by Kane » Sat Sep 01, 2012 6:30 pm
Unfortunately for China if the US collapses, so the world goes too. A quarter of the world's economy cannot collapse without having serious deleterious effects on other global partners. Want an example? Look at Europe. China's premiere export partner is impacting export driven growth substantially and rebalancing towards domestic consumption isnt working due to the natural tendency of Asian consumers to save as well as fdi outflows. And civil unrest? Pfffft.
China remains a future threat but stands to lose everything for years to come.
Oh, and lol at stockpiling gold and diversification. They can stockpile all the file they want, have fun maintaining stability. Diversification is the issue at hand and is in an infantile stage, hardly a threat so long as they insist on pegging their currency to ours....which is increasingly difficult as inflationary pressures don't abate (as evidenced by food prices in their country).
They better hope to god we don't collapse, that transition this year won't mean sh*t if we do. The communist party will be dead.