Chinese Bubble
George Will recently referred to a study claiming that China's GDP will be $123 trillion in 2040. A claim like that is a sure sign that China is a huge bubble about to burst. Remember the Dow 36000 which came out in right before the popping of the .com bubble?
A much more realistic appraisal of China is offered by Michael Pettis (linked to by John Derbyshire in The Corner). He makes the fascinating point that there are two historical examples of countries acquiring a similar amount of World GDP in currency reserves: the US in the late 1920s and Japan in the late 1980s. Both were on the verge of a precipice.
A much more realistic appraisal of China is offered by Michael Pettis (linked to by John Derbyshire in The Corner). He makes the fascinating point that there are two historical examples of countries acquiring a similar amount of World GDP in currency reserves: the US in the late 1920s and Japan in the late 1980s. Both were on the verge of a precipice.
posted by netsroht at 8:25 AM
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