Monday, October 11, 2010

China is torn by all kinds of imbalances

United States, "The Wall Street Journal" recently published an article entitled "The balance of China", the author is Alen Mattich. The article is said in nowadays the Chinese economy and Chinese society is torn by a variety of imbalances, the investor is unlikely to have fully digested these risks. Especially for the long-term problems, such as the real estate, industrial capacity and infrastructure projects the consequences of a large number of improper investment, the Chinese government to make up for these losses, depositors will ultimately bear these costs through government guidance, set artificially low interest rates to achieve. And it also talks about China's one-child policy and the Chinese cultural preference for boys, it will lead to major social issues in the next few decades. For those all above, I think it really make sence. In a word, all those measures are taken by the Chinese government, people are going to be take the costs. And make people to live in harder way. Because everything is much expensiver than before.

http://news.cn.yahoo.com/ypen/20101012/45550.html

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