Is China Just Another Bubble?

Many speculate China is a bubble.

Well, bubbles (e.g., stock market and real estate) everywhere.

Again, in terms of their buying U.S. treasuries and being a cheap manufacturing producer, did China have any other option?

I’m not defending China’s policies including its pegged currency policy. China’s policies and moves should be understood in the global context (both economic and political) and its internal dynamics.

Why is China buying the massive amount of gold and other commodities around the globe? Why are they loosing taste for the U.S. debt?

Why are many Western companies moving their manufacturing operations and R&D to China? Is this just because they want to exploit the China boom while it lasts?

Many parts of the world (debtors and creditors alike) seem to be interconnected in an endless loop.

The bottom line is: the structural problems hidden behind asset inflation should be taken care of, instead of finding some bubble to blow. Then grow from a sound platform. Looking for growth based on speculative bubbles and the bad debt cannot go on forever.