A Look into the Future

Peter Cohan on recent economic developments:
China is overtaking the U.S. because of China's superior application of capital. With Greece having taken a $140 billion bailout from Europe, China is viewing Greece's weakened condition as an opportunity to build a distribution network in Europe. So China is investing capital to extend its 10% economic growth based on building real businesses.
Why is China investing when the rest of the world sees Greece as an economic basket case? China wants to make it easier for the output of its factories to reach consumers across Europe and North Africa, according to the Post. Moreover, China's investment in Greece isn't a one-shot deal. It has also "plunked down billions from Angola to Peru" to help guarantee China's supply of raw materials and product distribution through "a network of roads, pipelines, railroads and port facilities --sort of a modern Silk Road -- to boost East-West trade," according to the Post.
By contrast, the U.S. financial markets are dominated by high-frequency traders who account for 70% of trading volume and exalt the use of technology to outsmart other traders -- rather than using it to create jobs by building businesses.
Read the whole thing.