, that means all that industrial waste and pollution is really high, which will eventually become its own inevitable catasrophe... Everything is temporary....


perrya profile image

perrya 3 years ago Author

China is like a fair-weather friend, when it is to their benefit, they are friends, when not, a bully, The relationship between the US and china will never be like that of the UK and the US. At this time, China is a friend but once they think they are the world power, that will change.


suravajhala profile image

suravajhala 3 years ago

China is shining, no debate about it. But, as some of our friends said, it is largely a controlled economy. We witnessed how "Perestroika " brought out the real picture of the controlled economy of USSR. The Best thing with China, its largely a manufacturing economy and it could able to dump its products from toys to guns all over the world. The dominating character of China as a nation and its international policies are suffocating its neighbours and the world around.


tuteramanda profile image

tuteramanda 3 years ago from beijing china

CHINA just a regional power, chinese hate infere other country's internal

affair. include USA

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