nov 18th, 2008
looks like all the 'rubber dogshit' is piling up.
china is likely to be quite hard-hit by the turmoil in its export markets.
someone asked if the economic cataclysm is an attempt by the yanks to screw the chinese. i don't think it is, but the end result may well be that the chinese get screwed. after all, $2 trillion of their money is sitting in US government securities in dollars, and if the US wants to play real hardball, they could start letting the $ depreciate, which would make the chinese holdings worth and less and less; and the cheaper $ would make it easier for america to export, and harder for china to do so. (of course, there are plenty of other negative effects too, so they may not do this, but it is interesting to consider scenarios that screw the chinese 'economic miracle'. well, the millions of laid-off migrant workers may riot and make the 'miracle' a 'debacle'. sure hope so.)
http://viewswire.eiu.com/index.asp?layout=RKArticleVW3&article_id=393950824&rf=0
1 comment:
India's service sector industries are more capable of flexibly re-tasking themselves, as compared to Chinese manufacturing industries' ability to re-tool, etc. Our services sector is more resilient, and will also be able to absorb further outsourcing resulting from further belt-tightening in the West.
Post a Comment