Friday, October 23, 2009

Economic War Of The Pacific

Cash Flows East
Lee Kuan Yew was Prime Minister of Singapore from 1959 to 1990.

Lee Kuan Yew is currently an official mentor to the government of Singapore, his son is the current Prime Minister. Lee Kuan Yew can be said to be an expert on Asian affairs and world trade, since during his tenure the Port of Singapore became the busiest ocean port in the world.

Singapore is the smallest country in south east Asia yet has the busiest port in the world, and one of the top per capita GNP's of any nation on earth.

Lee Kuan Yew recently visited the Charlie Rose Show which airs on PBS.

He predicted that the U.S. is on its way to losing dominance in the Pacific, where according to Yew, the economic game of the future will take place:
“The 21st century will be a contest for supremacy in the Pacific because that’s where the growth will be,” Lee said. U.S. President Barack Obama, he said, must understand this.

“If you do not hold your ground in the Pacific you cannot be a world leader,” Lee said, “That’s number one.”

“Number two, to hold ground in the Pacific, you must not let your fiscal deficits and dollar come to grief,” he said.
(Bloomberg)[Bloomberg "lost" the page, no Way Back machine copy, so here, here, here, and here are other mentions of it]. He indicated a great concern, which we have mentioned time and again on this blog, which is the war against the use of the U.S. currency as the world's business currency.

He fully expects India and China to become economically dominant through cold, calculating, economic pragmatism.

As the United States diminishes to third-rate, then less, I should add.

The next post in this series is here.

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