It took me 5 years to write Capital Enlightenment.  The world and the story changed during this time, but unfortunately the core essence of the book has only grown more relevant over this time. 

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The book is about business and economics.  I hope it is entertaining, and I am sure it is educational, even though it is written as a novel. All the facts and figures in the book are real and some might find some of the facts and figures in this book rather surprising. A few examples:

1.      China will overtake USA as the worlds leading economic superpower within a few years.  Possible by the second half of 2008!

2.      The average Chinese might have more money than the average American within the end of this decade.

3.      Every bank note in the US would not be enough to pay for one years trade deficit or one years budget deficit in the US.

4.      The future tax burden of Americans will increase both because of the governments accumulated dept but also because of the trade deficit.   

5.      China is now strong enough to take over control of US monetary policy! The US is now totally dependent on China to fund and refinance their growing dept.

6.   The US deficit increases about a million dollar a minute!  The cost to the future taxpayers in the US increases much faster.

The book makes a few claims that contradict conventional wisdom. 

• Economic growth is not always a sign of a strong economy.

• A recession might be good for the economy.

• The market set the price for a convertible currency, not the central bank.

• The cost of taxation is much greater than the amount paid in taxes.

• The current trade deficit will be a future tax burden

• National security and fiscal discipline has always been two sides of the same coin.  The twin deficits of the US might be a greater treat to US national security than Al Qaeda or any other terrorist organizations. 

The book is partly about people, partly about how to do business in China, but it leads up to a situation where enough incentives is put in place for China to pull their currency reserves out of US.  The consequence of this would be devastating but it would also be an opportunity where some might have a lot to gain.  The US, China, Europe and all investors in capital markets could all gain enormously, but it is done wrongly, the consequences could be equally disastrous.  The current geopolitical relevance of the book is what I thinks makes this book relevant.

The book, which was published in January 2007 not only predicted the capital turbulence that that started in July 2007, but it also predicted the right month in which this capital crunch would begin.  There is no doubt a bit of luck with the timing, but the event that that I predicted that would take place was indeed foreseeable.  The capital shortage will shake the financial institutions, cause a drop in real estate prices and a fall of the value of the USD.  All this was predicted in Capital Enlightenment, and have since proved to be correct.  I am confident that some of my other predictions will turn out to be right to, but some of these events might not unfold for a few more years, depending on the responsibility of the authorities.

The US authorities can be responsible and let the market adjust the imbalances through a recession, or they can play the short term game and postpone the pain, in which case a recession will no longer be sufficient but rather a deep depression will take place in a few years.  In this case the USD will loose its status as the worlds central currency, and the US economy will live through a single digit accumulated growth in nominal GDP during a decade.  After such a decade there will be only one economic superpower in the world, and that is most likely to be China.

The book is written to be entertaining and educational.  I hope that it will contribute to make a public awareness of the long term consequence of the current irresponsibility of US policymakers.

You can order the book by sending me a email with your name and address. I will then send you a copy, and you can pay upon receiving the book, or alternatively after you have read it.  If you are not satisfied with the book, you do not have to pay.

Please make clear what language you would like the book and if you would like several copies.

The direct purchase price will be

Norwegian – Pengenes makt:                249 NOK,  including delivery.  Hard copy

English – Capital Enlightenment:            USD 39.00,  including delivery.  Hard copy

Chinese:                                                         RMB 89,  Including delivery.  Soft copy

Please send a mail to mail@havardnorstebo.com

The book has been written because I think the story has to be told.  I am not driven by profit for this project, and hence I will therefore give a 90% discount to all that will use this book for educational purposes, even thought that means selling at a loss.