1."...call someone anti Chinese ..." where did you get this? Did I say or imply the same? beats me.
2. "...The present Chinese government is following suicidal monetary policies, they are following exactly the same policies as the west did just at x3-5 times the acceleration. ..."
Inflationary, indeed. But a strongly growing economy can tolerate inflation rate a little bit higher. Suicidal? maybe. There is a probability that China may encounter huge difficulties when the USD dies a hyperinflationary death spiral.
There is a bit subtle difference though: the USD is still used and viewed as a value store (as well as a transaction currency), but the Chinese RMB is mostly viewed and treated as mainly a transactional currency (by Chinese anyway), not a value store. The bilateral currency deals China has been pursuing I believe are aimed at ring fencing China's trades with other countries. The $$$ amount may not be huge. But in case the USD gets into big trouble, the RMB/currencies arrangements can be scaled up quickly. As to store of value function, I guess you notice huge physical gold imports/buying by China, and reported gold rush in China right?
China will not want to be seen to be the one causing USD collapse, so China plays along, at the same time making preparations. It does help does it? So for China, the longer it takes the better: more bilateral currency deals, more physical gold imports, more time to develop its own consumer economy... I can see it. In coming months/years China will announce more bilateral currency swap deals. Big gold price drops on Comex is helping China to buy more....
Travelling a lot to China does not automatically brings you the right understanding about China. Gordon Chang has been living in Shanghai for years, and he is still patiently waiting for China to collapse, his original prediction made in 1998(maybe 2000?).
And there are lots of people who live in China, both Chinese and non-Chinese, that see China collapse all the time. They see things, I see things too. But we have different perspectives, and see different futures in China.
I have to tell you ctindale, that I think China will be third time lucky, that China will get through the current difficult episode in a better shape, far better than you and Gordon Chang would presently think possible.
A few hedge fund managers made money lately shorting Chinese stocks. Don't confuse funds management skills and micros with being right on a bigger scale, especially about China, and longer term development/outcome for China.
