"All Feasts Must Come to an End": China

In the aftermath of the crisis, industrial and direct investors have looked at China for earnings growth and returns. High growth rates, fables of urbanization, rising domestic consumption and the need for investment in upgrading infrastructure have attracted investments. Fairy tales about how a billion Chinese would urbanise and consumerise, driving 10 % growth forever and replacing America as the global consumer of last resort captivated audiences at business conferences. In reality, a major source of interest in China and other emerging markets was that it wasn’t America, Europe or Japan.

Investors generally chose to ignore the truth underlying the fairy tales, ignoring how the growth was going to be achieved. China’s debt driven and investment fuelled growth is now vulnerable. There is a significant amount of unproductive investment and mis-allocated capital. Some of this will manifest itself in the form of....

Read the whole article: EconoMonitor : EconoMonitor » All Feasts Must Come to an End: Fake Goods, Fake Growth? Part 3.

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  • Tom Usher

    About Tom Usher

    Mini-Biography: Vision for the Organization: (We must bring forth fruits worthy of repentance. The giving and sharing economy is the right system for running the whole household of Heaven and Earth.) Articles: (Thousands of online articles.) Employment: (2007 - Present: President: RLCC.) (1995 - Present: Independent contracting; Website developing; Writing.) (1993 - 1995: Factors International/Bradbury Hill International Finance.) Education: (City University, Olympia: Bellevue. Graduate Studies: Public Administration. Organizational Theory/Design.) (Arizona State University. BS, Political Science.) (Northern Arizona University.)
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