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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 375.93-1.8%Nov 14 4:00 PM EST

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To: THE ANT who wrote (91542)6/17/2012 9:13:05 AM
From: elmatador3 Recommendations  Read Replies (4) of 217789
 
Once a country is put in a growth path, it has a limit to its growth. It comes to a point it hit its head on the ceiling. This limit is set by the agreements reached by the members of the governing elites. There is an opening for growth limited to a point that does not allow for the loss of control by the elites.

China will reach the point at which it can no longer grow because the economy would require, then, a higher degree of freedom that the governing elites would not be willing to allow. They would have to relinquish this relic of communist era the five year grow plan and they have been doing for 60 years are do not know how to manage the economy without that five-year plan. Thus they will stick to it.

Russia growth levels off because the governing elites cannot deal with foreign interests that supply technology and managerial capacity. At the same time they pick the winners within and have to keep close control who will win what. They prefer lower growth rather than loss of control.
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