The story China is collapsing, or in a minor variation crashing, seems to be inevitable. Author Mario Cavolo got upset about the latest ´crash´story from the BBC and decided not to ignore it, but got angry, on his weblog. “Oh good grief, here we go again.”
Oh good grief, here we go again. On a daily basis I count sheep and count fools. Every night I count sheep because it puts me to sleep and every day I count the fools who just don’t get China with nothing better to do than paint the one-sided negative picture for all the world’s curious eyeballs. Robert Peston has joined the party and I am forced to offer an apology to Robert because my criticism is not personal. Its just my disgust at reading another one-sided, pointless article on China which apparently also tells us there is an equally pointless new BBC TV show titled This World: How China Fooled The World, trying I suppose to distract us from what we really should be worrying about, whatever that might be. But it sure isn’t China’s domestic economy.
How China is fooling the world is with regard to anyone in the world who doesn’t yet get how strong China’s domestic economy is. What we read in this latest BBC article is the same old, worn story of China’s high debt levels and reliance on infrastructure spending and investment to grow the economy. …
I’m not suggesting China doesn’t have too much debt. Nor am I suggesting that we shouldn’t expect a continued slowing down of China’s economic growth in coming years. However, I’ve said it again and again. When it comes to economic strength, the last place on planet earth anyone should be worrying about it is China.
And so to suggest “a serious risk of a calamitous crash” is, well, just foolish.
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