the usa's debt dwarfs china's debt ..., page-16

IMO beware of simple formula's that reflect an underlying bigotry against one nation or culture. Whatr matters is the underlying economic physics of the global system not what nationality a country is or whether you like one or the other, steering the conversation back toward a foundation of rabid anti Americanism might have some level of ideological merit for those who dont like American policies but it might not translate to investment outcomes.

With respect to China I can only reflect on what seen, its such a big subject and country, my insight may not be predictive of outcomes, IMO its a complex issue and one that we should all watch very carefully. IM strong opinion though the simplistic scenario where China emerges as economic leader of the world is approaching a major reckoning with reality. China is becoming more unstable as we move forward, the increasing wealth and heighten expectation of the people , teamed with the harsh security and single political environment, teamed with a global down turn is causing a massive build up in internal tensions.

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http://www.smh.com.au/world/china-insider-sees-revolution-brewing-20100226-p92d.html

Deepening social fractures were caused by the Communist Party's obsession with preserving its monopoly on power through ''state violence'' and ''ideology'', rather than justice, Professor Yu said.

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The Chinese market is existing purely on credit and reserves, take the time to go through all the links on this post from Mish Shedlock

http://globaleconomicanalysis.blogspot.com/

Expansionary debt based growth fueled by the highest level of money printing in the world makes no more sense in China than it does in the US, Europe or Australia.

The global madness has reached epic proportions, this is not a US based crisis, ITS A GLOBAL CRISIS. This is not just a crisis based on the stupid policies of one country. Its a crisis that infects every country in the world (including Australia).Yes at its core are the policies of American economist like Krugman, Bernanke, DeLonga and about a dozen others, although it genesis theoretically has emerged from the US universities, what has happened is that these central banking policies have infected all 14 of the worlds central banks.