Arthur Kroeber And Dr. Marc Faber Debate The “China Bubble”

Arthur Kroeber, founder of Dragonomics (now part of Gavekal), is one the smartest observers of China’s economy, and this video debate only confirms that. Dr. Marc Faber, aka Dr. Doom, is one of the more vocal China Bears. Kroeber is not worried about excessive debt, infrastructure overbuilding, or overall housing demand. Maybe I just think he is so good because we agree.

FT Alphaville summarizes some of the high points:

Kroeber observed that recent Chinese labour unrest could only force companies to improve wages and conditions, and therefore will help shift the economy towards greater consumption.

A litte more cheekily, perhaps, came Kroeber’s low-key response to Faber’s typically bleak observation that China was an accident waiting to happen, amid huge over-capacity in infrastructure and property development.

“You have no idea how big China is,” Kroeber rejoindered.

The Reuters video is worth watching in its entirety.

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3 thoughts on “Arthur Kroeber And Dr. Marc Faber Debate The “China Bubble”

  1. Did anyone notice that “Treadmills to hell” is a mixed metaphor? You never actually get to hell on a treadmill to hell; your forward movement is counterbalanced by the movement of the treadmill.

  2. Did anyone notice that “Treadmills to hell” is a mixed metaphor? You never actually get to hell on a treadmill to hell; your forward movement is counterbalanced by the movement of the treadmill.

  3. – “You have no idea how big China is,” Kroeber rejoindered.
    That’s actually a great observation. Listening to the endless voices of doom is getting tiresome. Kroeber is right to point out that there is a long way to go with China’s economic development. Much more infrastructure and investment is needed.

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