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To: Cringing Negativism Network
The fact is you are being lied to by an ignorant media and unscrupulous financial advisors. They don't know what they are talking about. If you really believe that communists are trustworthy and capitalists aren't, why don't you believe Obama.

China is in a world of hurt. Do you even know about China's demographic time bomb? Stop parroting the media, and do your own research.

26 posted on 12/02/2012 5:14:07 PM PST by nickcarraway
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To: nickcarraway

I believe it is you, who are being lied to by unscrupulous people, frankly.

I see China capturing the future from America without anyone in either party lifting a single finger to stop our destruction, and I am starting to get a bit frustrated by it all.

Frankly.


27 posted on 12/02/2012 5:17:26 PM PST by Cringing Negativism Network
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To: nickcarraway

a) Demographics: China, South Korea and Japan all have demographic implosions coming.

China will be hurt the least of the bunch, because they have the least in the way of social spending for their aged and the least debt:GDP. Japan is screwed, because they’re running in excess of 230% debt:GDP, and much of their paper is held by their own citizens - who will have to redeem is pretty soon to fund their own retirements and health care needs. At their nearly negligible yields, Japan will probably have trouble peddling the roll on that paper off-shore. Who’s going to buy it?

The US has a demographic problem too, BTW. Ours is actually worse. We have our rampant increase in claimants on Social Security and Medicare, then we have over 50% of all immigrants (over a half-million people) who go onto some form of social welfare every year. We’re being spent into oblivion at both ends of the age range, and on top of that we’re running a trillion dollar deficit, trade deficits and current account deficits. We’re running over a $100B/quarter current account deficit. China runs a current account surplus.

b) You reference the ghost cities China has built. OK, so what? The PRC has so much cash on their books that they could pile up billions of dollars in a pile and set it alight. They’re not in hock to anyone.

We are - to them.

c) OK, so they’re in recession. Right now, that means their growth has fallen from about 10% GDP per year to a bit over 7% GDP growth per year. China does not have negative GDP growth - they’re merely seeing slower GDP growth than in the prior years.

This is a problem the US will never have the luxury of having again - 7% GDP growth.

Now... why is China in such trouble again?


42 posted on 12/02/2012 11:26:57 PM PST by NVDave
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