Any true studier of economics and stock markets ought to see it coming, says one retired superstar from Chicago and leading economic gurus. Indeed, the Online Think Tank predicted the last Chinese stock-market drop and yet things are almost back to where they were, while the economy is over boiling with 11% growth after many 10% growths year-after-year. Inflation is taking its toll on the Chinese Economy.

That is not the only problem, China, is convinced that it needs to keep it's currency low, without allowing it to float and now if they let it float, then inflation will levy a crushing blow. Their stock market is under severe strain and the companies are trading well above 60 times earnings as their top markets are cooling off and slowing down, namely the US, as the real-estate market, credit crunch and consumer confidence means fewer sales for China.

All these factors, plus the horrific environmental costs are mounting. Is China in for a huge crash, well, they just maybe. Even former Federal Reserve Chairmen warns that just the inflation issue could kill their economy, and that is only one of the problems they are currently facing. When will the evil day come? Could be anytime now and some of the rats are leaving the ship now and selling off, feeding it to the polluted fishes.

How bad are things, well they are looking pretty serious now and the Chinese Central Bank is trying to slow it down from over heating, but any drastic moves now, will scare off investors and a massive sell-off of a magnitude that has not been seen maybe upon them. Good luck.

"Lance Winslow" - Online Think Tank forum board. If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/. Lance is a guest writer for Our Spokane Magazine in Spokane, Washington

Source: www.articlecity.com