Quote:
Originally Posted by The Demon
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While China will be the new superpower instead of America, its problems are the opposite of America's. It produces TOO MUCH and Americans have decreased consumer spending. Therefore they have warehouses stored with shit. However, they haver 2 trillion dollar of budget surplus that they can use to create a middle class.
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I would venture to guess that as the Chinese create a middle class that class will do exactly what the middle class in this country has done over the last 30 years. It will learn to debt spend. The only way the Chinese can stop that is if the force the citizens to control their spending otherwise you will get people who want a nicer car or a little bit bigger house and you end up exactly where we are. You have people who are surviving, but they are maxed out on credit and as soon as something goes wrong they are in deep trouble.
Maybe they won't. Maybe they will keep prices in line so that their middle class can afford a decent house and a decent car without overextending themselves in debt, but that might be difficult to do.