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View Full Version : The Next Bubble-Global via China?



AaronP
04-06-09, 07:25 PM
Doug Noland's recent thoughts (link below) on global reflation struck me as very interesting. Is it possible that China and it's ability to reflate is the engine of growth going forward world wide?

His point is that China has the capacity to pick up the expansion ball from housing, much like housing picked up the ball from tech stocks. For this to happen, China's growth would need to fill the gap left by housing, which I believe EJ estimated around 20 trillion. China is certainly motivated to maintain stability, and kills two birds with one stone by spending their dollars on works projects, but would this generate the level of credit needed to reflate the world economy?

http://www.prudentbear.com/index.php/commentary/creditbubblebulletin?art_id=10211