He is 100% right. No country turns around overnight and starts to boom into an economic superpower. There are numerous examples all over the world. Even the all great USA had a big bust with the Great Depression. It took a decade and a world war to get them out of it. The Chinese officials are not as smart as everyone thinks. They are old and are holding on to old ideals. They are making mistakes just because it is a completely new era for the country. Everyone is only looking at the positives of China, which only represents the minority of that country. Look at the negatives also.
Article: Don't Blame China http://www.fool.com/News/mft/2003/mft03091113.htm Morgan Stanley summary by Andy Xie: http://www.morganstanley.com/GEFdata/digests/20030911-thu.html
I think the Chinese are doing all the right things by the US: - They understand Underwiters Laboratories and that the junk they make cannot burn down American households. - They seem to have laid off "Formosa". In fact, I think I read something that said more and more in Taiwan now want reunification because of all the hot money rolling into Shanghai. - They laid off all that rhetoric about blowing up Los Angeles. - They seemed helpful and even handed in helping us out with this North Korean mess from what I could tell. Could be the start of something beautiful but there is an old saw that nobody ever made a dime in China. Geo.
As I open the package I notice the "Made in China" but the product is that of an American company. Glancing around the room I notice a few things made in China yet are labeled by American companies. Can anyone name something popular or well known that is made by a Chinese company? Better yet, off the top of your head, name one Chinese company. I can't. Funny things happen, or are discussed, when elections are just around the corner.
Was listening to an interview of Marc Faber and Jim Rogers yesterday (someone else posted here). They basically stated that there is deflation in manufactured goods (i.e. Made in China) but
but inflation in services ... kind of makes the inflation / deflation debate a bit more muddled. Also, baby boom is retirement age already - buying less goods and more services ...