How Has Entrepreneurship Contributed to China's Being Number l Economy

ProfJorge Entrep
This summary  is a from a video presentation from Weiss Research and made by Larry Edelson.

There are some important points that I picked up from this presentation.

Larry Edelson

Larry lives now in China;  he is an American and makes  a warning that is not about politics;  nor does he thinks ills of USA.  However the stark reality must be met.  He wants the best for his country and his children and other relatives who live there.  However, America must now join the ranks of once great nations who squandered their wealth and now must bow before the world's great powers

Some key points that I picked up:

l.  US will no longer be the world's No. l economic superpower.

      This is evident in Yahoo Finance that says according to the IMF, US will cease to be the No.l economic superpower.  But this is contested by Peterson and U of Pennsylvania.  China is now as of 20ll the world's no l economic power.

        Some comparisons:

China is now No. l

        l.  GDP of China is $l4.8 trillion;   that of USA - $l4.2 trillion.

        2.  Cash reserves of China is at $3.2 trillion is growing;   US has 0 cash and must borrow l/2 of what it spends, mostly from China

        3.  US debt stands at $l4.5 trillion (at the time the video was made) and unofficially if the pensions SSS are counted should be l0 times more or $l45 trillion

       4.  Beverly Hills stands pale to luxury areas in China;

       5.  China is now the worlds no l exporter, manufacturer, car maker.

       6.  There are 800 million Chinese employed;  US only has l40 million;    nearly 97% of Chinese are employed;   wages rose by 7%

       7.  Chinese economy grew by 9%;  that of US by only l.2%

       8.   While US is scaling down its space program China is planning to send man to the moon.

       9  China spending on arms defense satellites, aircraft carriers, submarines, nuclear weapons is increasing by ll% annually.  It has about 2 million troops.

       l0.  China controls the strategic metals business.

       ll.  The  Chinese economic explosion is not stopping or slowing

      12.  Entrepreneurship is booming and contributes l5% to the Chinese Economy

       Because Beijing is now so rich and controls Washington by the purse strings, it can dictate what Washington should do.

The end of dollar as the trading and reserve currency

2.  Because of the inflation and superhigh debt of US, and by the way the Washington has squandered US finance (incurring debt of almost $5 trillion to pump prime the economy and failing)   countries are falling out in having the US dollar as:

       l.  currency reserves;

      2.  currency for international commercial and financial transactions.

       Some bond flotations for US companies are made in Yuan.

3.  On the veiled pretext that devaluing the dollar will increase US competitiveness in export, there is a constant urging on the part of Washington to ask Beijing to devalue the yuan.  However Edelson does not see it that way.  Because the US wages are 6x bigger than China wages, there is no way that US products/exports can come close to China prices

       The real reason is by having cheaper dollars, US can repay its massive debt with cheaper currency.

       For China, this is OK because this will stave inflation in a about to be overheated economy.

However what will this mean:

        l.  Prices will spike
 
        2.  The retirement and nest eggs of retirees, the seniors will evaporate

        3.  China will gobble up  the worlds resources:   oil, metals, coal with its high value currency including US real estate.

What does it mean for the investors, common man:

l.  Avoid dollar investments;

2.  Invest in commodities:  food, oil, energy and minerals

3.  Invest in precious metals

Some Questions:

l.   For Phil entrepreneurs, what will be the opportunities?

2.  What is the effect of these developments to local investments or are they being felt now?

3.  What has the REE got to do with these?

4.  Why is PHL balking on proposed investments  on mining?  Shall PHL commit  the same mistakes as the US environmentalists?   And now US is will lie at the dusts of disgrace of once he proud superpowers?

These are just valid conclusions from the facts presented by Larry.  He had his series of successes
with regards to the prediction on gold, the stock market crashes.  He could be right in his analysis again

The End of US as the World's Economic SuperPower - What does it Mean to You?

Acknowledgement to the Weiss Research for this summary.