To: Hawkmoon who wrote (8179 ) 8/11/2006 7:01:18 PM From: Riskmgmt Read Replies (1) | Respond to of 217736 China may SOMEDAY rival the US, but who's going to risk putting Billions of dollars of capital in Chinese banks, given their current lack of transparency/ How about GM, Ford, Morgan,Yahoo, Intel for a start? I think you under estimate capitalism. www.iie.com/publications/papers/paper.cfm?ResearchID=650 " US investment alone in China at the end of 2004 exceeded $15.4 billion, ... " I agree they may move their money but US corporations aren't reluctant to invest.One more point. For countries like China to economically rival the US, they will require a system that disseminates more economic power to their people. And shifting that balance of power from the center to the periphery of Chinese society means that the consumers will increase their power over the political elite, the "Communists/Fascists" who have benefitted the most from this injection (vaccination?) of capitalist fervor. I do believe this is happening and will be unstoppable, much as in the USSR. It is just a matter of time. Have you seen the statistics on internet use in PRC in the last few years. Your point on Eurobonds I agree with, longer term anyway. So where would you put all of the profits you've been making in China, were you one of their fledgling capitalists? I'd put it where it would make the highest return. From what I've read and heard, the chinese in HK think nothing of a 100% return on their capital, some are making much more. With the growth rates in China it isn't hard to understand how this can happen. It is also why the multinationals want to be in China. Having said all that, I agree that, the USA is far from dead and buried. But the current direction is certainly not a positive. Enjoy your views. regards Ray