I have seen WAY TOO MANY PBS programs of chinese women liking washing machine, dryer, refrigerator, starbucks, nice house, nice car - they don't want to go back to fields and work in rice patch.
People want ENERGY and products and lifestyle having lots of energy GIVE - I have RARELY seen the person leave the city life want to go GREEN ACRES eddie albert sytle and go back to poor farm life - they may SAY they do - but few actually make the move. Hu Jintao said 800 million farmers want to come UP in the world.
One can NOT just dream that they wil drive car, flight , washing machine etc without working!! Currently, Chinese are allowing the crony-capitalism to co-exist and the effect of this crony-capitalism is that the cost of such decent life will be high. The Chinese will have to choose crony politicians or good life. They can NOT have both!! Unless they are willing to fight the cronies, they have to work in the rice fields, use bicycles instead of cars, use oil burning lanterns instead of electric lamps. Are you saying, Chinese are willing to fight the cronies for the desent life? Let us say there is a huge deflation in China and the chinese politicians say they want to build some parthenon/dam/township for some chinese at the cost of other chinese. This necessarily means, the left out guys have to work in rice field and use oil lantern. Do you think, the left-out population will fight for his dam/parthenon/township? I think it will be middleground. Some dams will be built, some protests will be satisified - lot of cronies will run with lot of corruption and runaway with the money!! what does this do to the demand? There will be lot of consumers stopping the consumption from their boom days. This number will be larger than those who benefit from the parthenon/dam deal. That is why deflations are so different!! Net demand falls. You will see the headlines as: Chinese prefer to stay hungry rather than fight the cronies. The 1.3B people demand is null now!!! |
