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Strategies & Market Trends : China - The Next Great Stock Market ?

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To: Victor Lazlo who wrote (124)7/13/2003 4:06:55 PM
From: Seeker of Truth   of 140
 
Shilling talks about a saving spree which is beginning among U.S. consumers. I haven't seen one shred of evidence about this. All the data are the other way. And he hasn't the slightest understanding that Chinese manufactures are not only price attractive in the US but they are so all around the world. Both educated labour and uneducated labour are really low cost in China.
Japan 1988 had finished the movement of workers from the farm to the factory. China 2003 has only slightly begun this.
"The military is another big drain. " The published numbers don't indicate this at all. I can't see a motive for the Chinese government to lie about this. In principle they have an incentive to overestimate their military spending, to frighten other countries.
I don't think that China is a particularly good place to invest because there is no rule of law yet. But his rationale for a collapse of the Chinese economy looks ludicrously wrong. There are big mouths with little facts all about us.
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