Two hundred years ago, Napoleon warned, “When China wakes, it will shake the world.”
China has awakened. And now, it’s about to shake the world to its foundations — starting with the US dollar.
Everybody knows that China is on the move. Even despite the recent global slowdown — and despite what the naysayers may try to tell you — China’s economy is still growing more than seven times faster than America’s is.
But what most Americans do NOT know — what our media steadfastly refuses to admit — is that China is already so rich, it can now DICTATE economic policy to the world; even to the US.
According to the prestigious Peterson Institute — and based on data just published by the University of Pennsylvania: The Chinese economy will NOT surpass America’s by 2016. Nor will it happen in 2017 or even in 2020, for that matter. Peterson and the University of Pennsylvania say China is ALREADY the world’s #1 economic power.
And the thing is, they proved it.
The U.S. economy produced goods and services valued at $14.6 trillion in 2010 …
But China’s Gross Domestic Product soared to $14.8 trillion.
China’s economy is already larger than America’s.
>> The Beijing government has almost no debt …
>> But Washington has nearly $145 trillion in debt and obligations.
** China has $3.2 trillion in cash — and its cash reserves are growing ever larger, month after month …
** But Washington has almost no cash on hand and has to borrow nearly half of every dollar it spends — much of it is borrowed from China.
>> China’s total tax revenues are up nearly 30% from a year ago …
>> But Washington’s tax revenues are dramatically down due to the sluggish U.S. economy.
** The U.S. has about 160 million workers …
** China has 810 million workers — more than 5 times more than the United States.
>> 97% of all Chinese workers are employed …
>> But 14 million U.S. workers are either unemployed or underemployed.
** In China’s urban areas, wages ROSE 7.6% in 2011 — and the increase was about double that in rural areas.
** Meanwhile, inflation-adjusted wages for U.S. workers dropped 1.7%.
The investment facts are even more startling:
>> I once believed that Las Vegas topped the world when it came to luxury hotels and entertainment …
But even Vegas’ biggest and best can’t hold a candle to the world’s largest hotels and casinos in Macau.
** I just read a study by The Program for International Student Assessment that ranked Chinese students #1 in the world. American students were ranked fourteenth.
>> China’s Tianhe-1A super computer is the fastest in the world, capable of processing more than 2.5 thousand trillion calculations per second.
** And when you look at China’s military, the contrast between the two nations gets downright scary:
China has THE LARGEST ARMY IN THE WORLD — 2.2 million active-duty military personnel — 600,000 more than America has.
And while the U.S. is cutting its military expenditures, China has increased military spending every year for more than 20 years … and is still boosting it by an average of 11.8% per year.
China’s military is state-of-the-art: It just unveiled the J-20 — its first stealth fighter.
>> It also has spy satellites, modern battle tanks, aircraft carriers, nuclear attack submarines, cruise missiles, and more.
China’s nuclear arsenal is especially worrying: While the U.S. has been steadily reducing its stockpiles for nearly 30 years, China continues to build up its forces and is refusing to even begin talks on nuclear arms reduction.
** China has already begun to wage war against the dominance and value of the U.S. dollar …
For decades now, the U.S. dollar has been the world’s currency of choice. Most of the world’s central banks hold their reserves in U.S. dollars. Most international transactions have been settled in U.S. dollars.
That means there is always a high demand for dollars around the world — and as a result of that demand, the greenback has held its value more effectively than many other currencies have.
But since 2009, President Obama has spent more than $10.6 trillion, and run up trillion-dollar deficits year after year.
To fund Washington’s spending addiction, Treasury Secretary Timothy Geithner has borrowed an estimated $4 trillion since 2009. And, Ben Bernanke — the Chairman of the U.S. Federal Reserve — has created nearly $8 trillion out of thin air since 2009.
U.S. dollar is already being abandoned by many countries and companies in favor of the Chinese currency — the yuan:
> Investors can now buy yuan-denominated bonds in Hong Kong.
> Caterpillar and McDonald’s recently financed their mainland China projects directly via yuan bond offerings instead of U.S. dollars.
> And China’s trade with Russia, Vietnam and Thailand is now being settled in yuan instead of U.S. dollars.
> Apple Computer is even accepting iTunes payments in yuan!
So why does Washington really want to jack up the value of the Chinese yuan? What’s the truth that Washington won’t tell you?
By RAISING the value of the Chinese yuan, Washington and China will automatically CRUSH the value of the U.S. dollar …
So Washington can repay its otherwise unpayable debts with cheaper dollars!
Washington’s only hope of avoiding default is to destroy the value of its own currency, then pay its debts back with dollars that are only a shadow of their former selves.
Plus, with a weak dollar and strong Chinese yuan, China can buy up even more of our debt and protect the massive investment it has already made in America by helping Washington avoid default.
That’s a massive “win-win” for both Washington and Beijing:
Plus, a rising yuan will once and for all solve Beijing’s #1 economic problem: Rising domestic inflation. As the yuan’s buying power rises, price inflation in China will decline dramatically.
More importantly, as the yuan’s purchasing power explodes, China will also be able to lock up even more of the world’s supply of oil, coal, steel, copper, lumber and other natural resources … to take control of thousands more companies … and to extend its economic control throughout the world.