von Mises said: “There is no means of avoiding the final collapse of a boom brought about by credit expansion”. Quoted from a post by Anonymous.
Many high spending but low thinking individuals have encountered this painful experience and ended up in very bad shape, deep in debt or bankruptcy. It is a no brainer not to spend beyond your means, spend what you do not have but keep chalking up debts by using the credit card, ie expanding credit.
The American economy has been on this mode for more than half a century, living on debt, on borrowed money, on borrowed time, thinking that they could kick the can down the road forever, with their hegemony in the greenback. The Americans think that they can control the world and make the world dependent on the shit papers they are printing with increasing volumes and have no way to stop the trend, to stop the Americans from feasting on the efforts and labour of the world, without having to work for it.
The more the rest of the world think about it, that they have been taken for a ride by the Americans, working like slaves, slogging day in and day out, to feed the lavish and outlandish lifestyle of the Americans, to live in great style and gluttony, by just printing shit papers in exchange for their goods, the angrier would be the world and the more they would want to end this parasitic and exploitative relationship.
This awareness and awakening is not new, but were well known for decades. It was the inability of the rest of the world to resist, to dump the US$ as they were too weak to stop the process. Those who tried to change the imbalance were simply killed by the Americans eg Saddam Hussein and Muammar Gaddafi and many others.
Today the table has turned. There are enough big powers to challenge the unchallenged, once almighty American war machine. The rise of China and Russia has made it possible to take on this challenge, to stop the Americans from exploiting the rest of the world against their will and interests. The Americans thought they were very smart in devising this dollar hegemony, with the greenback as the world reserve currency, the must used currency for trade. No, the rest of the world is not stupid.
The moment they see an opportunity to break away from the American gridlock and oppression, they quickly seized the chance to end it. China and Russia are taking the lead, and one by one, the countries of the world are joining the bandwagon, to dump the greenback, to tell the Americans that the free ride must stop. And it is going to stop very fast, gaining speed by the day, to end the dollar hegemony for a fairer and just world.
Any economy or scheme that is lopsided, based on deceit, or rely on kicking the can further down the road must come to a dreadful end. An economy relying on the import of unproductive foreign worker immigration must come to the same dreadful end.
Do you think the CPF scheme and ever inflating price of HDB flat would come to the same sad ending? For sure the end of the dollar hegemony would come first as the rest of the world has got pissed off with it and working to bring its collapse, intentionally and with full conviction and commitments.