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In this article I will cover the rise of China as a superpower and the opposite effect it is happening on other superpowers who are now threatened with being knocked off their elite spot. A few countries are now competing with America, but I think China is the most interesting of all the nations because of their sheer ability to advance their economy in just a few years. India is also becoming a big industrial sector, but I will focus on the main player China.
China advances in leaps and bounds.
While many Western economies have rising unemployment, a dying industrial sector and stagnant wages, China will probably go the opposite way and advance to extreme wealth very soon.
It only took China a decade to become a 'possible contender' to a heavyweight bully.
China's economy is advancing by 7 or 8 percent per year. Industries are being built upon, 600 or more Chinese factories opening every year, cities are being built, and investment opportunities in China are brimming over with profiteering.
As a result, Chinese people will get better wages, and will be able to buy small shares and commodities like gold and silver more and more as the Chinese standard of living gets better and better- enabling millions of average wage earners to grab hold of gold. A ban was previously introduced by the Chinese Mao Government from the 1950's to 2003 which prevented the Chinese public from buying precious metals. The ban has now been lifted, and people of China are now able to purchase gold, silver, platinum and other precious metals. It is expected that it will take a few years for the Chinese public to get into the precios metals market, but the Chinese Government itself has now been promoting silver bullion as an investment, and the Government have used television advertising to encourage their citizens to now buy silver.
The Chinese economy has been carefully controlled by the elite in China, keeping their people in poverty. Now the country is in a new phase- a phase I will call work, build, dominate... Not much different from the economic model that rich nations have always followed. The sheer number of the Chinese labour force is 5 times more than America, and many times bigger than most other nations. The Chinese will keep advancing their economy in coming years, despite the rumours of a Chinese economic collapse...
In the first quarter of this year 2011, China has bought 93 tonnes of gold bullion,coins and other gold commodities, and the consumption of gold in China is approximately 700 tonnes, with about half of that gold produced in China, half of it imported. It is expected that China will become the World's biggest consumer of gold within a few years, and within a few years the continued rise of the Chinese economy will furthur rake in foreign investment, foreign purchases and then we'll all be reduced to skeltons over the coming years by the gradual squeezing by China, who won't come to the rescue of Western society but will continue to advance the standard of living for the Chinese people.
Chinese don't just mean business, they will be the most rich, most invested-in country in the World. Many people will hate China becoming what America only dreamed of becoming... a country of mostly wealthy people controlling other countries' economies, deciding which ones prosper and which ones fall.
China won't bow, they won't waver, and soon they'll have all the ability to pick and choose which countries are useful to building China's economy.
On the other hand there might be enough wealth hidden in tax havens which Western corporations can draw upon when they really need it, unknowingly to the public. Just how much gold, platinum and other commodities are hidden on remote islands around the World is the real question. We are only told one side of the economic story- the real manipulators are the corporations and rich eltisits who utilize tax havens during times of economic crisis. President Obama vowed to close down tax havens, but we never hear about his progress on this matter.
Tons of gold bars are hidden away in tax haven locations, and the current price fixing of commodities is directly subject to availability- and in reality there is much more gold in the World than is made public. The more gold that is hidden away, the more gold prices go up. Then those holders of massive gold deposits sell at sky-high prices, flood the market with gold, prices then go down, and they re-buy their own gold for cheap-then to wait for the next gold squeeze.
It's a game of buying and selling, the availability of stock, and if you can manipulate the availability, then you are a player in precious metals and are sitting on a gold mine.
Shares are for the little fishes. Precious metal dealers are the masters of manipulation behind the markets who really change the way the stock exchange goes up and down. Big corporations don't hide their profits in wads of cash in some bank vault- they are buying gold and hiding it away in some tax haven for the next economic crash.
Governments know exactly who is doing the gold hoarding, which corporation or bank is hiding their profits on tax havens, but they allow it because it is a safety-net for their own economies. Wealth is hidden away to ensure big banks and corporations have collateral investment to ensure the value of their company...and they avoid paying taxes because the precious metals deposited in tax havens would otherwise be logged on the tax system of that country and the location of the tax haven would eventually be leaked to the public. Many of those big corporations give big political party donations to politicians- they are joined at the hip in corrupt politics and manipulation.
So the public hear about these corporations who don't pay much in taxes...and wonder where the profits go to. Corporations only pay 'x' amount of taxes on their profits, and the rest of the large chunk of profits is used to buy gold, which is hidden from the tax departments...
Imagine if those tax havens suddenly all decided to reveal their customers, big names like banks and investment group...thousands of big name companies,wealthy families and corporations all hiding the World's wealth away, and sticking their fingers up at us, as if to say,
'We manipulate the economy, we control Government, we have your money...'
Wouldn't that piss you off just a little bit?
Chinese also work abroad and send money back to China. How much cash and precious metals are now being bought in Western nations and sent to China?
How many shops, small businesses such as Chinese takeaways now rake in foreign currencies?
My local Chinese takeaway must make a fortune here in the U.K , and they probably send much of their profits back to China.
Of course many people from other nations other than China are taking the advantage away from richer nations. You can also consider that Saudi Arabia for example makes one billion dollars per day from their oil sales. Saudi Arabia is well known to be hoarding the cash and not re-investing it in Western companies or interests. Collectively the nations of Asia could eventually own the majority of the gold, silver, shares, industry and corporations of the richer nations, and not leave much more but crumbs for the rest of the World.
China is still on the rise. A GDP growth twice above other strong,manufacturing nations. China has a potential to build cheap housing for millions more people, and with 600 factories or more being built each year in China, and wages increasing dramatically recently in China- all these factors point towards a nation that is copying the American capitalist idealism, which is make as much money as possible, squeeze out the competition and become a superpower.
With more Chinese people with cash to afford gold and silver, we will see gold prices go sky high in a couple of years.
If China continues to hoard gold then they will have the ability to flood the market when they want to...and set up a system that enables China to buy gold cheap before it is made available to the rest of the World (to prevent physical gold from being taken out of China).
China could write a whole load of paper-gold I.O.U's to investors by using their massive foreign currency,precious metals and U.S treasury bonds as collateral to back the paper-gold contracts.
China means business, and they won't stop until the advantage is in the hands of the Chinese corporations who also utilize gold as their collateral. Rich Chinese corporations, rich families and many millions of working Chinese all buying up gold and other precious metals will create the country with the most collateral- and collateral means that big business deals, corporate takeovers and financial loans to foreign banks offered by China will again rake more cash into China.
China is not going to let their advantage slip- just like any nation which is becoming big and powerful- they see the finish line and sprint towards it. They don't slow down or let the weaker sprinters take the race away from them...
Speculators and analyists are trying to turn the fear factor on towards China, speculating China's economy might crash- but the truth is, China has become a business within itself and is now too big to fail, much like Goldman Sachs for example. If a bunch of financial wizards from Goldman Sachs can manipulate the markets, Government and economy -then China, being 5 times bigger than America will become a lot more competitive and domineering ,owning much of, or destroying Western corporations, and will take the advantage away from Western nations as often as they can.
After all, that's what America's corporate sector has taught the World to do- capitalize to the point so the competition has no room to move...
China is throwing it in our faces, and our greedy financial operators, big industry being sold to China, buying of Chinese goods, borrowing money from China have made it happen. First the rich nations tried to use China to make themselves rich, and now China is doing it to the whole World, with nearly every country in Africa under some sort of Chinese-corporate control over African resources and labour.
China will exploit just as the Western countries exploited, but I think the sheer level of people in China who are now being thrust into new Chinese cities and are demanding more of a better standard of living will place too much demand on resources, and commodities will go up in price in leaps and bounds, oil prices will skyrocket as will precious metals.
Don't write off the Chinese rising dragon. They haven't got half-way through the takeover yet.
Another thing to consider is that China will become 5 or 10 times bigger than America, and the saying goes,'When America catches a cold the whole World sneezes'...
So what happens if China, 10 times bigger than America collapses in a few years? We all catch pneumonia and eventually die a cold, shivering death??
Other rising nations will also pursue the capitalist method, and compete to make their own countries richer. Western nations did all the hard work of creating an industrialized economy over the last century, building machines and technologies to manufacture most of what you can buy in the shops. And then greed took over. Western industries and corporations saw bigger profits in setting up their business overseas, by using cheap manpower and cutting the costs of imported materials.
Big mistake. Millions of jobs have been lost to other countries over the last decade, and the recent global financial crisis only forced more people out of work. The majority of the labour force are not to blame. We really have to examine just what kind of people have cashed in on selling or moving industry to other countries, and why it was allowed to happen.
Surely their were some brains behind the quick demise of the Western industries, and Government has a lot to answer for. We always hear our politicians talk about creating jobs and getting people off social security benefits, but why would our Governments not intervene when our industries closed and factories relocated overseas.
Since when have Government actually put money into creating small factories which help local economies stronger?
Many industries and corporations give donations to political parties and individual politicians, and often politicians are just asked to keep the people dumbed down, so that deals and business can carry on without public scutiny.
Politics + business= big opportunities to make money.
China is a very State-controlled nation, and their economy is just in the early stages, yet so much has been accomplished by the Chinese people and this method. Other nations really don't have the manpower to compete with China's great industrial production sector, and it won't be long until many nations fall way behind China.
Combine China's approach with India's rise and the scales will be tipped towards Asia.
by Russell S.Wyllie
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"Destroying the New World Order"
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