Knowing that the financial capital will likely move to China after
2032, since that would be the peak of the public wave, where will
someone in the US put their capital?
Usually, the move from public to private would result in a move into
sovereign debt and cash, but will the move after 2032 be different given
the sovereign debt and monetary crisis we will be going through these
next few years.
Britain was the Financial Capital of the World until World War I. This
chart illustrates what happened to Britain and how it lost that stature
of being the Financial Capital of the World — it was debt. The people in
Britain did not lose everything. What really happened was that the
separatist movement emerged and the British Empire began to break up.
Look at the British pound during the American Civil War. It was the
rally in the pound that began the breakup of the British Empire, as I
have warned will happen to the US dollar. That rise in the pound
exported DEFLATION to the British Empire and the
economic conditions led to the start of separatist movements. Canada won
its independence on July 1, 1867. The second major wave of separatist
movements came with the end of World War II. India won its independence
on August 15, 1947.
The United States will be at risk of also breaking apart under
economic conditions, which will fuel both the religious and political
battles between left and right. There will be a high probability that
the United States will break into regional groups, probably four major
regions in general. It does not mean life will come to an end or that we
all have to run and hide in a cave. The British survived as will
Americans. If we understand the cycle, we will be better positioned to
survive with security.