I notice the Shanghai Composite Index is rallying and is perhaps the leading general stock market index now. <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=2429549 \img>
Well, the good thing about this crisis is in a few years we can finally answer the ultimate question: Should governments stimulate the economy during a downturn or not? This must be the biggest stimulus bonanza in human history. The only ones lagging is Western europe according to the IMF. They should ramp up the stimulus if they too want to recover fast.
Most americans cannot afford the stuff they buy, too, without the help of credit cards and bank loans. The difference is, China is headed in the right direction while the US is going the opposite.
umm, and during the LAST 450 years? ---------------------------------------- they have been discuraged to innovate as I know. Some kind of equivalent to middleages in EU. We'll see soon if they lost the touch. Bu I think you should prepare for a surprise. Just think Koreans, Japs, Taiwan, HK which are all same genes, heh.
Saw an episode on Current about "China's Unemployment".. Highlighted 35 Million who'd lost their jobs. A couple who both worked to make about 1000 RMB/mo between them (About $140). But it cost 950 RMB to have their kids in school in the city while they worked. If those with "jobs" are the new middle class, what can they afford to buy? Without Western markets to buy the stuff they make, aren't they're still up a creek?
Using that logic, we would expect italians in rome to return to greatness and greeks to rise up to world domination once more. Neither of which will ever happen. (I know people who populate modern italy are not romans but the city is still rome nonetheless) What Chinese did a long time ago is irrelevant. Right now china is hopelessly overpopulated and has polluted its environment. It also has ambitions of world domination but is backward in critical respects. Watching Beijing olympics in 2008 calmed me down even more. Let's hope china will stay the world's sweatshop forever.