Disliked{quote} On the road to 0.8 My biggest fear is that EU will force banks to by bonds. (They already do its been going on for years but this one would be different) If China goes first then EU will follow I don't know which one is going to happen first.. Banks do not run anything anymore its all run by the politicians the only way to get their attention to listen is to crash markets.. {quote} Putin went to War, with Ukraine. So he could sleep with little boys.. Your serious aren't you.. lol I though you where just bs'n.. Your probably right. I have...Ignored
Besides energy the u.s. has much larger supply of domestic natural resources. More natural resources with a population 1/4 of the size of China. That will always weigh on China comparably. Japan is a volcano comparably. It took less time to stagnate. Japan has to import most natural resources (raw materials RM, scrap metal etc.) to build stuff. China needs more RM domestically, faster than they can produce it. So they import it. Domestically China needs 75% more RM than the U.S based on population. The U.S. has more rust built infostructure waiting to be revitalized. Its already mostly built, but needing repair. China is still building from scratch. Meaning the U.S. has already invested in the RM years ago. It just needs repairing.
A simple way of seeing this is population. China has 4X the people of the U.S. China as a country needs 4X comparably just to stay even. China dont have 4X RM. So despite the trend. It will end up like Japan. Japan is RM neutral now excluding energy. That energy balance is a deficit for Japan. This could be made up in services, such as some big innovative company like Apple. But until that happens you have this. So Japan will stagnate mostly. Until it comes up with a product to push it ahead. Japan is Fucked. The RM coming in, goes out in a product (-energy used). That's why the equity markets are mostly stagnant (30 years).
China will experience the same with time. China is still young compared to Europe. Eventually China will be in the same boat. The fresh water shortage turning North land to desert will not help. Water pollution is just getting worse. China will be forced to adapt environment friendly regulation (and the cost). China is still full of ghost cities. Since investment is limited. Millions put all their savings in these empty ghost cities. Being empty, they are not receiving income to maintain the buildings. Many of these ghost cities are falling into ill repair. When you dont domestically have the raw materials. You have to buy (import) them, ship them home. Make a product, ship (export) it offshore again. That's all added cost. The Chinese government wont subsidize energy forever. All that added cost raise the price. This last year with chip etc has shown the weakness in the chain. Car companies lost their ass in sales due to chips. They will want domestic makers now. We haven't even began yet. The plants are yet to be built. SOS with Europe and energy and RM. Companies build where its cheaper to build. Its just the way things work. Mules that shit fast dont shit long. Japan is proof of that. China will have its turn. Its the circle of life.
those who can, do. those who cant, talk about those who can
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