Will the next economic crash happen to China?
January 25, 2010
Maybe. For whatever reason, the bright boys always think that something is going to go on forever, just because it worked yesterday. But in the real world, the longer something has continued, the more we tend to think, “how long can this go on?”
The bright boys also brought us globalization, a sort of specialization-of-labor theory on steroids, that as much as said that if one part of the world did all the consumption, and another part did all the production, prosperity for all would be the result. It’s an extension of the same stupid theory that one branch of industrialism has applied domestically, with the rich consuming the fruits of the labor of the poor, and the poor getting just about enough to subsist on.
As has been said, a man standing with one foot in boiling water and the other foot in ice water is comfortable, on the average.
In presenting this article along with others in his daily Schwartzreport, editor Stephan Schwartz commented: “It is not clear to me, nor anyone else, I believe, whatever they say, that we have a clear take on China. What does seem clear to me is that it is always dangerous to fall in love with what seems obvious. In that spirit here is a contrarian view of China. Keep it in mind, I surely will.”
China: the world’s next great economic crash
Like Dubai at the beginning of last year, China is now reaching the peak of a bubble.
Click over to the article at the Christian Science Monitor site: http://www.csmonitor.com/Commentary/Opinion/2010/0121/China-the-world-s-next-great-economic-crash