Next Revolution: The Second American Revolution

My forced "vacation" of backpacking-replacing homelessness-has come to a momentary halt. I've returned to Berkeley for a week or so, and I noted a remarkable thing in Monday's run-up in the Global Markets.

The Center of the World has shifted, or at least it is showing remarkable signs of a titanic shift in the Global Balance of Power.

After watching the corporate media's week-end long feeding frenzy on the impending GM bancrupcy, Asia opened the week with incredible strength.

The Japanese Market ran up to the 10,000 level. All Asia Soared. Japan hit the 10,000 on the Nikki, the level which marks the point where the Jap Market is offically dead. They have not been there for quite a while.

This flew in the face of the downfall of GM, which is itself an idicator of the lack of economic strength of the American "consumer" (Citizen?), as much as dollar value is an indication of the lack of strength of the American Financial System.

Japan's upward movement was a function of China's reporting their third straight month of growing factory production.

While this market "pop" was spreading to European Markets as Monday opened in Europe, another interesting thing was spreading to Europe's Markets: The Dollar was falling and dollar-demonitated global commodities were rising strongly.

This means only one thing for the US: As the DEATH of America's icon of industrial supremacy, GM, was marking the offical end of American Industrial Power, America's financial supremacy was simultanously collapsing.

But don't worry. The world's markets rose on China's strong message that China was growing internally enough to offset the global downturn brought on by the United States. If you dare to believe China's Economic Statistics.

Independent of your trust in China's Economic Statistics, the striking downturn in the dollar is an independent indication that the world is becoming painfully aware that Printing Dollars was proceeding apace while the largest amount of Debt in history, American Debt, was being put onto the global credit markets.

There are very real questions about just how much of this debt, and at what price, China will ultimatly buy.

Then something really strange happened in New York whent the American markets opened: they rose, following the rest of the world, on China's happy news that they had expaned factory production and the implication that they were growing domestic consumption into the face of the American-centered Global Downturn. This, while GM entered bancruptcy and the dollar took a deep fall which could be equally blamed on economic or monetary weakness.

In any case, this marked the point where Global Markets, including American Markets, were more influenced by China's strength than America's weakness.

American Market's 200+ point market rise may mark the point where American has begun the transition to following, rather than leading, the global markets.

After all is considered, it is clear that it was China that the world's markets followed upward on Monday, on the day that both GM, and the Dollar, fell precipitously.

This is indicative of the titanic shift in the global balance of wealth and power that is underway. America no longer has the wealth or power to dominate, let alone lead, global markets.

China News Archive

China essays

US Austerity Program On the Way

The Next Great Crash is Upon US

Some background thoughts on the China situation

China is not our Friend, alex wierbinski, 5-24-07

American Economic Security depends on China, Al, August 13, 2007

US National welfare Secondary to Corporate Profits in China Trade, Alex Wierbinski, December 30, 2007

bush, Boeing, and a host of American Corps are Traitors, Alex Wierbinski, December, 2007

Economic News Archive
Economic essays

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