Is the Shift of Power taking place?

Is this the new mantra that is ultimately going to change U.S. economy structurally? Importantly, the current U.S. output is generally lower in U.S than the potential output throughout the 2000s. Many nations have to address these issues in the future. We see Japan has worked through its challenges with an aging population. With this structure model, the more the U.S. consumers spends and save less, more the GDP grows. Global economic collapse was averted in 2009 and the global economy has stabilized and strengthened some in 2010. India, as China is emerging as powerful engines of global growth. The United States is clearly no longer the most important factor in global growth that it once was.

The growth of the U.S. economy is relatively stable and conservative against countries like China and India. China is now the second largest economy in the world, beating Japan. With an average level of GDP growth at 10% for the last 30 years, Shanghai is destined to become the world leader in financial 2020. China is rapidly moving beyond just a technologically backward player and becoming more of a dominant force in the global economy. Recent data from China top decision-makers show that the Chinese are in no hurry to change the current value of the dollar-Yuan relationship.

United States remains the world’s largest economy, but with a growth rate of less than 1% in the last quarter, with nearly double-digit growth in India and China, there is little doubt that the U.S. will lose its status as the world’s largest economy within a decade, if trends continue. Chinese and Indian markets are very high in the number of citizens in each country and the desire of their governments to dynamically  grow their economies. Rumor persists that Shanghai may allow foreign investment in Yuan-dominated private equity and venture in capital funds in the near future. China is now facilitating transactions in Yuan, between banks and companies in Hong Kong and transfer money to buy wealth management products.

China is moving aggressively to secure sources of raw minerals to ensure that economic development can continue. It has invested heavily in Australian mining companies to the point at which Australia now receives a substantial part of gross domestic product of minerals in China. Since the power transfer is happening from the United States and Europe to Asia, so do the central bank gold holdings also shift from United States and Europe to Asia? We cannot hamstring our economy with Obama’s cap and trade policy. We are Americans and we are pro-America, but we are also realistic. Let us invest in areas where the money can be made.

One Response to “Is the Shift of Power taking place?”

1. pedro says:

   October 10, 2011 at 9:03 pm

   much improved website.Im back to reading daily.keep it up

   Reply