China GDP

Well, I'm sure that you have heard by now, that China's GDP grew by 11.1% in the first 3 months of the year. This has sparked huge controversy by CNBC and the other jokesters in the media.

The media is using the words 'bubble' and 'inflationary' to describe this growth. I've discussed this in a long gone post, but I will bring back the previous points that I have made regarding China. When you have1 billion plus people coming around and desiring to increase ther quality of life, you get 11% GDP growth. All these people are 'westernizing' (I'm not sure if that's a word, but you get the idea). They want cars, TVs, the internet, and the other items that make the U.S. different from China.

Another item of importance, is that there inflation is only running at around 3%. We might expect that to go a little higher, but that's just fine. As long as the government keeps a reasonably tight monetary policy. Where a problem might occur is 10-15 years from now if China follows the policies of 'Easy' Al Greenspan.

Instead of making a big debacle out of the whole situation why not make money. What are cars, TVs, and all of those other goodies made of? Base metals like nickel, copper, aluminum and others. Don't forget the industrial metals that is needed to make these items such as tungsten and moly. As for energy, China builds a new coal power plant every week, and has plans to build 3 nuclear power plants a year for the next 10 years. China's imports of coal, uranium, base/industrial metals, oil, and anything else you can think of are going through the roof. With the increase in Chinese imports comes the increase in the prices of these goods. With the increases in the prices of these goods, comes the increase in the profits of the companies that mine, refine, and produce these items.

So that is all I really have to say on that topic. I apologize for the lack of posts as of recent. There hasn't been too much news and I don't feel writing about the latest on corporate earnings and such.

Also, I have been distracted by the combination of watching my precious Wild in the Stanley Cup Playoffs as well as the beginning of Twins baseball.