Following on from recent economic predictionsthat the countries building the highest and most skyscrapers, are the
Following on from recent economic predictions that the countries building the highest and most skyscrapers, are the ones soon set for a fall. It turns out that those countries are China and India.
ones soon set for a fall. It turns out that those countries are China and India. But aren’t those the ‘emerging’ economies with 10% growth per year? Yes, but the forecast from those prescient sages in the economic sector is – China’s bubble will burst in 2012.
A recent article in the Independent quoted a City of London analyst, Albert Edwards, as saying that a burst bubble in China this year would be the culmination of the recent recession – the ‘climax’ of the current global economic doom. The false hope of reflationary measures and a property boom like that in the West will see the Chinese joining countries in Europe and the US for tough times, “Beijing, said Edwards, could not afford another big stimulus to offset a weakening of the economy. Falling imports have led to a widening of China’s trade surplus, but Edwards said exports were set to slow and a trade deficit was looming.”
Economic experts are continuing the doomsday predictions by pointing to the disparity between income sets, not just in the West, but the emerging economies of India and China are staring at a new generation of unemployed, disaffected young people. All of this adds to the vulnerability, globally, of markets and the faith (or lack of) in governments to come up with salient solutions. The longer that there appears to be no ‘safe port’ from the current storm, the easier it becomes a self-fulfilling prophecy. Hold on folks, 2012 may be the roughest yet.
