Chinese economy is still supply side, and the development had gone on to the country side for the past few years. So, the top down economists see less of government spending to warn of impending bubble bust of inflation and economy shrinkage. Some lesser known economists want Chinese currency to revalue so they will lose export business, trying to destroy America's complementary economy.
what is not understood about China is that infrastructure is still like America in the 1940s. Water projects are necessary investment for the next thirty years. And electrical power plants have to reach the country side, even as we speak. Major highway is lacking(trains just reached Tibet), and population growth had been slowed down deliberately.
The supply side economical investment will keep Shanghai stock market booming for some decades to come. Greenspan was never a builder of nations, just a musician jamming with other musicians. Summer vacations seldom support long Wall street rallies; only global trade opportunities do.
We are the builders of the American economy, and we know what it takes; first with supply side spendings on infrastructures, then with demand side economy(distribution of goods and services) with job quota(just in time job demands).
China is not yet lost in the wilderness, because infrastructure has to be planned 5 years at a time. Spending by the government will continue at the 20% additional pace each year. Even HongKong with its new tourist trade needs another large building project, soon to be announced. Disneyland needs competition to boom in its trade. Macao is the Las Vegas of the East, now. Hainan Island is now upgrade resort retreat.
They are the only complementary economy, besides Mexico for us; we are constantly planning with them to have sufficient production capacity for our shortages. And we are pushing our manufacturers to export high technology to them, before they have to pirate our intellectual properties. |
