China to top Japan in 2013

[Oric]

http://www.banktech.com/management-s...BST&wc=4&vQZf=

[Potemkin]

China has had a drop in growth the last 4 quarters.

If China's growth drops to 6-7% it will all stops. That is the number than China needs just to stay level.

Many people not on the coasts want to see modernization come to them. They are being increasingly left out.

People leave their central and western cities and move east. There is this huge vacuum of people of that group. All that are left are old people and children in the rural areas. They live from the money sent back.

If the economy falters then there is no money to send back, maybe no way to get back and even of they do there is no way to make a living. Even thought they are ant people and live low in the chain in the east, they are used to the modern lifestyle.

How will they go back to a very agrarian lifestyle?

[Ross]

I understand there is still an enormous amount of government control
in China , capitalism does not run free as is commonly imagined .

If so they will find it very difficult to adjust quickly unless bureaucrats
relinquish much control and let capitalism drive decisions . But when did you
last see bureaucrats voluntarily and quickly surrender power to
facilitate free market discipline . An especially difficult feat for
bureaucrats largely installed by former communists and with limited
exposure to the true history of free markets .

The Chinese are smart and industrious but I think it likely that
an overly rigid system is going to drive much conflict which
may even unfold as a mega disaster .

How strange it is that the safest thing a government can do
is relinquish restrictive controls not assume more .