In my view China is in the same boat right next to the highly indebted western world simply due to the high level of interconnectedness the global economy finds itself in today.
They suply the crack, we use it. If we go into rehab everyone suffers.
This can be readjusted ofcourse but that's harder than it sounds.
Then they have some huge enviromental issues vastly overlooked by most market pundits today.
Polution, severe lack of arable soil and drinkable water...
These are all game breakers with no easy fix.
The Chinese know this obviously and have been invading Africa as if they were Dr Livingstone themselves for instance but the allegiance of African interests goes back centuries and it can't be bought by USD alone so time will tell how that works out.
To end of on a lighter note, where the western world loses out on China is our mindset of entitlement.
The western world has enjoyed one of the longest periods of stability, peace and prosperity in it's history where as people were dying from starvation by the millions in China only a couple of decades ago.
This makes for a far more resilient and tougher populace propably ensuring the country's swift rebound before ours should the crisis deepen much further.
If the Chinese are smart they crash their own economy today rather than propping up what is unsustainable anyway instead of dealing with the unintended and probably worse consequences of government intervention later as western policy has clearly shown these last years.
They suply the crack, we use it. If we go into rehab everyone suffers.
This can be readjusted ofcourse but that's harder than it sounds.
Then they have some huge enviromental issues vastly overlooked by most market pundits today.
Polution, severe lack of arable soil and drinkable water...
These are all game breakers with no easy fix.
The Chinese know this obviously and have been invading Africa as if they were Dr Livingstone themselves for instance but the allegiance of African interests goes back centuries and it can't be bought by USD alone so time will tell how that works out.
To end of on a lighter note, where the western world loses out on China is our mindset of entitlement.
The western world has enjoyed one of the longest periods of stability, peace and prosperity in it's history where as people were dying from starvation by the millions in China only a couple of decades ago.
This makes for a far more resilient and tougher populace propably ensuring the country's swift rebound before ours should the crisis deepen much further.
If the Chinese are smart they crash their own economy today rather than propping up what is unsustainable anyway instead of dealing with the unintended and probably worse consequences of government intervention later as western policy has clearly shown these last years.