USA  (CONT)

But one giant unknown clouds everything: China. Until now, its booming US exports have mostly displaced exports from other countries. As China modernizes - moves into more advanced industries - this could change dramatically. The combination of low wages, a huge market and an artificially low currency confers staggering competitive advantages. They constitute a powerful magnet for foreign investment in many sectors, whose output could subsequently be exported. Unless the currency rises substantially, the United States could lose many industries that, by all other economic logic, it shouldn't. Therein lies the real threat of extinction or something close to it.

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