The United Democratic Party has now
been the Government for some seven months and we are yet to understand exactly
what their economic and social recovery strategies are.
It is not my wish to be
unproductively critical of my former party and leader, but I am suggesting to
them that we all need to develop our understanding of world economics if we are
to discover our own unique path to recovery. Too much comfort has already been
taken in the belief that Cayman can patiently await the return of the United
States of America to its former economic vitality.
I understand so little about money
and the movement of wealth from one part of the planet to another; therefore I
am not surprised that others sit waiting for America to reawaken from its
slumber so that we may again have the benefits of our economic miracle.
Certainly in this decade China will
play an even greater role in the world, since its ruling ideology and organisation
of human capital makes the production of goods and services the most efficient.
China is in the position to conquer markets by controlling wages thereby making
China one of the least expensive and most efficient places for the production
of consumer goods and services.
This means more Chinese peasants
will become industrial and technical workers and more companies worldwide will
be forced to trade with China if they are to remain competitive; especially
since the dominant and final ideology of Western capitalism has become
profitability by any means permitted, not by any means necessary. In China a
firm exists because of, and for the benefit and glory of, Communist China
whereas an American cooperation exist to produce profits for its cooperate
bosses. The world has never before experienced the power of State capitalism
and by the time we understand the extent to which China is taking American jobs
and therefore American wealth and social stability, it may be too late.
As I write, the American president
is bowing to popular and Republican criticism of big Government and planning to
freeze federal spending and vital support to their economy; thereby providing
the opportunity that big government China has been waiting on. Obama is moving
to the right while competing against the most left of capital producing
nations. Thus, the great stampede mentality, which produced the US recession,
will now cause a US political retrogression. And if it is correct that all
human action is directed by meanings, then the Chinese Communist will have the
bureaucratic advantages, simply because they do not have so many different
meanings like frontier individualism, populism and individual greed to appease
while striving to rationalise even further their production.
With America indebted to
China and with the US’s central government being forced from a leadership role
in the economy there will be no American recovery in the sense that there will
be the pre-recession annual growth in jobs and productivity. Americans will
spend less and become obsessed with saving as the free flow of consumer money
to purchase leisure services in Cayman and elsewhere will be waited on but will
never obtained. I predict that burden with wars and an obsession with Homeland Security,
the great United States of America will become a less competitive producer of
goods and services sought on the world market; China and India will emerge in
this decade as the new money bosses because the purpose of money is to pay
debts for goods and services rendered by their producers.
Cayman Business Outlook 2010 at the
Ritz Carlton should have been about how to approach China and India and allow
them to see the useful role a nonindustrial jurisdiction like ours can play in
helping them not to evade their obligations but to transfer money to and from
their customers worldwide. This is one reason I suggested during the
campaign that the No. 1 priority of a new administration had to be the extension
of our airport’s runway to accommodate air traffic from Europe and Asia.
Obviously a new cruise ship terminal is not as important. Cayman is small
but we must think big and reach far beyond our horizons as we once did on ore
and oil tankers decades ago. In a way it was discoveries made in the east that
begun our miracle, and it is not too far from there that we will find ways of
revitalising our miracle.