Will China And Its Economy Collapse Soon?

ByJon Safer

The question is what would an economic collapse look like in China? And will it actually happen? but before you ask that question you must realise that some parts of the Chinese economy are in serious trouble.

For the last 2 years, the Chinese government has been tightening up. They have raised interest rates several times. They have raised reserve amounts several times. They are also trying to bring down real estate, so they are also at serious risk of an all out economic collapse in the coming months.

While real estate is at risk, other parts of the Chinese economy are booming. Water treatment, agriculture, farming and many other areas. They will not be worried about the horrific real estate troubles that are coming.

So there are some sectors of the Chinese economy with serious problems, but others are booming right now, and not on the verge of collapse like in Europe or the US right now. They are in serious trouble and everyone is waking up to it. The US is about to see many economic conditions deteriorate. Especially if their government keeps printing out money and bailing out the banks, they will not end well for anyone.

The truth is that China is starting to loosen up. But that is not a good option as they have a serious inflation problem right now. They either have to beat inflation internally or they have to make their currency convertable to help them survive in the coming years.

The biggest risk in China right now is an inflation scenario, and not a deflation scenario. The worse thing about the inflation scenario is that they have a lot of money still trapped in China. Inflation has already kicked in, and the governments are not doing a great deal to keep it contained and under control. That is dangerous, but there are easy ways to profit for this type of situation.

Right now the best way to invest in China and its coming growth is to buy commodities. They have to buy cotton to produce, they have to buy lead to produce. They do not have any choice buy to buy more commodities in China as their consumption is so high and there are so many people who want to live the high life there no matter their wage or living conditions.That is why Cotton, wheat, oil and many other commodities in China are a big favourite amongst investors in the coming years.

World recognized trends forecasters, known by many around the world as most addictive & highly accurate. Sign up for a FREE Trends alert at: http://www.forecastfortomorrow.com

Article Source:http://EzineArticles.com/?expert=Jon_Safer

Did you find this article helpful?00Get Involved0 commentsSuggest a topicArticle ToolsPrint this articleE-mail to a friendEzinePublisherReport this articleCite this articleStay InformedGet notified by email when new articles are added to this category or written by this author.Subscribe to New Article Alerts:

News and Society: Economics
Jon Safer

Email Address:SubscribeEconomics Article FeedFind More ArticlesSearchSimilar Articles2011 Economic Forecast-Part 1: The World Forecast From a US PerspectiveThe US Dollar Is Not WeakDouble Dip Recovery 'W' or 'V' Shaped Recovery?Recent ArticlesHow To Solve The Homeless SituationProgressivism Isn't Progress, VIIIHow Secure Is Your "Secure" Job?A True Comparison Of Increasing Debt Between Bush And Obama AdministrationsHow To Compete With ChinaWould Einstein Think Us Insane?What Will Happen If Greece Defaults?A Cluster of (Minor) ErrorsThe US Recovery Is Producing SurprisesA Sigh Of Relief For The Economic Status Of The USSubmitted On December 07, 2011. Viewed 41 times. Word count: 413.

MLA Style Citation:
Safer, Jon".".7 Dec. 2011EzineArticles.com.26 Jan. 2012 .APA Style Citation:
Safer, J. (2011, December 7). . Retrieved January 26, 2012, from http://ezinearticles.com/?Will-­China-­And-­Its-­Economy-­Collapse-­Soon?&id=6743033Chicago Style Citation:
Safer, Jon "." EzineArticles.com. http://ezinearticles.com/?Will-­China-­And-­Its-­Economy-­Collapse-­Soon?&id=6743033EzineArticles.com© 2012 EzineArticles.com
All Rights Reserved Worldwide

About UsFAQContact UsMember BenefitsPrivacy PolicyShopSite MapBlogTrainingVideo ArchiveAdvertisingAffiliatesCartoonsAuthorsSubmit ArticlesMembers LoginPremium MembershipExpert AuthorsEndorsementsEditorial GuidelinesTerms of ServicePublishersFollow UsTerms Of ServiceEzines / Email AlertsManage SubscriptionsEzineArticles RSS

View the Original article