Posted on 08/16/2014 3:24:36 PM PDT by SeekAndFind
The collapse in Chinese credit from $320 billion in June to $44.3 billion in July is causing panic across the nation as anecdotal stories from local officials indicate the credit contraction is being “policy-driven”. This would mean that the Chinese central government told its state-owned-banks and 144,700 state-owned-enterprises that control 43% of China’s total industrial output and business profit to stop expanding.
Slowdowns in Chinese business expansion have taken place in the past when the Communist Party wanted to curtail high inflation, but this is the first time that loan demand declined after months of sustained and definitely not “policy-driven” declines in home sales, home prices, and housing construction in major Chinese cities.
(Excerpt) Read more at americanthinker.com ...
Sounds like their real estate bubble is about to burst.
China will return to its accustomed status as a third world cesspool by 2016. Shortly thereafter, America will again emerge triumphant with a roaring economy under the leadership of either President Sarah Palin or President Ted Cruz. Take America back! Abolish the minimum wage! Crush labor unions! Woo hoo!
I don’t believe any economic numbers provided by the Chinese government.
I used to mostly believe economic numbers provided by the US government but that’s gone the way of China and is rapidly becoming entirely state propaganda.
Ghost cities and highways to nowhere can’t sustain an economy forever. I told someone three years ago the Chinese economy would collapse before America’s.
I also have to wonder how much of a fudge factor is put into the statistics. It’s probably worse than reported.
Indeed. And it looks like ‘shadow banking’ played a big role in fueling the bubble just like it did here:
“The major reason China has failed to slow its credit boom is the rise of “shadow banking.” A decade ago, China’s state-owned and tightly regulated conventional banks accounted for virtually all the lending in China. But as the Chinese government reigned in traditional bank lending from 27% of GDP in 2010 to 18% today, unregulated loans from “shadow bank” trusts, leasing companies, credit-guarantee firms and money-market funds fueled real estate speculation by expanding from 3% to 8% of GDP.
Traditional bank loans in China required the buyers to actually live in the home, whereas much of the real estate activity over the last 6 years has been to speculators. The China vacancy rate reached 22.4%, or 49 million units, for sold residential homes in urban areas, according to a 2013 nationwide survey by researchers from China’s Southwestern University of Finance and Economics. “
Send the illegals over there.
I wish I could share your enthusiasm for the decline of China and conservative president. But the fact remains. The USA, the ‘west’, has been asleep while China has sunk her claws in to every nation that has the resources we need for manufacturing. Rare earth materials and mined resources are owned by the Chinese government. The Chinese government will laugh if their people starve because the world will still be buying magnets and tungsten for the West’s government mandated electric cars, solar panels, and windmills.
BUT, with a president Palin or Cruz perhaps we would finally be allowed to harvest the massive resources that are buried in our own soil.
I wouldn’t put much hope in Palin running. It is pretty clear she has no real interest in the job.
Believing China's stats is even tougher than believing anything Obama says.
IMHO, this article misses one very important point.
The Party Chief Xi jinxing and head of Government, Li kechiang started a purge of a rival power base, which is believed to be controlled by former Party Chair Jiang zemin. Like most struggles of the last 2 decades, it is carried out under the guise of “corruption.” Since everyone, or their families, are involved in some crony state-run capitalist corruption, when people start to fall, everyone gets nervous.
This investigation really started to heat up several weeks ago, which coincides with this loan period in question. What this REALLY shows is the total state-run and crony nature of Chinese business. Politics absolutely leads business. No one DARE take new loans while these things are being investigated or while political positions are uncertain.
Sounds like Soros might believe the numbers if reports are true about his HUGE bet against the market recently...
Well I don’t have much hope of her running either, but that said, Ideally, the person I want in the office (any office really) is somebody that does not really want to be there... But will do the job because it is what is best for the country
So what happens to all the investments being made by the Chinese here in the US?
Your dreaming. We are too far gone. What is coming is a complete collapse of every thing you know.
That works for me!
If the Chinese economy collapses. our economy will suffer substantially. And China holds a trillion dollars in T-bills. We also have significant private investment in China.
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