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Back to the Kaiser's World

From Prudent Bear.

"The U.S. is unlikely ever to enjoy again its hegemony of 1990-2008. Its economy retains the flexibility that had made it so admired, but the burden of state spending has increased by over one-third since 2005 and taxation will inevitably rise in response. Most important, a decade and a half of ultra-low interest rates have de-capitalized the economy, not only leaving American savers without enough savings to finance their old age, but also leaving American business starved of capital for expansion, as ever-increasing percentages of the available finance pool head into the government deficit maw. Going forward, U.S. living standards will inevitably decline, while politically the likely result will be a retreat into isolationism and a refusal to get involved in the intractable problems of the international order. Even if the United States attempts to project its power under some new president, it will find financial constraints prevent it from doing so.

The international order has thus returned to the Kaiser's world of multiple states, high tariff barriers and unfair trade competition. Small countries will have no alternative but to seek protection in the spheres of influence of their larger neighbors. Participants in the protectionist new world order will be a diminished United States, a sclerotic and inward-looking EU, projecting its power no further than the Balkans, one or possibly two left-leaning Latin American blocs led by Brazil and Venezuela (which may or may not combine), a resource-rich and oppressive bloc led by Russia, a highly unstable Middle East dominated by Turkey and Iran, and an impoverished and unstable south Asian bloc led by India. By far the most powerful and successful bloc will be led by China, which will include much of south-east Asia and large parts of Africa. There will remain a few substantial independent states: an isolationist Japan, an unstable Indonesia, perhaps a modestly prosperous Australia. However overall the world will geopolitically look like that of the aggressively competitive 1890s or, if we are unlucky, the haunted 1930s.

And ironically enough, the new Kaiser Wilhelm II will be Chinese."

The new world order...if Obama gets his way. The only possible change to this plan would be if King George (Soros) becomes the new Kaiser--he brought down the pound sterling in Britain, forcing the Euro plan, and is doing his best to destroy the dollar here. If you haven't figured it out by now, Obama and his crew are Soros's puppets.

Posted by Cute at 6:52 PM

Labels: economy, politics