Saturday, June 13, 2009


A diluge of believers in the Chinese miracle have been beating their drums lately regarding the wonderful prospects and continued growth of the middle kingdom.

But ask yourself a question (and building off my last post): If U.S. statistical reports can be "smoothed" via political pressure, what can happen in an autocratic plutocracy like China?

There is no "decoupling" happening and the more likely scenario is a massive retrenchment (economically and sociologically) by the Chinese leadership. Asian economies simply do not understand or will not tolerate weak export markets and free trade...with predictable imabalances as a result.

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