patrick.net

Yeah, China is the WORLD.

It really depends if is to the advantage of the wealthy elite.

If they decide it's in their interests not to crash, it won't crash.

If they want it to crash, they will squeeze markets, and when the crash, pick up assets on the cheap, and rent them to the suckers who can't get access to cheap money.

A crash amidst the China elite would be different. The US Fed has been covering the bad bets of much of the world's elite by buying up some of its most risky investments - failed mortgage-backed securities. Unfortunately, this method of "supporting equities" can also appear to be a run-up in the US dollar, which is frowned upon by the Chinese government, still the largest holder of US Treasury bonds.

Ironically, but not unexpectedly, they have been running the printing presses as well. In fact, they are putting us to Keynesian shame in debt vs GDP. If the Chinese RE market continues to soften, will the Chinese government continue to encourage policies which make it easier for nationals to buy RE in the US, or just the reverse?

A large portion of China's economy is simply the processing of materials to construct empty buildings, and even whole cities. Unfortunately, much of the world has a stake in the China bubble. It will be interesting to see how the Chinese react when they realize that their huge foreign exchange reserves will be almost useless in the coming crisis, and how their thrashing will disrupt the world's finances. It's a slow motion train wreck that's already happening.

And physical silver now is leveraged at 250-to-1 against paper, sold at the identical price per ounce. China currently leading the world in stock piled resources of physical metals. Kind of foolish of them isn't it Keynesians?

China has almost 1.5 billion people, the U.S. has 316 million. Their RE market, if it starts popping, investors come in and scoop the pop up, the inventories would clear almost overnight, they don't live in economic bubbles like we do here. Just like Chinese investors dominate the U.S. RE market. The Chinese government already stepped in and put a stop to over heating the RE market, unlike the stupid U.S. and banksters who played people as fools. Also, they don't build apartments and throwaway houses like we do. They build actual concrete apartments, when you buy one it's an empty shell, it's an easy investment, no insurance needed, no taxes, no b.s. like we have here. And, no the titling office is not like it is here either, they just don't have the kind of red tape you have here when you want to buy something.

China does not lead in stock piled gold, if they have larger stock piles than anyone else it's because they manufacture more than anyone else so use more metal than anyone else.

everything says

Their RE market, if it starts popping, investors come in and scoop the pop up, the inventories would clear almost overnight

They have a lot more housing by inhabitant than the US.
Investor can't buy everything without wondering who will live in it.

Plus most Chinese are actually too poor to buy these apartments.
They live in cars on the street, while they build empty buildings.

Except for that, no, they don't live in economic bubbles.

China is still building a middle class, if they can afford a car, they'll soon be able to afford an apartment .. because they don't live in economic bubbles like us where even many here cannot buy a car & also many certainly cannot afford to buy housing.

http://www.fool.com/investing/general/2014/04/10/1-bet-you-can-make-on-chinas-exploding-middle-clas.aspx

I'm not sure what you mean by 'not living in economic bubbles'.

Their money supply growth make the US look like amateurs.
Real estate prices are surely worse there relative to incomes than here.

Plus if the US is in a bubble as far as spending goes, then China is also in one, as far as production goes.
Our bubble is their bubble.

See this video:
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I never under estimate China, they know they need a middle class and they'll build a better one than we had, they have a huge democratic under tow as well. Why?, it's just another transition they are in as well as joining the BRIC, while the U.S. fiddles away.. The U.S. is actually bubbles within bubbles, and we are inherently addicted to recessions. I know a few Chinese folk here in the U.S. who own apartments in China, they are not that expensive. I agree, the money supply growth is the new wildcard, but if it is serviced within the country they'll figure something out when the time comes, kind of like we did. The other wildcard is all the gold China is acquiring.

I have read where the Chinese bubble is the same that the US went through in the 1930s. The diff will be do they have someone as fucked up as FDR? if so they are in for a long hard time. IF not it will correct quite quickly.