US Is 'Practically Owned' by China: Analyst

The US supremacy as the top world economy will end sooner than many people believe, so gold is a better investment than the dollar despite it hitting a new record, Tom Winnifrith, CEO at financial services firm Rivington Street Holdings, told CNBC.com Monday.

The US trade deficit and debt continue to grow and the authorities are reluctant to address the problem, preferring to print money, Winnifrith said.

He reminded of the fact that in 1900, sterling was the world's reserve currency but by 1948, that was no longer the case as the British Empire collapsed.

"America is doing what Britain did," Winnifrith said. "America spends much more than it can afford and it's not addressing the issue."

In 1832, China and India were the world's two largest economies and by 2032, they will regain that status, he predicted.

“(going from a nation associated with bicycles to one that makes some people stir in a restless fashion)”

That “restless fashion” should concern us. Free market globalism is a good thing in the very, very long term. However America went from producer of goods the rest of the world wanted to consumer of goods the rest of the world produces. Our wages are going down in relation to the wages around the world. Done properly we could have been the producer of the goods these people around the world now can afford. But now most of our manufacturing has moved overseas, our “corporate main offices” that moved the factories overseas haven’t a care in the world that America isn’t buying their goods, they have a ready market elsewhere. The “corporate main offices”, if our tax structure becomes too burdensome then they just move their entire operations overseas. Our taxes will become more and more burdensome supporting everyone who is out of work because they lost their jobs to someone willing to work for a dollar a day and live in a cardboard hut.

This cannot go on forever.
This ignores “Black Swan” events,
this ignores those “people stirring in a restless fashion” like armed rebellion or a change of leadership (which just happened in NK).

The problem that the new world order advocates do not realize is this - I am certain most Liberals (I am taking an American-centric perspective) are good people and all that. Yes, confused, but good people nonetheless. However, and this is the crux, the people they try to lift up and explain away and make excuses for are not good people. That is the thing they do not understand. The average American may not be able to locate Ethiopia on a map, but when they had a crisis in the 80s there was an outpouring of donations. Do you think the average Chinese would do that? Liberals always say how the US is attacking innocent countries, but if China was to be in the current dominant position occupied by the US, what do they think China would do? Do they think they would worry about collateral damage? As for terrorism - sure, they may want to try to 'understand' what is happening, but honestly - do you think if any of the various jihadi groups had an opportunity to attack New York, that they wouldn't?

That's the problem right there.

Which is why I always say a cure for Liberalism (big L, I have no problem with little l) is for each American to travel outside the US. So they can see how things truly are. So they can visit some of those nations they consider paragons of paradise (e.g. Cuba, and particularly Venezuela) and realize what a shortage of milk to a mother of four feels like! So they can experience 60% tax levels in some countries of the world. So they can know why communism is the best economic system - on paper - and why in real life it can NEVER work and only leads to two classes (the ruling elite who are extremely powerful, and everyone else who is scrounging for lichen at the bottom of watertanks).

T is for Travel - the only cure for Liberalism.

Without it, they will continue to wax poetic, before jumping into one of two cars, drive over to the local Target or Mall or BestBuy, and then debate over which Blu-Ray player to purchase and whether they should upgrade their flatscreen. Yeah, try that in Venezuela - their praise for Chavez would really evaporate quickly. Funny thing is, even though they claim US consumption is 'too high,' that doesn't stop them from consuming.

Sounds like hypocrisy to me. If they really believed what they say, why do they not go to Venezuela and living in the paradise there?

Hey B4Ranch ...hear that .....crickets!

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