What in the World ?

There are several trends that we should be following due to economic and political implications to the United States of America.

The first one is the growing strength of China. Currently, China is the second largest economy in the world with its economic growth outperforming many western nations and it has a strong military. Furthermore, China is in territorial disputes with Japan, Taiwan and several other SouthEastern countries. China is projected to overtake the U.S.A as the worlds largest economy by 2028. China as a civilization is very old and it makes me wonder if China will think of revenging( in whatever form possible) the perceived historical insults that China sustained. With the new Chinese leadership taking office soon I don’t know what to make of China. Will they go to war over territorial dispute ? Will China continue to invest in the U.S.A ? Will China be more assertive on the international stage ?

The second trend we should be following is the drama of Europe. Greece is going through tough economic times with high unemployment rate and increase in poverty. In Spain they are also going through some hard economic times. According to NY Times “The number of Spanish families facing eviction continues to mount at a dizzying pace — hundreds a day, housing advocates say. The problem has become so acute that Prime Minister Mariano Rajoy has promised to announce emergency measures on Monday, though what they may be remains unclear.” In Portugal there has been protests over deep budget cuts. With Spain, Portugal and Greece in trouble some are wondering if the Euro will break and you might be thinking that’s another continent it wont effect me. That type of thinking is living in ignorance; you should pay attention because our markets are interconnected which means that American companies have some sort of European investments. If the Euro breaks there could be a serious economic disruption in the U.S.A. Will the European Union break up ?  and  Will there be a United States of Europe?

The third trend is the idea of fiscal cliff in the U.S.A. I still think that Congress and President will ultimately come to a solution. The decisions of China will influence what we do internationally and affect our economy. The European Union is a big trading block and for the most part our closes ally.

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