ARMalik
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I am glad that someone in PLA knows the truth about US dollar. I reached a similar conclusion years ago.
http://chinascope.org/archives/6458/76
[Editor’s Note: In April, Qiao Liang, a People’s Liberation Army (PLA) Major-General, gave a speech at a book study forum of the Chinese Communist Party’s (CCP’s) Central Committee and government office. Qiao is the PLA strategist who co-authored the book, “Unrestricted War.”
In his speech, Qiao explained that he has been studying finance theories and concluded that the U.S. enforces the dollar as the global currency to preserve its hegemony over the world. The U.S. will try everything, including war, to maintain the dollar’s dominance in global trading. He also discussed China’s strategy, to rise as a super power, amid the U.S.’s containment.
The following are excerpts from his speech.] [1]
I. The Situation Surrounding China and the Secret of the U.S. Dollar Index Cycle
A. The First Financial Empire in History
People working on economics or in the finance field are probably more suited to talk about this topic. I will discuss this topic from the [national] strategy angle.
On August 15, 1971, when the U.S. dollar stopped being pegged to gold, the dollar ship threw away its anchor, which was gold.
Let’s take a step back. In July 1944, to help the U.S. to take over the currency hegemony from the British Empire, President Roosevelt pushed for three world systems: the political system – the United Nations; the trade system – the General Agreement on Tariffs and Trade (GATT), which later became the World Trade Organization (WTO); and the currency financial system – the Bretton Woods system.
The Americans’ desire was to establish the U.S. dollar’s hegemony over the world via the Bretton Woods system. However, from 1944 to 1971, the dollar didn’t gain that power. What blocked the dollar? It was gold.
When the Bretton Woods system was set up, the U.S. promised the world that the U.S. dollar would be pegged to gold while every other country’s currency could peg to the dollar. One ounce of gold was fixed at US$35. With this promise, the U.S. couldn’t do anything according to its own will. In other words, the Americans couldn’t print an unlimited number of dollars. Whenever it printed a dollar bill, it had to add one additional ounce of gold into its treasury as a reserve.
The U.S. made that promise to the world because it held eighty percent of the world’s gold reserve at that time. The Americans thought that, with that much gold in hand, it was enough to support the U.S. dollar’s creditability.
However, it was not that simple. The U.S. stupidly got involved in the Korean War and the Vietnam War, which cost it dearly. The Vietnam War especially cost US$800 billion. The cost became so much that the U.S. couldn’t bear it. Based on the U.S.’s promise, every time it spent US$35, it meant a loss of one ounce of gold.
By August 1971, the Americans had about 8,800 tons of gold left. They knew they were in trouble. Other people continued creating new trouble for them. For example, French President De Gaulle didn’t trust the U.S. dollar. He asked the French Finance Minister and Central Bank President and was told that France had about US$2.3 billion dollars in reserve. He told them to sell all of that for gold. Some other countries followed suit.
Thus, on August 15, 1971, then U.S. President Nixon announced that the U.S. stopped pegging the dollar to gold. It was the beginning of the collapse of the Bretton Woods system, and also a way in which the Americans cheated the world. However, the world didn’t realize it.
People trusted the U.S. dollar because it was supported by gold. The U.S. dollar had been the international currency, the settlement currency, and the reserve currency for over 20 years. People were used to the dollar. When the U.S. dollar suddenly lost its tie to gold, it then, in theory, became a pure piece of green paper. Why did people still use it?
In theory people could stop using it., Bbut in practice what would people use for international settlement? Currency is a measure of value. If people stopped using the U.S. dollar, was there any other currency they trusted?
Thus, the Americans took advantage of people’s inertia and forced the Organization of the Petroleum Exporting Countries (OPEC) to accept the U.S. condition that the world’s oil trade must settle in U.S. dollars. Previously, oil trades were settled in any international currency, but, since October 1973, settlement was limited to the U.S. dollar only.
After unpegging from precious metal, the Americans linked their dollar to oil. Why? The Americans were very clear: people might dislike the U.S. dollar, but they could not live without energy. Every country needed development and thus needed to consume energy. In this way, the need for oil translated into the need for the U.S. dollar. For the U.S., this was a very smart move.
Not many people had a clear understanding of this at the time. People, including economists and financial experts, didn’t realize that the most important thing in the 20th century was not World War I, World War II, or the disintegration of the USSR, but rather the August 15, 1971, disconnection between the U.S. dollar and gold.
Since that day, a true financial empire has emerged, the U.S. dollar’s hegemony has been established, and we have entered a true paper currency era. There is no precious metal behind the U.S. dollar. The government’s credit is the sole support for the U.S. dollar. The U.S. makes a profit from the whole world. This means that the Americans can obtain material wealth from the world by printing a piece of green paper.
This has never happened in the world before. Throughout mankind’s history there have been many ways for people to obtain wealth: an exchange with currency, gold, or silver, or using war to grab things (however, war is very costly). When the U.S. dollar became just a piece of green paper, the cost for the U.S. to make money became extremely low.
Without the restriction of gold, the U.S. can print dollars at will. If they keep a large amount of dollars inside the U.S., it will certainly create inflation. If they export dollars to the world, the whole world is helping the U.S. to deal with its inflation. That’s why inflation is not that high in the U.S.
However, once the U.S. exports its dollar to the world, it doesn’t have much money. If it continues to print money, the U.S. dollar will keep devaluating, which is not good for the Americans. Therefore, the U.S. Federal Reserve is not, as some people have imagined, a central bank that prints money irresponsibly. The Federal Reserve knows what “restriction” means. From its establishment in 1913 through 2013, the Federal Reserve only printed US$10 trillion.
This may lead people to criticize China’s Central Bank, which has printed 120 trillion yuan (around US$20 trillion using an exchange rate of 6.2 yuan per dollar) since 1954. Actually this does not mean China is printing money without any restriction either. Since its opening up, China has earned a lot of U.S. dollars and also a large amount of dollars has flown into China as investments.
China’s foreign currency control prevents the U.S. dollar from circulating in China. When the U.S. dollar comes, for circulation in China, China’s Central Bank has to print a corresponding amount of renminbi instead.
However, a foreign investor can withdraw its money out of China after making money. Also we need to spend our foreign reserves to buy energy, products, and technology. As a result, a large amount of U.S. dollars has flown out of China, but a corresponding amount of renminbi has stayed in China. You can’t destroy those renminbi, so China ends up with more renminbi than its foreign reserve.
China’s Central Bank admitted that it overprinted 20 billion yuan. This huge amount all stayed in China. This is a topic that I will discuss later – why we should make the renminbi an international currency.
B. The Relationship between the U.S. Dollar Index Cycle and the Global Economy
The U.S. avoided high inflation by letting the dollar circulate globally. It also needs to restrain the printing of dollars to avoid a dollar devaluation. Then what should it do when it runs out of dollars?
The Americans came up with a solution: issuing debt to bring the dollar back to the U.S. The Americans started to play a game of printing money with one hand and borrowing money with the other hand. Printing money can make money. Borrowing money can also make money. This financial economy (using money to make money) is much easier than the real (industry-based) economy. Why will it bother with manufacturing industries that have only low value-adding capabilities?
Since August 15, 1971, the U.S. has gradually stopped its real economy and moved into a virtual economy. It has become an “empty” economy state. Today’s U.S. Gross Domestic Product (GDP) has reached US$18 trillion, but only $5 trillion is from the real economy.
By issuing debt, the U.S. brings a large amount of dollars from overseas back to the U.S.’s three big markets: the commodity market, the Treasury Bills market, and the stock market. The U.S. repeats this cycle to make money: printing money, exporting money overseas, and bringing money back. The U.S. has thus become a financial empire.
Many people think that imperialism stopped after the U.K. became weak. Actually, the U.S. has conducted a hidden imperialism through the U.S. dollar and has made other countries its financial colony. Today, many countries, including China, have their own sovereignty, Constitution, and government, but they are dependent on the U.S. dollar. Their products are measured in dollars and they have to hand over their material wealth to the U.S. in exchange for the U.S. dollar.
This can be seen clearly in the cycle of the U.S. dollar index over the past 40 years. Since 1971, when the U.S. started to print money freely, the U.S. dollar index has been dropping in value. For ten years, the index has kept going down, indicating that it was overprinted.
Actually, it was not necessarily a bad thing for the world when the U.S. dollar index went down. It meant an increase in the supply of dollars and a large outflow of dollars to other countries. A lot of U.S. dollars went to Latin America. This investment created the economic boom in Latin America in the 1970s.
In 1979, after flooding the world with U.S. dollars for nearly 10 years, the Americans decided to reverse the process. The U.S. dollar index started climbing in 1979. Dollars flew back to the U.S. and other regions received fewer dollars. Latin America’s economy boomed due to an ample supply of dollar investment, but this suddenly stopped as its investments dried up.
The Latin American countries tried to save themselves.
Argentina, which once had its per capita GDP among the ranks of the developed countries, was then the first to drop into a recession. Unfortunately, then Argentine President Galtieri, who came to power through a military coup, chose to use a war to solve the problem. He turned his eyes toward the Malvinas Islands (which the British called the Falkland Islands), which are 400 miles away from Argentina. These islands had been under British rule for over 100 years. Galtieri decided to take them back.
Of course, he couldn’t take on a war without the U.S.’s blessing. He sent an intermediary to inquire about the U.S.’s opinion. U.S. President Reagan answered it lightly: it was between you and the U.K.; the U.S. had no position and would stay neutral. Galtieri took it as acquiescence by the U.S. He started the war and took over the islands with ease. The Argentinians were crazy.
However, then U.K. Prime Minister Margaret Thatcher claimed that they would absolutely not accept it and forced the U.S. to speak out. Reagan tore off his neutral mask, issuing a statement to blame Argentina for the invasion and to stand by the U.K. The British dispatched a task force with an aircraft carrier, travelling 8,000 miles, to take the Malvinas Islands back.
At the same time, the U.S. dollar appreciated and international capital flew back to the U.S. just as the U.S. wished. When the Malvinas Islands War started, investors around the world concluded that a regional crisis had started in Latin America and the Latin American investment environment would deteriorate. So investors withdrew their capital from there. The Federal Reserve, at the same time, announced an increase in interest rates, which further accelerated the withdrawal of capital from Latin America.
The Latin American economy dropped to the bottom. The capital leaving there went to the U.S.’s three big markets. It gave the U.S. the first bull market since the dollar had been unpegged from gold. The U.S. dollar index jumped from 60 to 120, a 100 percent increase.
The Americans didn’t stop after making big money from their bull market. Some took the money they just made and went back to Latin America to buy the good assets whose prices had just fallen to the ground. The U.S. harvested handsomely from Latin America’s economy.
If this had happened only once, it could be argued as a small probability event. As it has occurred repeatedly, it indicates an intended pattern.
In 1986, after the first “ten years of a weak U.S. dollar following six years of a strong dollar,” the U.S. dollar index started to decline again. Ten years later, in 1997, the dollar index started climbing. This time, the strong dollar also lasted for six years.
During the second ten-year weak U.S. dollar cycle, U.S. dollars went mainly to Asia. What was the hottest investment concept in 1980s? It was the “Asian Tigers.” Many people thought it was due to Asians’ hard work and how smart they were. Actually the big reason was the ample investment of U.S. dollars.
When the Asian economy started to prosper, the Americans felt it was time to harvest. Thus, in 1997, after ten years of a weak dollar, the Americans reduced the money supply to Asia and created a strong dollar. Many Asian companies and industries faced an insufficient money supply. The area showed signs of being on the verge of a recession and a financial crisis.
A last straw was needed to break the camel’s back. What was that straw? It was a regional crisis. Should there be a war like the Argentines had? Not necessarily. War is not the only way to create a regional crisis.
Thus we saw that a financial investor called “Soros” took his Quantum Fund, as well as over one hundred other hedge funds in the world, and started a wolf attack on Asia’s weakest economy, Thailand. They attacked Thailand’s currency Thai Baht for a week. This created the Baht crisis. Then it spread south to Malaysia, Singapore, Indonesia, and the Philippines. Then it moved north to Taiwan, Hong Kong, Japan, South Korea, and even Russia. Thus the East Asia financial crisis fully exploded.
The camel fell to the ground. The world’s investors concluded that the Asian investment environment had gone south and withdrew their money. The U.S. Federal Reserve promptly blew the horn and increased the dollar’s interest rate. The capital coming out of Asia flew to the U.S.’s three big markets, creating the second big bull market in the U.S.
When the Americans made ample money, they followed the same approach they did in Latin America: they took the money that they made from the Asian financial crisis back to Asia to buy Asia’s good assets which, by then, were at their bottom price. The Asian economy had no capacity to fight back.
The only lucky survivor in this crisis was China.
C. Now, It Is Time to Harvest China
........READ THE REST OF THE ARTICLE BY CLICKING THE LINK
http://chinascope.org/archives/6458/76
http://chinascope.org/archives/6458/76
[Editor’s Note: In April, Qiao Liang, a People’s Liberation Army (PLA) Major-General, gave a speech at a book study forum of the Chinese Communist Party’s (CCP’s) Central Committee and government office. Qiao is the PLA strategist who co-authored the book, “Unrestricted War.”
In his speech, Qiao explained that he has been studying finance theories and concluded that the U.S. enforces the dollar as the global currency to preserve its hegemony over the world. The U.S. will try everything, including war, to maintain the dollar’s dominance in global trading. He also discussed China’s strategy, to rise as a super power, amid the U.S.’s containment.
The following are excerpts from his speech.] [1]
I. The Situation Surrounding China and the Secret of the U.S. Dollar Index Cycle
A. The First Financial Empire in History
People working on economics or in the finance field are probably more suited to talk about this topic. I will discuss this topic from the [national] strategy angle.
On August 15, 1971, when the U.S. dollar stopped being pegged to gold, the dollar ship threw away its anchor, which was gold.
Let’s take a step back. In July 1944, to help the U.S. to take over the currency hegemony from the British Empire, President Roosevelt pushed for three world systems: the political system – the United Nations; the trade system – the General Agreement on Tariffs and Trade (GATT), which later became the World Trade Organization (WTO); and the currency financial system – the Bretton Woods system.
The Americans’ desire was to establish the U.S. dollar’s hegemony over the world via the Bretton Woods system. However, from 1944 to 1971, the dollar didn’t gain that power. What blocked the dollar? It was gold.
When the Bretton Woods system was set up, the U.S. promised the world that the U.S. dollar would be pegged to gold while every other country’s currency could peg to the dollar. One ounce of gold was fixed at US$35. With this promise, the U.S. couldn’t do anything according to its own will. In other words, the Americans couldn’t print an unlimited number of dollars. Whenever it printed a dollar bill, it had to add one additional ounce of gold into its treasury as a reserve.
The U.S. made that promise to the world because it held eighty percent of the world’s gold reserve at that time. The Americans thought that, with that much gold in hand, it was enough to support the U.S. dollar’s creditability.
However, it was not that simple. The U.S. stupidly got involved in the Korean War and the Vietnam War, which cost it dearly. The Vietnam War especially cost US$800 billion. The cost became so much that the U.S. couldn’t bear it. Based on the U.S.’s promise, every time it spent US$35, it meant a loss of one ounce of gold.
By August 1971, the Americans had about 8,800 tons of gold left. They knew they were in trouble. Other people continued creating new trouble for them. For example, French President De Gaulle didn’t trust the U.S. dollar. He asked the French Finance Minister and Central Bank President and was told that France had about US$2.3 billion dollars in reserve. He told them to sell all of that for gold. Some other countries followed suit.
Thus, on August 15, 1971, then U.S. President Nixon announced that the U.S. stopped pegging the dollar to gold. It was the beginning of the collapse of the Bretton Woods system, and also a way in which the Americans cheated the world. However, the world didn’t realize it.
People trusted the U.S. dollar because it was supported by gold. The U.S. dollar had been the international currency, the settlement currency, and the reserve currency for over 20 years. People were used to the dollar. When the U.S. dollar suddenly lost its tie to gold, it then, in theory, became a pure piece of green paper. Why did people still use it?
In theory people could stop using it., Bbut in practice what would people use for international settlement? Currency is a measure of value. If people stopped using the U.S. dollar, was there any other currency they trusted?
Thus, the Americans took advantage of people’s inertia and forced the Organization of the Petroleum Exporting Countries (OPEC) to accept the U.S. condition that the world’s oil trade must settle in U.S. dollars. Previously, oil trades were settled in any international currency, but, since October 1973, settlement was limited to the U.S. dollar only.
After unpegging from precious metal, the Americans linked their dollar to oil. Why? The Americans were very clear: people might dislike the U.S. dollar, but they could not live without energy. Every country needed development and thus needed to consume energy. In this way, the need for oil translated into the need for the U.S. dollar. For the U.S., this was a very smart move.
Not many people had a clear understanding of this at the time. People, including economists and financial experts, didn’t realize that the most important thing in the 20th century was not World War I, World War II, or the disintegration of the USSR, but rather the August 15, 1971, disconnection between the U.S. dollar and gold.
Since that day, a true financial empire has emerged, the U.S. dollar’s hegemony has been established, and we have entered a true paper currency era. There is no precious metal behind the U.S. dollar. The government’s credit is the sole support for the U.S. dollar. The U.S. makes a profit from the whole world. This means that the Americans can obtain material wealth from the world by printing a piece of green paper.
This has never happened in the world before. Throughout mankind’s history there have been many ways for people to obtain wealth: an exchange with currency, gold, or silver, or using war to grab things (however, war is very costly). When the U.S. dollar became just a piece of green paper, the cost for the U.S. to make money became extremely low.
Without the restriction of gold, the U.S. can print dollars at will. If they keep a large amount of dollars inside the U.S., it will certainly create inflation. If they export dollars to the world, the whole world is helping the U.S. to deal with its inflation. That’s why inflation is not that high in the U.S.
However, once the U.S. exports its dollar to the world, it doesn’t have much money. If it continues to print money, the U.S. dollar will keep devaluating, which is not good for the Americans. Therefore, the U.S. Federal Reserve is not, as some people have imagined, a central bank that prints money irresponsibly. The Federal Reserve knows what “restriction” means. From its establishment in 1913 through 2013, the Federal Reserve only printed US$10 trillion.
This may lead people to criticize China’s Central Bank, which has printed 120 trillion yuan (around US$20 trillion using an exchange rate of 6.2 yuan per dollar) since 1954. Actually this does not mean China is printing money without any restriction either. Since its opening up, China has earned a lot of U.S. dollars and also a large amount of dollars has flown into China as investments.
China’s foreign currency control prevents the U.S. dollar from circulating in China. When the U.S. dollar comes, for circulation in China, China’s Central Bank has to print a corresponding amount of renminbi instead.
However, a foreign investor can withdraw its money out of China after making money. Also we need to spend our foreign reserves to buy energy, products, and technology. As a result, a large amount of U.S. dollars has flown out of China, but a corresponding amount of renminbi has stayed in China. You can’t destroy those renminbi, so China ends up with more renminbi than its foreign reserve.
China’s Central Bank admitted that it overprinted 20 billion yuan. This huge amount all stayed in China. This is a topic that I will discuss later – why we should make the renminbi an international currency.
B. The Relationship between the U.S. Dollar Index Cycle and the Global Economy
The U.S. avoided high inflation by letting the dollar circulate globally. It also needs to restrain the printing of dollars to avoid a dollar devaluation. Then what should it do when it runs out of dollars?
The Americans came up with a solution: issuing debt to bring the dollar back to the U.S. The Americans started to play a game of printing money with one hand and borrowing money with the other hand. Printing money can make money. Borrowing money can also make money. This financial economy (using money to make money) is much easier than the real (industry-based) economy. Why will it bother with manufacturing industries that have only low value-adding capabilities?
Since August 15, 1971, the U.S. has gradually stopped its real economy and moved into a virtual economy. It has become an “empty” economy state. Today’s U.S. Gross Domestic Product (GDP) has reached US$18 trillion, but only $5 trillion is from the real economy.
By issuing debt, the U.S. brings a large amount of dollars from overseas back to the U.S.’s three big markets: the commodity market, the Treasury Bills market, and the stock market. The U.S. repeats this cycle to make money: printing money, exporting money overseas, and bringing money back. The U.S. has thus become a financial empire.
Many people think that imperialism stopped after the U.K. became weak. Actually, the U.S. has conducted a hidden imperialism through the U.S. dollar and has made other countries its financial colony. Today, many countries, including China, have their own sovereignty, Constitution, and government, but they are dependent on the U.S. dollar. Their products are measured in dollars and they have to hand over their material wealth to the U.S. in exchange for the U.S. dollar.
This can be seen clearly in the cycle of the U.S. dollar index over the past 40 years. Since 1971, when the U.S. started to print money freely, the U.S. dollar index has been dropping in value. For ten years, the index has kept going down, indicating that it was overprinted.
Actually, it was not necessarily a bad thing for the world when the U.S. dollar index went down. It meant an increase in the supply of dollars and a large outflow of dollars to other countries. A lot of U.S. dollars went to Latin America. This investment created the economic boom in Latin America in the 1970s.
In 1979, after flooding the world with U.S. dollars for nearly 10 years, the Americans decided to reverse the process. The U.S. dollar index started climbing in 1979. Dollars flew back to the U.S. and other regions received fewer dollars. Latin America’s economy boomed due to an ample supply of dollar investment, but this suddenly stopped as its investments dried up.
The Latin American countries tried to save themselves.
Argentina, which once had its per capita GDP among the ranks of the developed countries, was then the first to drop into a recession. Unfortunately, then Argentine President Galtieri, who came to power through a military coup, chose to use a war to solve the problem. He turned his eyes toward the Malvinas Islands (which the British called the Falkland Islands), which are 400 miles away from Argentina. These islands had been under British rule for over 100 years. Galtieri decided to take them back.
Of course, he couldn’t take on a war without the U.S.’s blessing. He sent an intermediary to inquire about the U.S.’s opinion. U.S. President Reagan answered it lightly: it was between you and the U.K.; the U.S. had no position and would stay neutral. Galtieri took it as acquiescence by the U.S. He started the war and took over the islands with ease. The Argentinians were crazy.
However, then U.K. Prime Minister Margaret Thatcher claimed that they would absolutely not accept it and forced the U.S. to speak out. Reagan tore off his neutral mask, issuing a statement to blame Argentina for the invasion and to stand by the U.K. The British dispatched a task force with an aircraft carrier, travelling 8,000 miles, to take the Malvinas Islands back.
At the same time, the U.S. dollar appreciated and international capital flew back to the U.S. just as the U.S. wished. When the Malvinas Islands War started, investors around the world concluded that a regional crisis had started in Latin America and the Latin American investment environment would deteriorate. So investors withdrew their capital from there. The Federal Reserve, at the same time, announced an increase in interest rates, which further accelerated the withdrawal of capital from Latin America.
The Latin American economy dropped to the bottom. The capital leaving there went to the U.S.’s three big markets. It gave the U.S. the first bull market since the dollar had been unpegged from gold. The U.S. dollar index jumped from 60 to 120, a 100 percent increase.
The Americans didn’t stop after making big money from their bull market. Some took the money they just made and went back to Latin America to buy the good assets whose prices had just fallen to the ground. The U.S. harvested handsomely from Latin America’s economy.
If this had happened only once, it could be argued as a small probability event. As it has occurred repeatedly, it indicates an intended pattern.
In 1986, after the first “ten years of a weak U.S. dollar following six years of a strong dollar,” the U.S. dollar index started to decline again. Ten years later, in 1997, the dollar index started climbing. This time, the strong dollar also lasted for six years.
During the second ten-year weak U.S. dollar cycle, U.S. dollars went mainly to Asia. What was the hottest investment concept in 1980s? It was the “Asian Tigers.” Many people thought it was due to Asians’ hard work and how smart they were. Actually the big reason was the ample investment of U.S. dollars.
When the Asian economy started to prosper, the Americans felt it was time to harvest. Thus, in 1997, after ten years of a weak dollar, the Americans reduced the money supply to Asia and created a strong dollar. Many Asian companies and industries faced an insufficient money supply. The area showed signs of being on the verge of a recession and a financial crisis.
A last straw was needed to break the camel’s back. What was that straw? It was a regional crisis. Should there be a war like the Argentines had? Not necessarily. War is not the only way to create a regional crisis.
Thus we saw that a financial investor called “Soros” took his Quantum Fund, as well as over one hundred other hedge funds in the world, and started a wolf attack on Asia’s weakest economy, Thailand. They attacked Thailand’s currency Thai Baht for a week. This created the Baht crisis. Then it spread south to Malaysia, Singapore, Indonesia, and the Philippines. Then it moved north to Taiwan, Hong Kong, Japan, South Korea, and even Russia. Thus the East Asia financial crisis fully exploded.
The camel fell to the ground. The world’s investors concluded that the Asian investment environment had gone south and withdrew their money. The U.S. Federal Reserve promptly blew the horn and increased the dollar’s interest rate. The capital coming out of Asia flew to the U.S.’s three big markets, creating the second big bull market in the U.S.
When the Americans made ample money, they followed the same approach they did in Latin America: they took the money that they made from the Asian financial crisis back to Asia to buy Asia’s good assets which, by then, were at their bottom price. The Asian economy had no capacity to fight back.
The only lucky survivor in this crisis was China.
C. Now, It Is Time to Harvest China
........READ THE REST OF THE ARTICLE BY CLICKING THE LINK
http://chinascope.org/archives/6458/76
