China sits on the granddaddy of all real estate bubbles. The communist controlled central bank directed the squandering of $2 trillion of capital into the building of needless “ghost cities” that sit empty, decaying and no return on investment. Their real estate is artificially and unrealistically valued. Their loans and banking are based on artificially high real estate values. A small decline in real economic output and the whole system tumbles. Remember 2008. The US as a political result got Obama. The world should really shudder for what will happen in China.
You’re exactly correct.
I’ve seen these ghost cities and malls with my own eyes.
I also saw, just a few short months ago, 30 year old engineers giggling and laughing and looking at their phones in the middle of a business meeting. I learned afterward, they were tracking their stocks... all day, every day. EVERYONE with two nickels to rub together, was investing it into the stock market. They all saw it as a quick way to “easy money”. I shuddered when I remembered the way I invested in the early 80’s.
China is new to this “freedom gig”. They’re excesses put our previous meager efforts to shame. This is going to be one large group of VERY unhappy people when it collapses... and, that sure looks to be what it happening.
Isn't $2 Trillion an extremely conservative estimate?
Well said!
That’s what I have been hearing too.
I though they were building the cities before forcing a lot of illegal migrants to the cities into the new cities, instead of those on the coast.
Correct. Add in the years of currency manipulation and you can see why this has been brewing for some time.
Obama had Geithner and the Chinese to keep buying our funny-money debt and obama bowed to them in gratitude
Who does China have?
Luckily our debt is under control because the debt counter hasn’t budged a penny for over a month
sarc