I have long suspected that American reliance on China to fuel its growth for exports and as the lender who finances our debt has always been suspect to me. China seemingly has pockets that don't end. How is everybody else struggling but they seem flush with cash? How do they do it?
I confess to not having an army of data to support these assertions. Maybe China has been incredibly responsible and foresighted and is well positioned for this time. Maybe, as I've read, China has an unsustainable, easy money policy that may be setting up their economy for a major crash. Plus, it is always easier to grow from low levels but there comes a point when growth rates are harder to come by as you get bigger and bigger. This may not be good long term news for America if our sugar daddy's funds start to go south. I know China has been buying up commodities in everything from diamonds to aluminum to whatever else in places around the world. What happens if these investments don't pan out exactly as envisioned?
I am a little skeptical about China. It's just my intuitive sense that all can't be that great. I think it's something to watch.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment