Another critical question is what will happen when China’s real estate bubble bursts. The latest reports have that happening sooner rather than later. There have been numerous reports of people from mainland China dumping real estate holding in Singapore and Hong Kong. Plus we have the global economy slowing down. Since China’s economy is built on exports, what happens when they don’t have anywhere to export their products. So whose economy will come out of this mess unscathed and become Number 1 for an extended period of time.
Now I just read Russia and China are going to have joint naval exercises. Just like in the past, when everyone’s economy sucks, bring on the war machine. We truly live in interesting times.