I like all the Chinese oil companies. As for China, the real issue is mainly inflation which cold be countered more effectively by raising the value of the RMB (the real root of the problem) and re-exporting it back to the source which is the USA.
As for China banks, they have a growing problem but none really worse than the US banks that are dependent on the government to bail them out of most all home loans via Fannie Mae and Freddie Mac and are still hemorrhaging from prior unbooked losses and hidden derivatives positions. If you want to talk about unrecognized liabilities with China why don't you talk about off book accounting in the US where the whole derivatives still remains hidden from view and growing ever bigger.
It is true China is still a developing country. Just seeing that it is still manufacturing based driven proves that. However, the US is increasingly a country on the decline with massive government wastage, a declining currency, overspending and over commitments to expensive military forays around the world, and according to PPP we overpay for most things.
Indeed GDP tracks money wealth but not standard of living. The US has been experiencing declining standards of living for the past decade with no recovery in sight. China on thee other hand is increasing their standard of living. It is true Chinese have a long way to go to catch up to the US in standards of living but another US recession could narrow the gap surprisingly fast. If China revalues their currency up 100% their $7k income becomes $14k and the if the US loses 50% of its value then it becomes a mere $23k. The gap is a lot smaller than you would think.
The US better shape up if it wants to stay on top. Letting Bernanke devalue your currency 5-10% a year is a very bad way to stay on top. Especially when economic growth is under 3% and you are running trillion dollar annual deficits. Pretty much you can't do much of a worse job economically than the US when it comes to running your economy.
Warily Watching China [View article]
As for China banks, they have a growing problem but none really worse than the US banks that are dependent on the government to bail them out of most all home loans via Fannie Mae and Freddie Mac and are still hemorrhaging from prior unbooked losses and hidden derivatives positions. If you want to talk about unrecognized liabilities with China why don't you talk about off book accounting in the US where the whole derivatives still remains hidden from view and growing ever bigger.
China: Still Far From No. 1 [View article]
Indeed GDP tracks money wealth but not standard of living. The US has been experiencing declining standards of living for the past decade with no recovery in sight. China on thee other hand is increasing their standard of living. It is true Chinese have a long way to go to catch up to the US in standards of living but another US recession could narrow the gap surprisingly fast. If China revalues their currency up 100% their $7k income becomes $14k and the if the US loses 50% of its value then it becomes a mere $23k. The gap is a lot smaller than you would think.
The US better shape up if it wants to stay on top. Letting Bernanke devalue your currency 5-10% a year is a very bad way to stay on top. Especially when economic growth is under 3% and you are running trillion dollar annual deficits. Pretty much you can't do much of a worse job economically than the US when it comes to running your economy.