Let's look at what Japan is doing, their auto plants in America are so efficient and produce such high-quality cars and trucks that they have begun to export from here back to Asia. Makes me wonder why General Motors is closing plants in America and laying off tens of thousands of workers here while they open eight factories in China. The next year is going to be a real test in my opinion of the Wall Street near-fanatic obsession concerning Chinese manufacturing growth. China says that they want to move into the high end of manufacturing and to develop their own advanced products. That might be possible if it were not for the major deficiency of their educational system.

Their children are taught to learn by rote and never ask questions. That helps make for an orderly communist-run State. But I just showed you how vital the ideas contributed from experienced workers at the American Airlines facility in Oklahoma have been in improving efficiency and productivity. Chinese factories do not have that edge. They substitute manpower for imagination, and as that manpower increasingly has begun demanding raises of up to 30% per year their once-great cost advantages are fading fast.

I feel I must also take note that India – also seen as a nation due to replace America as a world power – is bedeviled with problems. No one in the Wall Street controlled national media wants to talk about it, but communist radicals that have probably come over the mountains from China, by way of Nepal, have infiltrated Indian cities and villages. Perhaps half the country is now moving into the hands of democratically elected communists.

The government of India has chosen to blame Pakistan radicals for the eight bomb blasts that killed hundreds and wounded many more on commuter trains recently. But Pakistan denies it and so do the radical groups coming out of Kashmir. I studied the stories of those explosions. If the bombers wanted to kill the maximum number of people and create chaos in India’s financial capital – formerly known as Bombay – they would have more likely struck in the Class B cars, which are jam-packed with poor people. Instead the bombers carefully planted their deadly devices in cars restricted to expensive first-class compartments. These were the cars carrying bankers, stock brokers, lawyers and executives. I suspect the bombers were really communists and this is the opening salvo in a national campaign to destabilize India and lay it open to greater gains by red agitators.

If it turns out I am right, American investors may find the risks of putting money to work in that nation are a great deal higher than would be the case when they invest right here in America. I think there are quite a number of American entrepreneurs who either know or at least sense what is really going on in China and India, and who understand that American factories are coming back strong and safe in a dangerous world. My expectation is that business investment will take the place of consumer spending as the driving force of a newly powerful American economy during the rest of 2006 and all of 2007.