SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : John Pitera's Market Laboratory
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: John Pitera who wrote (9353)5/7/2008 6:07:36 PM
From: Jorj X Mckie  Read Replies (2) of 33421
 
Hi John,
I recently returned from Australia where I was visiting a couple iron ore mines. It is remarkable to see the 3 and 4 mile long trains with each car filled with iron ore go by one after the other all day long. And the vast majority of the iron ore is going to china (that's not speculation).

China is pushing the growth of their infrastructure at an incredible pace. This in turn has created quite a boom in western australia. The city of Perth looks like a miniature version of those photos of Dubai where the skyline is dominated by cranes.

And of course, considering that most of the chinese population is still living in agrarian conditions, there will be a lot of opportunity for growth in china for a lot of years.

My question to you, is the growth in China a natural sustainable economic growth or is the chinese government doing this through kiting checks? Where the chinese population tends to be very capitalistic, china as a whole isn't a free market and is still quite corrupt.

I tend to believe that the more government meddling in the economy, the greater the gyrations in the economic cycles. In other words, I expect the current boom in china to be followed by a pretty significant bust. And if the current boom in raw materials and oil is being largely stimulated by chinese demand, it would imply that oil and other raw materials would drop rather dramatically.

Thoughts?
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News