Here’s an interesting take on the battle for Africa and its power in the future economy:
Africa is the last untapped Keynesian credit growth economic region of the world. China and the US are aggressively chasing down ‘assets’ in Africa, particularly in the equatorial region. However, the two nations are engaged in very difference tactics for the takeover: China is focusing on investment, while the US is using brute force, military intimidation, and fake vaccination programs.
Why is everyone so interested in Africa? Those holding powerful positions in the developed world who want to invest in the future aren’t looking toward the US, Asia, or Europe because they have no incremental debt capacity at any level: sovereign, household, financial or corporate. Without the ability to create debt out of thin air, be it on a secured or unsecured basis, they are unable to achieve growth, at least in the current Keynesian paradigm. Yet, there is one place where there is untapped credit creation potential, if not on an unsecured basis (i.e., future cash flow discounting), then certainly on a secured (hard asset collateral) basis. This place is Africa, and according to some estimates, the African continent can create between $5 and $10 trillion in secured debt, using its extensive untapped resources as first-lien collateral.