Friday, April 5, 2013

China! Not the What? The Where!




I’ve been writing articles about China for about two years.  Why? Because I can follow the path of the trajectory. 
 
  • China has a massive economic engine and much fuel.
  • China has elevated 500 million people from poverty to the middle class.
  • China has the fastest growing economy.
  • China is investing in economic development and growth.

For two years, I’ve been writing articles about the European Economic Crisis.  I’ve been working to inspire European leaders to reject Chancellor Merkel’s one pronged approach—austerity—and work toward capital investment, economic development, and growth.

Putting these two together, I predicted that China would spearhead the efforts of a group of “Pledge Nations” to invest in Europe. 

  • Capital Investment, 
  • Economic Development, 
  • Growth.   

The nations: 

  • Turkey
  • India
  • Brazil
  • Russia
  • The Gulf Oil Producing Nations

However, I’ve been so focused on forecasting what will happen, that I lost track of what is happening.  As a result, I missed what has been happening right in front of me, on my own web log.

Up until now, my articles on China and on Europe have been read, but read by people in the European nations you might expect: 

  • Greece
  • Portugal
  • Spain
  • Italy
  • France
  • Germany
  • UK 

However, while some of the articles I wrote about China over a year ago are still being read.  They are being read by people from a new group of nations:  

  • Bulgaria
  • Romania
  • Hungary
  • Belarus
  • Poland
  • Ukraine
  • Georgia
  • Belize
  • The Czech Republic
  • Russia  

On some days, I receive more visitors from Russia than from the US.  Some days, I receive more visits from Ukraine than from Russia.  In addition, I am being Googled in Russia constantly.  Add to that, my articles about management are also being read.

Perhaps I missed the target.  It would appear that China may be looking to other European nations to find opportunities for capital investment, economic development, and growth.

With the US focused on Energy Independence, and China moving from coal to fracking for energy, the Gulf Oil Producing Nations will be losing a valuable source of revenue.

Energy Independence—Then What? 


Then there is another factor:

I stated that if China can elevate 500 million people from poverty into the middle class in China, they can do the same thing in other countries—emerging nations. I was thinking
  • Asia
  • Africa
  • Latin America
 
Now I am thinking Eastern Europe.  

There is a campaign to attract investors to Russia, Georgia, Ukraine, and other nations.  The R.O.I potential is greater and there is the market potential for Chinese manufactured goods
.
Forty years ago, my finance professor used the following analogy as an example: 

If you are going to buy a house, you want to put down the smallest deposit, get the longest mortgage loan for the lowest monthly payment and profit from the rise in the value of real-estate.  Real Estate: location, location, location.

Consistent with the figures mentioned above, it was recently reported that the middle class in Asia will rise from 500 million people to 1 billion 750 million people in seven (7) years. That is not only an enormous market that is also an enormous source of capital investment funding.
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It is not too difficult to follow the path of the trajectory now.


Warmest regards,

Slim




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Copyright ©2013 Slim Fairview
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In addition:

China! Economics! Diversification!

China? No. China!

Underestimating China Again

America v. China: The Diplomacy Wars.

China: The economy and a word beginning with the letter P.