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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: John Pitera who wrote (8601)12/14/2007 5:17:43 AM
From: GUSTAVE JAEGER  Respond to of 33421
 
Re: [China] will continue to be vulnerable to potential political revolutionary overthrows of the Government. This will be tested when China experiences it's next recession and popping of their equity and real estate bubbles.

We should keep in mind, however, that, unlike the US and Europe, China is an ethnic monolith where the Han majority makes up 92% of the whole:

c-c-c.org

That means that China will not face racial and ethnic upheavals similar to those that broke out in 1960 America or in France in Nov/Dec 2005... China's distribution of wealth should remain essentially a class issue. But then again, China should find it much more comfortable to share a growing GDP among her diverse constituencies/social classes than Europe's challenge of maintaining a welfare state out of a shrinking GDP...

Re: I truly believe that having the RNB in the currency cross trading mix will provide really dramatic new ways for Global Capital to move around the world....

True but keep in mind that, first among that "Global Capital" moving around will be Chinese funds... and the stronger the RNB the easier for Chinese funds to gobble up cheap US and other assets (listed or private companies, real estate, oil fields, etc).

Re: ...and take some of the inordinate competitive advantage that is putting so much heat on some US, Canadian, European, etc.... manufacturers and other businesses in those countries.

But I'm doubtful that it'll ever be enough to bring back home all the manufacturing that's been farmed out to China... I mean, I don't see plants popping up suddenly across Europe --or even America-- to manufacture mobile phones, laptop computers, plastic toys, T-shirts, smart textiles(*), GMOs, pharmaceuticals, etc.

Gus.

(*) technical-textiles.net