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CHINA Super Power – Do not move their Cheese June 18, 2009

Posted by Bipin Agarwal in Global Economy, Politics and economy, Real Estate Development in Global Economy, Recession.
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CHINA IS A SUPER POWER already.

  • China GDP will grow by seven percent or more next year.
  • China will mandate buy China for domestic usage
  • China will buy IMF bonds
  • China owns about 800 billion of US Treasury
  • China has two trillion dollars of foreign reserve. This will grow to three trillion in next five years.
  • China wants to have significant say at IMF
  • China does not want to called as part of BRIC, It should be renamed as BRIM (Brazil, Russia, India, and Mexico)

CHINA wants it bad, and they may be right. They have all the attributes it takes to be a super power. Financial times has a special addition called CHINA confidential to give outside world a good insight into CHINA. These are all facts, not fiction.

Why there is problem in accepting CHINA as a super power? It is time that G-7 or G-8 should be re-organized to represent the new world financial powers.  Current grouping based on the dollar value of GDP is misleading and does not take into account the realities of  the world economy.

If  other super power, IMF, or world economic forum or other developed countries have a problem in accepting CHINA as super power, I have another suggestion.

Let us have cheese and non-cheese economic blocks. All the countries that consume significant amount of cheese; USA, Italy, European countries,  should be grouped into one category.  Countries that do not consume a significant amount of cheese; CHINA, India, Indonesia should be grouped into a separate category. It will be then possible to look at GDP of cheese eating countries and non-cheese eating countries. This will stop the currency war among dollar, Euro, yen, pound, and Yuan.

What I have described above is not a joke. There are several benefit of doing it. You may have read the famous book; “Who Moved My Cheese”. Here is the link if you are interested.

http://www.whomovedmycheese.com/

Once you have above two categories defined, if any of the country in the non-cheese block does not succeed financially, they can not say; “Who Moved my cheese”, well you are in the non-cheese block, there is no cheese to be moved.

Reality is that America is well positioned to prevail economically for lot of reason. I do not think America need to worry about China in the short term or long term.

You have a question, about Global economy, Real Estate, and Politics correlation, feel free to ask.

http://www.redhawkinvestments.com

Bipin Agarwal

bipin.agarwal@redhawkinvestments.com

https://twentyminutelifestyle.wordpress.com/about

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