United States, An unintended global empire!

The latest effort by Stratfor Gobal Intelligence details how the United States became an unintended global power, mostly through it's important geography as is laid out in this vlsual from Stratfors latest effort.

Over the space of a few hundred years, the United States of America became a global powerhouse of business and politics, with the most powerful military the world has ever seen. 

Although I have made many comments over the past few years regarding the demise of the U.S. dollar due to it's massive debts, Keynsian monetary policy and stalemated congress, I have also said many times that I never bet against the U.S.  Yes, I have bet against the U.S. dollar, but not the U.S. economy. To bet against such a powerhouse country of pure business, is a fools game.

Will the world's power structures in 20 years look the same as they do today? Probably not. Emerging markets like China, India and Brazil are on the rise, and Russia is still a powerhouse in energy production. Germany will continue to power the Euro zone in one form or another, and second tier countries like Indonesia, Mexico, Canada, Australia  and several eastern European countries are chugging along just fine.

However the USA is, and will be for the forseeable future, the first engine of global industry. This chart of per capita growth is a prime example of the power the USA has on global growth.

In your portfolio don't ever count out the good ole USA.  As I said, that is a fools game. Count out individual companies, and maybe even certain sectors, but never count out this massive business powerhouse.


As I pointed out in a previous post, I do not work for Stratfor, nor do I benefit in any monetary way in suggesting they are one more valuable resource when considering macro events for your portfolio over time.

You can acess their latest efforts at Stratfor.com.

Happy investing.
HP

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Chinese economy is unsustainable according to Stratfor Global Intelligence.

IN "China, Power and Perils" the latest report from Stratfor Global Intelligence, a case is laid out for  unsustainable growth in the CommuCapitalist country.

Stratfor builds a case for the unsustainability of an 8% growth minumum, which China says it needs to placate the growing millions who have entered and are entering the job market at a staggering 16 million this year alone.

Stratfor says there are "structural elements that render 8% annual growth impossible" and compares the current Chinese economy to a giant ponzi scheme!

So, how are ponzi schemès maintained? Well, if Bernie Madoff and his ilk are an indication, it is done with lies, lies and more lies! The lies have to convince some smart people of their legimacy, after which those lies are then spread by otherwise legitimate people and businesses.It is only after the lies have been uncovered that the typical ponzi scheme begins to unravel. As I have pointed out in prior posts, if you cannot believe some of the economic reports coming out of some Wallstreet firms, then how can you count on the word of a cloistered, communist elite, that has absolutely no interest in your (or your moneys) wellbeing. Their only interest is how they will hold on to power in the coming years.

Stratfor brings up some familiar old ghosts, from our own recent past as they point out:

" China's economy (according to China) needs 8% annual growth, just to keep the roughly 16 million new people entering the work force from rising in jobless protest—and to keep up with climbing wages and to sustain a growing retired population. A combination of exports, loose lending practices, super low margins, and government spending help keep up the growth. Sound healthy to you? "


For several years now I have enjoyed reading the informative, and sometimes contraversal reports from Stratfor Global Intelligence.  For the purposes of disclosure, I have no interest or investment, nor do I benefit from Stratfor, except for sometimes using their valuable intelligence.


This week, if you join Stratfor, at a cost of $129 for one year, they will send you this extensive report as well as the book, "The next 10 years" written by Stratfor founder, George Friedman.

If you do not wish to join at this time, you can sample some of their in depth reports for free simply by giving them your email address.

Stratfor is one more valuable resource, in the world of investing, politics and world events.

Visit them at Stratfor.com  for more information.

Happy investing.
HP

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