China & US Economics

[paisleychick]

This article gives the best explanation of the economic situation between China & the US. And it's not upbeat, but it's not a prophesy either.
Even before this week's figures on China's explosive 9.1 percent growth in 2003, which many commentators thought actually understated the reality, the United Nations' annual economic report had identified

Comments

[magnoun]

China will have a nervous breakdown economically soon. It is growing this fast because you are going from an almost entirely state controlled economy, to an almost entirely socialist economy. That means thousands of new jobs, billions in new capital, and other economic growth. That will come to a screeching halt when the gov't decides enough is enough

[hoolifan]

I'm personally amazed at US financial institutions' rush to buy up China's bad bank debt. Can't imagine this paying off, even if they get relatively high quality portfolios at fractions of pennies on the dollar.

Of all the businesses to get into in a foreign, only partially capitalist economy... debt collection?! Speculative madness like this only fuels bubbles and contributes to the impact of the inevitable crash.

Best quote of the article:

"But New York money manager Schmeidler, and others who remember that economics is the dismal science, realize that it is still better science than politicians drumming up votes and investment bankers drumming up business seem to understand."

[aoboshi]

China's explosive 9.1 percent growth in 2003, which many commentators thought actually understated the reality,

As somebody who grew up in China and currently studying it, I sincerely doubt that. Lack of transparency and the propensity to brush things up has been a time-honored tradition in China. If anything, the number should be knocked down, not floated up.