Buffett Says Economy is "Coming Back"

[Localizer]

Re: Buffett Says Economy is "Coming Back"

not true...there is a growing consumer market in china and things will continue in that direction this is well demonstrated by recent factory workers protests in china which led to relative wage increases of over 50 and up to 100%

It's a slow consumer market. China will have to give up its communist power to get the ball rolling.


This article presents both views of the current and future climate of the Chinese economy.

http://seekingalpha.com/article/215115-china-free-fall-or-soft-landing?source=dashboard_global-markets

[trick12]

Re: Buffett Says Economy is "Coming Back"

India possibly, especially if the service industry surpasses the slowing industrial growth. But China, not so much, unless it can step away from having a state-owned economy. It's still an export economy and if we don't grow, they don't grow. So their only alternative is to increase internal consumption which means falling away from communism in general. That sort of power-loss probably won't be likely.

china has already gone long ways in market success and its not really about if we grow they grow, they are adopting very well to the global situation and they are disguised as low quality cheap products, go to walmart and u'll see that the rate of products that are made in china increased significantly, lots of big companies turned to manufacture their products in china as well, consumers got hit in the global and that changed their behavior and made them willing to drop their standards, and since everyone one else in the chain has to adopt and still try to make money that makes the chinese the winners and its really vice versa ur statement "if we dont grow, they grow" coz if we grow people will go back to their high quality products and that will hurt china's exports. India on the other side is booming in a different way, the market turned from assumptions to actuals, another emerging market that lots have eyes on is sudan, this place is full of goods but the political situation is their problem and scares investors away.

[Localizer]

Re: Buffett Says Economy is "Coming Back"

china has already gone long ways in market success and its not really about if we grow they grow, they are adopting very well to the global situation and they are disguised as low quality cheap products, go to walmart and u'll see that the rate of products that are made in china increased significantly, lots of big companies turned to manufacture their products in china as well, consumers got hit in the global and that changed their behavior and made them willing to drop their standards, and since everyone one else in the chain has to adopt and still try to make money that makes the chinese the winners and its really vice versa ur statement "if we dont grow, they grow" coz if we grow people will go back to their high quality products and that will hurt china's exports. India on the other side is booming in a different way, the market turned from assumptions to actuals, another emerging market that lots have eyes on is sudan, this place is full of goods but the political situation is their problem and scares investors away.

China has progressed but it's been retained in the export shell. This has inevitably lead to the emergence of a sustainable infrastructure which keeps getting better. However, GDP is still among the lowest and the wage increase is still only 1/2 of what it is in Mexico. It's also important to keep in mind that China is a booming population (one of the world's largest) and needs extensive resources which will be exhausted in the near future.

It's also going to be interesting to see what China does with Yuan and its lending practices.

I don't think they will grow without us. We have a symbiotic relationship, but this means that we are going to move together proportionally. Any movement they make will be reflected upon us and will not be independent. If you and Shpira are right though, and China (and India) emerges as a 1st world nation that rivals the mechanics of the United States, then this shall be the most awe-inspiring evolution of economics the world has ever seen, far surpassing the establishment of other Tiger nations, and perhaps eclipsing our own industrial revolution in the 19th and 20th century.

[Shpira]

Re: Buffett Says Economy is "Coming Back"

China has progressed but it's been retained in the export shell. This has inevitably lead to the emergence of a sustainable infrastructure which keeps getting better. However, GDP is still among the lowest and the wage increase is still only 1/2 of what it is in Mexico. It's also important to keep in mind that China is a booming population (one of the world's largest) and needs extensive resources which will be exhausted in the near future.

It's also going to be interesting to see what China does with Yuan and its lending practices.

I don't think they will grow without us. We have a symbiotic relationship, but this means that we are going to move together proportionally. Any movement they make will be reflected upon us and will not be independent. If you and Shpira are right though, and China (and India) emerges as a 1st world nation that rivals the mechanics of the United States, then this shall be the most awe-inspiring evolution of economics the world has ever seen, far surpassing the establishment of other Tiger nations, and perhaps eclipsing our own industrial revolution in the 19th and 20th century.

I think China cannot be compared to tiger economies...it is a unique case and they will take over everything unless there is a war soon.
The fact that they have such a huge population is the reason wage is half that in Mexico...but proportionally most goods are cheaper in china than are in Mexico. Also, china has not been communist since 1948...centralised yes but not communist.

I agree that the future of the Yuan is very interesting they're going to have to float it sooner or later. Also, I think soon enough the Chinese will drop the dollar reserves and the US dollar will stop being used as a base currency for commodities. When these two things happen there will either be an outbreak of war as both will signal the change in hegemony or something equally drastic.

[Localizer]

Re: Buffett Says Economy is "Coming Back"

I agree that the future of the Yuan is very interesting they're going to have to float it sooner or later. Also, I think soon enough the Chinese will drop the dollar reserves and the US dollar will stop being used as a base currency for commodities. When these two things happen there will either be an outbreak of war as both will signal the change in hegemony or something equally drastic.

Ya, I'm anticipating that they detach from the dollar but I'm not sure if it will cause war. We can't even afford it and they can economically collapse the US in an instance if they wanted to. I think it'll be sometime before that happens, or things will cool down and they'll maintain the dollar. Going to definitely be an exciting but scary road up ahead.

[Shpira]

Re: Buffett Says Economy is "Coming Back"

yup...i meant the dollar not being used as a base ccy for transactions could likely cause a war.