Depressedallready

Jim Rogers on the Next 10 Years

Mr. Jim Rodgers and the majority of those opinions that state that China will be the next coming superpower are failing to see the forest from the trees! People forget two very important points....while we, the US is maintaining our debt through China and all the other Eastern countries; they are "joined at the hip" with the world, but primarily through the US! The number one consumer nation is the US and the number one exporting nation is China! Keep in mind of the old axiom, "When America sneezes, Europe catches cold." That still applies to the Far East as well!

China does NOT play by any rules but their own! They manipulate and float their own currency to keep it low so as to maintain their balance of payment for exports! Their employment picture is not rosy either! Because many Americans lost their jobs, there are fewer consumers to purchase their products which means more Chinese getting their pink slips from their factories! China has also been guilty of "unfair trade practices" by unlawful dumping of their steel products and other products shipped to America! As unemployment becomes more deeply entrenched in our economy, so to, will the number of Chinese getting their pink slips from the factories because there are fewer and fewer American consumers unwilling to make the purchases that they used to make prior to this recession! Look at Japan's economic stagflation! A country far less in population of that of China; yet, they are experiencing a continuous stagflation/inflation for over ten years! If this is happening to Japan, who has a better capitalistic base, mega-corporations etc. then China; How can ANYONE predict that China will be the NEXT superpower! This Recession is more like a Depression, a Depression like no one else saw or experienced before! If you think the housing market and then the commericial market crash is bad......then, WAIT to the commodity Derivatives Markets hits the fan! It is NOT only the US and its investors but also China who owns a great deal of American stocks, bonds, real estate, and DERIVATIVES! I can just bet you that the "risk taking" of the Chinese Government is just as great, if not greater, than the "died-in-the-wool" followers/investors of Wall Street in the US! Look around! There is NOT one country within Europe who has NOT escaped the Wall Street debacle, because, the European banks/bankers have and are experiencing the same/similar problems of the US! Every country in Europe is NOW trying to protect their currency which ultimately means that the Euro is showing "cracks" with regards to a "Unified Europe!" Greece, Portugal, Spain, and Iceland are near levels of bankruptcy! According to past history, When national interests are threatened, either internally, or externally, nationalism raises its ugly head!

No, don't look at ANY country as being a "superpower" because there will be too many problems withi EVERY country, including China, with the problems that face every country that utilizes a FIAT MONETARY SYSTEM!