Keeping cool as China's new reality sets in

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Anonymous,

Sorry Stephen but I find your pessimism too negative to the facts. China has a consumer demand that we must hope will stay within single digit figures because otherwise they will outstrip our capacity to supply. Mining infrastructure takes years to build up and growth has been dramatic. Take a look at the statistics for vehicles, buildings, rail, consumer goods and internal works from bridges to power supply. Can you possibly see that this signals a slow down in demand for iron ore, copper and other materials ? The even better facts are that the middleclass boom and affluence brought about by their productivity and competitiveness, is then resulting in tourism and business travel potential bringing back value-added $ to our shores. China and Australia are the best neighbours and the lucky countries. A steady as she goes 6 - 8 % is JUST FINE.

Anonymous,

Think about it, China's 10% growth meant that their economy would double in seven years. There is no way the world can supply that level, or anywhere near it, of resources to enable that level of growth.
We can expect to see Chinese growth around 3%, at a guess. before long.

Anonymous,

After 7 years of 10% growth, the economy has doubled. Present growth as compared to 7 years ago, is 7% of 2 = 14 as compared to 10% of 1 = 10. Therefore the total economy has grown 40% more than it did at 10% 7 years ago. Maybe I am kidding myself, but it makes sense to me......