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The two things that could cause Chinese demand to collapse is war, or a people's revolution. Both will be very very bloody, and you would worry about other thin
by barkingcat 16y ago
The two things that could cause Chinese demand to collapse is war, or a people's revolution. Both will be very very bloody, and you would worry about other things than just property value or annual salaries.
Be afraid for your life, no matter where on the globe you live.
As a Taiwanese, I always feel that tension on the bead, that possibility that either World War 3 or the world's largest and bloodiest popular uprising would erupt before my eyes, perhaps on the back of some trivial issue, like denying China the ore that it wants.
- nl 16y agoThe two things that could cause Chinese demand to collapse is war, or a people's revolution. Both will be very very bloody, and you would worry about other things than just property value or annual salaries. Yes, that's my view too. I don't think it's possible to hedge against the collapse of China. The effects are just so unpredictable. For example, the traditional hedge in times of crisis is to move money into some kind of physical reserve, eg gold. Increasingly people try and hedge at a macro level by buying into gold producing companies instead of the physical object itself. Ironically, that would mean increased demand for Australia's Gold companies - so money might be reallocated from Australian iron ore companies like BHP Billion & Rio Tinto to Australian gold mining companies like umm..... BHP Billion & Rio Tinto. Now I'm not saying this would happen - just making the point that it's difficult to predict exactly what would occur.