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| Joined: | Mon Nov 21st, 2005 |
| Location: | California USA |
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China and The Fed can make more purchasing power and with all such competitions the winner gains the most power.
Who will win?
That is the rock bottom base question - the gist of the story, among all the foreign jargon.
Asia is booming, while things not Asian, things "Western" are busted - flat.
No more American Dream for anyone but exceptions - roughly 10% of the population - while the rest are allowed to "eat cake" - as in "let them eat cake" which is a historical pronouncement of costly willful ignorance - the speaker may have lost her head soon after.
If you think I'm on crack, check who made much of the things you own. Do they say "made in China"?
Do you think that will change soon?
What is made in America?
I can offer an answer.
The dollar.
When the dollar is tied legally (enforced by a robust military) to Oil power, the dollar power is powerful.
When the dollar is no longer enforced legally to Oil power - what happens?
Gary North says nothing about the link between Oil and the Dollar. Gary North, despite failing to report on the key dollar backing feature, is an exceptional reporter on half of the big picture - money.
While keeping the Oil backing variable in mind return back to the personalized look at what is happening as you pretend to be The Fed and someone else is pretended to be China.
You can keep on creating more dollars, as much as your black heart desires, and you can buy whatever you wish, whenever you wish, up to a point.
China can do the same.
The point at which neither you or China can add more zeros to your money accounts is the point at which more zeros no longer add any more power to purchase, and the opposite occurs, and this fact remains a fact no matter how well or how poorly you understand it.
If China buys new clean electric power generating plants, solar plants, wind plants, tidal wave plants, plants that turn human waste into electricity, and if China buys new factories that make electric cars, and solar panels for houses and business buildings, and if China buys fiber optic communication networks, and new roads, and mass transit, and state of the art hospitals, and if China buys more things that make wealth, or make making wealth less expensive, while you buy tanks, and mercenary troops, and if you finance both sides of a new war and stick all your troops in the middle of it, as China buys the things listed above, what do you think is going to happen with your power to make money out of thin air?