January 24, 2005

The China Bubble

There is a thought out there that China's economy is very much overinflated and is ready for a major recession. Tyler Cowen at Narginal Revolution offers some information that seems to back this up as well as offer some other problems down the road... bq. China facts of the day Percentage of Chinese workers who have no pension, private or public: Eighty percent (kind of puts our social security dilemmas in context, no?) Expected ratio of workers to retirees, circa 2030: Two-to-one Projected shortfall of the Chinese national pension system by 2033: $53.3 billion Those are all reasons why China may be an overvalued economy; see Business Week, 31 January, p.47 for more information. Posted by DaveH at January 24, 2005 9:07 PM