China is in deep sh*t right now, and knows it.
1. The govt are unable to fund social expenditure for all its 1.3 billion citizens, despite its trillions in GDP. Break that down and it means only a
miserly few hundred dollars per person per year. Heck! you can't even afford to educate anyone with that, let alone build huge infrastrctures needed
to upgrade from 3rd world to 1st world status.
All that it will spend is on military, and that is frightening. What's with its build up - to rob other nations of their wealth?
2. The govt had encouraged borrowings in an effort to promote growth, but due to its political system that lacks checks and balances, it results most
of those loans going into corrupt officials absconding assets overseas, and none to the country. It is heading for a massive banking bubble, worse
than the financial crisis of the world combined in '08.
Only fools and Madoff type ponzi schemers would trust in the China dollar and economy. Even its govt is now buying gold and US treasuries with
whatever that's left, quietly for safety.
3. It's vaunted cheap slave labour had created problems for workers around the world, as corporations fled there to take advantage of such cheapo
labour. But it is not cheap anymore and had risen by an avg 4 times.
Worse is that, western tech is improving on robotics and quality, to compete with the massive cheap slave labour force of China, and had succeeded,
which means the slave labour would no longer be needed soon.
The chinese labour force are largely uneducated, unproductive, produces shoddy toxic goods and uninnovative due to its political way of life whereby
the tallest stalks are always cut down, discourage private enterprise, no copyright protection, etc. They will be unable to go for higher end
manufacturing and producation with better wages to meet employment and beat ever rising inflation.
With its highly successful but repressive 1 child policy, I dare not imagine the day only few years down the road to the awful moment of truth - that
one third will have to struggle to support 2 thirds of elderly aged population in China, and worse, most of that one third are single men, as female
children are drowned for the chinese wants only male heirs.
Thus China is only heading towards a massive banking bubble, high UNEMPLOYMENT and devaluation of its dollar soon. A 'China Spring' is on the way,
building up right now.
And USA, regardless if 'roaring' back or not, just need to focus on its own growth plans in a compettitive economic world, and not be complacent or
distracted. It will take much hard work, sustained effort and time to see results and the return to its growth levels and above. Leave China alone, as
it is only digging its own grave and looking for others to be blamed.
edit on 20-2-2013 by SeekerofTruth101 because: (no reason given)