Posted on 06/17/2013 9:30:43 AM PDT by blam
Yes, At Some Point China Will Implode
Henry Blodget
June 17,2013
If there has been one prediction made more than any other over the past couple of decades, it's that China's miraculous economy is headed for a fall.
China bears have pointed to a long list of disasters-in-the-making, from questionable economic statistics to skyrocketing real-estate prices to ghost cities to centrally planned growth to corruption to pollution to civil unrest to debt.
And yet, despite all of these concerns, China's economic machine has just kept chugging along.
But this time it's going to be different!, says an analyst from Fitch. This time, China really is screwed.
According to Ambrose Evans-Pritchard of the Telegraph, Fitch analyst Charlene Chu has concluded that China's growth is being fueled by a credit bubble that is unlike anything the modern world has ever seen. This debt bubble is leading to massive overbuilding, Chu says. And when it finally bursts, as debt bubbles always do, China will be looking at a Japan-style depression and deflation.
Given the number of China doom prophesies that have been made over the past two decades, you can be forgiven for rolling your eyes at this one and moving on. But Chu does cite some startling statistics, including the claim that China's debt-to-GDP ratio has quietly shot up to more than 200% and that each additional yuan borrowed is producing ever less growth. If there's any hard law of finance, it's that what can't go on forever won't. And borrowing at this rate relative to economic growth can't go on forever.
That said, as always, the key question is "when?"
At some point, China's economy is almost certainly going to go through the same sort of violent setbacks that every economy goes through...
(snip)
(Excerpt) Read more at businessinsider.com ...
Huh???....Look at ourselves. We are imploding a hell of a lot faster than they are.
Analyst Says China's Credit Bubble Is Unlike Anything In Modern History
But China is not too far behind ether.
When the time comes China will fly apart. The only thing holding the different regions of that country together has been the party and more recently the economy. Historically, they haven’t had much more than that in common.
China and the USA... on a fast paced mission who can go down the crapper the fastest..
Look on the bright side ? we have more oil than they.
As I said, we will well implode first, because China will have other customers to dump their cheap goods.
Obama and Bungling Ben Bernake's QE $17T circus is a house of cards ready to crumble.
We have oil, they have money. Do the math.
Many American companies that made decisions to do business with Wal-Mart ended up in bankruptcy when they became too dependent on Wal- Mart business.
Wal-Mart is doing the same to Chinese companies.
They can only pretend to stay afloat by pretending to still sell us stuff that we can still pretend to be able to buy.
Get it?
I just hope this doesn’t put a damper on the rise of Christianity in China.
QE is basically a global ponzi scheme, and the world is the suckers. We should have took our medicine back in '08.
China is involved in a significant number of joint ventures with American oil companies. China also is accumulating vast amounts of gold while it is questionable whether the US has all the gold it claims to possess.
chicom bump for later.....
Look at the US. Our government is able to sustain a bubble and put off the day of reckoning. I would expect a communist nation can prolong it even longer. Not saying china won’t crash further but that the chi-coms can somewhat muffle the damage. Also the china stock market has been kind of rocky for a number of years so some of this is built into market projections.
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