Thursday Aug 25, 2011
Here is another article suggesting that there is less to the Chinese economic miracle than most people think. The consumption to GDP ratio is quite small. This means that the Chinese cannot afford to buy what they make. As the economy slows, manufacturing will slow. The inability to absorb the goods will become more evident. The sand bridge of building empty structures will be exposed for what it is. The high priced real estate there will plummet in value. And as we have said, all the Asian countries leaning on China will suffer a tsunami from the receding Chinese economy.
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