Ok, I buy that. But what about the growing unfounded liabilities and the cost of Obamacare.
I think the Chinese are in as much trouble as us—we are Thelma and Louise...going over the cliff together.
I think the Chinese are in as much trouble as us—we are Thelma and Louise...going over the cliff together.
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I don’t think so. The chinese are creating the circumstances by which their currency can become a reserve currency. This will enable them to borrow much more than they are currently able to borrow so as to derive growth in their economy not so much from exports but rather from internally generated growth and a consumer economy—much as the US does today.
They’ll need to do this because the next industrial revolution based on advanced robotics and 3d printing will obsolete the outsourcing model. Even now American companies are starting to bring production back to the USA.