Elroy Jetson, That space buggy does not motivate. Must rethink premise:
<<price inflation in China, and asset inflation here in the US. But this is a distinction without a difference.
... Remove the credit and one is a temporary as the other>>
Yes and no, but not quite. Afterwards one has imploded homes and looted pensions on the one side, and smart infrastructure, motivated workers on the other, plus 300-years worth of catch-up domestic demand not yet enabled with consumer credit. And so, a BIG DIFFERENCE.
<<The new money creates uneconomic investments which would not otherwise be made>>
... is a matter of interpretation and pricing, as the guy who made it gurgle downward into the abyss, and the man who buys it out of distress levitate to moolag nirvana.
<<... he called China a house of cards which has built far more factories, infrastructure, and everything than they will be able to use in the next five to ten years>>
... Chinese typically do not think in terms of 5-10 years, which simply has the feel of a few months out here. The real estate friend ought to become a lawyer, for he lacks imagination.
<<It seems likely that China's program has brought capital destruction to their nation as well>>
... yeup, capital destruction, resulting in mucho construction, ala USA 1880s-1920s, financed by J6P with homes and credit cards, enabled by Sake2Bottles with trade surplus and bubbles. The formulae works and equation balances.
<<which will lower their standard of living>>
... if frugal savings, diligent work, manic capital investment, enthusiastic learning, scientific reform, and systemic transformation will result in standard of living decline, then let it be so ;0)
Myths are nice, in that their explosion will be entertaining.
Chugs, J |
