I came across this excellent article on China in Time- and how it has a real estate bubble that could pop, and take the U.S. economy down with it.
How? For one, U.S. companies sell $92 Billion/year to China. That would be cut dramatically. The other problem is that the Chinese are in a dangerous loop that relies on projects for jobs and increases in land values to get promotions. Like all bubbles, it will burst at some point, and the fall out will be global.
The best thing the U.S. can do right now is get a real Jobs Act passed that gets us started in rebuilding the 1 in 4 derelict bridges we have - economists say that would boost our growth by an additional 2%.
And we could be training the 3 million Americans needed to fill high tech jobs that are open TODAY, but there aren't enough Americans with the skills to fill them. That alone would drop the unemployment rate 1 point from 9.1 to 8%!
If Europe or China melts down these actions will be a hedge against us having a double dip recession. If we do nothing, prepare for a disaster we could have avoided by taking action NOW...
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