Best of the Week
Most Popular
1. Will Gold Price Breakout? 3 Things to Watch… - Jordan_Roy_Byrne
2.China Invades Saudi Oil Realm: PetroDollar Kill - Jim_Willie_CB
3.Bitcoin Price Trend Forecast, Paypal FUD Fake Cryptocurrency Warning - Nadeem_Walayat
4.The Stock Market Trend is Your Friend ’til the Very End - Rambus_Chartology
5.This Isn’t Your Grandfather’s (1960s) Inflation Scare - F_F_Wiley
6.GDX Gold Mining Stocks Fundamentals - Zeal_LLC
7.US Housing Real Estate Market and Banking Pressures Are Building - Chris_Vermeulen
8.Return of Stock Market Volatility Amidst Political Chaos and Uncertain Economy - Buildadv
9.Can Bitcoin Price Rally Continue After Paypal Fake FUD Attack? - Nadeem_Walayat
10.Warning Economic Implosion on the Horizon - Chris_Vermeulen
Last 7 days
What to Expect at a Critical Stock Market Point: End of a Wave 2 Rally - 26th Apr 18
A New Lithium War Is About To Begin, Modern Gold Rush! - 26th Apr 18
Silver, silver, and silver! There’s More Than Silver, People! - 26th Apr 18
How to be Financially Prepared When Purchasing Your First Home - 26th Apr 18
Is a Stock Market Crash Imminent or Does this Stock Market Bull Still Have Legs - 25th Apr 18
Gold Price Focusing on May Cycle Bottom - 25th Apr 18
Cash “Vanishes” From Bank Accounts In Ireland - 25th Apr 18
Is the Malaysian Economy a Potemkin Village - 25th Apr 18
Land Rover Discovery Sport Rattling / Knocking Sounds From Car Pillars - 25th Apr 18
China Takes the Long View on Gold-Silver... and So Should You - 25th Apr 18
Russia Buys 300,000 Ounces Of Gold In March – Nears 2,000 Tons In Gold Reserves - 24th Apr 18
Stock Market Study Shows Why You Shouldn’t “Sell in May and Go Away” - 24th Apr 18
CRYPTOCURRENCY MASTERCLASS #CRY90 - 24th Apr 18
UK Gambling Statistics - What the Numbers Say - 24th Apr 18
Chaos Capitalists Short Countries - How Chanos Got China Wrong - 24th Apr
Artificial Intelligence Defines the Political News Narrative - 24th Apr 18
Stock Market "Oops, They Did It Again" - 24th Apr 18
Fox in the Henhouse: Why Interest Rates Are Rising - 23rd Apr 18
Stocks and Bonds, This is Not a Market - 23rd Apr 18
Happy Anniversary Silver Investors! - 23rd Apr 18
The Hottest Commodity Play In 2018 - 23rd Apr 18
Stock Market Correction Turns Consolidation - 23rd Apr 18
Silver Squeeze, Gold Fails & GDX Breadth - 23rd Apr 18
US Economy Is Cooked, the Growth Cycle has Peaked - 23rd Apr 18
Inflation, With a Shelf Life - 23rd Apr 18 - Gary_Tanashian
Stock Market Predictive Modeling Is Calling For A Continued Rally - 22nd Apr 18
SWEATCOIN - Get PAID to WALK! Incentive to Burn Fat and Lose Weight - Review - 22nd Apr 18
Sheffield Local Elections 2018 Forecast Results - 22nd Apr 18
How Long Does it take for a 10%+ Stock Market Correction to Make New Highs - 21st Apr 18
Sheffield Ruling Labour Party Could Lose 10 Council Seats at May Local Elections - 21st Apr 18
Crude Oil Price Trend Forecast - Saudi Arabia $80 ARAMCO Stock IPO Target - 21st Apr 18
Gold Price Nearing Bull Market Breakout, Stocks to Follow - 20th Apr 18
What’s Bitcoin Really Worth? - 20th Apr 18
Stock Market May "Let Go" - 20th Apr 18
Overwhelming Evidence Against Near Stock Market Grand Supercycle Top - 20th Apr 18
Crude Oil Price Trend Forecast - Saudi's Want $100 for ARAMCO Stock IPO - 20th Apr 18
The Incredible Silver Trade – What You Need to Know - 20th Apr 18
Is War "Hell" for the Stock Market? - 19th Apr 18
Palladium Bullion Surges 17% In 9 Days On Russian Supply Concerns - 19th Apr 18
Breadth Study Suggests that Stock Market Bottom is Already In - 19th Apr 18
Allegory Regarding Investment Decisions Made On Basis Of Government’s Income Statement, Balance Sheet - 19th Apr 18
Gold – A Unique Repeat of the 2007 and How to Profit - 19th Apr 18
Abbeydale Park Rise Cherry Tree's in Blossom - Sheffield Street Tree Protests - 19th Apr 18
The Stock Market “Turn of the Month Effect” Exists in 11 of 11 Countries - 18th Apr 18
Winter is Coming - Coming Storms Will Bring Out the Best and Worst in Humanity - 18th Apr 18
What Does it Take to Create Living Wage Jobs? - 18th Apr 18
Gold and Silver Buy Signals - 18th Apr 18
WINTER IS COMING - The Ongoing Fourth Turning Crisis Part2 - 18th Apr 18
A Stock Market Rally on Low Volume is NOT Bearish - 17th Apr 18
Three Gold Charts, One Big Gold Stocks Opportunity - 17th Apr 18
Crude Oil Price As Bullish as it Seems? - 17th Apr 18
A Good Time to Buy Facebook? - 17th Apr 18
THE Financial Crisis Acronym of 2008 is Sounding Another Alarm - 16th Apr 18
Bombs, Missiles and War – What to Expect Next from the Stock Market - 16th Apr 18
Global Debt Bubble Hits New All Time High – One Quadrillion Reasons To Buy Gold - 16th Apr 18
Will Bitcoin Ever Recover? - 16th Apr 18
Stock Market Futures Bounce, But Stopped at Trendline - 16th Apr 18
How To Profit As Oil Prices Explode - 16th Apr 18
Junior Mining Stocks are Close to Breaking Downtrend - 16th Apr 18
Look Inside a Caravan at UK Holiday Park for Summer 2018 - Hoseasons Cayton Bay Sea Side - 16th Apr 18
Stock Market More Weakness? How Much? - 15th Apr 18
Time for the Gold Bulls to Show their Mettle - 15th Apr 18
Trading Markets Amid Sound of Wars - 15th Apr 18
Sugar Commodity Buying Levels Analysis - 14th Apr 18
The Oil Trade May Be Coming Alive - 14th Apr 18

Market Oracle FREE Newsletter

Trading Lessons

Energy Tells Tale of Fading West, Booming East

Politics / Crude Oil Nov 22, 2010 - 04:21 AM GMT

By: OilPrice_Com

Politics

Best Financial Markets Analysis ArticleThe patient is the United States and the diagnosis is "Asia shock."

It is a psychological disease with physical symptoms and no known cure. However there are therapies, therapies of trade, diplomacy and fiscal restraint at home.


As President Barack Obama jetted around Asia, he may have pondered not so much the economic power that waits East of Suez, but why it took so long to emerge. And why the patient is in denial.

In the 18th and 19th centuries, Asia was for the taking by the European colonialists; and take they did.

Foremost was Britain with India, Ceylon, Burma, Malaya and coastal enclaves in China. France lumped together the countries of Vietnam, Cambodia and Laos as Indochina. Holland, of shrinking consequence in Europe, dominated Indonesia. Portugal had its toehold in Goa and Macao. Spain dallied in the Philippines till booted out by the emerging power of the time, the United States.

Only Japan was sufficiently organized to be a local maker of mischief in Korea and China.

Anyone looking at brawling, muscular, talented Asia today has to wonder why the giants slept for so long, and how the colonial masters were so ignorant of the abilities of their subservient people.

Blame Britain.

During the 15th century, the Age of Discovery, exploration was driven by a lust for wealth in the form of spices, gold and silver. Once the Industrial Revolution got under way in late 18th-century Britain, the lust was for those things plus raw materials to feed the factories. The newly wealthy in London and the south, with their lavish country homes, wanted tea and coffee, herbs and spices, tropical goodies and strange flavors from the East.

The colonial compact, more implied than written, was simple: They--the Asians--grow and harvest; the West manufactured.

Britain, followed by its rivals, set the policy, and in so doing kept the Industrial Revolution at home; it was not for export.

While the British like to export their values, their justice systems and, in a tepid way, Anglicism (Catholic countries were more aggressive in the export of religion), they kept their industrial revolution at home, and all of the secondary industry it spawned. It was a black day in London when it was learned that industrial espionage had allowed spinning technology to escape to America.

To this day, the remnants of the system which ruled that "value-added will take place in Britain" can be seen in British specialty products. The great tea-packing houses are still in Britain and Ireland, and some cottons are still woven in Britain.

No factories sprang up in the Asian empires of the European colonists. No technology transfer was encouraged, and the enormous latent talent of Asia went unrecognized.

Japan, without colonial influence, industrialized in the first part of the 20th century, but mostly to mechanize its military.

It was not until after World War II that Asia stirred and threw off the European constraints. Ironically, along with Japan, the British colonies of Hong Kong and Singapore showed the way.

If China was slow to industrialize, it has charged ahead, changing the balance in the world and embracing the central truth of the Industrial Revolution: You need energy to make and move goods.

China has signed up developing countries' oil and gas suppliers at a dizzying rate. In contrast, the United States looks at energy--the indispensable element in industrial output--through a post-industrial, environmental lens.

According to the World Nuclear Association, China has 39 nuclear reactors planned or on order and 23 under construction. There are 120 on its wish list. The United States has nine on its wish list and is building two.

The United States can no longer forge the large components for nuclear reactors. This can be done only in Japan; but China and South Korea are building new facilities to do the work.

The U.S. dominates the world in two disparate arenas: defense technology and entertainment. In nearly all else, it is slipping.

It will be a shocking day for Americans when people from another country walk on the moon, where astronauts Neil Armstrong and Buzz Aldrin trod in 1969. But it will happen.'

Source: http://oilprice.com/Geo-Politics/...

By Llewellyn King in Washington DC for OilPrice.com who offer detailed analysis on Crude oil, Natural Gas, Geopolitics, Gold and most other Commodities. They also provide free political and economic intelligence to help investors gain a greater understanding of world events and the impact they have on certain regions and sectors. To find out more visit their website at: http://www.oilprice.com

© 2010 Copyright OilPrice.com- All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2018 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules