China on a mission to eliminate the U.S. dollar
A book authored by Martin Jacques and first published in 2009 is entitled: “When China Rules The World.”
Well-known author and Harvard University Professor Niall Ferguson said of this book, “The rise of China may well prove to be the defining economic and geopolitical change of our time.”
Others have said that the movement of China is creating a 21st Century world no longer modelled on and shaped by Western ideas and consumption.
The implication of China’s recent gold bullion acquisition program is part of the rise for the changing world order and the way that people all over the world will live their lives.
When, not if, China’s economic growth develops such that the entire Chinese population achieves our kind of modern living standards and ability to gain educational superiority, it is not likely that they will continue to be controlled by the authoritarian Communist Party.
When China becomes a competitive commercial economy and the rural lands are being looked after by less than 10% of the population, China will be a multi-party, non-oppressive state with the freedoms of speech and religion.
Looking back at the previous 200 years of human history, there have been massive life changes – population, increase in freedom and large amounts of wealth created and accumulated by many.
The leaders of the U.S. are, unfortunately, living in an environment where they have to make important decisions without having sufficient knowledge or information available to them, which means their decisions – while impactful – are also powerful and dangerous.
They can do a lot of good and a lot of harm. As a result, as former U.S. Federal Reserve Chairman Ben Bernanke has told us, we live in great uncertainty and possibly grave financial danger. It is very difficult to accept uncertainty which may be the only thing in my life that has never had scarcity.
I have been favoured in my personal life and business career to work hard on fundamental values in order to get that understanding of reality in spite of uncertainty. Looking forward to financial markets, what do I see as reality? What do I see as the history of the future?
The majority of countries in the world are in a transition to modern lives resembling the U.S. and Canada and France and Germany. We started to change about 100 years ago after going through the previous 100,000 years of progress, which enabled us to have a world with just 1.5 billion people 100 years ago and 7 billion people today. In the next 100 years, the world could have 10-15 billion people living just like we live.
That period is going to need a lot of the hard stuff that comes from the ground, and for those of us who produce food, we will have to work harder.
China is buying gold bullion daily by the hundreds of thousands of ounces with the ultimate intent to eliminate the U.S. dollar as the reserve currency of the world.
That elimination does not bode well for the balance sheet and the increasing debt load of the United States. The negativity that it may create is yet not totally known.
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