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I was reading an article regarding the economic crisis effect and one of the things that got my attention is that china was the biggest winner and took the crisis to it's advantage !

Starting from General Motors to the biggest excavation company in the world to other industrial countries all seeking the support of china which got engaged in a wave of unprecedented purchase.

So far the Chinese government focused its efforts to conclude deals for natural resources and ensure the supply of oil and minerals for the payment of large sums of money and banks are still capable lending to support government objectives !

Regardless of the many political obstacles, which appeared in 2005 and the political pressure from the west ,the China pulled it self together and made it among all the other industrial countries !!

The big question is (did Capitalism finally paid off ?)

seems SO, chinese are smart ppl , see the gov. control the market ..so when the financila crisis hit the globe so many foriegne investors tried to transfer all the cash they have in the chinese banks to their country ..but the chiness gov. said no ..so they have all the cash they need ...its healthy from time to time that the gov. take some action ..u know some, time u have to control ur children's..

it is ironic that the west needs chains help after they have criticized their system for years !!!

Well, China also has a free market economy for the most part. Only certain industries are centralized. One of the biggest reasons that they haven't (yet?) been hit so hard is because their banks are mostly state owned. The loose-as-a-Deira-whore banks in the US, Europe, and almost everywhere else in the world are a huge reason for the ongoing recession.

Capitalism is not the problem. It actually brought prosperity to other parts of the world, that never knew or had it before.

The problem lies in America. Speculation, greed, bonuses and government monetary influence is way off desired levels. The expansion of government and M3 broad money supply made the dollar cheap to borrow, but now expensive to pay back. The risk factor was being wavered off to other people and it continued for almost half a decade while forgetting that a boomerang comes back firmly...

They are reaping fruits as we speak. But we in Europe and offcourse you guys in the Gulf region played your part. We all took on lots of debt collateral from the States which we didn't understand and traded them like water... everybody feels the pain now.

China used capitalism to its advantage, while not opening up completely to it. Thats one of the reason the West is putting pressure on China. They are in possession of a healthy (used to be) manufacturing industry that America supplied them. The US doesn't have a large manufacturing industry anymore. They thought to profit from the tertiary service industry. But they were wrong bigtime.

If you produce something the world wants. Something tangible, you get foreign money in. You build foreign reserves and that is just what China did all the time. They didn't convert the dollars from America into Yuan, and therefore they kept the dollar up, while keeping the Yuan reasonably low. This strengthens the export for China. Logically, the West tries to encourage China to revaluate the Yuan to more reasonable levels so the world has a more equal playing field for its exports.

Both China and the USA profited from China's export industry. Only the US didn't save anything. They lived beyond their means. And Asians are good in saving as they simply come from a lower standard of life and are building wealth from bottom up.

The world isn't perfect guys. Its that simple.

Robby, I agree with most of your point except where you mention that the US doesn't have a large manufacturing industry anymore. They are still one of the world's largest. In many industries, they *are* the largest. That's one of the sad points of the bailout, actually. So much money was given away to banks and financial institutions who were largely responsible for the current turmoil yet manufacturers, who are nonetheless affected by the bankers' choices, get shafted.

gamercowboy wrote:Robby, I agree with most of your point except where you mention that the US doesn't have a large manufacturing industry anymore. They are still one of the world's largest. In many industries, they *are* the largest. That's one of the sad points of the bailout, actually. So much money was given away to banks and financial institutions who were largely responsible for the current turmoil yet manufacturers, who are nonetheless affected by the bankers' choices, get shafted.

They are the largest, because they have an GDP worth 14 Trillion dollars. If you slice the manufacturing base off and compare it to the consumption sector which hold 70 percent of GDP....you know what I'm talking about. Surely, its also says something about the sheer SIZE of the US of A.

But manufacturing in the US is not what is was. Bush was always a great proponent of globalization but he changed his mind during this credit crisis as he noticed that America didn't produce shieeetttt anymore for what is used to produce.