Anybody who lives by the outdated belief that the US economy is all that this world is powered by better take heed of the Bible and a line that has relevance to this argument;
"Man doeth not live by bread alone".
The Indian and Chinese capacity for Gold far outweighs the US ability to consume the metal. The same applies to most commodities.
If one wants to examine the impact of these economies in terms of the world one merely has to look at where the Indians are now up to in terms of their economy.
In 1991 their foreign reserves position was US$ 5 billion. Today 13 years on it is in excess of US$100 billion (official). The undermarkets or 'Black markets' which the US and its other western conterparts hve never understood and relgated to the 'irrlevant' basket is what powers the unseen and distorts their own economic models and assumptions.
The 'Hawala' and 'Hundi' markets of black money and 'black economies' have more purchasing power than Europe however far fetched that may seem. The extend from Durban in South Africas, all over the East and West African coast, th entire Middle east including Israel, Western and Eastern Europe, now Southern Europe as well, Asis and the Americas.
To put it in perspective, one has to consider the position that the Indian government every so often taps into local 'Hawala' groups for its foreign exchange at highly preferential rates and favours attached like sweeteners to coupons.
In China, the various Gonxi's ( the more traditional ones especially those linked to the Fuchow diaspora and Cantonese and teochew communities is astounding). Whether this be from the unconventional and dark resources of one 'Khun Sa' in Myanmar or the clean and respectable Tamasek Holdings of the Singapore government who also tend to get into bed with the Khun Sa's of this world, their unofficial and black economies can literally move mountains.
In Australia unseen and unbeknown to the uninitiated is the 'kerb side' lender who lends risk money to the credit worthless. Those without credit ratings who have plans and propositions from restaurants to loan sharking at rates from 10% a week upwards depending n need and circumstances.
Who do you think powered the recent real estate booms in the inner cities. Where do you think the money came from with 20 year olds booking r buying inner city properties at $380,000 a pop?
There's much that goes on that most people from the 'straigh and narrow' and secret handshake, one white glove, knuckle pressing and 'meet on the level and part on the square' mob will never understand. it is more secretive and less 'exclusive' than they will ever know.
