Nouriel Roubini Explains What Could Trigger A Hard Landing In China

Business Insider ^ | 06/11/11 | Gregory White

[TigerLikesRooster]

Nouriel Roubini Explains What Could Trigger A Hard Landing In China

Gregory White | Jun. 11, 2011, 7:36 AM

China is at risk of a hard landing, but that scenario won't play out until after 2013, according to Nouriel Roubini.

There are two reasons why the Chinese economy could end up collapsing, according to Roubini.

[RayChuang88]

In the end, China may have to rely on its gigantic resources of coal to save itself. China could start building plants to convert coal to motor fuels on a very large scale using the modern verion of the Fischer-Tropsch process, something that South Africa during the apartheid age successfully pulled off and the Germans during World War II did the same until Allied bombing destroyed their synthetic fuel plants.

[Pelham]

+1

[SunkenCiv]

Thanks Clintonfatigued.

[Former Proud Canadian]

China is building coal to oil plants, with the help of SASOIL. I don’t think they can build them fast enough.

[RayChuang88]

They're going to need a LOT more of those coal-to-oil plants, especially given the large amount of coal in China. This would mean a lot less need to import oil from any place they could get it, and it may give time for China to finally work out a deal with Vietnam and the Philippines to build offshore oil production platforms at the Spratly Islands chain (which some geologists claim could hold hundreds of billions of barrels of oil).

[bert]

A hard landing is not really a proper description of a bottoming out of an economic cycle. The excesses of over production of the infrastructure necessary to grow will be absorbed as the economy grows at a slower rate. It is not clear that the growth is uniform across the society and may have a way to go before there is uniform excess.

The people clearly indicate they like the transition from have not peasants to haves city dwellers. They have taken the products they make for the west and mimicked them. They are becoming consumers and the growth of China consumers will flatten the slope of the curves.

Economic change is in fact impossible to control. The world markets, currency, and debt will all sort themselves out to influence the rate of change in China.

[Logic n' Reason]

I'm given to understand from a highly place government source close (but not TOO close) to "former" congress-louse little tony weiner, and who demanded anonimity....that his "rehabilitation" is mostly aboout how to take photographs. Effective lighting, the range of F stops and apatures, effective use of shadows...and how to make the objects photographed appear larger than they really are.

Fear not....little tony weiner will be back "bigger and better" than ever!