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Markets fall apart whenever they encounter a revolutionary change in the political and economic climate, but gold and silver investments have always carried wealth forward through the most troubling times.

April 27, 2011 – Markets fall apart whenever they encounter a revolutionary change in the political and economic climate, but gold and silver investments have always carried wealth forward through the most troubling times. The IMF just made an announcement that should have made everyone sit up and take notice, but it appears that it fell on deaf ears.

Rome is burning but Bernanke is still fiddling with the economy and the politicians are too busy with their power struggle to do anything meaningful with the deficit. The tribes are descending while we rest on our laurels. Time is getting very short.

According to the IMF, in terms of purchasing power parity – a measure of real economic strength that normalizes economies of different countries to a common unit – China will become the world’s leading economy in 2016, says Brett Arends in MarketWatch. That will cap forty years of astounding growth, while we just sat back and watched.

While we were engrossed with patting ourselves on the back for defeating communism in the cold war, China was studying both us and the Soviet Union and plotting their path to global dominance. Unfettered by the constraints of a free society China was able to orchestrate “a massive shift in capability from the U.S. to China,” Ralph Gomory, research professor at NYU’s Stern business school, told Arends. “What we have done is traded jobs for profit … That is a big reason why the U.S. is becoming more and more polarized between a small, very rich class and an eroding middle class. The people who get the profits are very different from the people who lost the wages.”

We could get lucky, of course. Many believe that China’s economy is set to hit a speed bump, even though every time that was predicted in the past it kept charging on. Even if it does, however, it would only buy us a little time. And our economy is far to anemic to take advantage.

China is going to take over the reins, whether that happens in 2016 or a few years either side is irrelevant. They will have the power to redefine the rules, which they will do with absolute certainty to serve their own best interests.

For a while there is going to be chaos in the markets. But as history has repeatedly demonstrated, wealth held in gold and silver investments will endure.

Shannon King

Senior Staff Writer – GoldSilver.org

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