Xi Jinping follows in Putin's footsteps

The general secretary of the Communist Party, and president, of China Xi Jinping was initially chosen as a compromise by the Central Committee and Party delegates in 2012. It was a compromise between the desire to stay close to the Communist ideals and the desire to capitalize on the modern era reality that China has become a global economic power to be reckoned with.

But this son of an elite founding member of China's Communist Party, who has taken many twists and turns along his way to the top, is anything but a compromising figure. Throughout his first term as the general secretary, he has shown his willingness to dispose of the government of years past, instill a unified economic identity, continue to censor outside world, as well as cement his place in China's history books.

Soon after his father was imprisoned for being vocal and confrontational within China's Communist Party, the teenager Xi Jinping found himself target of the scorn of many of his peers and authorities that now viewed his family in a negative light. He learned his first lesson from his father - that being vocal in opposition to authority is an approach that doesn't achieve the desired result in China. So he immersed himself in his studies, went to the farm lands to perform manual labor with the country's peasant population. This was the call of Mao Zedong to all of China's population living in large cities.

This experience toughened up the young Xi and he soon found himself accepted as a member of the Communist Party, despite his father's tainted legacy. He began to establish a network of influential party members that would turn out to be his main support base in his pursuit for the top of the party hierarchy. He finally achieved that goal in 2012, when he was selected as the new general secretary of the Communist Party.

His actions after he took power in China, mimic those of the actions taken by Vladimir Putin, when he was elected to the reigns in Russia in 2000. A house cleaning of all the corrupt officials and a crackdown on unwritten, but previously accepted, bribe to conduct business policy. Just like Putin, Xi Jinping dismissed and imprisoned former long standing security and economic officials, that may have presented obstacles to his policies and vision. And just like Vladimir Putin, Xi Jinping did it all under the guise of performing a service to the country and upholding the moral high ground for which every man, woman, and child should strive.

Xi Jinping, in a remarkably similar fashion to Putin, was able to consolidate power by antagonizing elements within the ruling party, and within China, which would have stood in his way of making unilateral decision on their behalf. This was something Vladimir Putin coined the "verticals of power" a decade earlier.

Unlike Russia, China does not have democratically elected leaders. Xi Jinping does not need the same trick that Putin used from 2008 through 2012, when Putin served as Russia's Prime Minister, to side step consecutive term limit law. Xi Jinping's continuity in power solely depends on the Communist Party election every five years. So this year, he brought down the hammer.

Having already brushed aside many of his potential opponents early on in his reign, he has now enshrined his name and ideology into the Chinese constitution. The "Xi Jinping Thought for the Modern Era with Chinese Characteristics" is an ideology that has been unanimously adopted by the Party Congress and has now been written into the constitution. With no apparent understudy declared to take over for him in the future, this new Mao-degree status paces the way for Xi Jinping to rule for decades without any significant opposition.

While Xi Jinping certainly started by following Vladimir Putin's blueprint for the consolidation of power, he has since then surpassed it. Xi Jinping doesn't have any real opposition within the country at this point in time, while Vladimir Putin's opposition keeps growing. But that is largely due in part to Russia's remaining free press coverage and recent economic woes. Neither of theses factors are present in China.

Will Xi Jinping rule China until his death? Does the economic trouble that has forced the Russian people to re-evaluate its leadership have a chance to do the same in China? Leave me your thoughts and questions in the comments below.

China Sees Opportunity

For as long as I can remember, in every economics class of the latter 20th century and early 21st, we have been taught that the United States is the industrial leading behemoth that cannot be surpassed because of its sheer fiscal might. Every currency exchange in the world still compares its local currency to the US Dollar and the United States is still the target for every worldwide consumer innovation, as it is the largest most lucrative market in the world today.

But times are changing. Let's step back and understand the passing of the torch that saw the United States rise as the worldwide economic leader. People who don't study or pay attention to history, may not realize that by the turn of the end of the 19th century and the beginning of the 20th, Great Britain was the world leader in most major industrial and financial measurements. However, by this time the British Empire grew beyond its means. With its empire stretching across the globe and the financial stresses inflicted by various conflicts, that standing became very tenuous. The beginning of the end was the beginning of World War I, where Britain extended itself further fiscally, and just could not keep up with the rising growing economy of the United States.

Despite going through the Great Depression, the United States kept growing in every phase of its economy. The final straw that unseeded Britain from the top spot was the havoc World War II inflicted upon its people, infrastructure, and finances. Soon their colonies, once the cornerstones of their financial income, began to break away as independent sovereign nations. Then their industries began to be nationalized. Finally, their national budget proportionally became a shadow of its former self. This made the economy grow at a snail's pace and even contract at times.

The United States had none of these problems. The younger nation was buoyed by the end of the Civil War. The United States saw its greatest leaps in industrialization and natural resource discoveries push the growth margin higher than ever during the "gilded age", leading up to the start of the 20th century. By the time of the roaring 20s, the country was now an economic contender on the world stage. But because neither of the world wars saw any extensive damage to the United States infrastructure, there was no pause and no rebuilding cost. This freed up the United States to invest in its growth further and leap past its European competitors with a seemingly insurmountable advantage into first place.

It is a spot which we, as a nation, have not relinquished since. However, our supremacy on the world stage has diminished over time. Since the late 20th century, the United States government has continuously mismanaged its budget to the tune of a financially devastating fiscal deficit. As the GDP and per capita income increased, so did the manufacturing costs. As a result, we have transformed our economy into a service, credit, and consumer economy. All the while shipping our blue collar manufacturing jobs overseas. With that transition we have also given the technical expertise and the income, which was previously kept in house, to nations we never saw as our competitors, let alone our equals.

But this is exactly where China finds itself today. Having absorbed decades of manufacturing and assembly handover from Western nations, China has acquired both the infrastructure and the technical knowledge base necessary to compete on the world stage as equals. Furthermore, Chinese government has acquired sufficient sovereign debt of every Western nation, including the United States, to be able to have political and economic leverage it previously dreamed of.

But now, having accumulated sufficient wealth, China is transitioning. It finds itself at the exact same inflection point that the United States found itself in the late 19th and early 20th century, when it was breathing down Great Britain's neck. Except now it is China ready to overtake the United States as the leading economy in the world. Chinese government is well poised for the role, with a bank roll of foreign debt and a national cash surplus that now seems more attractive to global investors than ever before.

As the conflicts of the world swirl around, the safest place for foreign cash is still the United States, as it is being recognized for its past fiscal dependability. But the winds are changing, and the Asian powerhouse that is China sees opportunity in this crisis. Up until now, they have been able to manipulate its currency and keep the value of the Yuan down to keep its manufacturing infrastructure viable on the world stage, and its Yuan-denominated sovereign debt purchases high in value. But their per capita incomes and currency value is growing beyond these controls. Soon enough, China will find itself in transition to a consumer economy. And that's exactly when the United States will be faced with a similar fate that Great Britain faced in the 20th century.

What do you think? Will China become a major consumer economy within the next decade? Will foreign investors see it as the new capital safety market? Will the US Dollar Standard crumble within the next decade? Please Leave your thoughts below in the comments section.