In's & Out's 06/24/09

From the latest JPMorgan In's & Out's...

Gross exports (which still make up around 40% of Chinese GDP) were down by 26% yoy in May...

while foreign direct investment into China reportedly dropped by 18% over the same period.

We are cognizant of the fact that over-capacity remains a risk while global and domestic Chinese demand conditions remain relatively weak.

Development typically starts with urbanization, which leads to manufacturing growth and infrastructure demand...

ultimately paving the way to rising incomes and thereby changes in consumption patterns.

Each of these phenomena has been clearly observable within developing markets over the past decade.

Urbanization rates are exploding and, as a result, infrastructure demand and scheduled spending on it are substantial – and growing.

If anything, the pace of this expenditure will only be quickened by the global downturn.

Consumption also is evolving in a natural shift from “production” economies to “consumption” economies as incomes rise.


The Nattering One muses… we are cognizant that urbanization is growing in emerging markets such as China.

However we question this “evolution” as being “natural”.

Vis-à-vis the “natural” shift from production (durable economic activity such as manufacturing & infrastructure) to consumption...

or an emasculated or vapor based economy (creating capital from capital (brokering) without any durable economic activity)…

If all economies evolve or mutate in said fashion, then in the end, who is left to be the producer?

Are we left with a world dearth of manufacturing or durable economic activity?

The Nattering One thinks not. This so-called “natural evolution” is nothing more than another conjuring of the pro globalization crowd.

Again, globalization being a euphemism for unchecked global corporate rape and pillage.

INDEPENDENT economies do not “evolve” is such a manner as it is UN-BALANCED, UN-NATURAL and promotes DEPENDENCIES & DEFICIENCIES.

As the corporate inflicted petroleum based energy dependencies have already amply proven…

We should strive to remain independent in our supply chain economics lest we AGAIN fall prey to the "for profit" corporate con artists.

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