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This does not seem like much of a risk. Japan remains wealthy, innovative, and peaceful. If China has these attributes in the future, but is "mired" in debt and
by mlinksva 5y ago
This does not seem like much of a risk. Japan remains wealthy, innovative, and peaceful. If China has these attributes in the future, but is "mired" in debt and slow growth, while the most dynamic catch up growth and attendant industry focus bazaars have moved elsewhere, that's a big win for China and the world.
- bserge 5y agoYou're right imo. The UK seems to have went through something similar. The thing is, the factories, farms, power plants, equipment, knowhow don't go away. If you have the people and can feed them, a developed country will do fine even if it defaults on its debts and the world hates them. Contrast that with more conservative/isolationist countries that took the dumb advice not to take debt and build fast - they'll be stuck being poor or at best mediocre for a long time. That's much of Eastern Europe imo.
- rm_-rf_slash 5y agoThe factories and equipment absolutely went away in the UK. Torn down for imaginary stock market money that vanished in a few years anyway. Can thank the likes of Jim Slater[1] for that. [1] https://en.m.wikipedia.org/wiki/Jim_Slater_(accountant) https://en.m.wikipedia.org/wiki/Jim_Slater_(accountant)