[mEDITate-OR:
miss a really great article by Jubak...
about China, raw materials, and greedy (but not tiny) bubbles...
While we may not see, immediately, that China IS pursuing another "industrial policy", they are.
And, it is THEY, and not U.S., who are attacking someone else's monopoly.
If we - and Google ? - thought that they were ruthless in Tiananmen Square...
well..., as the song told U.S...., "You ain't seen nothing yet..."
However, in this case, WE are all going to be much better off.
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Friday, April 16, 2010 6:54:19 PM
Fascinating & disgusting.
However, Jim may we suggest you look at another motive, for China, et al. As you point out they do have a TON of money, no pun intended, that is not earning much. So, what if they do take some of that money, that we gave them in trade, and "invest" it into alternative supplies of a critical raw material. Taking cheap money to use to break the oligopoly that is bleeding them; costs them little, and gives them much. True, it make take a year or two; but look at the "profit" they will get - over the long term. IF you are right, and we believe you are; that this will cause a collapse of the prices the oligopoly can milk out of them - permanently, do you not see what they have really done.
Set themselves up to make a very large profit.
When we refused to let China buy Chevron, they simply went out and bought access to oil fields. They DO know about "war", and that there are many ways to skin a too fat cat - even if they have to wait til the year of the rat.
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The key ingredient of market bubbles
Greed, arrogance and corruption contributed to the financial crisis, but one essential element topped them all
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