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Wednesday, April 13, 2016

China, the elephant in the room

This is one of those occasions being right isn't great.  I did predict in 2008 that the forces of China on USA labor would make cost of living higher while suppressing wages, mission accomplished!

I posted many times since then how China would NOT save the world economy.  Here we are in 2016 and many people are arriving at this conclusion now.   The uncertainty this brings is unprecedented in such a large global economy.  We have all reaped the benefits of cheap Chinese products.  Pretty sure every electronic item I own ows 80% or more of the parts from China.

Ran across some videos today. the first one is excellent to bring to attention the demographic miracle is over.  It touches on the age problem briefly, but I have covered this many times before. The one child per couple law has dwarfed the demographics so much, the old will clearly outnumber the young for decades to come.

Also moving forward I see robotic manufacturing and small custom manufacturing exploding back into local economies, as I covered before in MarchOfTheRobots

Second video touches on the Panama papers, and how Chinese are exporting their wealth to safety.

I still think USA may want China and Russia to take a greater part in the current currency system so they can share greater pain when it is replaced as I posted in "The Hard Road must be taken".




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