China

Where will China be heading to?

In a democracy, when things are bad, the voters have to realize that they choose the government. In a communist nation, the Communist Party knows what is "best" for its citizens. Manufacturing is down in China. Can you imagine what would happen if millions and millions of Chinese are out of a job and paying off their bubble property?

The Chinese government has lots of money in reserve. When jobs are lost in the private sector, the government will have to create work for its people. The infrastructure needs a lot more upgrading and development so I see a prolonged demand for commodities. Again, some funds invest in hoarding commodities to create a bubble. These will be sold to cover their losses.

These thoughts are not research based. They are from logic in my grey matter. AUD will fall (good news!), commodities will fall further, ASX will fall more but sooner or later, the Chinese and Indians will need to invigorate their own internal economies and stop relying on the Yanks. Lazy Greeks will remain lazy but they don't buy anything from downunder.