Greenspan Predicts China Market Meltdown – A Threat to the U.S.
Former Federal Reserve chairman Alan Greenspan is warning the over inflated Chinese market is heading for a meltdown. Similar in some ways to the U.S. stock market prior to the Great Depression, the Chinese markets are fueled by the unregulated wild speculation that characterizes powerful, young industrial nations. The effect of this meltdown could trigger anything from a mild world recession to a full fledged world depression. With the U.S. money market being funded in great part by foreign investment, the lack of Chinese investment for the U.S. collective debt could be very dangerous for the U.S. In addition, an economically depressed China is a military danger, as the massive growth of the Chinese military would much more likely be put to expansionist use in poor economic conditions. After all, what better way to keep millions of young Chinese men employed than excercising their considerable military might?