China and India's Economies

http://www.taipeitimes.com/News/editorials/archives/2008/01/30/2003399504

Interesting edotorial from the London Guardian a buddy sent me from the Taipei Times (thanks Andrew)

Couple of interesting excerpts

Things are a bit different in India, which does need to import capital -- unlike China it runs a deficit, but it too has an investment boom, and so far its companies have been finding it easier to raise capital since the credit dramas began last August, as investors desert the loss-making markets of the West.

I have thought and stated that the majority of this cheap cheap money the FED is creating is going to flow to emerging markets creating a bubble in these areas.

Rising prices for food, energy and other commodities, partly caused by strong Asian demand, lie behind the high interest rates and inflation worries that were spooking the Bank of England, the European Central Bank and, until its big interest cut last week, the US Federal Reserve. They are also a big worry for India and, even more so, China.

Yep

Then, in 1971, Japan was forced by then US president Richard Nixon to revalue the yen, and in 1973 the global oil shock brought inflation. The result? Not in fact a disaster for Japan, but a wrenching change.

The debtor nations are always much better off in the wrenching change than those nations who owe tons of money. i.e. During the Great Depression. England and especially Germany was much worse off than the U.S.

Economies of China and India are not invulnerable (Thanks Andrew)