The 800 Pound Panda in the Room
China is a Train That Can't Be Stopped
It’s the most populous country in the world with 1.4 billion people - that’s over four times the size of the United State. China is also the second largest country in the world in measured land mass and has the largest gross national income in the world, taking over the US in 2014.
China is a big country by all measures.
But, here in the US all we hear is negativity about the communist country. The news tells us that their economy is going to crash, that they don’t know what they’re doing and that they’re trying to start a war.
Some of those things may be true, some not.
However, the long term outcome is a closed deal -
China will be the world power within most of our lifetimes.
Will they see economic struggles and society challenges? Of course. But, the momentum of their rise to the top is too great to stop. Conversely, the downward momentum of the US empire is too far down the road to alter.
Here are just a few of the key events that have recently happened, that will ultimately push China back into a world power status; something that the country has been for the majority of the past two millenniums…
- The Chinese yuan has been included in the IMF’s basket of reserve currencies, validating the importance of the yuan in the international market. The inclusion could lead to more trade throughout the world that may eventually phase out the need for dollars all together.
- The Chinese military has been working on a variety of projects, the most notable (and newsworthy) being the man-made islands in the South China Sea. These islands, which now have landing strips and surface to air missiles installed, have created tremendous tensions in the region and significant saber rattling from the US.
-
China has even started their own yuan gold fix to compete with London and other foreign markets; which should come as no surprise because the country is the largest gold producer, consumer and importer in the world. The Shanghai Gold Exchange, where the pricing will be determined, may lead to further influence on the pricing of gold and rumors abound of a gold-backed yuan that may emerge later on.
-
It’s not just the homeland that China is investing in, as seen by the billions of dollars invested in Central America, South America, Europe and even a military base in Africa.
The list of major moves that China is taking could go on and on. The take away here is to realize that it’s not a matter of if, but when China will be the undisputed superpower.
Luckily for you and I, we already know this and we can prepare accordingly, regardless of whatever scare tactics the media uses to demonize the Asian nation.
There are two specific investments that any investor should be looking at in China. One is green tech, as the government has committed to spending billions to solve issues with their massive pollution problems.
The other opportunity is with their currency, which involves strategies that are virtually endless. Any investor, or anyone looking to preserve their wealth, should be at least looking into what a yuan influenced world economy means.
Subscribe here for more investing insight, wealth building ideas and ways to enrich your life.
Writer for Barchart
8 年Cody, totally agree with outlook on China. I laugh at many US pundits that have predicted the downfall for 25 years now.