Re; <<<I am wondering how many countries on this planet have
made an average growth rate of 9%+ for over 12 years?>>
From the aforementioned '98 Annual Forecast at:
stratfor.com
"China itself is
facing major structural problems, particularly a shortage of skilled labor and falling rates of
return on investments. We find it extremely unlikely, political considerations notwithstanding,
that China's current growth spurt will continue." "
and....
"...it is clear to us that China will not be able to escape the process. However, the
implosion of the Chinese economy, which is already well underway, will be less visible and
more tortured than the collapse of the relatively more transparent Asian economies. "
The Chinese economy seems to have benefitted substantially from their currency devaluation (I believe it was Jan. '95). Also, didn't they open up to foreign investment since then? The question is, can there be any follow-through in terms of additional devaluation and foreign investment?
Also, an interesting article from S. China Morning Post
Red Chips Take Beating Amid Devaluation Fear
scmp.com
"Peregrine has a huge China book
and there are real fears that it will
be forced to sell out to pay off its
creditors - that would be a
catastrophe," a red-chip analyst at
a European investment bank said.
and...
""We've always thought that a 5 per
cent devaluation would be
necessary to maintain
competitiveness but with the crisis
worsening, more could be
necessary," one trader said."
All for now...
Mark |
