No economic recovery in sight: Terry Gou (Taiwan)

China Post ^ | 06/25/2013 | Ted Chen

[TexGrill]

TAIPEI, Taiwan -- Citing the impending end of quantitative easing measures in the U.S. and the lagging economic performances of Europe, China, and Japan, Hon Hai Group Chairman Terry Gou said yesterday that he sees no signs of an economic recovery.

Gou attributed the gradual economic recovery in the U.S. to three factors: the loosening of monetary policy, the transition toward electronic commerce and the development of shale oil production

Funds rendered available during the period of loosened monetary policy led to the recovery from the real estate bubble crisis, while the transition toward electronic commerce helped maintain consumption habits, according to Gou. He added that domestic shale oil production reduced U.S. dependence on oil imports. However, recent signs of economic recovery in the U.S. may be hollow and short-lived, as relaxed monetary policy has contributed to the rapid decline of the American middle class, said Gou, citing the proliferation of 99-cent stores in America.

According to Gou, the U.S. economy is primarily driven by the middle class, and with its decline he does not feel that the current economic rebound is sustainable.

On China, Gou stated that despite encouraging figures published by mainland authorities, Hon Hai's exports to China have been declining. The published economic figures were later found to be grossly inflated, he said.

[TexGrill]

Global business tip

[Tainan]

Gou himself is not particularly prescient in the field of economics, however he does have some of the best and brightest analyzers working for him that money can buy.

Also some real sharp wives...both in China and on Taiwan....;)