US Is 'Practically Owned' by China: Analyst

[Cheetah786]

The US supremacy as the top world economy will end sooner than many people believe, so gold is a better investment than the dollar despite it hitting a new record, Tom Winnifrith, CEO at financial services firm Rivington Street Holdings, told CNBC.com Monday.

Gold [XAU=X 1307.85 2.60 (+0.2%) ] hit a new record high Monday and silver [XAG=X 21.74 0.04 (+0.18%) ] rose to another 30-year peak as investors were worried about the dollar weakening further after the Federal Reserve hinted at more quantitative easing last week.

The US trade deficit and debt continue to grow and the authorities are reluctant to address the problem, preferring to print money, Winnifrith said.

"America is practically owned by China," he said.

He reminded of the fact that in 1900, sterling was the world's reserve currency but by 1948, that was no longer the case as the British Empire collapsed.

America is doing what Britain did," Winnifrith said. "America spends much more than it can afford and it's not addressing the issue."

In 1832, China and India were the world's two largest economies and by 2032, they will regain that status, he predicted.

"The 200 years when Britain and the US were the top two economies were an aberration and that will change," Winnifrith said.

"The decline of empires has happened much faster than folks think. I believe that gold will be a far better bet in 20 years than the dollar," he added.

News Headlines

 

[CAPTAIN AMERICA]

I kind of like this prediction more:


THE NEXT DECADE: China Collapse, Global Labor Shortages, New American Dominance

What will the next decade bring for the world?


STRATFOR has the answers. In a Decade Forecast released yesterday, the global intelligence company predicts Chinese economic collapse, game-changing global labor shortages, and continued American dominance because of a gradual retreat from international engagement. Welcome to 2010.

We spoke with Peter Zeihan, Vice President of Strategic Intelligence, about STRATFOR's predictions, of which he was an author. Below are edited excerpts from our conversation.

TBI: What are the broad trends that Stratfor sees shaping the world in the next decade?

Zeihan: Probably one of the biggest breaks that Stratfor has with conventional wisdom is that most of the world is convinced that the United States is a power in terminal decline. In fact we see the United States withdrawing from its two wars, regardless of whether or not they've ended, and returning to a more balanced attention span in dealing with the rest of the world.

Most of the rest of the world will view that as an American retreat from prominence and a sign that the U.S. is in decline once again. But really when you're a naval power and a merchant power, being out of the Middle East is increasing greatly your power to act and you willingness to act. So we see it as a very American-centric decade moving forward.


Which predictions are most surprising?

Aside from the United States not going anywhere, I would say we expect the economic collapse of China in this coming decade. We've been talking for awhile about how the economic system there is remarkably unstable and we think that they're going to reach a break point as all of the internal inconsistencies come to light and shatter. By the end of the decade, it'll be pretty obvious to everybody that the China miracle is over. As we enter the decade, people are finally, finally starting to talk about China bubbles. If only their problem was that simple!





Read more: STRATFOR'S TOP PREDICTIONS FOR THE NEXT DECADE: China Collapse, Global Labor Shortages, New American Dominance


STRATFOR'S TOP PREDICTIONS FOR THE NEXT DECADE: China Collapse, Global Labor Shortages, New American Dominance

 

[Donatello]

I kind of like this prediction more:


THE NEXT DECADE: China Collapse, Global Labor Shortages, New American Dominance

What will the next decade bring for the world?


STRATFOR has the answers. In a Decade Forecast released yesterday, the global intelligence company predicts Chinese economic collapse, game-changing global labor shortages, and continued American dominance because of a gradual retreat from international engagement. Welcome to 2010.

We spoke with Peter Zeihan, Vice President of Strategic Intelligence, about STRATFOR's predictions, of which he was an author. Below are edited excerpts from our conversation.

TBI: What are the broad trends that Stratfor sees shaping the world in the next decade?

Zeihan: Probably one of the biggest breaks that Stratfor has with conventional wisdom is that most of the world is convinced that the United States is a power in terminal decline. In fact we see the United States withdrawing from its two wars, regardless of whether or not they've ended, and returning to a more balanced attention span in dealing with the rest of the world.

Most of the rest of the world will view that as an American retreat from prominence and a sign that the U.S. is in decline once again. But really when you're a naval power and a merchant power, being out of the Middle East is increasing greatly your power to act and you willingness to act. So we see it as a very American-centric decade moving forward.


Which predictions are most surprising?

Aside from the United States not going anywhere, I would say we expect the economic collapse of China in this coming decade. We've been talking for awhile about how the economic system there is remarkably unstable and we think that they're going to reach a break point as all of the internal inconsistencies come to light and shatter. By the end of the decade, it'll be pretty obvious to everybody that the China miracle is over. As we enter the decade, people are finally, finally starting to talk about China bubbles. If only their problem was that simple!





Read more: STRATFOR'S TOP PREDICTIONS FOR THE NEXT DECADE: China Collapse, Global Labor Shortages, New American Dominance


STRATFOR'S TOP PREDICTIONS FOR THE NEXT DECADE: China Collapse, Global Labor Shortages, New American Dominance

Watch Peter Schiff, one of your own Americans.

The guy talks sense. Search on Youtube. How can China collapse with surplus trade?

 

[Gin ka Pakistan]

Walmart Rules

 

[CAPTAIN AMERICA]

Watch Peter Schiff, one of your own Americans.

The guy talks sense. Search on Youtube. How can China collapse with surplus trade?

The USSR did.

 

[CardSharp]

You need a new hobby. Cpt.

 

[Gin ka Pakistan]

The USSR did.

USSR Collapsed because of Afghanistan’s mistake and they were not having free trade with no one. US and China enjoys free trade with each other.

 

[siegecrossbow]

You need a new hobby. Cpt.

Like bashing Canadians?

 

[Gin ka Pakistan]

Like bashing Canadians?

Why bashing most friendly people on the earth

 

[Brotherhood]

CAPTAIN, by using a prediction as your argument point will be like i predict you will end up in a "mental hospital" tomorrow since anything is possible, right?

The article of this thread was base on recent facts by a reputed CEO, not some baseless predictions from some nobody like your's, so stop acting like a Mr. Dumass. fortune teller like having a crystal ball on your hand please.

Future unpredictable

Thanks heaven! We have entered the 21st century without all the problems predicted! Not that we were so naïve to expect them. After all hardly ever experts have been able to forecast future

developments.

For centuries the end of the past millennium has been prophesied as being the Last Day of the world as we know it. Catastrophes, atomic wars and doom beyond imagination are supposed to scourge the face of the earth and annihilate mankind with the exception of a few members of the right religious denomination. The latest prediction is based on the ending of the Maya calendar on December 21st, 2012. We shall see what prediction will capture people's minds after that date.

At any rate such predictions hardly ever come true if publicized to a wider public which may take action to influence the march of time. [
FAILING PREDICTIONS. Future society

 

[CAPTAIN AMERICA]

USSR Collapsed because of Afghanistan’s mistake and they were not having free trade with no one. US and China enjoys free trade with each other.

That can change

 

[Brotherhood]

That can change

How? please enlighten me with some details with your own words.

 

[siegecrossbow]

Oh comeon people there is no need to tell Captain what to believe in. If he wants to believe that China's economy will collapse in a decade, fine. What he believes/doesn't believe won't affect the outcomes much so why so serious. I believe that I could nail 10 hot virgins in one night but that is clearly not the case. However I think I am entitled to the rights to believe what I want.

 

[CardSharp]

There are plenty of people willing to give a sound byte or their opinion on China for politic purposes, but money doesn't lie. See where the money is flowing in the business community and in investment and you'll have a better idea of where China stands.

Say what you will about business people, a virtue they have in my eyes is that they can't afford ideology.


Saw this on bloomberg today.

note what he says at the 13 second mark

Almost anyone, a third grade child can come over here from America and see this economy is booming

I guess someone hasn't worked up a third grader's level yet.

 

[anon45]

hmm I wonder why the British sterling lost its status in 1948... hmmm what could have occured some years before?