The Rising Influence of Rising Affluence

[zipjet]

I do not read this board and thus may really be missing the point - nor do I have time to do so.

I responded because of a link on the biotech board by DD.

Steel was used as an example of a general proposition that I think applicable to China, namely that: The GDP of China is substantially raised by extraordinary capital spending that is unsustainable.

I did not call China-steel or China generally a "bubble". I subscribe to the view that a "bubble" is only known when it pops. Until then we can note the excess, but bubbles can deflate slowly or be absorbed in general growth. If they don't pop - we do not know them to be bubbles.

Raw materials certainly will benefit from growing populations and more affluent populations. (Suspect that is the basis of this board.)

ij