So far outside the box you can't even see the box from here.
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Friday, October 23, 2015
Fears about China
There's a lot of talk about how China is eating our lunch. They are taking over industrial production. Chinese products are everywhere. We also keep hearing stories about wealthy Chinese buying up high value American properties. The future speaks Mandarin.
Thirty years ago, the future spoke Japanese. It was Japan making all the great cars. Their industrial strength amazed the rest of the world. American landmark properties were being bought by Japanese investors. Sony was going to own the world.
Then some other stuff happened. Financial troubles hit Japan and they really never recovered. The future is hard to see. Our crystal ball is cracked and clouded.
China of today may be the Japan of the 80s. Of course, that doesn't mean the United States will be the next country to profit. For all we know it could be Vietnam, Brazil, or South Africa. Sound unlikely? So did the idea of Chinese dominance back when Nixon when to China.
Of course, the “Chinese Economic Miracle” could keep going for some time yet. We just can't assume it will be the only big player on the block. Someone else could take its place. That's not to say it's going to disappear and shrink back down to a Belgium sized economy. After all, in spite of their problems, the Japanese still have considerable business and technological clout.
I live in an area of NH known as the Great North Woods. I'm in my dome-i-cile out in the county with my lovely wife and a varying number of family and friends
-part red neck, part hippie but all country. Experimenting and enjoying the adventure of life.