re: Ann: SARCO Present at Global MINE Show in...
champ2003,
Continued economic growth or should I say necessary economic growth in China is unsustainable even under near perfect global conditions, why;
1. Slowing global demand for China's exports - supported by most recent data
2. Decline in domestic demand - again, supported by the most recent data
China has not yet nor will it IMO make the disconnect and end its reliance on exports to the US, Europe & Japan. China has of course during the period since the GFC, effectively had it's economic growth sustained by domestic spending on infrastructure and the like however this was as a result of MASSIVE stimulus that eclipsed the stimulus provided by the US Federal Reserve to the US economy.
This MASSIVE stimulus is now coming back to bite their economy and dare I say other global economies, including Australia, on the backside due mainly to a significant property bubble, stockpiles of hard & soft commodities as well as wages pressure.
China is already having to outsource some of its manufacturing due to wage & conditions pressure and being unable to compete, who would have thought that would have occurred in 2011, not me!
I could go on but in essence the effect this has on a company such as ORD that is so tightly aligned with the Chinese in many ways is IMO going to have a significant impact as we move forward.
WC8
VAN Price at posting:
9.5¢ Sentiment: None Disclosure: Not Held
