Quote from: techgeek on May 20, 2015, 02:36:26 AM

I would worry more on whos about to be the next world currency reserve, cause theres a slight chance the u.s will fall off and possible china can take it.

Just the fact that their whole growth is 10x larger, and they been playing chess with how they should approach the situation. Cant predict which one will win, but stay on top of whos winning or has the chance to take over the world foreign reserve.

I think the US is actively trying to keep China from taking the succession (if there is to be a next global power.) Instead, it is trying to give it to India, if and when it's ready. IMO the US is playing the role of Britain in late 19th century, China is playing Germany, and India is playing the US. This also makes sense if you look at the political cultures of the countries.

Things might work out differently this time. World War One was able to knock out Germany for good, but such a thing is unthinkable now. China might not be able to step into the throne, but it can be a constant thorn on the side of the established order.

This in itself would be good for keeping each country (relatively) honest (ie in a monetary and financial sense) through rivalry and competition. What we want to watch out for is collusion, of the kind during the 90s, when China was the world's biggest supporter of the dollar and cheap Chinese imports allowed US interest to stay low in the middle of the great buildup of the financial house of cards and the great movement of wealth to the elites. (The cause for optimism is that even this lasted only 15 years before the elites shot themselves in the foot with the 2008 crisis. The system really is doomed.)