The Chinese are saving like mad, but they are not getting a very good return on their savings.
Sentiment: NEGATIVE
As I talk with the Chinese on currency, I encourage them to move much more quickly with opening up their capital markets to competition, because I don't believe the world is going to give them as much time as they would like.
China saves too much, produces too much, sells too much to Americans and consumes too little.
China owns more of our bonds than do Americans. That's not a good position to be in.
It doesn't make a lot of sense for us to borrow money from the Chinese to go give to another country for humanitarian aid. We ought to get the Chinese to take care of the people.
That's one of the challenges of investing in China, is the lack of clarity with respect to tax positions.
The Chinese have done some extraordinary things in terms of the investments they've made in alternative sources of energy.
I believe that the Chinese people as a whole love to make investments in real estate.
What people don't realize is that China papered over its last two credit bubbles, those in 1999 and 2004. The banks were never bailed out - they just exchanged their bad loans for questionable bonds from quasi-state organizations.
The Chinese have figured out that they have a giant environmental problem. Folks in Beijing, some days, literally can't breathe. Over a million Chinese die prematurely every year because of air pollution.
Increasingly, the Chinese will own a lot more of the world because they will be converting their dollar reserves and U.S. government bonds into real assets.