Will China Become The New World Power?

For those of you not familiar with Jim Rogers, here is an excerpt from a blog devoted to his thoughts:

"After attending Yale and Oxford University, Jim Rogers co-founded the Quantum Fund, a global-investment partnership. During the next 10 years, the portfolio gained 4200%, while the S&P 500 rose less than 50%. Rogers then decided to retire – at age 37. " --http://jimrogers-investments.blogspot.com/

Anyone that can turn $1 into $4200 in a ten year period is probably worth listening to. Imagine investing $1MM with the Quantum fund and having $4.2 Billion!!! Truly remarkable.

One of his recent interviews discusses China:

China Has Huge Reserves. The West Huge Debts.
"China saved up huge reserves for a rainy day, now it's raining and they're spending those reserves. You contrast that with the UK or the US for instance which has no reserves, has nothing but huge debts and they're borrowing, or printing, or taxing to spend their money… I'd rather be in the East than in the West."

History has shown us that world power tends to shift to the people and places that produce true economic value and have money. Unfortunately, for this great country of ours, we have become such avid consumers that we have to literally borrow billions of dollars every year from China to keep our economy from completely melting down.

For those of you who like to do your homework, check out the numbers directly from the US Treasury website. As of July 2009, China held a little over $800 Billion of US debt. http://www.treas.gov/tic/mfh.txt