Wednesday, March 11, 2009

Is China asking Capitalism to PROVE itself?

China seems to have adopted capitalism sufficiently to begin investing in Morgan Stanley. This article is not the simplest one I have found, but documents that in it's search for a steel industry, China is investing in the stock market, not just US Treasury bonds. As of Feb 25th, Rio Tinto was going up at least 65% on the price of Austalian Iron ore, in competition with Brazil who charges more from farther away; apparently a more favored trading partner. This means that Morgan Stanley at least should be looking for investment opportunities, and despite our current labor market we should be rolling in investment capital. What we need to avoid is the fallacy of subsidizing our exports and going to war for economic stimulus, both of which deficit spend our way to temporary prosperity. We need to determine what will be the infrastructure of the future and invest in That!

No comments:

Post a Comment