Originally Posted by
Daytr
Twotic, Chinese reduced demand reduced greatly affecting commodity prices is completely over stated by the media and banks. Sure its softened/weakened, but the main driver has been over supply. The ego of bigger companies like Rio & BHP having a race to the bottom.
Easier to blame the Chinese than say they actually got it wrong. And when you think about it its Western demand that has stalled, since 2008.
China's exponential consumption growth could never last and those who banked on it literally, were fools.
China still has a massive amount of building still to go on, but they don't need to do it all now and that's one of the differences between the last 15 years & the next. I was asked in 2011 at client function I was a speaker at in regards these empty cities in China with a million apartments & if we should be worried. My answer was that they had 99 million more to build, but that doesn't mean it has to happen tomorrow. The Chinese think generationally, not just about the next election (well they don't need to do they!).