This article states a great case for what is happening now.
Takuan Seiyo in one of the installments of his brilliant From Meccania to Atlantis series:
“The strongest, most admired country in the world until just a few years ago is now a cautionary tale of the wages of sin and stupidity told to Chinese schoolchildren. A nation that works for a living can weather perhaps even such great storms. But the jobs of the American lower class have been outsourced to imported Mexicans. The jobs of the American middle class have been exported to China and India. The jobs of the American upper-middle class have been taken from the white males who held them by merit, and given to resentful identity groups that hold them by the fiat of the government’s preferred skin colors and favored genitalia. And the jobs of the American upper class have been reprogrammed from leadership and service, to ripping off the less clever via lawyering, banksterism, and padding one’s golden CEO parachute, and then expiation via funding and leading socialist NGOs. A freefalling dollar cannot help by increasing exports, when you have off-shored your manufacturing, and your main industries are predatory lawsuits, selling shoddy American housing to Salvadorians with faked mortgages, and marketing financial weapons of mass destruction worldwide. And a falling dollar is not a good inducement for the world to keep buying dollar-denominated U.S. debt. The cessation of that buying has such dire consequences to the United States that Chinese strategists have named them ‘the nuclear option.’”
I have sometimes encountered Americans online who are convinced that they will face an armed conflict with a rising China in the future. Perhaps. But they often seem to take it for granted that such a conflict will be triggered by Chinese aggression against “foreign devils.” I’m not so sure about that. Right now I don’t see what interest the Chinese should have in provoking a war. They are currently behaving smarter than the Americans in many respects. I suspect that the Chinese are quite happy with selling cheap toasters to the United States while their presidents are bankrupting the country by making the world safe for sharia, their businesses are outsourcing jobs to Asia and their universities are educating Asian students.
The USA, on the other hand, is a country with a massive national debt and large armed forces, a potent combination which has facilitated wars in the past. I don’t rule out the possibility that Chinese nationalists could create trouble at some point but frankly, if there is a war between China and the United States in the near future it may well be triggered by the USA, not China.
Whether the Americans, whose armed forces are infiltrated by Muslim Jihadists and Mexican gang members, would win a conventional war is a different matter. After the Muslim Nidal Hasan killed many of his fellow soldiers the US military intensified its efforts to recruit more Muslims to the military. Recruiting people from hostile cultures to protect your country is the behavior of nations that want to die, and apparently, that is what the West now wants to do.
The US Federal Reserve Chairman Ben Bernanke was named Time magazine’s Person of the Year for “saving” the global economy. Man of the Year, as the award was called before our gender neutral age, has earlier been awarded to Adolf Hitler, Joseph Stalin (twice), the Ayatollah Khomeini and other distinguished gentlemen, so Mr. Bernanke is in good company.
Yet as the insightful financial observer Karl Denninger states, “Bernanke’s actions have singularly done more damage to the American economy - and America - than anyone in the history of this nation. He clearly eclipses Nixon in his dissembling, while making a mockery of the free market.” This is because “By encouraging the bubble economy during Greenspan's time in The Fed (Bernanke was the chief agitator for 1% interest rates - and holding them too low during the early part of the 2000s) and trying to restart the bubble economy this time around through both ZIRP and intentional distortions through the credit markets, shielding those who made bad decisions while cramming the inflationary pressures down the throat of trading partners, Bernanke has guaranteed the loss of global reserve currency status for The Dollar. Our Senate is too stupid to recognize this and stop his re-nomination.”
Regarding the financial crisis of 2008, Denninger comments that “We have fixed nothing in the last two years.” In his view, “…the root problem is an excessive level of debt in the system at all levels, a level of debt that exceeds capacity to pay, and as a consequence any and all attempts to restart the credit-driven consumption economy would fail, and if pressed too far the government will fail. The evidence strongly suggests that you are getting awfully close to your last chance to stop being stupid before the market hands you a lesson that has the potential to destroy both our economy and government.”
In case Europeans believe that the EU is in a much better shape, the same man also claims that the Eurozone is “an absolute train wreck” which is “dancing with jugs of nitroglycerine.”
The price of gold will probably continue to rise. Investors buy precious metals because they no longer trust many currencies, above all the US dollar, and they are right to distrust the dollar. Although the price of gold has already risen significantly, the expatriate American investor Jim Rogers believes this is not a bubble since virtually nobody still owns gold. As a friend of mine comments, “I think gold is going to hold the level for a while now, for some months bordering to half a year. Then, due to the money-printing, the sky will be the limit.”
8 months ago