chinese currency on its way!, page-12

hotcopinvestor an expanding economy based on exporting to debt based consumption economies creates over capacity, if the entire world consumption is based on debt and credit expansion then the exporting economy is in the same paradise of fools as the consumption economy, its simply the opposite side of the same coin

Debt based growth whether it be export based on consumption based is equally disastrous although the timing is slightly different

The Chinese are every bit as foolkish as the west the foolisheness will show up slightly later in the cycle. Since GFC1 the Chinese have filled the gap created by the drop in US consumption by substitution debt and credit growth

Yes its hard to believe that China could follow the Americans into the abyss of credit expansion stupidity but they have

Every piece fo data I monitor says that china is following Minsky's economic instability hypothesis exactly, it has expanded credit massively by lowering rates and printing money, now as inflation rises they will attempt to reign it via interest rates

they are following the perfect formula that leads to the same destruction as the west experienced

http://www.marketoracle.co.uk/Article26836.html

At some point they will raise interest rates to the point they implode their entire economy

yes printing money is justified when their is bonofide economic expansion ....but when its to cover and stimulate credit growth it eventually creates instability then destruction

China is no and expanding economy.....its not expanding anymore than the US economy was expanding prior to GFC1

all we are seeing is China creating a massive bubble that could destroy their prospects for generations to come

instability will follow this event

who knows where this will end up when it happens