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China's Bubble
China Celebrates July 4 By Melting Down
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  • Jacksonian_Libertarian

    I’ve saying it for some time, that the Chinese economy is headed for the wall. People need to recognize just how much of the Chinese economy is owned by the Government Monopoly. And how corrupt it is with the top 70 officials worth over $100 billion despite spending their entire lives in government service, and that’s not counting the worth of their families which is the Chinese favorite method of hiding ill gotten gains. That the foreign investment that is responsible for the so called Chinese economic miracle since the time of Deng Zhou Ping has dried up. That despite over 30 years of growth, China still doesn’t have a single recognizable world renowned Brand Name, like Samsung, Sony, or Toyota. This fact is indicative of an extreme lack of creativity and entrepreneurial activity. So now that the foreigners have stopped building state of the art factories and selling the products made in them around the world, China has no source for continued growth.

    • wigwag

      “…despite over 30 years of growth, China still doesn’t have a single recognizable world renowned Brand Name, like Samsung, Sony, or Toyota.” (Jacksonian_Libertarian)

      There is Alibaba. But it may just be the exception that proves the rule.

      • Anthony

        While I have nothing against Alibaba and Jack Ma’s story is inspiring, it is just a copy of Amazon.com. Furthermore, it is not competing in a free market, as the government makes it very difficult for foreign firms to compete against Alibaba.

      • fastrackn1

        Alibaba is loaded with sellers of counterfeit goods and phony store fronts. Most of the counterfeiting is of US brands, and Alibaba has able to grow to the position they are in because of money made from sellers of counterfeit goods. Now that they are in a secure position at the top, they are making a lame attempt to curb the selling of counterfeit goods on their site, likely as a PR stunt, not actually caring about the harm they have allowed to propagate on their site for many years. Google about Alibaba and you will find plenty about what they really are.
        All the Chinese are good for is making crap products when left to their own imagination, or making good products only when provided with ‘exact’ specifications (contract manufacturing), by a US company….which they usually make more than the US company ordered and then sell the extra on the black market.

        The Chinese are nothing but sheep who can only follow. They have created nothing of real value to mankind since they invented gun powder 1200 years ago….

    • wreed22

      The Chinese “Princelings” have done very well over the past decades.

  • Anthony

    “The crash has underlined the burgeoning role of debt in Chinese share-trading. Goldman Sachs reckons outstanding margin financing, at 2.2 trillion Yuan ($355 billion) earlier this week, was the equivalent of 12% of the value of all freely traded shares on the market, or 3.5% of China’s GDP. Both are easily the highest in the history of global equity markets…With Chinese shadow banks and peer-to-peer lenders also offering cash to investors, the amount of hidden leverage in the market is estimated to be as much as 50% higher. That debt helped to fuel the initial rally. It is now adding to the pain, as leveraged investors rush to sell their holdings to cover their debts.” (Economist – China’s stock market crash)

    So, we shall see – unchartered waters perhaps.

  • Cristina Moska

    Mead’s gleeful yellow-bashing is truly a sight to behold. He rubs with hands with joy at the prospect of China’s troubles.

    His message is “Let’s pig out and party while the Chinese go down, hahahas.”

    Ugly man.

    • ImperiumVita

      In your world a factual news report which explicitly declines to take the step of predicting a crash = Yellow Bashing

    • William Ockham

      Huh?

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