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Strategies & Market Trends : The Residential Real Estate Crash Index
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To: Amy J who wrote (24657)10/19/2004 8:11:35 AM
From: Elroy JetsonRead Replies (1) of 306849
 
China's "one child policy" has freed up capital which would have been used to expand facilities just to keep up with population growth. This surplus capital has been able to improve the standard of living and invest in productive capacity.

However, as you note, this comes with a price. At some point in the future, each worker will be supporting roughly two retired persons. Perhaps their giant hoard of US Treasury bonds will prove useful at that point, even though the value of each US Dollar will be greatly diminished by that time.
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