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China's Bubble
Useless Investments, Massive Waste
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  • lukelea

    That works out to more than $7000 per head, an enormous sum for a poor country like China. In effect the government has squandered the life savings of China’s working a middle-classes. The fact that the government may offer deposit insurance means nothing: they can only print the money when these hundreds of millions retire and begin making withdrawals. I foresee tremendous social unrest down the road. If history is any guide it could easily lead to war as the central government tries to deflect popular anger.

    Though it is impossible to predict when the sh*t will hit the fan, this is a long-term problem not a short one. Talk of soft landings are quite beside the point.

  • adk

    So much for centrally planned, state-run economy Thomas Friedmans of the world are so fond of.

  • S.C. Schwarz

    What makes you think our government is any better?

    • Lorenzo from Oz

      A lot more public exposure and public pressure.

  • Jacksonian_Libertarian

    I’ve been saying all along that China is headed into the wall. The foreign investment that built state of the art factories in China decades ago to take advantage of the cheap labor has dried up and gone elsewhere. It was always foolish to expect Communists to be able to manage a Capitalist economy. That $7 Trillion has been wasted by the Communists is likely a low ball number as it doesn’t begin to measure the corruption in the Chinese economy. Nor does any of this measure the amount of smart money that has left China as it recognized China’s inevitable crash.

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