TIME Asia Magazine: World Economy - Wealth on the Wing -- by Marc Faber

TIME Asia Magazine: World Economy - Wealth on the Wing - by March Faber

A huge shift of wealth and power to Asia is taking place, leading to an unprecedented situation in economic history. In the past, it was always the rich countries that financed economic development in emerging economies. European capital built canals and railroads in the 19th century U.S. economy; in the 20th century, European and American money bankrolled development in Latin America, Australia and Asia. But today, it's the poor countries—notably China—that are financing American consumption by purchasing U.S. government bonds. No wonder that with their vast liquidity, stock markets in many developing countries have vastly outperformed the U.S. market. Since lows reached in October 2002, America's S&P 500 index has risen 50%, while indexes in India and Jakarta are up by more than 300%.