In China The Black Box, Barry Ritholtz demonstrates a better understanding of China than most U.S. talking heads I’ve read—at least in this piece. If you are willing to sit for a long read, I suggest clicking on the link. He does a good job explaining how China’s economy works and why it might survive for some time without an economic collapse like we saw during the 2007-08 global financial meltdown that started in the United States.
In summary, Ritholtz mentions how several prominent hedge fund managers in the United States have said China is making mistakes economically. Ritholtz says there is no way these hedge fund managers know what’s going on in the Middle Kingdom since China is half capitalist and half socialist and doesn’t fit any Western economic norms.
In addition to what Ritholtz says, I don’t know why anyone who is sane and intelligent would listen to the opinions of hedge fund managers about China. For instance, investopedia.com reports that “Hedge funds have always had a significant failure rate.”
Ritholtz continues: China is a unique civilization state, which gives it a tremendous advantage at this stage of its economic development, because China’s citizens have a singular desire to work hard and improve their material lot. It helps that the Chinese prefer to pay cash for things instead of using credit cards as many do in the United States.
Chinese civilization has periods of order followed by periods of disorder and since China recently emerged from two centuries of disorder, China’s Communist Party has a long way to go before it is their turn to leave the leadership stage.
Lloyd Lofthouse is the award-winning author of My Splendid Concubine [3rd edition]. When you love a Chinese woman, you marry her family and culture too. This is the lusty love story Sir Robert Hart did not want the world to discover.
Finalist in Fiction & Literature – Historical Fiction
The National “Best Books 2010” Awards
Honorable Mentions in General Fiction
2012 San Francisco Book Festival
2012 New York Book Festival
2012 London Book Festival
2009 Los Angeles Book Festival
2009 Hollywood Book Festival
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