Wednesday, July 27, 2005

Predictions: China War and World's 97-lb. Weakling

America's submarines were so effective in WWII, that after the war when their full effects became known many experts believed Japan may have eventually surrendered due to severed supply lines alone.

Later on, the Cold War depended heavily upon America's submarines. The stealth, chess game was deliberately costly and helped undo the soviet union. The Cold War was won economically.

In an era of China's economic ascendancy, LA Times guest columnist, Max "Untersee" Boot, suggests in China's stealth war on the U.S. that we are already at war with China (ed. although, I think economic competition better describes what is being waged). Says Boot, China's spending has been increasing rapidly, and it is investing in the kind of systems — especially missiles and submarines — needed to challenge U.S. naval power in the Pacific.

Boot, a senior fellow at the Council on Foreign Relations is concerned with how we respond to what may or may not be indirect aggression by a major trading partner (Beijiing). Worth the very short read, but to understand the full competitive game America faces, I highly recommend CAN AMERICANS COMPETE? Is America the World's 97-lb. Weakling? by FORTUNE's Geoffrey Colvin. The article is captivating. Huge upsets are probably in store for individual workers, and likewise opportunities. You need to read it for yourself.

Here are two predictions based only upon my business experience, and worth what they cost you -nothing. To my knowledge, no one has made these associations or predictions previously:

Prediction 1- Economists differ over the impact of Thursday's yuan revaluation on the United States and China. When China's currency is allowed to float fully against the US dollar, China will encounter the tough decision between military and domestic spending (guns or rice). Domestic spending will be the big winner, in my opinion. Score one for the U.S.

Prediction 2- (You probably will not appreciate this prediction until you have read the FORTUNE article above) Companies like Industrial Distribution Group Inc (IDGR) are poised to be the leading edge of America's new competitiveness, in my opinion. IDGR supplies maintenance, repair, operating, and production products and services to manufacturers and industrial users in the US, Mexico, and China. The company offers procurement solutions used in product applications and process improvements.


At 12 July, 2006 16:40, Anonymous Anonymous said...

this blog was weak at u work fot the company listed at the end....1300 employees this small company and others like it are the way of the future ...get a life china is gonna take a lot mo=re than companies...its gona need the change of american attitudes and complacency

At 28 November, 2006 09:55, Anonymous Anonymous said...

What can we do? When we see our politicians and corporations sell there souls to the Chinese to make a quick buck?

We will be shocked in a few years when the beat us at our own game red china style.

At 28 November, 2006 14:25, Blogger Vigilis said...

anonymous, we can stop voting for the sellouts and demand lobbying reforms.


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