Friday, December 26, 2008

Big Trouble in Big China

Today is Friday, 26 December 2008.

One of the major problems of China has always been: too damn many people for one nation.

Consider: just to run in place, the Chinese economy must create something like 25,000,000 jobs next year. (That would be 12% of the USA population.)

For some years, the Chinese economy has needed to grow 8-10% per year, almost certainly closer to 10%, and the latest projections from the International Monetary Fund --- 5% in 2009.

Most estimates agree: during the past year, 50% of the jobs in the Chinese toy industry have disappeared. (Go to Wal-Mart and look at labels on toys. America coughs, and China chokes.)

For some years now, Americans have depended on cheap Chinese imports. America buys Chinese goods, Chinese government buys American government bonds, enabling Americans to buy more Chinese goods, and …..

Americans have been borrowing the savings of many Chinese, to finance an orgy of consumption, and a bubble, and a housing bubble …

And, on CNN, “business commentator” Lou Dobbs, when he’s not warning against the Brown Peril surging across the Rio Grande, is soiling himself about the YELLOW PERIL MILITARY THREAT. (This from a guy who lost "his" in the bust: such a genius of bidness!)

And the likes of Lou D would enjoy a plunging Chinese economy, and vast social disorder in the most populous nation on earth.

What's wrong with this picture?

Are chickens coming home to roost in your 'hood?


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