Austerity will cause pent up demand for many products, IMO. And yes, temporary. I think I posted this a while back, but here goes again; I checked a significant number of food stocks from the March 2000 market peak until the bottom in October 2002. The NASDAQ lost about 2/3rd's of its value while the food stocks had a slight gain plus dividends that I did not factor in. That is what gets me excited about some food stocks like MKC that will benefit from the increasing middle class in developing countries as they may be "Safe" from the austerity slowdowns, while being benefitted even if the austerity slowdown is brief and I time it wrong, which I have been known to do, lol. The same thinking gest me to other consumerable product besides food, like PG.
Tell me the answer to the question of the fallacy in the China article and then I'll tell you what mine is, lol.