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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 368.29+0.6%Nov 7 4:00 PM EST
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To: THE ANT who wrote (100233)4/20/2013 11:32:50 PM
From: elmatador  Read Replies (2) of 217615
 
What can the Chinese clique do now that The model (exporting China's way out of poverty) is exhausted?

They know that is impossible to keep accommodating layer after layer of their power base. And we are talking about millions here.

It is impossible because the Europeans and Americans cannot consume at the same pace of the last quarter of a century. There is not exporting markets to finance the rise in wealth of the power base.

The economy will slow significantly because it grows internally. The profits should be generated internally as they no longer can be imported (exports are profit importation. Country cannot produce the profits at home, must import them via exportation ( Japan and most of Asia are examples as is Germany).

Profits should be generated internally is the meat of my argumentation:
The capacity of the Chinese economy to generate profits is limited. See the internal over capacity Pettis alludes to.

China have an economy geared to exports. Now they have to slim down to sell to 1.3 billion people and a export component that is going to be a fraction of the past 25 years.

See the country that is ready for China change of direction:
Message 26889329
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