winnersdon'tquit

The Differences Between Chinese and U.S. Economic Recoveries

Tthe US economy is approx. 14% export and 86% consumer based, with the Chinese economy approx.inversley stacked.

My believe is that the Chinese economy is doing an "end run" around much of the world's G7 economies.

The near term solution to their problems, has been determined by Beijing. Generate consumer stimulism within their own borders.
Last month, for the first time ever, the Chinese economy produced more new vehicles than the US. This is THE precursor to what's to follow.

Within the near future, the Chinese government will initiate social reforms, designated to alleviate much of their peoples long term concerns, thereby stimulating spending, while spurring a consumer based "back-up" economy capable of withstanding the turmoil to their current export woes.

In the short run this will prove positive for China, while being a detriment to the US thru higher import prices.

The Chinese are undertaking a bold, comprehensive alteration of their economy, probably at the perfect time, and without much of the hoopla generally associated with this type of transformation.