ZTE

When Will China Overtake the U.S. Economically?

On China it would appear to be the case that you belong to one of two camps, the believers or the sceptics. Interestingly, a lot of the believers are Johnny-come-latelys. They were sceptics in 2003 but have now become hooked on teh fast growth drug.
I think that the policies that led to the US Boom are the same ones that have resulted in the largest US housing bust in 70 years, that are forcing widespread recapitalisation oft teh western financial system and that have produced the biggest malinvestment boom China ever has known. Yes, Easy-Al is the composer of the current Chinese boom too. But he had plenty of help from the maestros in Beijing that have refused to see (and still do) the consequences of distortionary monetary and exchange rate polices. Like Confetti-Al, they will find out that the only difference between boom hero and bust villain is that most misunderstood economic concepts, time.
Look at the Hong Kong Red-Chips-Mania of 1997 and you'll have clue where the Chinese A-share markets are heading to.