Saturday, January 19

interesting times

The business pages yesterday contained some surprising facts on China. For instance, despite their huge population they are now experiencing a labour shortage! Caused partly by their one-child policy.

Also, although we usually associate Quantitative Easing with desperate Western governments, China has actually been printing money much faster than the US. Albert supposes it makes sense - their trillions invested in the US have been losing value as the dollar is diluted, so why shouldn't they water down their own currency?

In the past, China has lent all its surplus funds to America, but now they are diversifying their investment strategy, and that makes sense too. For instance, they're splashing a lot of cash on buying Australian mining companies. A much more productive use of their money - Chinese factories need metals and coal.

Albert says that some Aussies are appalled to see their companies acquired by China, viewing it as an economic invasion. But they had the same paranoia a few decades ago, when it was Japan buying up Aussie land and iconic businesses.


  1. The one child policy is coming back to haunt them in a big way. The long term problems are huge.

    In America folks were fussed, when I was younger, about things coming from Japan and the country being bought up by outsiders.

    I suppose we should be happy that someone still has money to support our crazy lifestyles.

  2. Nanners. I hear Cameron wants to take you out of Europe. What next? London withdraws from England?

    Are you getting any snow where you are?

  3. Nope Scotland withdraws from Britain actually.

    I've got snow on the hills around me but down here at sea level all I have is rain.

  4. I say!

    I support 17 people, here in Kalimbuka. Wilson has six children, and couldn't remember all their names, when we asked him what they were called the other day.

    At least, they are getting some things right in China.

    MM III