Thursday, 1 July 2010

Banking on China


I hope it is not just wishful thinking on the part of Australia’s economic gurus that China will keep this country out of any recessionary second coming just as it helped keep us out of the first but a graph like this one does not exactly inspire confidence:
1-07-2010 shanghaistockmarket
The Shanghai stock exchange composite index, I note, is now at its lowest level since April 2009.
Perhaps more troubling are the television pictures of striking workers in China and the reports that major employers like the Taiwan owned assemblers of much of the world’s electronic equipment are moving the location of their factories to parts of the country where labour costs are lower. Just what kind of demonstrations will there be when the moves occur and the workers who already believe they are underpaid have no job at all?
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