Speculation: What will happen in China as the US goes into recession?

China is creating its own huge giant multinationals by robbing its people’s savings.

Since socialism was abandon ed the "unprofitable" State sector only exists to provide cheap raw materials to ensure profits for the privatised, mostly imperialist owned export sector.

Under Chinese  “Socialism” and the US dollar hegemony, most commodities made, are not created for peoples needs, but for export, along with most of the profits from cheap labour.

The environmental costs of this imperialist exploitation are simply horrendous.

The Media like to create the impression that improvements in people’s livelihood are going gangbusters.

But a look at the income levels of the hundreds of millions of peasants and poor workers and at the GINI index of inequality tells a different story.

Only a small minority especially the compradors of the “communist” party have got rich as cheap labour supply agents and minor partners of the imperialist multinational companies.

Once 'the Iron rice bowl" of socialism was smashed people must now save every penny they can for their own security, old age pensions etc.

As the world price of basic foodstuffs and grains and of course oil is rapidly rising inflation is surging. to new highs.

With official inflation now running at a rate much greater than bank interest rates, people are forced to remove their savings from the banks and turn to property and share speculation in an attempt to retain the value of their savings.

This huge influx of savings into property and shares from more than a billion people with no-where else to go with their savings is creating one of the biggest bubbles of overvalued property and shares the world has ever seen.

So, Share price values in china in the last couple of years have risen not by the ten percents matching real growth in the economy but by multiples of hundreds of percents.

When those overvalued bubbles burst, as they must the ordinary people will lose most of their hard earned savings and life security.

But what else can ordinary people do when the banks do not even give returns that match inflation?

China’s desperate attempt to prop up failed US banks and its past investments in sub-prime and other US bonds by supplying   new cash injections to the banks will only temporarily fend of their inevitable collapse and simply add to Chinas losses.

The growing recession in the US economy will quickly spread to the Chinese economy as the demand for Chinas exports fails.

 Expect the Chinese working people to turn back to real socialism after they have gained some more experience of Capitalism and lose most of their savings?