Forbes Intelligent Investing Panel: China

June 4, 2009

China is buying up raw materials at a feverish pace, motivated by fear of a falling dollar. What does this mean for the U.S.?


  • David Joy, Chief Market Strategist for Riversource Investments;

  • Liz Ann Sonders, Chief Investment Strategist for Charles Schwab & Co.;

  • Bill Singer, Shareholder in the Securities Practice Group of the law firm Stark & Stark and Publisher of and

    SINGER: China's greater challenge is to asses the risk of that calculus: Should China continue to help prop up our consumer-based economy in the hopes that our own recovery will fuel even greater demand for Chinese exports, or should China let our economy collapse or remain hobbled by refusing to undertake additional purchases of U.S. government and corporate debt (and thus risk destroying our consumerism)?

    Similarly, will China be able to stimulate the creation of a lower-class and middle-class consumer society that will add much needed buying demand for their own native industries (largely export oriented until recent years)? Oddly, the very decisions now being made by the Communist leadership of China may hasten the growth of a more capitalist, consumer society, and one that may lack patience with the inbred corruption of a centrally planned economy. I guess it's simply a scenario in which the best advice is: stay tuned.

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