Chinese economic boom is headed for gloom because it is now based on gains from property and stocks lacking domestic consumer growth
Sam Adelton
Jul. 4, 2009

Chinese economic recovery looks like a bull rally within a large scale secular bear market umbrella. The problem lies in lack of domestic consumer growth. China hopes for a quick global economic recovery that can boost export demand to levels before global financial meltdown and economic depression.

China has failed to promote domestic consumption to make up for weak global demand. China has failed to boost domestic consumption by increasing household income and not just through gains from property and stocks.

The People’s Bank of China scrapped lending quotas in November and has kept interest rates at a four-year low, triggering an explosion in credit to support Premier Wen Jiabao’s 4 trillion yuan ($585 billion) stimulus package. Most of the money has gone into realestate and stock market related speculation. The bubble is about to burst. China can soon find it is in a biggest depression than the West.

Chinese economic boom is headed for gloom because it is now based on gains from property and stocks lacking domestic consumer growth
Sam Adelton
China has failed to promote domestic consumption to make up for weak global demand. China has failed to boost domestic consumption by increasing household income and not just through gains from property and stocks.
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