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August 21, 2011 at 11:32 AM #722894
Arraya
Participant

China is desperately trying to build it’s consumer economy now that the West is collapsing. I highly doubt they get it going in time. Actually, at this point we are bumping up against oil needs with China. Chinese prosperity means American poverty in many respects.

However, China has no domestic energy sources it can readily put to use. Remember the US was the Saudi Arabia of the 50s. It has to import all of its energy except for coal and a small amount of uranium. That’s not a recipe for developing an empire. China has no domestic customer base. Its annual per capita nominal GDP is $3,300 vs $47,000 for the US. Its per capita consumption is $1,150 vs $32,900 for the US. Even if it would try, it would take decades to develop a viable domestic customer base.

Meanwhile, its foreign customer base is rapidly shrinking and throwing all it’s money at propping up a dead banking/credit system to keep it going. Which, again, appears to be coming apart in Europe and verging on another 2008 style credit event. Anybody notice bank stocks?

Also this

An unofficial Census report has recently estimated that total discharges of harmful chemicals into China’s rivers and lakes amount to 30.3 million tons in 2007, twice the number that had been officially reported. Government planners had estimated that Chinese water sources could only handle about 7.4 million tons of discharge a year, which is more than four times less than what the report found. Much of the discharge comes from industrial processes and chemical agriculture, which account for 90% of China’s water consumption.

Due to a rapidly growing economy and population, environmental degradation, increasing droughts and wealth inequality, almost a quarter of China’s population (primarily in the North) did not have access to safe drinking water as of 2009 and nearly 15% currently suffer from water-related illnesses. [8], [9]. China is also the largest exporter of agricultural crops in the world, and water scarcity is becoming an imminent threat to this industry. Many farmers in the Northern plains have already stopped producing wheat because of unreliable surface water and no access to groundwater.