Folks are invited to discuss about Chinese economy, currency and their relationship with us. If china is a bubble, will it impact us or not ?
I recently came to know that China is back in the news. A new video from CBS 60 min shows ghost towns in China... Analysts are talking about the biggest bubble in history!
Is China a bubble? We don't know.
Does it matter? Well...yes...maybe. If China melts down or blows up the demand for oil and other resources goes down. The Chinese have pumped billions into development projects. That money helped to keep people on the job...and also kept the ships full of stuff, going back and forth across the worlds' oceans.
Trouble in China is trouble everywhere - particularly in Australia (which has been selling itself by the ton to the Chinese) and in Europe (which sells its precious, high-touch products by the boatload). Drive around Beijing and you see German autos, Italian shoes, Swiss watches and French perfumes.
But hey...why worry? The Chinese can print money too! When China does something, it tends to do it to excess. That's why there are so many empty buildings in the Middle Kingdom and why it might have created the biggest bubble in history.
China overdoes it when it comes to central bank stimulus measures too. In fact, no central bank has done more than the Bank of China when it comes to pumping up the economy. And investors know it.
That's why bad news for China...like bad news for the US economy...could be good news for the stocks. The feds will pump more money; stocks will go up!
Isn't it so easy ?