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.

Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (67429)	10/21/2010 7:44:12 AM
From: Chas.	Read Replies (3) \| Respond to of 217802

Agreed, China is doing a marvelous job exploiting Africa... To be commended IMO... Regardless of South African enterprises re China, China also doing excellent job on African Rare Earth Resources. Although Chinese not well liked by most Africans (a labor issue) with China using mostly Indian and Chinese labor. I'm sure Elmo will have personal knowledge here... China has the ear and wallet of the correct African officials tho...and thats how it works. Chas

To: TobagoJack who wrote (67429)	10/22/2010 1:04:42 AM
From: elmatador	Respond to of 217802

Why China needs more the rest of the world than the rest of the world needs China. China went through challenges that no other nation had to go through. But it moved similar to tectonic plates: every 500 years or so but with devastating effects. As long as it was possible to be closed by itself it could manage without the rest of the world. Problem was: it kept too long closed down. When it opened up, it was forced by outsiders. Cut to end of of all empires era 1900-1917. 5 defunct kingdoms: China's Qing, Otoman, British, Romanoff and Habsburg. This caused in China -and China was not alone in facing the problems flowing from the kingdoms' collapse- collateral effects that had to be dealt with in manners never before thought. China employed the model of managing scarcity, aka, socialism. Needed to cope of hordes of uneducated peasants and put them to tow the line. Outsiders do not understand that this can only be done by other means than the western tools that were -then- already over a century old. Western were toying with novel forms of government since the last part of the 1700. For China by passed, not only the Industrial Revolution, it by passed the French one too. The last Chinese 90º sudden turn in 1979, caused China to start getting rich. Here you have a country getting rich but living within the means of an economy structured for scarcity. When a country gets richer, people bid up prices of the available stuff. The only way not to have social divide a la Brazil, is to open the country and seek the stuff to keep everything affordable. That is why China needs more the world than the world needs China. It is down here that the stuff the Chinese need are. The Chinese are not the US, they must export to pay for the imports to satisfy their population getting rich and richer.

To: TobagoJack who wrote (67429)	10/22/2010 1:12:52 AM
From: elmatador	Respond to of 217802

China is force feeding trade. This is the difference from European (minus Germany and Italy). China cannot gunboat their way into the source of materials. It must trade. Buy and sell. And as Schumpter wrote: trading nations are not warlike. Sweden, Japan, Germany, Holland. All became peaceful after their population engaged on getting rich and needed goods from abroad. China foreign reserve pile is there for a reason: to get access to the stuff they need to buy. That is the way to understand China.