Are the elite abandoning America? That's exactly what it seems like when considering that Obama was joined by Goldman Sachs, JP Morgan, and CitiBank in China and given other trends. All the elite would have to do is cash out here in America and move their money to China and the rest of Asia, if they haven't done so already. Then, let the Renminbi appreciate. Meanwhile, America will continue to be burdened by regulation, rent seekers, and a sinking Dollar that I'm sure the elite understand won't increase exports. China will continue to become free and will prosper, although it will be hurt by IP (which is being pushed for by the elite).
To paraphrase Marc Faber: We're all doomed, but that doesn't mean that we can't make money in the process. Rabbi Lapin: "Let's make bricks!" Stephan Kinsella: "Say you and I both want to make a German chocolate cake."
The great carpet baggers of our time.
Is China really the place to flee to? I've read many not-so-positive things (even from free market sources).
What have you heard?
Inflation, property seizures, impending bubble-burst.
Aren't these the same issues in pretty much every single government in the world? More detail into the degree of these things would be nice to know.
If you're defining the elite as the possibly the most corrupt people and organizations within the current system I'd have to say I sure hope that they're "abandoning" America. There's nothing wrong witht the finance industry as such but I think those organizations might be just a little to embedded in the current state system to ever do anything but feed the system. If Obama is abandoning America is there somewhere I can send money to buy the plane ticket?
No, they are going nowhere. Why would they? The heists they are pulling off keep getting bigger and bigger.
The elite don't have a country, and they only became so through work on a cosmopolitan level.
Being limited to regional and local business only gets you so far.
While it's extremely difficult to tell which direction US-China relationships will take, there's no doubt all these "worthies" followed President Obama to China in hopes of getting a slice of the pie. Usually when statesmen from different countries meet the end result are huge $ contracts: for example when French President Sarkozy recently visited India the end result was a huge order for Airbus. When Russian President Medved visited Italy last year the end result was Rosfnet buying Italy's largest oil refinery. President Obama's visit will be followed by similar announcements by General Electric, Boeing and JP Morgan. President Obama is not stupid: while his PR people spun the story his visit was all about the renmimbi/dollar exchange ratio and "human rights" he was probably happy he could get the biggest supporters of his government a slice of the pie. The 2012 election is closing in.
One of the biggest issues on the table (and probably the main reason Goldman-Sachs and CitiBank followed the talks so closely) is US debt. In 2010 China slowed its purchases of Treasury securities to a mere trickle (compared to previous years). Will China please buy more of it? Then there's the issue of municipal and states bonds: Chinese banks are the biggest creditors to municipalities around the US. Their continual support is paramount to keep US citizens into "services" and public sector workers into bread and butter. Will your banks continue help us keeping the American-brand of Socialism alive, pretty please?
I am frankly quite amused at the idea of a nuclear superpower with flamboyant rhetoric going around the world "hat in hand" (ie begging) like bankrupt Russia did in the '90s. Chinese politicians are an imperscrutable lot but they are probably even more amused than I am. They will smile, shake hands, sign treaties and then continue to do exactly what they want. They may purchase more Treasury bonds and more Boeing airplanes, they may let in some US banks (at their conditions). They can afford that, time and money is on their side. They can make long term plans: a luxury Western politicians, desperately seeking to defer the inevitable, simply don't have.