[Marxism] China's growth accelerates in Q2

[S. Artesian]

The emphasis should be on "bubble,"  Marvin.   The growth in foreign 
reserves exceeds FDI and export earnings which indicates that the funds 
increase is in financial instruments, stocks, and real estate assets.

No doubt industrial output is growing, based on record lending increases.

But the key is profitability.  If profitability declines, then in China as 
in the US, the loans can't be covered, the collateral itself is devalued, 
and the bubble goes pop.

There is no doubt that China's growth since 1984 has been powered by FDI, 
and FDI has [by law, actually] centered on exports.  The  foreign invested 
enterprises accounted for, I think, about 60 %  of China's exports and were 
the key profit centers... so with that in decline,  I kind of think what we 
have here is a very big bounce from a very dead cat.


----- Original Message ----- 
From: "Marv Gandall" <marvgandall at videotron.ca>
To: <sartesian at earthlink.net>
Sent: Thursday, July 16, 2009 8:47 AM
Subject: [Marxism] China's growth accelerates in Q2