James Lewis

Jim Rogers on the Next 10 Years

If there is not a very significant war, then there will be room for both the USA and China to hold significant corridors of power. Of course the rise of China has been and is at the expense of the USA both in financial and power terms. But I am sure the USA did not think it would hold such immense monopoly power on world affairs forever.

Those that predict China will become the sole superpower are wrong unless of course there is a very significant war that China wins. I am not sure if there is such thing as victory in wars between big countries anymore however.

Of course China has given a glowing example on how a developing country can develop financially and economically. So lets be clear that other countries like Brazil are going to also over time develop and take away the acceleration of financial gain and power from China as well.

I think though that globalisation will contract significantly and domestic agendas will trump idealogical free trade trade actions. So even if China develops its power base, it will only benefit them domestically. Protectionism will see that power corridors are created. China may be able to make inroads in countries such as Africa and poorer asian countries. In order to develop technology and acquire resources. But I doubt they will be able to develop new markets to sell their goods. And certainly will lose open access to European, Indian, and USA markets.

Those that think China can achieve its imperial goals probably do not understand the enormity of its internal problems.

U.S. vs. China: Has Trade War Begun?

Yes...very interesting....for sure the gold breakout was a protectionist outlash against the US by the Chinese. We all know that Gold would be higher if it wasn't for the US government smashing it down.

But it makes sense to me for the US government to set up a mini-crash shortly. There must be a fear that China would just buy gold up if they did this. If the US does not smash gold down, then to me it will become very clear that the US is fearful of the power of China's two trillion dollars worth of reserves.

Wow.....this could escalate hugely

Trade Deficit with China Continues to Expand: Why?

Ha Ha Ha Ha....

You are going to take a pounding from readers, especially the pro-nationalist camp.

I do agree with you on most things you say.
But you do not have a way with words.
You would make a very bad diplomat.

Try and put you view over in a way that you will not alienate the entire world in future. But keep your content coming!!

U.S., China Increase Trade Deficit: Win-Win Situation

Amercia adds the most value $-$ in its manufacturing than any other country in the world. So please stop, USA can not make anything anymore. Because they can and do.

Bernanke created 1 trillion USD today. With a couple of computer entries and some admin, the USA would have created the equivelent of 50% of China's Surplus in one sitting.

America are paying for good from China with money it can create. Its like me buying something off you with Monopoly money and someone else looking at the transaction and saying I am paying too much for what I am buying.

You can not compete with USA when they are printing the reserve currency and have the strongest military.

Bailout Bill Passes; What Happens Now?

Come on everyone, see the Bailout for what it is is.
The USA has just convinced China to buy another 700 million USD of useless assets.

Wasting taxpayers money - sorry guys....the government runs a deficit.
That money has already been wasted.

As long as USA has the most power, there will not be deflation. The amount of inflation depends on how much foreign owned USD can be wasted saving the system in relation to how much USD needs to be printed to save the system.

As things stand the 700 million USD is just be repatriated back to the US in return for an IOU paying interest below the real level of fiat money devaluation. Makes sense to me.

Anyone play Monopoly....

America is the fat kid that is always the banker, everytime he runs low on money he puts his hand in the pot. Now back that fat kid up with the most powerful military in the world and a printing price.

Bobs your uncle, thats Uncle Sam.


Actually the Chinese are the ones getting shafted here.
Anyone that can not see that does not get the USA masterplan.
Yes Gold is a good investment

Path Dependency in the EU and U.S. Economies

Oil can not be priced in Euros because the European Bond Market is too small to cater for the volumes. It is also does not make sense for the Arab oil producing nations to unpeg the dollar because there economies are based primarily on selling oil (which is priced in USD). They can and are making adjustments for the USD debasement by pushing up the price of oil.

There are s few factors behind the surging oil price (apart from s+d):

China is trying to buy as much oil as possible as a means of flight to quality out of the USD. China is not stupid, they can see that the US is effectively devaluing their dollar and pumping up inflation to export their monetary problems. China is also aware that a contingency for a dollar crash is already in place which involves the a financial Treaty between Mexico/Canada/USA and involved the creation of a new currency to replace USD - the Amero. All debt owed to China will be devalued and priced in Ameros at whatever price Canada/Mexico/USA decide. If the Amero is put into circulation.
This incidently is how USA is going to write off it debt if the worse comes to the worse.

The speculators everyone is blaming for pushing up the price is actually an agency arm of the Chinese government. They are buying paper oil with their useless USD. The other speculators are the oil producing nations buying paper oil, restricting supply to drive the price ever higher. It could be argued that the Oil producing nations have waged an economic war with the USA covertly. Or it could be argued that they dont want to be holding devalued USD monopoly money and so are manipulating the price of oil to reflect loss of USD purchasing power. **REAL INFLATION**

For those who want to look at the real numbers go to:
shadowstats.com

Dow in Secular Bear Market When Priced in Ounces of Gold

shadowstats.com

This gives you idea of true inflation in USA. The gold price is very indicative of monetary value but is subject to manipulation,speculati... etc which alters its indicative value.

However the bottom line is the same. Taking inflation into consideration. The USA markets have been smashed. Corporate profits are not rosy. People's wages have dropped in real terms.
The USA has lost its buying power.

The truth is the USA economy has been very bad for at least 10 years. To compensate the USA government has printed more money which most of it has been wasted. The Government created the Technology Bubble to increase tax receipts and create an investment orgy to develop technologies so the USA would have some competitive value in at least one industry (as well as develop technology in the weapons industry). The Government is stimulating inflation to devalue its debt holdings.

The Iraq war, which was hoped to make Energy Security more secure and add to the Economic Wealth and Power of the USA has to date backfired.

Things have been very bad for a very long time.
What we are seeing now is the compensatory effect from all the bad policy decisions over the last 10 years.

It baffles me, why the USA government does not re-build a decent manufacturing base in the USA and increase import/duty taxes to stimulate domestic manufacturing demand. What the USA needs the most is to add value and produce. Not to artifically drive up asset prices using clever money printing techniques and derivatives. Then send all the money that has been artifically created to other countries like China/Middle East.

Some tough decisions need to be made.
But no one is making them.

This is because of the hold big business has on the countries powers.