A sterling example of "China Has To Collapse" thinking. It must. There Is No alternative! (TINA) Binary thinking at its best. It must happen because that is the rule of debt and bubbles and stupid fiscal policy! It is the rules of money!
Indebted Dragon: The Ponzi Scheme Driving China's Construction Economy
In Indebted Dragon,
Professor Lynette Ong from the University of Toronto discusses how the
Chinese economy relies on land as collateral to borrow money while
paying the interest on the loans by selling and leasing the land.
Read more at http://globaleconomicanalysis.blogspot.com/2012/11/indebted-dragon-ponzi-scheme-driving.html#1XPF0yeCoiA5LDem.99 China's rules are not our rules. What our rules are do not dictate the outcome of China playing by its rules, its Logic with its Language to produce its Social/Political/Economic structures.
By our rules China is doomed! Doomed I say! They do not know how to pay the game of money! Losers! Big Ponzi will all fall down!
By their rules perhaps we are doomed. Big Ponzi all fall down!
The better Logic, Language and Structure (LLS) prevails. There sure are a lot of Chinese. Even more people in India. Whose LLS will India follow?
The author is a professor and what do I know anyhow?
Good Question.
Oh, those vacant cities! Oh, how stupid to build them!
What did we get for all of our money???? How many workers did the bailout employ?
Ghost Malls, Ghost Cities, Infrastructure Malinvestment
As noted by Ong, and on numerous occasions by me, China is home to numerous vacant cities. For a discussion, please see World's Biggest Property Bubble: China's Ghost Cities Revisited; 64 Million Vacant Properties
The Video of Ghost Cities is a must see eye-opener for those overly bullish on China.
China is also home to the world's largest shopping mall and it sits empty. For a discussion and video, please see How Will China Handle The Yuan?
A week ago I reported Sky City: China to Build World's Tallest Building, 220 Stories, in 90 Days
The commenter on the story says:
Unlike Ong, I see no realistic way China can "muddle through" for much longer given the bubble is busting in China right now, but that is my only objection to a very well written article.
China has been around for 4,000 years. Doomed and we will see it crash! Like the Great Wall it will be such a big crash that it can be seen from space.
Even bigger than our Fiscal Cliff!
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