China!

China looks like becoming the worlds super-power. One of the reasons I think we have little to fear from China, is due to its size.

Sure there are a hell of a lot of them, but 90% of the population have never picked up a telephone. They have one of the largest populations on the Web, but I cannot see them swamping Google and Ebay?

No, I think its quality over quality. Just because there are a lot of heads, doesn’t mean to say we should give in to that thinking. One of the reasons Chinese goods are flooding our markets, is due to cheapness. But they only achieve this price by not paying any real wages.

The Chines government took out a 500 Billion Dollar bond, to underwrite its whole economy. So they basically threw money at it, and paid us to take the stuff. All well and good, but there will come a day when they have to pay it back, and where did they borrow it from in the first place?

The Government love the idea of Communism, but only like it applied to the working class, not for them. There will come a day when the workers wake up and see this. A bit like the aristocracy in England in the 19th century. They wanted the industrial revolution but only for themselves. But they have to hand some power back to the shop floor, when they realised none of them were clever enough to work these new machines. And the clever workers were!

This is what will happen in China.

The Government owns all the property. This will chance too. The world will see a host of hungry entrepreneurs all carving out their little empire. True to say there will be a lot of upheaval. But what ever happens, China will not stay the same. There will be problems coming from the far East, but not in the form of the monster Communist Block. Those days are finished.