I have to say Krumple that you have interesting points. I would agree with you on several of them. However, do you have any source that the US is hiding unemployment statistics?
Well there are several sources. But probably the best is studying how the US collects and calculates unemployment. They claim that they can't actually count the actual number of employed or unemployed but that in itself is not accurate. They have several sources of information that would help them to check if their numbers were right but they never use these other sources of data collecting to determine if their reported 8-9% is right.
There are political reasons not to report the accurate number and rather than shoot themselves in the foot and minus the extra work, why not just falsely report? Who's going to check the homework anyways right?
One of my sources is the http://www.shadowstats.com/
Although it calculates a bit lower than I have. Regardless though, the fact is the US government does not report the accurate numbers. Not only that but every month after the latest report they always revise them. Why would you need to revise them? Not only that but the revised numbers are always worse than the actual reported numbers.
Hopefully the Chinese economy is not a bubble, I am just quoting several articles which I have read. It is a good point about the lack of restrictions in the Chinese market.
I think these articles you are reading are wanting this to be true because then it doesn't look so bad for the US if they are also riding a bubble. I find it funny for two reasons. Before the housing crisis talking about economic bubbles got you a laugh and deemed crazy person.
If you mentioned anything about housing prices can not continue to rise by 20% annually people would point and laugh and tell you get go back and take an ecomonics course. I know because I was telling friends and friends of friends about it and all I got was critism until the crisis hit.
This whole problem is caused by the FED artifically setting low interests rates. They shouldn't be this low yet they continue to do it. We are actually walkinig ourselves back into another bubble and they know it, but they don't care because short term profits for corporate investers is all they care about.
They don't care about the blue collar workers who are trying to purchase homes. I garantee that if the FED doesn't raise interests rates we will see another bubble, perhaps an even worse one because they will try to hide it for as long as they can until the same result happens.
The only way to fix this and to prevent it from happening again is to not allow the FED to manipulate interest rates. But I doubt this will ever happen. The government wants full control of the money supply.
But the growth is still spectacular. Checkout this stat
about the rise China's GDP for instance. You really believe there is no chance of a crash given such rapid growth?
There are a couple reasons why this is peaking and strong economic growth. The more money they are generating the more industries they are essentially investing in. When interest rates are high, companies naturally fall into research and development mode. Something the US has forgotten all about. When this happens there is a boom in saving and investing which is also another thing the US has forgotten about.
You see the US counts consuming as part of their GDP. But GDP has NOTHING to do with comsuming. It is about goods and services that are being developed, not comsumed. There is a difference but the US doesnt' care because the government is desperate to show positive numbers which we haven't actually been able to do for over a decade now.
So chinas GDP numbers are mountains over the US because they are generating goods and services an increased rate. If you compare it to the US you would see the US numbers dropping dramatically because we don't produce any goods or services anymore. All we do is consume the labor of other countries and sell our people debt to do it. They barrow money to buy goods produced by foreign labor which goes into the pockets of foreign companies. That money has to come back to balance the equasion and it comes back in the form of massive debt.
The chinese are buying US debt which goes right back into their GDP numbers and only boosts their economy even more like steroids. The only way China would see a reduction is if the US stopped buying back their debt which they probably won't. Or the US starts producing goods and services again locally. Which I highly doubt because the cost to run a business is getting harder not easier.
We are on a route of no return. Things will continue to get worse and worse until the people realize that our politicians and current govenmental policies are to blame. The government wants to blame other countries and the "failure" of capitalism but those are just scapegoats. Capitalism is fine as long as the goverment doesn't interfere with it, like the FED does.