Isuppose it is time to ask oneself where this all ends.  In the best of all worlds, we end up with aestablished middle class living in nice homes and apartments representing overfifty percent of the population.  That isa good thing.

The question is whether or notthis can be done without a big hiccup. Perhaps the answer is that Taiwanand Japandid it.  Once achieved though, theslowdown becomes also inevitable.  Thosecountries are trying to avoid it by investing heavily offshore to jump startother economies and it may be working.  However,Taiwan and Japan today look pretty ordinary while playingheavily in China.

Two years ago the Chinese toppedout their uptake from the villages of bright young workers and I must the curvemust be now negative.  Thus exploitationof their best growth driver is peaked and in decline.

Yet China itself still has two moredecades of solid growth ahead of itself before demographic pressures become amajor drag.  Recall that the one childpolicy began during the sixties and provided the sons and daughters that madethe first cohort in 1980.  That cohorthas just reached retirement age in China (Age fifty is treated as acut off when a worker typically returns to his home village to raise his grandchildren).  Thus the most workers are nowworking as will ever be.

In fact we now have an agingforce similar to Japanon the way.

I do not know how much longer thepresent growth rate is sustainable but down ticks can now be anticipated andare way more likely than any continuation.