You have to laugh at the whole “China will collapse crowd” on CNBC and even
respected sites like Zero Hedge. Personally, I love the Zerohedge stuff.
They understand the ponzi-financial fraud-money printing-welfare state economy
that now envelops the West. But China is a real economy, with real demand.
They have people who work hard, strive for education and pay in cash. The banks
are controlled like utilities and speculators are kept on a short leash.
China will not crash..at least not for the next ten years. The risk profile on
China is more geared toward geo-political issues in the south China Sea and the
countries eventual transition to a democracy which I believe will happen sometime
in the next 10-20 year timeframe. Dont’forget all of the Asian Tigers grew up as
one-party dictatorships. Taiwan and South Korea did not even get democracy until
the 1980’s. It will happen here as well.
Car sales in China rose 22.6 percent in May from a year earlier, according to
data released on Saturday, extending the double-digit gain made in the previous
month, as new models premiered at April’s Beijing autoshow started to hit the
In May a total of 1.28 million sedans, sport utility vehicles (SUVs), multipurpose
vehicles (MPVs), and minivans were sold in the country, the China Association of
Automobile Manufacturers said. In the same month of 2011, that number was 1.04 million.
From January to May, deliveries climbed 5.5 percent to 6.33 million, continuing
an uptrend which started in April.