Is China Seeking To Practice The Golden Rule Of Natural Resources: He Who Has The Natural Resources Makes The Rules?

Implications: Reuter's has now reported the official statement of a ranking official of China's Ministry of Economics, http://gateway.andohs.net/player/?sid=826&nid=2920 , to the effect that China's treasury must follow Chinese 'private' business and use its immense reserves of US dollars to obtain ownership of natural resources and of their sources of production overseas. China admits that it stands to lose more by simply holding American currency and dollar denominated negotiable instruments than any other nation in the world if the US dollar declines. But never before has the global economy been faced with a buyer of China's demand and wealth, as a competitor for natural resources. The Chinese nation and its treasury are primarily ranged against foreign private companies. Has the struggle I have in the past referred to as "The Gold War' begun?

Analysis: The Chinese national government is a communist regime, which operates a 'command' economy currently using a mix of capitalism and socialism.

The goal of the Chinese command economy is not to enable private capitalists to make a profit on investments; it is rather to improve the lives of the Chinese people. Therefore when the Chinese national government openly tells the world that it wants to use its immense reserves of foreign exchange, mostly US dollars, to obtain not only supplies, but sources of natural resources it is signaling a monumental change in operation of the world's natural resources markets.

Once the Chinese state or a subordinate company has taken control of a physical inventory of a metal, or a mine or a company that produces it, the state will no longer prioritize the selling of the ore, the metal, or the services of its producer or fabricator for a profit, rather it will sell the metal or the services to end users outside of China only when that act is of greater benefit to China than continuing to hold physical possession of the metal or control over the fabricator.

Thus as China now converts its surplus of US dollars into natural resources those resources will have effectively been withdrawn from the global 'free' marketplace.

Only domestic Chinese demand is of importance to the Chinese government, so that the world is about to enter an engineered supply crisis the like of which it has never before seen and for which there is no solution within the free market practice of the western democracies.

We may well be entering into an era of the economic equivalent of an all out war; a war, the end result of which, will be a transfer of the economic control of the world to Asia.

Russia, having foreseen this, is now sequestering its natural resources for its own use and survival; Africa is being drained of natural resources by Chinese resource imperialism; Canadian resources are being eyed by Asian resource imperialists; and finally, the production of domestic  American natural resources has been effectively shut down by starry eyed environmental activists in a variety of unilateral abrogation of economic self-sufficiency.

China operates by developing and following 'five-year plans' to improve the Chinese domestic economy. America lurches from one economic crisis to another and has no long term domestic plan. 

How much longer can America lurch from one crisis to another without adopting and following a plan for economic self-sufficiency?