If You Stall . . . Others Roar

In a motor race, speed must be maintained to avoid a stall and loss of power & control. If you stall, others will roar. Catching up will be a task unless you’re an exceptional driver & your engine is beyond compare. You will most certainly have to take a back seat & say farewell to the race.

By the same analogy, in this economic competitive world, the truth is slowly but surely becoming progressively obvious. It stands to reason that others will not stand by & wait for you to recover. The race often goes to the swiftest. While US is bogged down sorting out its home affairs & busy playing “Big Brother” in its democratic imperialistic outreach from Middle East to the Far East, other emerging economies are engaged in productivity that count.

Out of this grave economic crisis, US initiated & originated, a clear global change is emerging. Economic doom & gloom out West is giving way to the East in bloom! We see a rise of new power & other emerging economies by the hour.

It’s not that emerging economies are trusting US less, but that they are trusting China more! After all, China is:

• leading from the front & setting the example

• giving out loans on better terms than IMF

• aids for development & infrastructures

• free from dependence on US Dollar exchange

For the above reasons, the BRIC economies (Brazil, Russia, India & China) are now knitting convenient economic terms of arrangement for mutual benefits.

From a global standpoint, China is now leading in stimulating its economy & relegating the US to the back or passenger seat. Green shoots are sprouting & growing evidently. Its 2-year stimulus package of four trillion Yuan is positively directed to productive economic activities & infrastructures. US is steadily being eclipsed as the global economic driver by China & the other emerging economies.

With much of Europe following in the tail of US stalling in their economies & problems galore in their consumer & banking or financial sectors, the BRIC economies & markets are getting on with their global trade & other business activities. This is marking clearly a meaningful & historical transition of the shift in power hegemony. The motion is set & there’s no turning back to restart an old engine that’s no longer dependable or reliable.

Not being overly optimistic, China is indeed singing, while US & Europe are sinking. South America & Africa with their rich resources are cutting deals with China on terms mutually agreeable. China has been sending out its ministers, jet-setting the world on shopping spree, sourcing the world for products & markets . . . making investments to perpetuate its power house.

This is definitively a grand reversal of fortunes – an emergence of a different order that found the US Treasury Secretary Timothy Geithner on his recent ‘selling’ mission to China. It’s hard times that call for hard sell!

Paul Chong

A Chinese by Descent

An Australian by Consent

Tuesday, 9 June 2009

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