Traveling at the speed of China
China's rising fast. How soon will it take the lead in global wealth and innovation?
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“So for now, the quality here on many items still isn’t up to US standards. It’s just a matter of time, though. I’m going to retire in 5 years. I figure that’s about as long as we’re going to be able to do these deals. After that, it’s all over. They won’t need us. They have the money. They have the skills and technology. We won’t have anything to offer.”Skip to next paragraph
Bill has written two New York Times best-selling books, Financial Reckoning Day and Empire of Debt. With political journalist Lila Rajiva, he wrote his third New York Times best-selling book, Mobs, Messiahs and Markets, which offers concrete advice on how to avoid the public spectacle of modern finance. Since 1999, Bill has been a daily contributor and the driving force behind The Daily Reckoning (dailyreckoning.com).
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Generally, the more you do something the better you get at it. The Chinese are making more cars…more highways…more trains…more office buildings and more of everything than anyone else. It is no wonder that they are doing these things well – maybe better than anyone else too.
A new train service between Shanghai and Beijing begins next month. Trains will travel between the two cities at up to 300 kilometers per hour. Already, a high-speed maglev train takes you from the airport to the city so fast that you arrive before you find a seat.
But so what? You’re probably wondering. So are we. So what if the Chinese take the lead in wealth and innovation?
You remember those 5 big trends we mentioned in yesterday’s “The Land of Rising Prices and Stagnant Incomes”? You don’t? Well, we’ll repeat them:
1) The Great Correction – in many of the advanced economies, but centered in America…
3) The increasing scarcity of cheap energy, land, water and raw materials.
4) The decline (suicide might better describe it) of the American Empire.
5) The approaching end of the dollar-based world financial system.
The interesting, and frustrating, thing about these trends is that they all intersect in various ways at various times…setting up collisions that are as unpredictable as they are hazardous.
You’ll notice, too, that the China story runs right through the middle of them, like a tanker truck through a pizza parlor. It is the central story to the rise of Asia and the developing economies. It is a large part of the reason low-priced commodities and natural resources are disappearing. The Chinese currency is almost sure to rise as the dollar-based world financial system comes apart. And China is also the likely successor to the US Empire.