Chinese economy doing very well, thank you

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ezlxq1949's picture
ezlxq1949
Status: Silver Member (Offline)
Joined: Apr 29 2009
Posts: 225
Chinese economy doing very well, thank you

An article from the ABC which flies in the face of a lot of we've been reading in this and related forums:

http://www.abc.net.au/news/2012-06-18/mcdonnell-the-chinese-economy-and-...

Some extracts:

"China has many problems - no independent judiciary, political corruption and absolutely massive pollution - but, if you measure success by economic growth, then surely this place is nothing short of the current global champion."

"The Chinese government will do what it takes to maintain economic growth because it believes its very survival relies on it."

"It's the long-term fundamentals of this place which make it hard to see the wheels falling off short of a major political upheaval. There are millions upon millions of people shifting from the countryside to the cities. They all need flats, appliances, bridges, schools, offices, shops and public transport: Not to mention all the snazzy new goods they might buy if they can be persuaded that new social security measures mean not needing to keep so much cash in the mattress."

"Yet most people you speak to seem to think that, one way or another, problems will be overcome and that, in terms of historic trajectory, there will be no stopping China. What's more there doesn't seem to be a lot on the horizon at the moment to suggest that they are wrong."

 

Aaron M's picture
Aaron M
Status: Diamond Member (Offline)
Joined: Oct 22 2008
Posts: 2369
Obvious Stated Clearly

"The Chinese government will do what it takes to maintain economic growth because it believes its very survival relies on it."

This statement, in itself, is the lead belt that's sinking the global economy. If you changed it to "The ________ government", you could literally plug in any country in the world, and have this statement be equally true.

Which means that, implicit in this, is that contraction in the Chinese economy, which is an absolutely integral outflow of the reduction of Western Economies, will compromise China's "very survival". How can China "grow", when there is a deteriorating market abroad? Will they be so fortunate as to find hundreds of millions of "consumers" in China? Europe? No! the Middle East.

America's appetite for the superficial and the Chinese willingness to feed it are like a snake trying to eat its tail.

Cheers,

Aaron

Dogs_In_A_Pile's picture
Dogs_In_A_Pile
Status: Martenson Brigade Member (Offline)
Joined: Jan 4 2009
Posts: 2606
Aaron Moyer wrote: America's
Aaron Moyer wrote:

America's appetite for the superficial and the Chinese willingness to feed it are like a snake trying to eat its tail.

Cheers,

Aaron

So I guess the follow-on question is "Will the snake digest the tail or choke on it first?"

 

Aaron M's picture
Aaron M
Status: Diamond Member (Offline)
Joined: Oct 22 2008
Posts: 2369
Dogs, I think China will

Dogs,

I think China will choke on it. There is one thing I won't take from the Chinese Government, and that's its propensity for long term thinking. I have no doubt that they anticipate the mortality of the American Economy. But the question then becomes, what is their real strategy? Growth is a contagious concept, but I don't think they're oblivious to the notion that growth hasn't exactly done them any favors...

The doublethink is mindboggling. I'd sooner try and figure out time travel than government's ability to contradict itself.
Cheers,

Aaron

Dogs_In_A_Pile wrote:
Aaron Moyer wrote:

America's appetite for the superficial and the Chinese willingness to feed it are like a snake trying to eat its tail.

Cheers,

Aaron

So I guess the follow-on question is "Will the snake digest the tail or choke on it first?"

 

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