[Alberta's Child]

China is well on its way toward a very serious problem with its currency -- it is living on borrowed time right now. The problem is that they are deliberately under-valuing the yuan in an attempt to keep their labor and products so cheap compared to the rest of Asia.

When the yuan eventually stands on its own in the global currency markets, the result will not be pretty.

FYI, the last notable country to do this kind of thing was Japan, back in the 1980s. Look at all the complaints about China on this thread, and compare them to all those 1980s doomsday predictions about Japan owning the entire world. Notice the similarity? Does anyone talk about Japan anymore?

[maui_hawaii]

If China collapses economically what will it effect? Nothing. Why? Because our corporations are relying on China's 3rd world status in their business models. The thinking now is "if China collapses so what. That will mean they will just have to cut prices a little more...which is all the better for me"...

The China based business model is flawed. The worse things get there the better for our corporations. If there is labor problems, thats ok, it just means we can pay them a little bit less than last year...