Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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.

Politics : Stockman Scott's Political Debate Porch -- Ignore unavailable to you. Want to Upgrade?

To: stockman_scott who wrote (1009)	7/1/2002 12:46:22 PM
From: Jim Willie CB	Respond to of 89467

Pimco's Gross expects China to be a huuugge deflationary force I have long known that in order to understand a given commodity market (e.g. oil, copper, soybean, wheat), having a solid grasp of China's place in the world is essential now China in the last 5 years has completed the process of "GUTTING THE JAPANESE INDUSTRIAL BASE" they do so with much lower cost of labor Chinese citizens are migrating from farms to cities it is causing historically unseen problems for them imagine all the problems dealt with by the USA as it jumped into the 20th century Sinclair Lewis's "Asphalt Jungle" was memorable to me now China must deal with workmen's compensation, layoffs, bankruptcies, and much more Gross believes China's exports will approach $1000 billion in the next five years there is no way US or European companies can compete with that the end result will be a trade debt net positive favoring China AS FAR AS THE EYE CAN SEE it will finance their new military machine which will complement their Chinese Army (theft) Corporation their Army prints software, movies, music without the cost intrusion of copyright royalty payments despite WTO concessions, zero enforcement exists for US, Europe we will have to deal with China in far more dangerous arenas than Japan we shackled Japan after their defeat in WW2 China will emerge as a monster the biggest question in my mind is whether China will continue to finance our trade debt and federal debt they own $250B in USTBonds now they announced plans to diversify into Euros and Gold in a couple months they will have a Gold Exchange up & running I expect in a couple years the USA may be at China's mercy with TBond debt held together with Japan, they will hold our fate I expect China to be the largest buyer of USTBonds not because they love us but because they want to keep us as customers and they want to own us, control us strange Asian bedfellows though: they hate each other / jim