China was bestowed gift upon gift today. It started with Obama taking Hu's coat, had a nice pause for lobster dinner, and ends with gold being sold to Asia at today's low. The US is pleading with China to combine their power with the US corporations in an attempt to conquer the world. China looks pleased to go along.
There is a lot the corporations can learn from China, and China the corporations. There is a lot of benefit too. If the rest of the world can be dominated the same way that China dominates its populace, the Corporate Takeover will go off without a hitch. If China can continue to use the corporations as a tool to further their building of their empire, they have the chance to rival America and Europe as the dominant geo political state.
America looks downright pathetic graveling at the feet of the corrupt Chinese government. It is not that either is better, but that both are down low and dirty doers. It is a strawman to think America is good because China is bad. This is the Hegelian dialectic and this is a false paradigm.
The economy functions in a similar matter. The question, 'what is a better trade' is a paradox when the only answer is 'none but gold'. Compare sectors, and be distinct. Mining and oil fit together because the machinery uses oil to dig the ground. How would these two sectors benefit in a world of post peak production? After the question of oil and metals, consumer items come to play. Food before all else, and discretion comes from how much spending power? There will always be privileged but how and how many? The class system can be evened out, but excesses will not be cheap. How far are we willing to go?
The downfall of the middle class is almost halfway down the rabbit hole. Soon Muni Madness will teach this "class" that houses are common things, usually. Many houses have been and will be built, and most of them poorly. China has many houses, houses I assume many Americans will use as homes post peak oil while Natural Gas is struggling to power the world. Natural gas will have in between 2015-2040 to rule. Many cities will pop up near Natural gas deposits. What can not be piped will be made liquid and shipped. America will struggle during this time. So much so many people will move Sur, to the Middle East, and to Europe. America is amazingly separated from natural gas reserves. What will save America if she can not get her dams together before the price of oil goes stratospheric? The North East and North West should be fine, but areas that do not have hydro will be in trouble. There will be dead zones that will be forced to adapt to solar or perish.
Then sometime around this spectacular happening fiat currencie will struggle to trade for and with commodities (especially energy). It will be that time when they are pronounced dead, and Keynesian theory with them. I do not have to be dramatic to demonstrate what will become of Krugman and Bernanke. They will be thoroughly discredited, at the least.
It will be then that currencies are once again rationed by ounces of precious metals and then these will set the metric for price. It is rudimentary, but how exact is anything? Science and math get one to philosophy and then the mind can push no further. We are limited, we accept that.
Here and now the Main Steam Media pushes memes like drugs on its chainless captures. TVs flash brightly and stun the watchers into believing the world is a certain fairy tale. The fairy tale of life runs deeper than what the Stream is believed to be. Stream to delta and delta to sea, we are all and all are we.
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