Thursday, October 20, 2011

Investing in China

Investing in China has its problems, There’s no rule of law or SEC. No believable statistics from their government, only private sources which can’t be too accurate.

Then you have the U. S. Congressional meddling with tariff threats that will do no good. Political currency manipulation does little when Chinese labor costs are so much less than ours. What we should look at is our weak currency.

The dollar is used as a currency convertible reserve as the Chinese buy our Treasury bonds. So the U.S. can get away with its big budget deficits.

But investing in China has its dangers. ( See the Earl J Weinreb NewsHole® comments.)

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