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<p>[QUOTE=&quot;Prestoninanus, post: 1106003, member: 20205&quot;]However, they are so massively in credit that they can afford slow growth or even contraction. As net creditors, they don&#039;t need to borrow dump-trucks full of money in order to stay afloat. Even as they accumilate more and more money thanks to their aggressive and protectionist fiscal policies (which for some reason, western countries are either unable or too stupid to retaliate against properly), they are building ghost cities which are providing work for the masses, all funded by trade imbalances with the west, particularly the US. In the short to medium term, China isn&#039;t going to suffer economic problems any time soon, they can fill the gaps in their economy with their very ample reserves before they even have to start borrowing.</p><p>&nbsp;In the long term, I agree they are probably going to see massive problems, in large part due to the massive demographic time bomb they are sitting on because of their one-child policy, and the fact that the US can&#039;t keep running up deficits, trade imbalance, and debt to China indefinately. I&#039;m not quite sure about exactly what is going to happen then, but as the Chinese curse goes, we will be living in interesting times when all this comes to a head....[/QUOTE]</p><p><br /></p>

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