——unraveling? -—
I will suggest unraveled.
The reason for the Chinese GDP growth was unregulated growth and investment. The whole economy depended on jobs created by construction and the materials. The local governments didn’t collect anywhere near adequate taxes and depended on revenue from the sale of land. banks loaned money to everybody for the same projects.
People paid cash down and took mortgages on apartments under construction. They put their savings into down payments. When developers ran out of money, the people were left hith a deed on a project that would never be completed.
Banks are failing. Mortgage payments stopped. People can’t with draw their deposits. Wages are not being paid for a year or more. Young people are increasingly lying flat. Unemployment grows and grows and grows.
There is an expression tofu drang that describes shoddy buildings made of tofu. The concept of tofu drang is being understood by nations paying off debt for tofu drang infrastructure built by China. They are not paying the Chinese banks that are actually the CCP in mufti
Concur. We followed the “Greenspan” fairy tale and I think we will have big losses in the future (commercial real estate for sure) but our “bubbles” pale in comparison to what happened in China.
We have codes, regulations, and a true tort system that works. In China, if it’s the right member of the CCP mafia that built your “tofu drang” you have no real means to recover your losses and you still have to pay the CCP bank plus contract penalties.
Great post and I agree 100%. I feel sorry for the Chinese people because the more I learn the more I realize what a corrupt mafia the CCP really is.