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Sean Balkissoon

is on stable ground,even as we see the rise and growth of the BRICs.

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Past challengers laid to waste :

Soviet Union

Japan

European Union

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US economic hegemony consolidated by:

US Dollar Role as world reserve currency

Dominance of US Markets and Institutions in GlobalFinance

US economy role and significance in global trade

Political Stability confidence

US Energy Security supported by

Military Superiority and determination to protectits economic interests

Globalization Americanization

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Previously Britian Sterling backed by GoldStandard eventually collapsed

Post WWII US dollars, backed by gold reservewas new world reserve currency

1971 Gold backing abandoned This gave UShegemon enormous economic powers

Effectively now debt, rather than credit hadbecome the new monetary power.

60% global currency reserves is USD, Euro is25%. No alternative to US dollar for Globalcurrency on horizon, even though China haveproposed this since 2009. In uncertain times

people seek confidence in USD.

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Highly developed & sophisticated, range of

financial products & services

40% of global capitalization, presents unlimited

opportunities for investors. China is only 5%.

Markets are liquid, and liberalized allowing free

flow of mobile global wealth .

By contrast China markets underdeveloped and not

transparent less attractive to investors.

Significance of US Financial markets underscored

by the global contagion of the 2008 US Sub-Prime

financial crisis.

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US economy is the engine for global economy

- American consumerism.

US consumer economy vital to export driven

emerging economies, like China.

Low domestic demand of China - cannot

surpass central importance of US to global

economy.

The world and China needs a strong US withstrong demand.

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Political Stability & Liberty Confidence in USDemocracy (> 200yrs), and civil liberty attracts

people and wealth to US.

By contrast BRIC Communist China, the resthave either new or tenuous democracy

Rapid development poses socio-political

challenges. China has bound to undergo arevolution, it remains to be seen what shape it

will take.

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US Growth and Dominance in the world

economy has been fueled by aninsatiable appetite for energy

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US understands this better than any other nation

Threat is reliance on foreign oil

Risk factors:

Peak Oil

Political Instability Nationalization

Terrorist attacks

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US foreign policy seeks to minimize energy

security threat.

Policy deterrents Carter Doctrine et al

Military defense of economic interests

Key Gulf Allies Saudi, Kuwait

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Boost domestic oil production Gulf of Mexico

Develop Shale Oil production currently at 1 millbpd, 20% of total output.

Improve transportation energy efficiency majorconsumer of oil ~70%

Increased use of natural gas and coal as analternative to petroleum

Develop Shale Gas production

Nuclear power

Bio-Fuels Grain Ethanol and Bio-Diesel

Hydro-Electric, Wind, Solar, Geo-thermal

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US Military Superiority continue to be a stabilizing

force for world security for vulnerable resource rich

nations

Defense of US economic interests to enforce

US hegemony

Industry of war and rebuild efforts will fuel

economic activity for American corporations.

BRIC nations as a powerful economic power,

yet militarily inferior will conform to a US led

world order.

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US consumer expansion limited - market

near saturated.

Rise of large powerful middle class in BRIC -

presents a new market.

More affluent consumers demand more

consumer goods - based on American tastes

and brands.

Consumer markets in BRIC open up for

American products.

US innovation & technology protected by

adoption of intellectual property rights law

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The US is on stable ground:

The current status quo is in the best interest

of everyone.

BRICs need strong US with strong demand fortheir continued growth.

The US needs the rise of the BRICs and the

emergence of a large powerful middle class,

which will be a new market for American

consumer brands, among westernized

domestic youth.