Off with our heads!

[mookiemookie]

When they formulated the new poliocy referred to, they explicitly made it a goal to boost internal demand indeed, to become less depending on foreign demand (the great weakness of the German and Japanese economies). And the time is ripe for that, for the general income on averga eis rising, industrialisation moves more and more into the rural places, and the expectations of people regarding luxuary and comfort are rising. The rtegime must deliver here, for pure self-intererst, to not allow the population bcoming rebellious and maybe revolting one far away day.

And again, I ask which customer base is more attractive to sell to? The ones with an average income of $50,000 a year or those with an average income of $750 a year? General income may be rising, but there's a hell of a long way to go before the average Chinese citizen can match the average U.S. citizen's disposable income. And even then you have to be careful using median income statistics, because the rich-poor gap in China is so wide that it skews the median.

One must also be careful when reading terms like "a rising middle class." It's a very relative term based on what economy you're talking about. Middle class in China was defined by the Asian Development Bank as those consuming between $2 and $20 a day. The international poverty level is $1 a day. Does someone who squeaks by the poverty line by $1 really deserve to be called middle class? I'd wager that this Chinese middle class that's supposed to supplant the U.S. as a consumer is a lot smaller than whatever you're reading makes it out to be.

your bonds are worth almost nothing, are a hail mary pass.

How is anyone supposed to take what you say seriously when you make statements like that? Seriously? The strength of U.S. Treasuries lies in the government's ability to tax it's citizens - one of the richest tax bases in the world.

I think you have it backwards, as well. As the European debt crisis goes on, investors are turning to U.S. assets.

Global demand for U.S. stocks, bonds and other financial assets rose in November as private investors stepped up purchases.

Net buying of long-term equities, notes and bonds totaled $85.1 billion during the month, the highest since August, compared with net buying of $28.9 billion in October, according to data released today in Washington.

Europe’s sovereign debt crisis has driven investors to the relative safety of U.S. Treasury securities. Investors are also attracted by rising corporate profits and share prices as the world’s largest economy maintains its recovery from the deepest recession since the 1930s. The Standard & Poor’s 500 Index has climbed more than 21 percent in the past six months.

http://www.bloomberg.com/news/2011-0...estimated.html

I would lose the hyperbole if you wish to make a stronger point.