Comments on: Is China Doomed?

By: Kyle

Kyle — Mon, 27 Dec 2010 11:37:42 +0000

And yes, many contractors in China depend on it too. It’s easier for them to do business with a U.S. standard than let it collapse and do battle with the E.U. for rights. And vice versa.

By: Kyle

Kyle — Mon, 27 Dec 2010 11:32:14 +0000

Don’t count the U.S. out yet. The U.S. has a long sad histiry of failure that seems to have been forgotten in the past decades of growth. However, it is during these times, Revolution, Civil War, Depression, WW2, Civil rights, George W. Bush ; p, that a few people stand up. Most people are always gloomy, fortunately, they aren’t important to the remarkable diversity and ambition that lives in America like no other place. Having traveled many places, I have never found a culture that is half as open to the idea of helping each other when times are tough instead of waiting for the government. We expect our government to suck, that’s why americans are so charitable and self reliant. Which in the end is what will give us the ability to innovate and bounce back. Don’t forget how currencies ARE allowed to exist in the U.S. that are not based on the FED. Banks used to carry their own currencies all the time during the gold standard. Something like that could come back soon against the wishes of the government. With banks and rich people buying gold like crazy, they could easily start lending money to the government and after all these bailouts sink or swim. The collapse of the dollar does not represent a collapse of the U.S. We will either hit a breaking point and revamp, or we won’t because we won’t need to. But the corporations that rule the world, depend on the U.S. FED’s ability to get them what they want and they will not let that fall down so easy.

By: Julia

Julia — Mon, 19 Apr 2010 08:27:52 +0000

Wow! That sounds quite bitter;got a lot of baggage haven’t we? I think there has been a lot of internal growth in the last 6 years. Yes, there is still a heavy reliance on exports, but the government has been encouraging growth of the internal market. I also just read recently that they increased the required downpayment for buying a house to over 30%. 30%! The bubble tht burst in the US was mainly over 0%; most buyers (especially new) HOPE to put down 20%!Its hard to flip houses when you have to put that much down. As for the internal market, the company I’m working for just hired new sales people, technicians, etc just for the internal market – they are considering the increase in wages and difficulty in finding laborers so therefore higher-tech machinery is required to replace workers. If thats not a sign of increased internal market then I don’t know what is. Wait, I do. Just go down to the local shopping area & see the huge numbers of people buying shoes, clothes, toys, wedding clothes (lots & lots of wedding-related service oriented business in China), etc – all made in China, marketed in China & sold mainly in China. The machines used to make the items-made in China, shipped in China, etc. I think this means a much stronger market in the future – a much better outlook than the US. I was looking for companies that make similar machinery to mine in the US & I couldn’t find a single one. Germany, Japan, India, Australia, Italy, UK, heck, even Ireland! They all make it, but after over an hour of searching, I still couldn’t find a single one in the US. Still, if you compare China to other modern countries, its still behind in economic strenth & verstility, but if you compare it to where it was just a few years ago? If you compare it to countries that are still developing, that have been for awhile? China ranks number one. If stable growth continues – well we all know where its headed. Besides this quarter (Spring ’10) turned out a lot higher than officials expected, in fact they are worrying about too fast of growth, cautioning that there is still the rest of the year to come.

By: LordD

LordD — Mon, 19 Apr 2010 00:08:08 +0000

I would have to disagree having lived in Mainland China for several years, most of China’s growth is not really internal. Investment from abroad is the engine by which China grows, their currency which is not traded internationally and is used to keep political stability.China only hhas two major markets, property and manufacturing.Shortly the property bubble will pop making the Yuan increase in value even more, causing heavy loses, and political instability. China does not have a diversified economy, labor force, or educational system. It represents a false capital market, it is a communist/facist market which will by its inflexibility implode further scaring investors away.

By: Julia

Julia — Sat, 13 Mar 2010 06:36:12 +0000

I agree with the above sentiment. US taxes, beurocracy, and costs is killing its economy. If that is so then the reverse of this is the growth of China. I’m no economist, but living here is very different from the US. Even though competition for schools & good jobs is really high, there is still a lot more optimism here among the people than in the US. Everywhere in the US its like doom & gloom. There doesn’t seem to be any strong growth anywhere. However, here in China everywhere seems to be an opportunity & people aren’t afraid or hesitant to grab it. So what if you loose? If trying & taking risks can gain so much, just go for it. The US has lost this pioneering spirit. I don’t think China is going to go down at all. The only thing that could stop their growth is if they get too comfortable. The younger generation seems less entrepreneurial than the older ones. I think that if they get too much more interested in US movies, media, shopping, games, etc. then they might not have the gumption of their fore-bears. That could slow growth. At the same time it might create some balance; each person ends up having higher standards.

By: tdaxp » Blog Archive » Two views on Globalization, America, and China

tdaxp » Blog Archive » Two views on Globalization, America, and China — Wed, 27 Aug 2008 14:56:44 +0000

[...] The China Explat: That’s not to say that malinvestment has not occurred thanks to false demand from America (or more accurately, false supply from the very non-free market central banks of China and the US – there are very few individual Chinese investors stupid enough to throw a bunch of money into US treasuries). But this malinvestment only creates the illusion of wealth – an illusion that is now being pierced and would be shattered if China suddenly tried to exchange all of their US IOU’s for real goods. [...]