China is poised to become the dominate economy in the world sooner than most realize. What does this mean? Well, despite the fact that many in this country choose to hold on to the era of yesterday, the US is no longer a leading economic force. The HARD TRUTH is simply this, from this day forward; we are entering an era of unfamiliar and uncertain times.

The continued explosion of economic growth in China has resulted in the vast gluttony (only matched by the US) of energy it currently displays. The Chinese middle class is over 300 million strong. The US population (poor, middle, and wealthy) make up only 350 million. As of last week, the International Energy Agency (IAE) announced that China surpassed the US in oil imports by 4% in 2009. This should not be at all surprising since China is importing 5.44 million barrels of oil a day. This was made possible by the falling US dollar and phenomenal economic growth across all of Asia but mainly China.

Despite the dollar’s recent rallies in forex (foreign exchange) markets, the dollar has dropped more than 7% since the month of June. This is a huge slide by most accounts. Moreover, the Chinese economy is projected to overtake the US economy in less than a decade. This is evident by the country’s huge thirst for energy. Understand that no country imports energy at the rate China does right now unless its economy is strong and thriving and China is in the midst of an economic explosion. For instance, China’s exports soared more than 43% from June 2009 to June 2010. That is nearly a 50% growth in exports over one year! The top 39 industrial sectors in that country raked in 3.7 trillion in US dollars over the first five months. That is an increase of 38% from last year according to Larry Edelson, economic contributor of Uncommon Wisdom. Furthermore, the Chinese leadership is pouring huge amounts of money into government projects such as construction and railway transportation and so on. This fuels growth in other sectors paving the way for hundreds of millions of Chinese citizens to become a part of that country’s swelling middle class which places huge implications on Americans.

With China and other emerging market economies producing positive growth, the demand for energy is certain to follow. This could potentially help drive up the cost of oil and other natural resources. What that means for us is the grave predictions being touted by Uncommon Wisdom. According to Larry Edelson and others who follow the markets, the price of oil is set to move from $80 a barrel to a soaring $300 a barrel within the next few years! The implications are staggering. The economic fallout from the ripple effect could cause gas prices to sky rocket to $6 or $7 a gallon. This will directly affect transported goods causing the prices to rise as well on produce, meats, and dairy products. In short, anything that is transported and shipped will carry a huge cost. Furthermore, the transportation industry will be hit with heavy fuel costs to move people as well as freight. Airlines will be forced to drastically raise ticket prices to offset fuel costs perhaps causing another transportation industry meltdown. Also, the automobile industry will not go unscathed. With rising gas prices, a poor economic state, and a job market on skid row, consumers will become more cautious than ever when it comes to purchasing big ticket items such as cars which could carry over to companies that supply materials to auto makers. People will also probably forego impromptu getaways and vacations due to the huge hike in fuel costs. This could have a snow ball effect on the travel industry where hotels and restaurants are concerned. Basically, times are going to get even tougher for the average working class and middle class American. This could be the latest in a series of death blows to those who work hard every day to maintain their middle class standard of living in this country. With no sign of the economy picking up or the dollar regaining its strength, the future looks bleak. Unemployment is still soaring and many of those who are lucky enough to still be working have been informed that there will be no raise for the foreseeable future.

However, China is riding a tidal wave of prosperity due to its avoidance of international armed conflict, and prudent economic and fiscal policies. It is investing heavily in its people and infrastructure as well as technology. The rest of its spoils the looming giant saves. That’s right. China has a huge surplus of more than $2 trillion which continues to grow as its prosperity continues to cascade. On the contrary, the US presides over a fledgling economy at best. That’s right. Washington is as broke as many of the European nations that are in the midst of bankruptcy. Nevertheless, the mainstream media refuses to adequately inform the American people of this crisis. Moreover, the Obama administration along with members of Congress and the Federal Reserve refuse to come clean about this country’s debt crisis, a crisis we will probably never be able to get out of. The US debt right now hovers around $136 trillion. How can any country (in this fiscal circumstance) expect to stay atop the world as a dominant economic force? Simply printing more greenbacks, as Fed Chairman Ben Bernanke has suggested he will do if there is another economic downturn, will not cure the illness. Furthermore, how can the US expect to compete economically against the likes of China which has more than $2 trillion in surplus and owns the lion’s share of many of the world’s exporting markets? The simple advice to any working class and middle class American is to stop all frivolous purchases immediately. Escape the urge to mindlessly spend and acquire new loans for credit cards, new mortgages, and car loans. Times are about to become remarkably hard. The job market shows no sign of improvement. The economy continues to move sluggishly while the dollar continues to weaken and now enters the impending tripling cost of oil. Be safe and be smart.