Saturday, August 30, 2014
Marc Faber on the ongoing power shift from the West to the East
Global Gold : Let’s talk about the ongoing power shift from the West to the East.
Marc Faber : Well, basically, everything is connected and interrelated. We had a colonial system until the end of the Second World War, followed by the rise of
individual countries. And over the last twenty-five to thirty years what we had was the rise of China with 1.3 billion people. Because of China’s rapid growth and resource dependence (iron ore, copper from Australia, Brazil and Africa, and oil principally from the Middle East), the Chinese have obviously become a very important economic force.
Despite these tensions, the power shift is still underway. You have a superpower like the one Britain was until the First World War and you have
a rising power like Germany whose economy in 1910 overtook that of the British. Here you have the superpower that believes in the old order and the new power that believes it should have more influence on global affairs. The resulting tensions create an environment that is favorable for confrontation. But it doesn’t have to come to war. In my view, China’s long-term objective is to kick out the US from their military bases, particularly after Hillary Clinton and Mr. Obama announced the American Pivot to Asia two years ago; it was a kind of direct attack or confrontational behavior towards China. -- interview with global Gold July 2014
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.Dr. Doom also trades currencies and commodity futures like Gold and Oil.
Posted by Nicole Bourbaki