http://www.csmonitor.com/Commentary/Global-Viewpoint/2010/0121/China-the-world-s-next-great-economic-crash
China: the world’s next great economic crash
Like Dubai at the beginning of last year, China is now reaching the peak of a bubble.
By Gordon G. Chang / January 21, 2010
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Despite the massive state spending, the country’s economy is not particularly robust. Power consumption statistics, a crucial indicator of economic activity, show the economy expanding at only two-thirds the announced rate.
Moreover, essentially flat consumer prices last year belie official reports of roaring retail sales. So does the full-year 11.2 percent decline in imports, another sign of sluggish domestic demand. And if the economy is really growing by double digits, why is Beijing insisting on continuing its stimulus?
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I was wondering myself when the bubble is going to burst. Not just yet, though, I think, though these things are hard to predict. Maybe it will coincide with the severe crisis Japan is getting itself into. Two, three years maybe? In the long term China is still going to show strong growth, of course, but not without some people jumping off rooftops.
Originally posted by zeeblebotTHey are no different that any other country in this regard. Its like Washington cooking the books with the debt they incurred with Fannie and Freddie. When the debt became to massive, they just privatized them. Then poof, no more debt...until it is time to bail them out. Or perhaps the unemployment numbers are another example. They add numbers on the assumption that there are those who have been hired and are not traceable. In addition, they only count those who are collecting unemployment when in reality the unemployment levels are probably around 20%. Personally, I think the entire global economy is built on a house of cards.
if china is lying about the numbers, it could be sooner rather than later. course, maybe they've been lying all along.
Originally posted by whodeyI have no idea why you keep repeating what you know is a lie. But you really should be ashamed of yourself when you keep repeating the obvious falsehood that the government privatized Fannie and Freddie AFTER their debts became "too massive".
THey are no different that any other country in this regard. Its like Washington cooking the books with the debt they incurred with Fannie and Freddie. When the debt became to massive, they just privatized them. Then poof, no more debt...until it is time to bail them out. Or perhaps the unemployment numbers are another example. They add numbers on the as ...[text shortened]... robably around 20%. Personally, I think the entire global economy is built on a house of cards.
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Originally posted by no1marauderI think the sheet over his ears at the last meeting of his "political" group made it hard to hear. People who follow the events of the real world know that those institutions were ruined by taking the cash surplus that they had and investing them in the imaginary securities that Wall Street thieves were pushing. I'm sure it is important that our money went to Bush's base and not "those" people but the fear of that supersedes rational thought for some.
I have no idea why you keep repeating what you know is a lie. But you really should be ashamed of yourself when you keep repeating the obvious falsehood that the government privatized Fannie and Freddie AFTER their debts became "too massive".