China’s economic growth unsustainable
The People’s Bank of China, China’s central bank, raised interest rates once again today in their continous attempt to keep inflation under control, and prevent one of the largest economies in the world from busting. The Chinese government yesterday reported annual growth at 11.9 percent in the second quarter. The hike was much anticipated by the market.
 There really is not much to be surprised about China raising its interest rates, considering it has now already raised interest rates five times since April 27, 2006. I would rather be more surprised if China’s economy did not move.  The attempts by Chinese government and central bank are clearly not sufficient to deal with the economic expansion they are facing.
I don’t believe this interest rate hike will do much to cool down the booming economy, and we can expect more hikes on the way. I don’t hear the sound of confidence when Chinese officials speak. What I do hear is a ticking time bomb, getting louder and louder. It sounds very familiar to the one we heard years ago from Japan. The challenge is now controlling our greed and pulling out before we hear BOOM..
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