Brett Arends, in his April 25th Marketwatch article entitled “IMF Bombshell: Age of America Nears End” reports that the IMF has predicted 2016 as the year when China’s economy overtakes that of the United States.
Perhaps the word bombshell is the right allusion. What comes to mind is America’s shock and disbelief in 1941 that the Japanese could fly formations of attack aircraft for so long under the radar right above sea level to destroy Pearl Harbor. Just as Americans were unprepared to foresee the stealth attack of Japan even after years of her militaristic advances, Americans have stood helplessly by as the armaments of American financial defense sit helplessly in Congressional harbors of polarized politics.
Two concepts of financial attack seem reasonable afterthoughts. First is that exponential financial expansion is hidden from radar until the last few years of growth. American appeasers failed to recognize that as China expanded it’s economy 10 percent per year for 30 years, the law of exponential growth meant China’s economy would grow 800 percent in thirty years, but that the greatest 400% would occur in the last seven years.
The second even more ingenious stealth move unforeseen by America but creating an even more shocking surprise attack is that by holding the exchange rate low for so many years, the Chinese were able to fly even lower to the ocean swells and build a purchase power parity empire undetected by conventional financial defenses.
In preparation for this two pronged financial assault, China has been building the hegemonic relationships that thwarted Japan’s military attempt to over take the United States just 6 decades ago. China also was successful in its hegemonic strategy to preemptively gut American factories through the “treasonous” collaboration of multinational corporations and international banks residing in financial cells right here in America.
Our American factories, that were so successful in mounting a war of attrition against the Japanese in WWII, now lay dormant in the rust belt as 24 percent of our capable American workers line the “soup kitchens” of the American social welfare system and charitable organization’s generosity. This time around, without the physical and financial capabilities to defend ourselves from within, it may be Americans who are forced to display patriotism through financial kamikaze during the end stages of the American empire.