I guess china is a freaky economy that sends labor to work manufacturing on a low (U.S. peg) currency and a bowl of rice. The U.S. also a freakish economy totally dependenat on china MFG has no manufacturing labor force to speak of compared to china and a currency losing value by the minute. If china breaks peg prices go up in N. America.
I wonder what economic prospects will year 2011 bring good or bad?
Me thinks, bad.
-- Edited by NUKE ROCKY44 on Monday 3rd of January 2011 07:27:36 AM
Some of this is probably in response to expected growth of affluent families, but some, like the constructions out in the desert don't seem to make sense at all. Perhaps the Chinese are expecting trouble ahead? Or perhaps the massive constructions are being used to mask other constructions projects they wish to keep secret--like massive bunkers?
I tend to think there might be a split in the CPC leadership. Some are not too happy with the Hu Jintao economic policy style. China middle class is still after all these years conspicuously absent. CPC since it's first congress has had violent leadership change and I think the west will not know any changes occurred until it is suddenly announced to the public by the CPC. So just how stable is China leadership?
As for American strategy and policy I like Ron Paul's view of minarchy and the proper role of gov't. The U.S. needs to put a stop to the warfare-welfare state and put a hard cap on debt ceiling. The U.S. is not alone in its troubles with mal-investment and Keynesian planning. Just look at THE GHOST CITIES OF CHINA Photoshop or not the fact is a real estate bubble in China exists. Monetary Yuan valuation is on the rise since most of this real estate is un-affordable to the Chinese now. A Chinese middle class will move in and up much to the dismay of present CPC leadership, Walmat and corner stores selling low priced Chinese imports now. The fact is prices of Chinese products are on the rise in N. America and Europe. East-West economic policies will need to change soon.