Wednesday, September 15, 2010

Global Economic Power Is Shifting From The West To the East

And concomitantly the currency devaluation wars escalate.  I missed these two news items.  Thankfully my friend and colleague "Jesse" of Jesse's Cafe Americain posted a must-read commentary today around these two news items.

First, two weeks ago France announced that it would leverage its presidency of the G20 next year into opening up discussions about reducing/replacing the U.S. dollar as the global reserve currency.  This movement has been visibly gathering momentum for at least a year now and it underscores the fact that the world has fatigued of being economically controlled by an increasingly corrupted U.S. Government and banking system.

The second news event that grabbed my attention was that yesterday Germany announced that it wants the U.S. to relinquish IMF veto power in exchange for Europe doing the same.  This to me is a velvet hammer request for the U.S. to cede a substantial amount of economic/political control over world affairs.  This is huge.  This is a subtle yet explicit acknowledgement of a transformational shift in the global balance of power from the West to the East. 

And make no mistake, China has quietly and efficiently maneuvered itself into a position of economic and financial dominance.  All that remains is for China to start wielding political power, something upon which it has demured every time the U.S. sends its eunuchs like Geither and Bernanke over to China to brow beat them over their currency valuation policy.

Here is the link to Jesse's blog post - I would urge everyone to read it carefully:  LINK

I would also like to add that IF this shift of dominance that is occurring does not ultimately unfold into some kind of global military conflict, it would make this event a unique data point in human history.


  1. Great coverage and thanks for the tip on AU earlier. I stopped buying miners due to heartbreak long ago!

  2. Sorry, I side with someone like a Bob Chapman.

    This 'disintegration' is more likely by design so that the elites and their tool (the Fed) can step in when anarchy begins (SHTF to most of ya'll) and offer a solution; A world currency and banking system of their design.

    Hey, it worked in 1913.

    Be afraid, be very afraid... for a world wide Fed/CB will no doubt make life very difficult for Gold owners (and yes, that includes me don't rake me over the coals for being the messenger).