The crazy thing is that I know that I am right. After the Olympics is over, there will be nothing for China to rally behind. Already their stock markets are down nearly 50% and the downtrend will continue. Reports coming in are of a slowing economy and I know a lot about reports. Reports are like high school report cards. If you get one with a C or D, what do you think the next one will be? It wont be an A. In the times to come, there will be significant slowing of the Chinese economy as their wont be any monster stadiums or Olympics to rally behind. The American and the German economies are very unique unlike others in the world. Berlin was once nearly leveled with bombs. The White House was burned down a few times, but both those countries kept coming back and the next version was stronger then the next. Asian economies are different. They rise up in grandeur and then get slammed back down never to return again. Never Remember Nikkei 40,000? Take a look at our friend the Hang Seng? http://tiny.cc/ctnVn By October, this thing is going to get slammed. Its setup so perfectly. If this was a gambling game (which it really is), then I would be sliding my chips into the short side of the Chinese equation. In fact, I am. On Friday I bought some more of the FXP and hope that more will join me. When I see a society build an architectual monstrosity then I know its stock market is at an end. In the times to come, the Hang Seng and Shanghai will return to late 2005 pricing in short order. Im making the call, October of this year we will see the great Chinese empire falling into the sea.
While I agree someday china's prosperity will be corrected, however it's not time yet. Their middle class alone is bigger than our entire population, they have enough cash to finance a complete overhaul of their infrastructure (very badly needed) You're probably right about the short term, but the long-term will prove China the biggest world power.
China has more cheap labor than we have citizens. We'd have to open our borders to Central AND South America to even think about competing. Ain't happenin'.