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The Ponzi Scheme Driving China's Construction Economy

By Mish   2012 Nov 28, 8:26am   2,200 views   21 comments   watch (2)   quote      

Indebted Dragon: The Ponzi Scheme Driving China's Construction Economy
http://globaleconomicanalysis.blogspot.com/2012/11/indebted-dragon-ponzi-scheme-driving.html
Mish

Comments 1-21 of 21     Last »

1   C Boy     2012 Nov 29, 4:29am  ↑ like   ↓ dislike (1)   quote    

It's going to be a complete bloody mess when it finally crashes.

2   lostand confused   225/225 = 100% civil   2012 Nov 29, 4:40am  ↑ like   ↓ dislike   quote    

C Boy says

It's going to be a complete bloody mess when it finally crashes.

Will it crash? Can anybody oppose the official line in China ?? It may physically crash, but the communist party will still be maintaining that they have 8% growth.

3   C Boy     2012 Nov 29, 5:46am  ↑ like   ↓ dislike (1)   quote    

lostand confused says

C Boy says

It's going to be a complete bloody mess when it finally crashes.

Will it crash? Can anybody oppose the official line in China ?? It may physically crash, but the communist party will still be maintaining that they have 8% growth.

What will they do with millions of unemployed men who can't find wives?

4   bmwman91     2012 Nov 29, 10:00am  ↑ like   ↓ dislike   quote    

Haaayyyyyyyyyyyyyyyyy!

5   lostand confused   225/225 = 100% civil   2012 Nov 29, 10:58am  ↑ like   ↓ dislike   quote    

C Boy says

What will they do with millions of unemployed men who can't find wives?

Force them to construct even more ghost cities?

6   B.A.C.A.H.     2012 Nov 29, 1:29pm  ↑ like   ↓ dislike (1)   quote    

Awh yes, Mish keeps on a keepin' on, calling b*llsh*t on what is "hot" or in "vogue" or "different here" or "different this time.

7   Thomas Chongruk     2012 Nov 29, 3:54pm  ↑ like (1)   ↓ dislike   quote    

To start the crash, the government(s) need to initiate property taxes like we have in the USA (or parts thereof). Once that happens, they'll be never where to go but down.

8   bmwman91     2012 Nov 29, 4:40pm  ↑ like (1)   ↓ dislike   quote    

A crash there would probably drive throngs of crooked wealthy folks out of there and directly to here where resident visas are on sale for the low low price of $500k (spent on RE). No joke.

Welcome to the receiving end of globalism, kiddies. It's going to be a lot less fun than the decades we spent on the giving end. SQUEEEEEEAL, BOY!

9   David Losh     2012 Nov 30, 1:20am  ↑ like   ↓ dislike   quote    

bmwman91 says

A crash there would probably drive throngs of crooked wealthy folks out of there

There are several factors to China, and it's banking system. They create money out of nothing, because they can.

China has a Billion people. If each person spends a dollar that is a high velocity of money.

What China is saying is that the average wage per worker is rising, and as it rises so does inflation. More dollars go to workers, and more dollars go into buying goods, and services.

The fastest, and easiest way to create these good paying jobs outside of the financial sectors of international trade, research, or manufacturing is construction.

So, as much as this may be a Ponzi Scheme it is also a wage base. If construction stops, or slows, millions of workers will be out of a job.

No wages, no growth.

There will be riots in the streets until communism settles back in.

http://www.clb.org.hk/en/node/100206

10   RealEstateIsBetterThanStocks   174/174 = 100% civil   2012 Nov 30, 1:18pm  ↑ like   ↓ dislike   quote    

why are Americans worrying about the "indebted Dragon" when their national debt is 43% of GDP with a huge trade surplus and U.S debt is 100% of GDP with a gigantic trade deficit?

11   RealEstateIsBetterThanStocks   174/174 = 100% civil   2012 Nov 30, 1:20pm  ↑ like   ↓ dislike   quote    

C Boy says

It's going to be a complete bloody mess when it finally crashes.

maybe. but the U.S will crash first, that's for sure. and it will be the biggest mess ever.

12   RealEstateIsBetterThanStocks   174/174 = 100% civil   2012 Nov 30, 1:23pm  ↑ like   ↓ dislike   quote    

C Boy says

lostand confused says

C Boy says

It's going to be a complete bloody mess when it finally crashes.

Will it crash? Can anybody oppose the official line in China ?? It may physically crash, but the communist party will still be maintaining that they have 8% growth.

What will they do with millions of unemployed men who can't find wives?

half of U.S households are of unmarried people, the divorce rate is at 50% and the population is much older than that of China. the White race is shrinking fast. lets focus on those.

13   everything     2012 Nov 30, 2:17pm  ↑ like   ↓ dislike   quote    

I've had the opportunity to meet some Chinese college students who come here to study, and many come. Oh how do I love talking with them as they are all very intelligent, always earning MD or PHD. Some are very humble, very happy to be here, certainly many appreciate the opportunity they know many their age from their own country may never have. Still others are very proud, nationalistic and look upon our society somewhat disdainfully. It is also very interesting to know what they study, I ask them, and few of the students have any desire to remain in the U.S. either.

China is still on top of it's game. Excess housing means no shortage of housing for a fast growing middle class. Excess also means less chance of a bubble in house prices, which was starting to happen, and they put a crimp on it. They learned to grow the middle class from us, it provides a good tax base, economic base, and political stability. See, China invests in it's people, sure they are still corrupt, who isn't, what country isn't? Fear keeps people in line, even divorce is shunned, that means pick your mate wisely and carefully the first time around. Where here in the U.S., the stupidity of feminist power domination, rewarded and championed, marriage is becoming somewhat of a joke.

The central government is also stacking gold 500-800 tons just this year, they saw how the dollar rose to be so great by being backed by gold initially and see that for what it is/was.

Chinese understand that he who dies with the most toys wins, they are already branching out from the homeland buying properties and companies all over the world.

The neural network of intelligence I see coming out of China is to me pretty impressive.

I have to agree with others, yeah it sure is fun to bad mouth China but what do you expect from a nation of hypocrites.

14   Patrick   1851/1851 = 100% civil   2012 Nov 30, 2:22pm  ↑ like   ↓ dislike   quote    

I have a Chinese friend who claims that China was historically always the most advanced country, and the last couple hundred years are just a blip that will be corrected soon.

15   Peter P   78/78 = 100% civil   2012 Nov 30, 3:12pm  ↑ like   ↓ dislike   quote    

I have a bad feeling about this.

People are liabilities and China has a lot of them.

16   APOCALYPSEFUCKisShostikovitch     2012 Nov 30, 7:35pm  ↑ like (1)   ↓ dislike   quote    

You know all those Chinese characters on the walls of Chinese restaurants?

If you read them all clockwise from the front door of the restaurant, they say, 'On the signal, knife all the white people.'

17   lostand confused   225/225 = 100% civil   2012 Nov 30, 7:39pm  ↑ like   ↓ dislike   quote    

18   RealEstateIsBetterThanStocks   174/174 = 100% civil   2012 Nov 30, 8:21pm  ↑ like   ↓ dislike   quote    

lostand confused says

Kung-Fu expert beats up mob of 50 trying to evict him in China.

http://www.zerohedge.com/contributed/2012-11-30/kung-fu-expert-china-beats-mob-50-trying-evict-him

i recommend watching something with real substance:

19   lostand confused   225/225 = 100% civil   2012 Nov 30, 10:30pm  ↑ like   ↓ dislike   quote    

Mark D says

i recommend watching something with real substance:

The way the common man is treated, is of no substance to you?? Figures.

20   RealEstateIsBetterThanStocks   174/174 = 100% civil   2012 Nov 30, 10:56pm  ↑ like   ↓ dislike   quote    

lostand confused says

Mark D says

i recommend watching something with real substance:

The way the common man is treated, is of no substance to you?? Figures.

talking to you is like talking to a wall. you are absolutely clueless in almost every topic you ever participated. although, can't really say i expected much from you.

21   lostand confused   225/225 = 100% civil   2012 Dec 1, 12:11am  ↑ like   ↓ dislike   quote    

Mark D says

talking to you is like talking to a wall. you are absolutely clueless in almost every topic you ever participated. although, can't really say i expected much from you.

My, my getting touchy are we -typical. Have no substance , let the insults fly. LOL!!!!

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