Wednesday, May 6, 2015

China probably wont have a US styled recession

The recession in China is when the economy is growing at 7% instead of like 9%, but I don't think they are going to have a recession the way we measure it. I do think that there are misallocations in the Chinese economy that are the result of their monetary policy being too loose, their interest rates being to low. They have printed too much money but all that has been to prop up our economy and to prop up the US dollar. I think it has been China's effort to prop up the US economy that has been undermining their own economy. What they need to do is stop buying treasuries, let their own currency rise so that their own people can consume more of what they produce and stop lending money to Americans to buy things that we cannot afford.

Peter Schiff is a smart investor and author of several best selling books. He correctly predicted the economic meltdown of 2008 - 2009