Tag: European

Converting China to a Nation of Spenders

Chinese consumer will not easily become a nation of spenders

Chinese consumer will not easily become a nation of spenders

Please bear with me for just a moment. So the sub-prime mortgage scandal in the US has precipitated a global credit crisis, where banks cease or curtail new lending and call in outstanding commercial and personal loans. Overdrawn Americans lose their houses to the banks and reduce spending. Companies cannot expand without loans, reduce their business, and lay off employees. US unemployment rates skyrocket and consumers put the brakes on spending. This effect goes around the world, precipitating reduced global spending. China and other predominantly export oriented countries get hit hard. Their factories lay off workers and close. It seems all is not economically well in the world.