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  • Is China’s Trade Surplus Sustainable? [View article]
    China's future demographic problem will NOT be due to a "shortage of labor", but the pension problem of a gray society where a small proportion of young people have to support a large percentage of seniors.

    Although geographically China is about the same size of USA, it has only about half as much arable land with 4 time the population to support. Food security is a perennial top concern for China, importing "cheap labor" in any meaningful scale is only an option for the USA, NOT for China, or Japan, or India, or even EU.

    That's why US has a very large demographic advantage over all these other countries. In addition to simply print Dollars to buy all kinds of stuff, Fortress America can simply print immigration visas and bring in wealth, talent, skills, youth, energy, and plug trillion dollar long term debts and obligations for decades..

    On Jan 14 04:45 AM MauiJeff wrote:

    > It's great that you look at demographics as a way to explain why
    > China would continue to lend money to the United States. The point
    > is that China is storing up saving in the United Sates to spend later
    > when the population ages. I have two questions about this:
    > 1. Is China really thinking of the United States as a retirement
    > fund?
    > 2. When China has a labor shortage, why would it not let cheap labor
    > into the the country?
    Jan 14 13:53 pm |Rating: 0 0
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