muses of the moment

October 4, 2010

China holds all aces, US still tries bluffing

Filed under: Odds 'n ends, Tangible Assets, The Dollar Crisis — totallygroovygirlfriday @ 1:37 am

China understands the 3 tiers of wealth. The US is clueless, clueless, I say.

Click here for a post about China’s rare earth metal monopoly.

Let groovygirl just highlight some of the interesting points in this article link:

China has planned to corner the rare earth metal market for the last generation. These are long-term planners.

China now has control of supply and therefore price of necessary components of military and industrial production. No raw materials, no production.

Who do you think will win this economic war? A pile of infinite fiat dollars or control over every rare metal on earth?

The 3 tiers of wealth:

  1. First tier is ownership of land, water, raw materials.
  2. Second tier is ability/resources to get raw materials for production to turn into useful/sellable products.
  3. Third tier is paper currency.

The third tier can not exist without the second and first. Guess who is excelling at the first two wealth tiers? China. Guess who was excelling at the first 2 tiers 100 years ago? US.

This is the changing of empires, moving from West to East.

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