I’m going to start a section on India and China, which I will eventually turn into its own section. For now this is mainly my mental vomit.
So, the Shanghai stock market is down about 60% for the year, China is seeing factory closures, and what will the gov’t do? If they keep money cheap China will see what we are seeing. However, to compare China’s situation to ours is foolish. We are the largest debtor nation in the world and China the largest creditor. Regardless of the depth and length of their recession the eventually outcome will be massive growth. India will be another to keep an eye on. If I were Jim Rogers I would probably buy now and hold on through thick and thin. Also, looking at my previous post I’d be a bit contrarian and buy now. However, given the global outlook, which seems to be weakening I’m going to hold off.
However, I do plan to diversify into the Yuan. From a debt analysis I’d rather have my money in Chinese Yuan than US dollars. EverBank looks to be a decent option, and the easiest at the moment shy of opening an account in China.
Any ideas here will be appreciated!
You should watch the documentary “Office Tigers” about outsourcing to India. It blew my mind. At this point it’s mainly a numbers game — there are so many people who want employment that they can accept about 2% of the people that want a job, drop half of them at training, and still have thousands of people lining up to work all night long while it is daytime in the USA. And if you make all of those cuts and work well for a while and then your performance slacks off — they drop you and replace you.