HaavBline

Ever Shop in a China Bull?

Cute pictures. But does the theory make sense? If Americans has become thrifty savers and Chinese will not become big spenders. Then there will likely be deep global recession and deflation. How does Gold rise in this scenario?

Gold will rise in one case. When major currencies all has been debased due to huge deficit spending and zero interest rate. But the RMB is not quite likely to reach that point any time soon.

China may just surprise the world in the spending side. The 'Little Emporor' generation, products of more than two decades of one-child policy, grew up in prosperity and spoiled. Some of them are quite capable of casually spending away every RMB they earn, plus their parents incomes and their four grand parents's meager lifetime savings.