Pity Poor China: There’s No Easy Fix to the S-Curve – week 23
Een gesprek tussen Gordon Long en de macro-econoom Charles Hugh Smith.
This decline is inevitable in fast-expanding economies that depended on export growth and investment booms.
The fundamental context of China’s economy is that it has traced out an S-Curve–as did previous fast-developing nations such as Japan and South Korea.
The S-Curve can be likened to a rocket’s trajectory: first, there’s an ignition phase, as the fuel of financialization, cheap labor and untapped productive capacity is ignited.
The boost phase lasts as long as credit-fueled production and consumption expand rapidly.