China Loves You ♥

Wednesday, December 22, 2010 12:22 PM By Stephen J Christophers

China's sovereign wealth fund is currently adding to it's portfolio of external financial assets (mines/agricultural land etc). Their current external assets are in the region of US$4,407,000,000,000 - about one tenth that of the U.S.A and on a par with France, and growing.

The problem is not in the statistics or China's right to buy these assets; more so, when a sovereign nation/state purchases sovereign assets from another state, while protecting it's own assets through currency manipulation and legislating against foreign ownership - concern should be raised.

In Botswana one might say: it's like selling all your clothes, to wear your safari suit, then renting them back because your cold. Short-term economic gain at the expense of the bigger picture is not a certain, unless you're working inside a closed economic model or government economic framework; where macro-economic strategies paint the bigger picture rather than the product and/or services providing a competitive and dynamic economic market framework, as in the free market system. In the free-market economic model, we can assume the government model is able to take advantage of free-market dynamics by acting as a larger company would against smaller players.

In countries like Australia where the free market system is pitched against a closed state system, one should worry, unless free market players are closely aligned with government - like the great Australian burger shop did when Ronald McDonald came to town, and unlike the burger chain, there is no offer of tradeable public assets.

I'll leave you with a quote from Donald John Trump Sr., who said it so eliquantly: "..they're laughing at us..".

Music to be inspired : : HUAN - Miss Melody [Post-Dubstep Chinese Pop] : :