Building Pyramids

The WealthCycles Staff

Amidst the buzz over silver, and the intraday moves and data points that light pundits on fire, we often miss big picture things that have seismic effects on the world. Last week, the Financial Times reported that IHS Global Insight, a research and analysis firm, claimed that China had surpassed the Untied States as the world’s leader in manufacturing. Could this be another example of statistical noise or a sign of the big shift of power from east to west and from the U.S. to China?

In our feature, Rising Dragon, Falling Star, we wrote this:

The results of China’s free-market experiments have been staggering. Since 1978, China has averaged economic growth of 10% every year, while the United States has eked out an average growth of just 2.7% annually. Since 1978, China has managed to grow its economy to a mind-boggling 25 times its original size. Today, the U.S. economy is only four times the size of China’s, and according to Goldman Sachs' estimates, China’s economy will pass that of the United States by 2027.       

Like any government statistic, it is hard to reconcile the torrid economic growth numbers that come out of the Chinese National Bureau of Statistics with the reports of ghost cities, bridges to nowhere, and “modern pyramid building.” Is China’s success real, or is it just the illusory mirage of wealth generated by a credit bubble on steroids?

In this poignant piece by Adrian Brown for Australia’s Dateline, emotional images are juxtaposed with seemingly irrational economic stories. While tens of millions of peasants live in abject squalor, is it possible to justify the government’s obsession with printing incredible GDP growth, quarter after quarter? You be the judge.

>That was an incredible video. I thought our government was out of control!

you thought correctly

Your answer was just what I nedeed. It’s made my day!

That's way more clever than I was expecting. Thakns!

China is just another decoy for taking the power from US.It's the little country in the Middle East that is called the promised land that will eventually rule the world..Something very strange is happening..Hold on to GOD'S money,GOD'S rule,GOD'S law...You will ride the storm with GOD'S protection...WAKE UP AND FIND OUT THE TRUTH..

Get this to Ben Bernanke and the White House ASAP... The solution to all our problems can be solved by copying the Chinese... Only GDP growth matters right?

That was an incredible video. I thought our government was out of control!

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