News that GM is moving to China is interesting.
GM has a fair share of the Chinese car market already, but that may
be temporary, as China, like the rest of the world, likely prefers
Japanese and German cars over US models long term, but then, of
course, there is the "pity buy" factor to consider and all of those
dollars to spend.
STILL, THE ENTIRE RECENT "GLOBAL BOOM" SEEMS TO BE BASED ON THE
CHINA'S
CAPACITY EXPANSION!
The Japan recovery is really based on China's boom. And, indeed, the
MASSIVE INFRASTRUCTURE BUILD OUT in China is apparently the NEW
ENGINE OF GROWTH IN THE WORLD!
Remember, in the old days when the US had that job?
IN EFFECT, WE ARE "RE-BUILDING" THE ENTIRE WORLDS PRODUCTIVE CAPACITY
IN CHINA!
THE THE REST OF THE WORLD; EUROLAND, THE US AND MEXICO, AND
PARTS OF ASIA ARE SIMPLY "BACK UP" CAPACITY NOW.
AND THE CHINA BOOM IS CAUSING A GIANT SUCKING SOUND IN THE GLOBAL
COMMODITIES MARKETS.
But consider: WHAT ARE THE ECONOMIC CONSEQUENCES OF ALL THESE
CHINESE BUICKS?
For one, the US and Euroland will be priced out of the market because
of labor costs. This will only cause more debt and deficit spending
in the declining west; but like Ronny taught us "Deficits don't
matter." Dont worry be happy.
Additionally, that wonderful new Chinese middle class, who are doing
jobs that used to be done in the West, can now afford cars.
But, Americans and Eurolanders are not going to quit driving their
cars any time soon.
SO, PRESSURE ON GAS PRICES IS INEVITABLE.
THAT IS THE ECONOMIC CONSEQUENCES OF 100 MILLION NEW CHINESE BUICKS!
WORSE YET, THIS "NEW CAPACITY" THAT IS COMING ON LINE IN CHNIA IS
MODERN AND HIGHLY COMPUTERIZED, AND IT'S COMBINED WITH VERY CHEAP
LABOR TO BOOT!
NET-NET; CHINA IS A CAPITALISTS DREAM COME TRUE!
THE ONLY PROBLEM IS CHINA IS ONE OF THOSE EVIL COMMIE COUNTRIES THAT RONNY ACCIDENTLY FORGOT TO "DEFEAT!"
MARK MY WORDS: THIS "CHINA BOOM" IS GOING TO JUMP UP AND BITE US ON
THE ASS! SOME DAY, REAL SOON.......
Hmmmmm.....maybe that's why Mr G was so prickly today?
Maybe Mr G is a little more concerned about the ECONOMIC CONSEQUENCES
OF CHINESE BUICKS than we think?
Ya suppose?
