Monday, October 31, 2016
Marc Faber on China's Fast Industrial Pace
Indeed, when it comes to China, "no other country has industrialised at such a fast pace". China consumes more Aluminium than Europe, US and Japan combined, Mr Faber said. Same for copper.
Most remarkable perhaps, is that in the 1970s developed countries accounted for 90 per cent of global trade whereas today it is around 30 per cent.
Crucially, more and more trade was happening between emerging economies directly, and investors need to understand that has important economic and geopolitical implications, Mr Faber said.
"In 1973 when I came to Asia everybody said that if the US sneezes, then Asia catches a cold, because all Asia's exports went to the US," he said. Today trade in the region was much more "China-centric", with Asian economies "relying much more on trade with China than with the US."
"China is the largest trading partner of 124 countries," Mr Faber said, including Australia. In comparison, the US was the largest partner with 74.
"The whole of Asia has become very integrated."
Read more: http://www.afr.com/markets/dr-marc-faber-says-the-west-needs-a-serious-recession-20161027-gsc60i#ixzz4OftDEo7E
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.Dr. Doom also trades currencies and commodity futures like Gold and Oil.
Posted by Nicole Bourbaki