Growing Pains in China
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  • Soul

    I have not heard from my Chinese friend in awhile, but recall when he was working for a Q-tip manufacturing firm, he frequently complained about the high turn over of employees at the company. Young men and women would come in from the country side, take a job at their facility, and leave a few months or so later due to finding higher paying work. My friend was never was able to get his boss/ owner to raise wages though to keep employees around longer.

  • Look at the financial parallels between the Chinese situation and the United States. Centrally planned economies always fail. Capital is only flowing to the approved entities like oh, Solyndra, and the private equity markets are crowded out.

  • Jacksonian Libertarian

    The Chinese export model economy built on manipulation of their currency against the Dollar to gain a price advantage for Chinese businesses was never going to be sustainable long term. They overpaid for the Dollars they have accumulated in the first place, and as the supply of Dollars outside the US ($4.5 Trillion in US treasuries) has increased the value of those Dollars continues to drop. It will be interesting to see what happens as the imbalance grows heavier.

  • Andrew Allison

    Copper is not in short supply; it’s at a four-year low and sinking, ditto for aluminium (http://www.infomine.com/investment/metal-prices/copper/). Oil has been trending down for the past three years, thanks in part to the fracking USA.

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