(April 27, 2011 at 11:59 pm)theVOID Wrote: Nonsense.
Their increasing purchasing power means a number of things.
1. They can import raw materials, oil, other commodities, food etc at a cheaper price leading to cheaper goods to trade and consume.
2. They can spend money in other countries more effectively, that massively boosts their industrialization efforts of 3rd world African economies of which they reap enormous benefits and develop these emerging markets into valuable trading partners.
3. Prices for goods and services decrease relative to the currency, improves the standard of living.
4. They can buy more of their own goods and services, further increasing their standards of living.
5. They can more effectively modernize more of their own industry, leading to higher production.
..and they did it without using a single bit of the "Austrian school" of economics or its "superior predictive power". China injects money into its economy just the same as America does. The difference is that China has a state planned capitalism. I prefer America's mixed economic system myself... I just dont like the way they are running it into the ground right now.
