Cory wrote:
I think the situation will unfold in a way that does not conform to the worst of our fears.
Perhaps Its not a matter of fear, but a matter of inevitable causality. Consider this: China has reached an unprecedented level of power, but the people/government have never been so fickle/confused/unstable. Power and instability are a bad combination. Think of Nazi Germany. History always repeats. There are currently genocides taking place in Africa.
Let us not forget that it was the Chinese army that dismantled the civilization of Tibet because it threatened their ideology. The only difference now is that the government has abandoned their communist ideology in favor of capitalist values.
Moreover China has recently become one of the most powerful countries in the world and I don’t believe China is even fully aware of how much power they have or could have.
Some economists have estimated that China may have more US currency stockpiled than the actual United States because of America’s atrocious deficient.
What will happen when they actually realize what they could have or what they could be?
It is only a matter of time before they realize that they have enough power to buy the most powerful corporations globally and move all the head offices of those companies to China.
If this happens it will cause some sort of depression in the west.
The American Economy is already struggling because of the war in the middle-east plus they have lost some of their biggest law firms and other giants offshore to India.
Over the last five years the American economy has been weakened; similar to how Russia weakened in the 70s right before its collapse.
The patterns are similar; that is all I'm suggesting.
Anything could happen.
However I'm also open to the idea that a burst innovative technologies may revolutionize the global economics of the world at the same time these collaspes are happening.