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Chinese Politics

November 14, 2012 – 6:20 pm

The Chinese this week are picking new leaders who will guide their government for the next 5 years. These new leaders will not be any different than the old leaders and in fact most of the highest offices will be held by sons of past leaders. China’s communist system allows for very little change and only the bravest in China suggest any move away from the old to a new way of doing things. Most of the time those brave souls are pushed aside and forgotten.

The good thing about this is, just as in our system, with new leaders comes more certainty and there will be an effort be these men to put their stamp on China’s future. Whether that will be good or bad for their economy is unknown. However, they do have a vested interest to keep economic growth moving forward. Just do not expect any major changes.

For us in the U.S. the changeover in China means little other than maybe China can focus on their efforts to stabilize their growth and do something to ratchet it up a little. The growth rate has fallen from 10% year over year for at least a decade to about 7%. Then again maybe that is the new normal. Internal growth seems to be the new direction for China and that will mean good things for us and our international corporations.

Good Trading
Steve Peasley

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