Well, "Do you know where China is today?",your guess is as good as anyone's, I give you at least that.
Who says anything about their 'worthless shack'? That is some prejudice ignorant comment, taken from its face value. You do realize that from those 'worthless shack' housing the greatest manufactures of the greatest consumer boom in the human history? I am talking about massive infrastructure rebuild after the ice disaster. And money from around that 'wothless shack', like Singapore, Taiwan, Japan, Korea...already salivating over this oppertunity. They do not care what you care or not, believe me.
First of, I am sorry for what happened and lost lives, I just do not want to sound like an arrogant jerk here.
Very short: only in US that people are given plastic credit cards to spend after a disaster like Katrina.
I bet most of the damage in the housing is in the rural areas, I don't know and those are probably meaningful to the agriculture than manufacturing. I am sure they will rebuild their damaged plants, restore the power and clear any blocked roads etc, if there is any, but how is that adding to their bottom line unless they build them bigger and if they build them bigger, will there be more demand out there unless they sell their products perhaps cheaper? ... and then what happens if they already have an overcapacity or oversupply of goods?
I hope the best for them, but this doesn't sound like a new wave or boom of growth to me since it doesn't seem to be adding to the future net worth... BTW, it didn't add in US either, it only grew the money supply or inflation. But the inflation in China is different than the inflation in US...
You do know that they buy US treasury with their funny money, as in trade surplus vs our trade deficit? The majority real wealth was kept inside that country. Eventually, not too far away future, they do not need to rely on heavy export but to utilize their broad production base to produce for domestic consumption. Yes I would worry they stop buying as much treasuries around the world, but I am less worried they can't support their own booming cycle.
That brings back to the possibility of their equity market advance to come.
...China supporting its own economy with its own domestic consumption... and isn't this a communist country?
Just watch the treasuries...
"and isn't this a communist country?" What exactly is your point in this statement? Let's go one point at a time.