GRANTHAM: China Has The Money To Become The 'Terror Of Capitalism' Within 30 Years

However, he does see reasons to be optimistic.

Last week, The Guardian's Leo Hickman conducted a lengthy interview with Grantham. And during the interview, he talked about how China has the capacity to completely change the face of energy.

"They have it within their capabilities of coming back in 30 years with the guarantee of complete energy independence – all alternative and sustainable forever," he said

"To hell with their five-year plans, they should move up to 25-year plans for alternative energy - energy security, reducing pollution and low cost.. They would have such low-cost energy at the end of it they will be the terror of the capitalist system. With low energy and low labour, that's the ball game."

Here's what he said about China: