Posted Aug 25, 2014 by Martin Armstrong
The revelations of the NSA tapping into everything has long-term serious implications. This outrageous snooping will cost the United States dearly for it will lose its technology edge over the world economy. As that declines, so will the US economy and that is how the shift to China will unfold.
Computer technology became an area of tension between China and the United States after a number of run-ins over cyber security of the NSA and Obama has refused to change the course of the NSA securing the decline and fall of America long-term. China is now looking to help its domestic industry catch up with imported systems such as Microsoft’s Windows and Google’s mobile operating system Android. They will have a replacement operating system by the end of the year.
The United States has had its edge in computer science and finance. Its refusal to clip the wings of the NSA and its refusal to prosecute banks in New York City are the two critical death-blows to the US economy long-term. Once you undermine your comparative advantage, it is checkmate. Naturally, China will not compete easily outside of China in this area. Nonetheless, they will replace these companies inside China.
Of course, then the question will arise – has China done the same as NSA?