Doesn't China have a HUGE demographic problem due to the aging of its population, exascerbated by it's one-child per couple rule?
For sure it's an issue, but there are still hundreds of millions yet to play a part in the boom. In the long run, exactly the sames issue as Japan, South Korea.
One recent change however which undoes the immediacy of this problem is that China has made it very easy for foreign workers to come in, especially for it's ASEAN neighbours. This adds a vast pool of cheap labour to the mix, which can be cut and sent home in a recession.
Plus, if you can believe the MSM, China will have to put the brakes on an inflation problem, real soon now, which will put a crimp in its growth rate.
It seems from Mat's heading that is what they are attempting to do.
There has been a flood of equity into China.
Much of this has gone directly into manufacturing project oriented real world investment; rather than fly by night fund hopping or forex trading.
This difference gives the Chinese economy a backbone sorely lacking in capital strategy in the USA.
Without the housing market the US economy is completely rats droppings. The true backside of the US housing market is yet to show it's fullness.
The housing bubbles in many cities in China can burst without destroying the fundamentals of the economy.
I'd much rather the U.S. be in China's positon fiscally and growth-wise, don't get me wrong. I'm just saying China doesn't just get everything their way in the coming decades
In the coming decades, noone gets anything like 'everything their way'; peak oil will rip chunks and shreds out of the entire global economy there can be no doubt. This decade looks like being about capital chasing growth through real world strategic investment under a very hard lense with no sense of nationalism.
China stands out for being not just massive, but having a system designed so that radical intervention will not be automaticly stymied politically.
The 'perfect storm' of subprime, oil spike 08, has caused a massive rethink in investors. The ruthlessness of fund managers has been multiplied when it needed to be tempered. The USG and EU are stalemated politically into printing their way out of debt. None dare regulate backwards against globalist policy for fear of upsetting the banking system, nor may they take the drastic cuts to government spending necessary to have any hope of balancing budgets.
It's financial suicide or political suicide, with the only alternative being inflation at a pace the populace will not tear down the ramparts.
Yeah and down under too.>>>>!!!!!! LOL
Australia is paradoxicly building a backbone by tearing it out.
If not for our resource abundance, low population and proximity to China, I think Australia's postion financially would be very similar to the USA's.