# China-US Double Bubble Trouble



## wayneL (21 April 2005)

"What happens when two bubbles collide? Do they both burst, or do they coalesce and become an even bigger bubble - which will eventually burst even more spectacularly? That is the question posed by the growth figures from both the US and China, whose growth rates are tied in ways that neither seems to want to admit too loudly........."

http://www.atimes.com/atimes/Global_Economy/FA23Dj01.html


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## DTM (21 April 2005)

It looks like the Chinese are happy to buy US bonds because the Americans are paying for their progress.  I think the Chinese are using the US to grow their economy and to help them become more self sufficient.  

Personally, I think India will do better in the long term because their products are more advanced, ie more technology based.  I think but am not sure that they also have the largest and fastest growing middle class in the world.


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## It's Snake Pliskin (21 April 2005)

With respect to the Indians they are more service oriented rather than product exporters - call centres for example. 

The Chinese bubble will burst as did the Japanese one; it's only a matter of time.


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## WaySolid (21 April 2005)

DTM said:
			
		

> It looks like the Chinese are happy to buy US bonds because the Americans are paying for their progress.  I think the Chinese are using the US to grow their economy and to help them become more self sufficient.
> 
> Personally, I think India will do better in the long term because their products are more advanced, ie more technology based.  I think but am not sure that they also have the largest and fastest growing middle class in the world.



I am not smart enough to know either way, but I'm inclined to believe the view of Jim Rogers (of Quantum fund fame) who is scathing on the prospects of India compared to China.

Anyone looking for an insightful view from a legend investor should consider reading anything this guy writes. 

http://www.jimrogers.com/


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