The World in 2012
China's growing bubble
Counting on China's credit
Jan 10th 2012, 16:00 by J.A.
IN THESE dire economic times for the Western world, it is comforting to see Asia—in particular, China—as our saviour, with its economy forever growing (8.2% for 2012, we predict) and now in the process of becoming less mercantilist. But let’s not get too relaxed…For a sobering look at what is happening in the credit-profligate People’s Republic, Cassandra advises you to read an excellent article in the China section of The World in 2012 and then to listen to Carl Walter, an investment banker in Beijing, who shared his thoughts on China’s future at The World in 2012 festival in New York.
This blog accompanies The World in 2012, our almanac of predictions for the year ahead. The blog is named after the mythological Cassandra, who was cursed by Apollo to make prophecies that were accurate, but disbelieved.
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The thing with Japan is the the US force Japan to sign the plaza accord, and force limit on export, since Japan is a occupied country.China might not be so. Remember, the West for the last 30 years have one thing after another about how china will collapse tomorrow.
Interesting points. I don't know nearly enough about China to actually wager whether or not this is accurate, but I do know that level of lending and inherent bubble-building is eerily similar to Japan in the 80s. Could China be the next to fall victim to "close to America" syndrome? I have no idea, but it's interesting to see what will happen.