My comment: More and more data suggest that China economy is not just on recivery but into accelerated pace of growth. In principle it might looks like good news and somehow it is. But there is a dark shadow in it.
The smious pack has played a decissive and crucial role on recovery. But now risks are probably higher than benefits. We all know that we face an inflationary face ahead comeing from US dollar decline. If we add excess of liquidity in China then the risk of higher inflation will be even higher. Maybe authorities trust that yuan or renminbi will become international before that inflationary -or hyperinflationary- phase. Hard to believe it. To make the RMB or yuan an international currency will take years while hyperinflation will happen within 12 or 24 months. On the other hand social network, although not perfect, is robust enough as it has been proven last months. We are not into a recession and we have never been and we do not foresee a recession, Chinese people can overcome a short period -12 or 24 months- of lower growth supported by that social network. We can use more funds to develop education, to improve that social network, etc. and reduce infraestructure expenses a bit. Not completely, just to change shares from 70%-30% to 30%-70%. I mean in my opinion we should mind on the medium and long term, 2 years and ahead, rather than in the next 12 or 24 months. China Recovery Quickens as Production, Lending Climb http://www.bloomberg.com/apps/news?pid=20601087&sid=aiaH06uYGCy0 Peace and best wishes. Xi --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "World-thread" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/world-thread?hl=en -~----------~----~----~----~------~----~------~--~---
