Comments on: Debts… They Grow Up So Fast! http://dailyreckoning.com/debts-they-grow-up-so-fast/ Economic News, Markets Commentary, Gold, Oil and Investing Strategies. Sat, 26 May 2012 08:56:41 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Ross Barry http://dailyreckoning.com/debts-they-grow-up-so-fast/#comment-39284 Ross Barry Wed, 18 Nov 2009 12:13:14 +0000 http://dailyreckoning.com/?p=20308#comment-39284 I find it amazing that China gets praised for making the same mistakes that people complain about the US making. Excessive debt and inflationary bank lending on top of government interference in the market place were a decisive factor in the financial meltdown in the US. China has embarked on the biggest inflationary bank lending spree in history! A lot of it is being invested in even more excess capacity. China's ecconomy only appears to grow because they are importing a large portion of the worlds inflation through their manipulated currency and we all know what happens at the end of a big inflationary boom now don't we... People complain about government interference in the market place in the US. Hello! Absent western consumers there is nothing but a government based market place in China... Anybody who thinks that the US has become a bad place to invest because of political or financial risk and thinks that China is any better should ask themselves if they really understand the connection between the two and the risks that they are exposing themselves to. The Chinese bubble will burst and with a big BANG! Good luck getting your capital back after it happens. I find it amazing that China gets praised for making the same mistakes that people complain about the US making. Excessive debt and inflationary bank lending on top of government interference in the market place were a decisive factor in the financial meltdown in the US. China has embarked on the biggest inflationary bank lending spree in history! A lot of it is being invested in even more excess capacity. China’s ecconomy only appears to grow because they are importing a large portion of the worlds inflation through their manipulated currency and we all know what happens at the end of a big inflationary boom now don’t we… People complain about government interference in the market place in the US. Hello! Absent western consumers there is nothing but a government based market place in China… Anybody who thinks that the US has become a bad place to invest because of political or financial risk and thinks that China is any better should ask themselves if they really understand the connection between the two and the risks that they are exposing themselves to. The Chinese bubble will burst and with a big BANG! Good luck getting your capital back after it happens.

]]> By: John Smith http://dailyreckoning.com/debts-they-grow-up-so-fast/#comment-39263 John Smith Wed, 18 Nov 2009 09:03:48 +0000 http://dailyreckoning.com/?p=20308#comment-39263 I agree with this until you get to the point that the Chinese will take over the world. Everybody under the sun thinks that the Chinese are going to take over the world and everybody forgets that China is mostly a command control economy where the communist party ultimately decides what gets funded. Now this can be a good thing or a bad thing in the short term but ultimatley it leads to curruption and misaloction of funds and economical ruin. But I am sure you will tell me that this time is different. The fact that the Chinese have enslaved most of their population to work for next to nothing and on top of that are destroying their saving by inflating the yuan is just one problem. The biggest problem that china faces is that they have a growing population that they will not be able to feed by 2030 and by then 40% of people will be to old to work. That will be close to 600 million people. Now you tell me how they will pay for all those people. The infrastructure alone will cost a fortune. Unfortunately just saying that China will grow at 8% non stop for the next 20 years will not make it so. Sure China’s economy will grow but most people in China will be too busy trying to make enough money to feed them self and put a roof over their head. So in the end China will never develop into the super economy everybody is hopping for. Lets face it the USA is a special case that will be next to impossible to repeat anywhere else. I agree with this until you get to the point that the Chinese will take over the world. Everybody under the sun thinks that the Chinese are going to take over the world and everybody forgets that China is mostly a command control economy where the communist party ultimately decides what gets funded. Now this can be a good thing or a bad thing in the short term but ultimatley it leads to curruption and misaloction of funds and economical ruin. But I am sure you will tell me that this time is different.

The fact that the Chinese have enslaved most of their population to work for next to nothing and on top of that are destroying their saving by inflating the yuan is just one problem. The biggest problem that china faces is that they have a growing population that they will not be able to feed by 2030 and by then 40% of people will be to old to work. That will be close to 600 million people. Now you tell me how they will pay for all those people. The infrastructure alone will cost a fortune. Unfortunately just saying that China will grow at 8% non stop for the next 20 years will not make it so. Sure China’s economy will grow but most people in China will be too busy trying to make enough money to feed them self and put a roof over their head. So in the end China will never develop into the super economy everybody is hopping for. Lets face it the USA is a special case that will be next to impossible to repeat anywhere else.

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