Sober Realist

China Remains a Compelling Buy via PowerShares Golden Dragon ETF

Hey, next year China's gonna hold free elections and develope a trias politica with a network of checks and balances...keep dreaming.

China Remains a Compelling Buy via PowerShares Golden Dragon ETF

Ssshhhhh...... you two need to stay quiet, you're tarnishing the investment thesis of the hot money.

George Soros knows bubbles and has stated that when he sees one, he jumps on it for the ride. But he made a telling statement recently questioning the herd mentality (of course he knows when to jump off before the bubble bursts):

"Maybe we're making the same mistake again by thinking that China and India will decouple from the developed world," Mr. Soros says.

Even the Price of Tea Is Controlled in China

Nice article on the limitations of investing in such a centralized command economy. China is export dependant and lacks a developed internal market. It's top down decision-making prevents new, innovative approaches to problems. The one-party rule also preserves the corruption that is endemic in the system. With a gini coefficient of .46, the masive income disparity in China is approaching that of some impoverished African countries. Their vast cheap pool of labor will come back to bite them. Note also that due to China's massive environmental problems, cancer has become the number one cause of death in the country. Their water problem is now at a crisis level.
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