Friday, September 1, 2017

Mankind's Unipolar Moment

Today, China and USA owe more money than they can possibly repay in the lifetime of their current citizens.

Chinese labour supply are surging and new workers will demand the same rights and benefits American workers have. China will end up saddled with the same entitlements that make first world nations expensive. Companies will leave.

The USA is coming to terms with an ageing workforce that demographically cannot sustain the industrial output of 20 years ago. America risks bankrupting their professional class that owns most of the bond debt if they can't restructure. Companies may never return.

Each has an internal crisis in the making and a unique moment for humanity.

Both are looking within to acquire assets to prop up their debts. Each would find only failure within their borders and the resultant economic collapses would inevitably spread as war to the globe.

Instead, if both China and USA loan money out to the rest of the world, to the developing nations that can grow at 3% or more, and use those external assets to fund their debt commitments back home, they would spread the prosperity outward to humanity and avoid an inevitable internal collapse.  They would bring up the standards elsewhere and thereby reduce the need for large military expenditures.

For mankind, this is humanities' unipolar moment.

Either path taken, it was at this instant in history that lead to that fateful outcome.