More Chanos on China
Zero Hedge has the CNBC video and excerpted quotes here. I would just like to comment on this observation:
Our geostrategic position is a lot better than China. Keep in mind China imports almost all its essential materials... They send us stuff, we send them pieces of paper, who would you rather be.
Yes, China must now import important things such as food, oil, energy, etc to meet domestic demand. That said, there's another step in the stuff for pieces of paper transaction that Chanos mentions. And that's that China is shuttling some of those pieces of paper to Africa and East Asia in exchange for oil and mineral reserves and arable land. In other words, China is not sitting idly by waiting to be crushed by a devalued dollar. They're diversifying, and putting themselves in a better geostrategic position by the day.
This does not mean the country is not without bubbles, but it is overall in a better place than many in the media are giving it credit for today. Of course, let's assume some of those African countries decide to try to renationalize the assets China is buying. Is China up a creek? Well, they're also investing heavily in their military, which could make for an interesting future.