The show is available here.
Quotes from the presenters via Mish:
I visited China at the time and witnessed mobs of poor migrant workers packing all their possessions, including infants, on their backs and heading back to their villages. It was alarming for the government, and threatened to smash the implicit contract between the ruling Communist Party and Chinese people - namely, that they give up their democratic rights in order to become richer.Wait wait! What you saw on one visit exposed the entirety of the Chinese economic situation? hmmm... too much of a leap. And you know the mind of the officials? And that mind is concerned about a social contract involving democracy, and rights given up? The Chinese peasant is jealous of his democratic rights? All this sounds unlikely.
Yes, of course the Chinese economy is in a huge bubble, and don't they know it! The took the other side of the USA bet and ended up with modern infrastructure, while USA is left with our pensions and wealth spread all over the ground in the middle east. It is hardly a question of anyone fooling the other. If anything, China outsmarted USA officials at their own game.
Yes, there is a huge bust coming. But the question is who will have the manufacturing capacity and credit to rise like a phoenix?
Two men are hiking when they see a bear cub ahead, and hear a roar of a she-bear behind. O dear. They are between a she-bear and her cub. One man drops down and pulls off his hiking boots and begins to put on his Nikes.
The other man stupidly explains, "You cannot out run a she-bear...!"
To which the now-Nike shod man replied, "I need only outrun you."
USA has boots on the ground. The Chinese are wearing Nikes.
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