Project for a new Chinese century

January 16, 2008

It’s ironic how the nutcases pushing an actively hegemonic American foreign policy in the name of preserving American power will ultimately be responsible for destroying it. The ineffectiveness of central planners, whether they be in government or in central banks, to tame foreign nations or calm unnerved markets is evidence the elite are losing control. Insiders readily admit nobody has a clue how to handle this colossal shift of power.

The winds of change are blowing too hard and the best thing we as individuals can do is not try to fight it. Focus on the long term and understand that a wealthy population of over a billion hard working people who invest their excess capital responsibly will ultimately create more economic growth around the world than a nation of hopelessly indebted morons who do nothing and produce nothing.

The only way for the world to stabilize is for China to finally resume its role as the world’s largest economy. China has historically always been near the top of the human food chain and if repeated failed adventures in the Middle East have taught westerners anything it should be that even America can not alter or defeat the natural centers of power that have developed in various regions over the millennia.

China must let its currency appreciate. When the Chinese consume more of their own products and the price of oil becomes cheaper in Yuan, they will easily replace any American consumer demand lost to this financial crisis. One may argue that many things are lacking in China, but one may not argue there is a lack of consumer demand. Asia in general is populated with 3 billion people hungry to achieve the standard of living enjoyed in the west for many decades. The potential for future growth is enormous.

Shanghai in 2008 is like New York in 1908 or London in 1808. The world is not coming to and end, only the world as we know it today.