"The world doesn't have the balls to tell china that,"
No kidding! (Not with our deficits the way they are!)
As I've already posted today:
(PS --- with regard to China... I think we [investors] are beginning to see some of the inevitable, unavoidable, [albeit a bit delayed <g>], shortcomings of the Communist Party's command-driven economic system. They can raise interest rates and reserve requirements all they want to but, in the final analysis, unless the currency is allowed free market float all those other financial interventions will produce major negative blow-backs for the country's economy. Same with trying to 'keep inflation from hurting the little guy too much' by capping the price of gasoline --- thus trashing the profits of the countries oil companies who must buy higher priced dollar denominated foreign crude oil to meet demand. There too they are 'host by their own petard' by their policy of currency manipulation. I suspect though that politicians everywhere are mostly pretty clueless... [whether Western or Eastern], and, with the Party's Central Committee in session this month, and Tibet in turmoil, the sweet light of free market reason might not be allowed to shine for a while yet. :-)
Message 24416279
And:
They have integrated themselves into the global economic system too deeply. They are the largest sovereign holder of US Treasury debt (after Japan) in the world now.
Washington ain't gonna raise a peep....
"The heart of the financial crisis seems to be the wish to control rate of financial improvement enjoyed by their populous."
I don't know if that is the 'heart of their financial crisis' (nor if it really qualifies to be called a 'crisis' yet... after all, 10% GDP growth is something America hasn't seen for a long, long time).
I think much of their current difficulties stem from trying to maintain an impossible-to-maintain currency peg at the same time rising commodity prices are creating inflation in their economy (in large part because of that silly currency peg....)
And, of course, the Communist leadership is seriously concerned about the possibility of unemployment --- which, rightly or wrongly is the one thing they fear could topple them from power.
siliconinvestor.com
Re: "You are Naive, Bidet"
I'm so proud of you, shorty!
You've learned a new WORD today!
(And a French one at that! Good for you!) |
