Author: A Mohit
It was not so long ago, I had a discussion with a Professor of Finance who told me that dollars dominant position is extremely secured in the foreseeable future and he did not think that China had any place to stash their cash except in US treasuries. Since then China has drastically cut their investment in US bonds and put money heavily in Africa—and now they are buying up gold. In fact it is not only China but India and Mexico as well are doing the same.
In the academia, and even elsewhere in the so called intellectual circle, I often see an attitude—that the US is invincible and its superpower status is safe for the rest of our lives. I also find their faith in the government unshakable, and their trust in the media likewise.
I am not asking anyone to take Gerald Celente’s prediction of immediate doom of the US economy as gospel, what is worth however is to look around us and make our own analysis of how we perceive the future.
Citigroup’s global commodities strategists believe that gold is on the rise and it is going to happen over a long horizon. He also refers to a few other facts. In the first quarter of the current year, China settled 7% of its entire trade in its own currency; only last year this figure was 1%. If this does not appear to anyone as earthshaking, the person is missing the point.
It is reasonable to expect that the renminbi, the Chinese currency will become fully convertible within five years. If this happens 30% of global banking and marketing income will shift to Chinese currency. China has also entered into agreement doing business in mutual currencies with Brazil, Russia, India and South Africa. I cannot understand how anyone fails to see that the dollar’s role in the global trade is dwindling fast.
This is a one way trend which will not be reversed, and with this will end the dominance of the greatest superpower of the world.
What are the possibilities of a reversal? I say next to nil. Any country that loses its moral compass, moves away from the rule of law, and mislays its sense of justice has no future. The other day when I wrote, Progressives’ Double Standard On Anthony Weiner, some liberals threw brickbats at me, attempting to defend Anthony Weiner’s action based on similar or worse behavior on the part of the Republicans.
Just as Larry Craig and David Vitter are immoral Anthony Weiner has equal right to be one? What a pathetic way of defending one’s action! Since when two wrongs make it right? I wrote condemning Utah’s Republican House majority leader Kevin Garn and GOP leaders’ lack of moral values and I feel the same urge to condemn any lapse on the part of the Democratic leaders.
What I see as our problem today—we are Democrats, Republican, or whatever else, but seldom American. So long we are divided in groups, defending our own actions based on other’s folly, and not on the basis of a moral standard, we have no future as a nation.
People ask me, how bad can it get, is it not already bad enough?
How bad—you wonder? I came from a third world country and I am telling you: You ain’t seen nothing yet!