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The Coming Economic Shift to the East

Updated on February 15, 2010

The real and ongoing destruction of the capitalist West (Europe and the United States) and the economic rise of the East is what we are facing is a GIGANTIC paradigm shift from WEST to EAST. Capital is fleeing toward the East (India, China, primarily). If you disagree, you are in denial.

Today of the world's population, 1 in 5 people are in China. Some 3 in 5 people are in Asia. In China, the society is exploding from the equivalent of the 19th century (skipping the 20th century) and going immediately to the 21st century.

China, a communist country still, is conquering its foes via economic warfare, from within. By doing so, they can and will deter or force their own will on the free world. China has been pumping into Australia's economy.  China's growth is like a dragon that is continually growing and its appetite continually getting larger for items it does not have within its own territory. It is Australia's number one trading partner and has pumped $40 billion into its economy in only 18 months. It has 70,000 students there all helping to bankroll the educational system. Even the Australian PM is the first to speak Chinese. Thus, China is intruding itself into the Austalian way of life. Australia is nervous about this. They know money talks yet wary of the Chinese and have embarked on its largest military build up since WW2. The area around Perth, is experiencing a wealth never seen before in all sectors all because of the Chinese investments and purchases relating to Australia's iron ore. They have bought and mined most of Australia's mines in that area and shipped the ore to China. They are milking the land. They are buying the regions uranium and coal mines, digging the ore up and shipping to China. While that region of Australia is booming and flushed with money, other parts are in bad shape. The Chinese influence via money has been felt in social venues, like the Melborne Film Festival, where the Chinese sought to have a dissent film removed from the showing list. Australia is not the only country feeling the influence of its monetary strength. 

China owns nearly a trillion dollars of US debt (and they are losing money because the dollar is falling). China wants out of the dollar (along with many countries) because the US Government is on a tier to spend the country into bankruptcy ( already, many US States are near there). China cannot dump their bonds all at once but will do so gradually as any intelligent investor would. China also has two trillion dollars in cash and is on a such tier to buy the world's commodities (real assets like oil, gold, copper, coal, water (yes, water). In fact, China is already doing this in subtle ways. When the Western investors discover that their dollar is going to be replaced as the world's reserve currency, they too, will join the rush into commodities.

These developments are going to generate the greatest crisis in the history of the world for food and commodity shortages. One reason is that $2,000,000,000 dollars in resource investment is necesssary to make up the current shortage.
The capital markets are dead and unable to make this investment.

The U.S. dollar as the world’s reserve currency are now numbered. The US dollar supremacy will not survive the onslaught of nearly $126 TRILLION in debts our country has wracked up. Nor will it continue to receive the funding it needs from our foreign creditors, who are now starting to balk at our country’s indebtedness more than ever before.

The G-20 countries, who have now taken official control of the world's economic caretaking. The U.S. is now being forced to placate our largest creditors in an international forum, where it is now just one of 20 countries in charge of the world's economic affairs. And it is the largest debtor of the group, by far. Meetings of the Arab Gulf States, who have been meeting with Russia, Japan and China to replace the dollar for pricing oil. Reports out of the U.N. Commission of Experts on International Financial Reform recommending that the world ditch the dollar as its reserve currency and replace it with a money unit representing a basket of currencies.From China’s central bank governor, Zhou Xiaochuan, calling for a new global reserve currency run by the International Monetary Fund (IMF).And from a host of leading and Nobel prize-winning economists such as Robert Mundell, Joseph Stiglitz, George Soros and fund manager Jimmy Rogers.

Make no mistake about it. The world’s monetary system is on the verge of dramatically changing. When it does,a centralized entity will control it to a large degree and will force other countries to go by its rules, whatever they are.

An officially recognized national debt of $11.8 trillion, which will likely exceed $12 trillion sometime this month. Not to mention unfunded national obligations of $104 trillion! Another $9 trillion in cumulative deficits over the next ten years. The US economy is near broke:

Grand total is at least $125.8 trillion of public debts! Even if the government could somehow pay off that debt at the rate of $100 MILLION PER DAY, every day starting right now, even at that rate, it would take 3,446 years before the total government debts and obligations are paid off.

China's hunger for commodities will continue to grow and with it, exert its influence on major powers in subtle and not subtle ways. In the end, an economic and military clash seems inevitable as the Book of Revelations predicts using symbolism.

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