Will China fail???

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China is going to be very interesting for the next generation or 2. with the current attitude of the Chinese People, communism can not last. Ironically as democracy and free enterprise decline in the Western countries it is growing in China. at the crrent rate of change, China will soon become the center of Democracy and free Enterprise.

That is if nothing stops the current attitude.

Ironically, the country that showed the highest level of support for the free enterprise system was China, with 74 percent agreeing that it is the best system. Others that were nearly as enthusiastic were the Philippines (73%), the US (71%), and India (70%).
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Source: http://www.globescan.com/news_archives/pipa_market.html



there is a paradoxical process in economics that almost guarantees China's growth and future strength. Taken from the above referenced article:

Broadly, most agreed that “The free enterprise system and free market economy work best in society's interests when accompanied by strong government regulations.” This view was endorsed by two out of three overall (65%). In 18 countries this was endorsed by a clear majority, with Indonesia (86%), the Philippines (77%), and China (76%) being the most definitive. It was endorsed by a plurality in Poland (47%) and attitudes were divided in South Korea (46% agreed, 43% disagreed). In not a single country did a plurality or majority disagree.
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We need to remember just how deeply invested China is in the US. Who do you think the US has borrowed all those billions of dollars from to fund things like the war in Iraq. Its largely china. China further exports tons and tons of goods to the US. The Chinese economy and US economy are so strongly linked that it is difficult to imagine either side willing to go to war with the other.
 
Pygoscelis said:
We need to remember just how deeply invested China is in the US. Who do you think the US has borrowed all those billions of dollars from to fund things like the war in Iraq. Its largely china. China further exports tons and tons of goods to the US. The Chinese economy and US economy are so strongly linked that it is difficult to imagine either side willing to go to war with the other.
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i very much agree with this, and even more so than worrying about going to war with one another they are also linked very strongly in economic terms, it would be a huge blow to the Chinese economy if the US economy were to fail. Think of the amount of exports that the chinese would lose on, the chinese export as much to the US as they do to the entire EU, not to mention the "1/3 of US business's they are invested in" as mentioned above. Obviously they would fall just because the US did but it would be a severe blow
 
MTAFFI said:
i very much agree with this, and even more so than worrying about going to war with one another they are also linked very strongly in economic terms, it would be a huge blow to the Chinese economy if the US economy were to fail. Think of the amount of exports that the chinese would lose on, the chinese export as much to the US as they do to the entire EU, not to mention the "1/3 of US business's they are invested in" as mentioned above. Obviously they would fall just because the US did but it would be a severe blow
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Yes, but I think China and the U.S. are slowly starting to realize that their economic relationship is built on an artificial economy. The U.S. dollar is growing weaker while the Chinese purposely devalue their own currency. This was the trade-off with exporting our manufacturing base to other countries. The wages of the American worker go down, but the American worker gets to buy cheap Chinese products. The only problem is that the American worker is increasingly unable to make ends meet with one job.

I don't know, to be honest this economy creeps me out.
 
Keltoi said:
Yes, but I think China and the U.S. are slowly starting to realize that their economic relationship is built on an artificial economy. The U.S. dollar is growing weaker while the Chinese purposely devalue their own currency. This was the trade-off with exporting our manufacturing base to other countries. The wages of the American worker go down, but the American worker gets to buy cheap Chinese products. The only problem is that the American worker is increasingly unable to make ends meet with one job.

I don't know, to be honest this economy creeps me out.
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It is pretty creepy, but just keep in mind that this is a natural process. Think of 10 years back, in economic terms that is really not a long time, or even better yet take a look at economies throughout history. You have to have lows to get to the highs, it is kind of like the saying "You couldnt be happy if you didnt know what it is to be sad". The US economy is a strong economy and it will continue as such, probably, for a very long time. There is still plenty of room for expansion and our climate, land and people are so diversified that it allows for more industry, products and as I am sure you guessed the american people favorite - CONSUMPTION. Our country is home to some of the biggest corporations in the world, some of the richest people in the world and our GDP is still significantly higher than anywhere else in the world (at least as far as a country our size goes). We have to endure this downward slide in order to hit the bottom to bounce back out, it is only natural, scary but natural. You also have to realize that the media perpetrates alot of the noise, because as everyone news bad news is good news for the news companies. Here are some charts of our economies bumpy past.

http://data.bls.gov/PDQ/servlet/SurveyOutputServlet?request_action=wh&graph_name=CE_cesbref3

this is a very interesting article
http://www.bls.gov/opub/mlr/2005/11/art2exc.htm

this shows why it seems slow right now, but really in comparison to the last 30 or so years we are really still growing just not at the exponential rate we were at the beginning of the new millenium

http://en.wikipedia.org/wiki/Image:Comparison_of_three_stock_indices_after_1975.svg
 
Hi Everyone:

What you must remember is that a decision to go to war or to do something that is not in your country’s best interest is rarely rational. You just need one reckless leader to act on impulse and wreck his country in the process. History is full of examples of such reckless leaders.

Regards,
Grenville
 

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