Take a look at the videos coming from China.
After watching these videos, I wonder how anyone in their right mind recommends investing in China. I have already debunked the idea that the Renminbi is going to take over the US Dollar as the reserve currency. You can see my post titled “All Hail King Dollar” for some data. Only 2% of global currency transactions take place in the Renminbi. Almost all of it is with Hong Kong (basically, itself).
Almost every statistic the Chinese government publishes is a lie. No one trust them. I do not believe the wave of the future is a monetary system designed by Commie bureaucrats to meet short term political desires. The wave of the future is not going to be countries that lock their citizens into their homes to starve because of a bad flu.
The Chinese buying of residential property in the United States was always an obvious sign of capital flight. Rich Chinese investors, that know far more about what is happening in China, trying to get their wealth into the USA where it is safe. It is not some Chinese plot to take over and control the US. In recent years, the Chinese government has made it harder for Chinese citizens to invest aboard. Think the words ‘capital controls’.
I do not deny the amazing progress that has been made in China. In the early 80’s, they embraced capitalism and a billion people have been lifted from dirt poor poverty.
Here is a questions for the China Bulls:
Have you closed your Bank of America account, converted all your US dollars to Yuan and deposited it into a China state bank?