For nearly 30 years we have had two Global Strategies working in a symbiotic fashion that has created a virtuous economic growth spiral. Unfortunately, the economic underpinnings were flawed and as a consequence, the virtuous cycle has ended. It is now in the process of reversing and becoming a vicious downward economic spiral.
One of the strategies is the Asian Mercantile Strategy. The other is the US Dollar ReserveCurrency Strategy.
These two strategieshaveworked in harmony because they fed off each other, each reinforcing the other. However, today the realities of debt saturation have brought the virtuous spiral to an end.
One of the two global strategiesenabled theAsian Tigersto emerge and grow to the extent that they are now the manufacturing and potentially future economic engine of the world.
The other allowed the US to live far beyond its means with massive fiscal deficits, chronic trade imbalances and more recently, current account imbalances. The US during this period has gone from being the richest country on the face of the globe to the biggest debtor nation in the world.
First we need to explore each strategy, how they worked symbiotically, what has changed and then why thevirtuous cycle is now accelerating into a vicious downward spiral.
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