China and Saudi Arabia together, What does it mean for the US…

China Arabia Whats Next?
China Arabia Whats Next?

What happens when East meets Middle East? Who wins and who loses?

Sitting here in Southeast Asia as I write this, the news seems to be all about Chinese Premier Wen Jiabao visit to the Saudi kingdom as tensions appear to grow over Iran’s nuclear ambitions.  At stake for the Saudi Kingdom is $58.5 billion which is the amount China spent on oil with the Arab Kingdom in only the first 11 months of 2011.  To add to this, at least 11 percent of the oil hungry China’s imports come from the rogue Islamic republic of Iran.  Therefore it’s clear as the west moves to lobby sanctions upon Iran, the big losses may in fact be China.

What’s concerning here is what kind of sports will the Chinese be about this, well if I had to bet dollars to donuts, would say not good.  As memories grow old, the pacific component of World War II was driven by the embargoing of materials into Japan and while I’m not trying to say this will be World War III, it surely could lead to an economic show down on a global scale.

What folks especially in the United States are missing is that all roads are crossing in the east. As we drive our large cars and consume all that gasoline, our dollars flow east.  Then as we fill those SUVs at the super stores with goods manufactured in China, more of our dollars end up in the East as in middle with China passing the “buck” along.  This is creating an increasingly large void in the American economy as we run out of cash.  Yes we’ve waxed on this before, yet it’s growing like a malignant tumor with no end in sight other than the consumption of the American economy upon itself.

As come upon the 2012 election year, there will be discussions of illegal immigration, terrorism, and my favorite healthcare.  Yet there is one thing which matters and its critical, that one thing is the repatriation of cash and not going to be easy as it will mean a return to a greater self-sufficiency upon energy being new nuclear developments as well as a greater attempt at oil recovery in the continental US.    While yes what I say is social as well as environmental blasphemy, the fact is the horse is out of the barn and we aren’t going to revert to Amish ways in mass and forego those things which make modern life modern…

 

With this said the win here is to make the best out of what we have learned from the past as the future is all we have left…