Originally posted by: BansheeX
How could they be expanding? They are still throwing all their savings at indebted Americans to buy their products in exchange for more paper in their vaults. The strategy is done, they don't need to it anymore. They became more capitalist than us, underconsumed for 30 years to have savings and loaned our government trillions at interest. Our government mortgaged the farm on our behalf to buy their milk and now China has the farm, reserves of our currency, and the capacity to phase into an economy that consumes what it produces. The only reason they can't afford it is because they continue to loan us money to consume their products for them. We are using their savings to consume and produce non-exportables, all we can offer them in exchange for production is an endless stream of paper IOUs.
I don't know what the current numbers are but China is still growing pretty quickly.
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