The Chinese Wildcard

The living standards of China's 1.3 billion people are greatly unbalanced, where the per capita income ranks 129th in the world, lower than Egypt and Iran.

China's economy requires 7% growth just to break even with the new workers entering the job market each year. The country prints huge sums of Yuan to hold down the currency's exchange rate and in the process is fueling the boom in investment and credit. In addition with their trade surpluses the country is sitting on almost $1 trillion US Dollars or equivalent.

The needed infrastructure to support this growth is stunning and not going away anytime soon.

The stock and commodity markets are pricing in a slowing of the US Economy and a slowing Chinese economy because 40% of their growth is exported to the USA.

Seems like a giant head fake....time will tell....Barkly is visiting China in two months.

Barkly seen here is amazed at the blue sky and friendship he shares with so many.