Bernake’s monetary policy and the Fed’s bailout plan has and will continue to flatten economic growth like a cow pie drying in the sun.
China’s growth will slow but nowhere near U.S. levels, so China has pulled the “thanks, but no thanks” to U.S. stocks because it knows that the U.S. stock market won’t rebound for some time. They know that layoffs in the U.S. manufacturing jobs will result in new hires in their country, and foreign investors are fleeing U.S. markets.
Projection: China’s growth will hit 8% in 2009 compared with the U.S. growth of 2%
The Chinese banking system is dominated by four big state-owned banks that can write a whenever the party – and the Army – tells them to, and to whom, and with $1.4 trillion in cash there’s no liquidity crisis in China.
China is using its capital to build more infrastructure: roads, bridges and cities at record pace.
The McKinsey Global Institute reports that:
“In 20 years, China’s cities will have added 350 million people—more than the entire population of the United States today.”
“By 2025, China will have 221 cities with more than one million inhabitants—compared with 35 in Europe today—and 24 cities with more than five million people.”
“By 2030, 1 billion people will live in China’s cities…170 mass-transit systems could be built…40 billion of square meters of floor space will be built in five million buildings—50,000 of which could be skyscrapers.”
By the year 2025 China will have 221 cities with more than one million people living in them, you can only imagine the kind of money that is going to be made, as China’s newfound consumer class enters the marketplace and replaces the American consumer as the supreme driver of world growth.
..And we paid them to do it…while dumbed down Americans remain blinded by the daily news about petty issues and the ups and downs in the Dow…