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Beijing warned property bubble worse than US

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posted on Jun, 7 2011 @ 01:16 PM
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Originally posted by Mdv2
reply to post by SLAYER69
 


Thing is, globalization made economies interdependent on one another...


But China is a production side economy. They haven't thoroughly transitioned to consumers yet. [Importing goods and services] which employs people in other countries. So their economy is still heavily reliant on exports. Which the rest of the world still requires. Too much cheap money/easy credit slaushing around in China.

The problem will come from within China as wages fail to compete with inflation IMO. This will make other countries more desirable for cheap manufacturing.

India?




posted on Jun, 7 2011 @ 01:17 PM
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Originally posted by Hypntick
if we weren't all so interconnected these problems wouldn't happen.


this my friend is the very reason why
a 1 world government would never work
cuz all eggs are in 1 basket.



posted on Jun, 7 2011 @ 01:20 PM
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Originally posted by SLAYER69
this will make other countries more desirable for cheap manufacturing.
India?


very good guess

just don't ask them for
technical support.
I can't understand
a damn thang they say.



posted on Jun, 7 2011 @ 01:50 PM
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Originally posted by SLAYER69

Originally posted by Mdv2
reply to post by SLAYER69
 


Thing is, globalization made economies interdependent on one another...


But China is a production side economy. They haven't thoroughly transitioned to consumers yet. [Importing goods and services] which employs people in other countries. So their economy is still heavily reliant on exports. Which the rest of the world still requires. Too much cheap money/easy credit slaushing around in China.

The problem will come from within China as wages fail to compete with inflation IMO. This will make other countries more desirable for cheap manufacturing.

India?



Theoretically, yes, but in reality it wouldn't work like that. The aftermath of such a scenario would cause heavy turmoil worldwide and I would not be surprised to see the dollar collapse. The Euro would likely follow or at least weaken very much. Western demand for cheap labor products would largely diminish and what then? Then you've got a global meltdown of the financial system. I recently saw an interview with some Canadian academic who opted that low-wage industries will eventually return to their countries of origin due to soaring oil prices, he used the example of Norwegian salmon, which is flown to China to be cleaned and packed and then shipped back to Norway. It's ridiculous if you think of it, this cannot possibly be maintained with skyrocketing oil prices. Who knows..., perhaps he's right.



posted on Jun, 7 2011 @ 02:06 PM
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Aussie stocks have plummeted 5 days in a row,shed $30bn on this news.
Yes will have a large rippling impact.



posted on Jun, 7 2011 @ 06:54 PM
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As this thread is a year old, China has to have the right timing to avoid any major financial disasters.

China does not equal U.S.



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