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Thread: Will the economic crisis attack China over the next FIVE years?

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[quote=BOBERT,427172]For many years most established western countries allowed China to be the factory to the world. It suited all parties and was a win win situation. The relatively low cost and abundance of Chinese labor and low first world interest rates meant everyone was happy. China lent the foreign currency made from her exports back to the western world and the world used that money to buy more of what China made. Instead of manufacturing, the western world made absurd financial deals and sold overpriced houses to each other.

Now the western world is broke. The world can never repay it's debt and is devaluing it's currency in a last ditch effort to lighten the debt load. Everyone is trying to devalue but the US dollar is still the defacto currency to the world. The US is printing more money which makes it worth less against everything. Everything denominated in US dollars is skyrocketing because the value of the US dollar is plummeting.

China is now caught in the bind that America created. Inflation is causing food, fuel and house prices to rise everywhere. In Egypt, Tunisia and Libya the effect has been dramatic. The contagion is spreading fast.  Do you really believe China alone will be immune?

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