As goes the dependence on the US dollar, so goes the effectiveness of US sanctions. But, in this context consider: "The Biggest Migration Since the Barbarian Invasions of Rome" https://t.co/w2m34LV0iI via @intlmandotcom
— U.S. Citizen Abroad (@USCitizenAbroad) August 10, 2019
In the 1990s, University of Toronto economist David Foot, developed the theory that demographics isn’t everything. It’s the only thing. In other words, most of what goes on the economies can be explained by demographics. Could you imagine the possibility of Lagos Nigeria having a population of 90 (yes you read correctly) million people?
The article referenced in the above tweet (whether you believe it or not) is rational and fascinating. It describes the interaction between population growth in Africa, the large population in China, the need that the world has to reduce it’s dependence on the U.S. dollar and the implications for U.S. power.
This is part of a continuing theme of posts recognizing the relationship between the dominance of the dollar and U.S. power. The article includes:
International Man: If China comes to dominate Africa and its resources, what does that mean for its rivalry with the US?
Doug Casey: Well, the US government is basically bankrupt at this point. The only thing that the US exports in quantity is US dollars. And sometime soon, the Chinese, the Russians, the Malaysians, the Iranians, and the Indians, among others, won’t need or want US dollars. They don’t want to accept them now, because it’s an asset of their adversary or even their enemy. They’re unhappy about having to settle accounts in dollars that all have to clear through New York.
So, they’re going to come up with their own alternative. And I suspect they’re going to use gold. Why? Because they don’t trust each other’s paper currencies. And why should they?
How’s the United States going to react to that?
It’s going to be left out in the cold. No one needs or wants their dollars—they want and need real goods, not the paper obligations of a hostile, unpredictable, bankrupt government. Also, the US isn’t in a position to export people, except for some unwelcome soldiers. The Chinese are in an excellent position to export a couple hundred million spare people. The bottom line is that the Chinese are going to take over Africa financially, and they’re going to take it over demographically as well.