Posted on 05/15/2015 5:27:24 AM PDT by SeekAndFind
Based on projections, China's population will start shrinking in 2026. It will then be a nation in decline. After all, no economy can grow robustly when it is getting smaller and its population is aging.
Just don't tell that to Chinese officials, who are doubling down on interest rate cuts and stimulus plans that will go nowhere.
Printing money always sounds good at the time, but it just ends up paying off past debts — not creating investments or consumer-led growth.
The big problem is that half of China's debt is tied to its overbuilt real estate market — so cutting rates won't do much to boost growth.
Is it over for China? "Despite having the world's second largest economy, China's economic miracle may not be sustainable," wrote economist Yexin Mao on the Heritage Foundation's Daily Signal blog.
He's right. It's not sustainable because Communist Party planning czars depend too much on top-down solutions to its economic problems. As Daniel J. Mitchell of the Cato Institute recently noted, China ranks 123rd out of 152 nations worldwide in economic freedom.
(Excerpt) Read more at news.investors.com ...
Gee and who woulda thunk that? Reminds me of how ones like John Kenneth Galbraith would forever lecture about how the Soviet Union was far more efficient and better at utilizing its resources than the West was, and what turned out was that that country was basically a Third World one with a large army and a competitive hockey team. Looks the Chinese simply put up a bunch of real estate properties and really did not have anybody to fill them up with.
lol
wishful thinking.
China can grow its population at will, all it need do is end it’s one child policy and it’s population will explode.
Ya know, one thing they gotta think about when growing that population you are talking about is feeding them. Throw in jobs and now that they have tasted western stuff providing a means for advancement into “their 20th century”. It is kinda like feeding and supplying a giant army. If you can’t then don’t. They do not have the resources.
I think China has had the same accountants that Oslimball has used for the past 6 years doing the math on unemployment and economic growth.
Any chance China might go to war with Iran?
Hmmm, flashback to Japan of the 1920's and 30's. If you do not have the resources, take them.
Bullfeathers and poppycock!
China has a robust economy for a country of 350 million people, but it has to support 1.3 billion mouths. There are so many peasants in the countryside that come to the big cities to find work that China’s overall population can shrink but they won’t run out of workers for their economy.
Their peasant population has to shrink if they wish to continue to grow the individual’s standard of living.
Meanwhile, we’re trying to grow our own peasant population with semi-officially sanctioned illegal immigration, and in the process shrink the individual’s standard of living.
China’s ‘African land grab’, article from 2010
http://www.theglobeandmail.com/globe-debate/chinas-african-land-grab/article1367342/
Virtually unnoticed by people outside, Chinese companies have spent the past two years accumulating millions of hectares of African farmland.
If this is true, then Capitalism is a Ponzi Scheme.
USSR was a turd world economy with ICBMs and hydrogen bombs.
Central Planning is a religion. People just believe it will work despite all the evidence.
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