china on the edge of a precipice?, page-7

Even the Chinese Premier is worried

http://www.news.com.au/business/chinese-premier-wen-jiabao-warns-of-double-dip-recession/story-e6frfm1i-1225840647902

Its such a simple scenario the evil egotistical money printing empire that is called America falls to the nimble emerging giant, one borrows, the other producers, one creates wealth from production while the other borrows and throws away its wealth through consumption. Soon the old giant falls and collapses, while the new giant emerges to lead the world.

Ifs funny how as a society we embrace myth, on one side we have the Americans embracing invincibility, the leaders of the free world, yet they lock up more of their own citizens than the Chinese and Russians combined.

Yet folks folk get all caught up with myths, the Chinese have 2.4 trillion in reserves owed by a country that literally print a deliver the entire debt to them tomorrow.

Folks rally about printing presses but seem to gain enormous comfort in China holding all their reserves in the same money they can print? Oh and of course the Chinese are going to walk away from America, they are going sell all their US assets...........even though that will make those same assets worthless.

One centrally planned economy (the US) is the devil and the other is god like. We condemn centrally planned debt based consumption, yet we applaud centrally planned debt based production?

The problem is centrally planned government designed economies. The Chinese are no better at centrally planning and managing an economy than the Americans are....all centrally planned economies eventually implode , as certain as night follows day the Chinese will fail like all of them before them.