China’s Property Bubble Echoes Subprime Crisis

Wolf Street ^ | 2 August 2016 | Harry Dent

[Sgt_Schultze]

I wrote about this in a letter late last year, but now here we are more than halfway through the year and it’s only getting worse. So much worse that the Chinese property bubble is now the catalyst that will reset markets – and will likely be one large event that cascades across the globe.

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I’m convinced that what finally puts an end to central banker madness and the incessant stream of QE will be the Chinese real estate bubble.

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China is going down. The China Beige Book (which is much more accurate) recently showed that, across the board, economic conditions are unraveling. There will be no soft landing in China. It’s only a matter of time. It will bring down the entire world’s unprecedented debt and real estate bubble.

[Sgt_Schultze]

I guess whomever is in the big chair in the US when the spit hits the spam this time, that party will get the blame for a generation.

[MeganC]

No worries, Obama will have the Fed gin up a few trillion dollars to prop up his co-conspirators in China.

[DannyTN]

I think China publishes these “Woe is China” stories on a weekly basis in hopes that we won’t elect someone like Trump and put an end to the trade abuses.

[goldstategop]

Its going to be interesting how the Communist Party deals with the unrest.

So far China’s spectacular economic growth has made people willing to accept authoritarian rule in exchange for social stability and a better life.

All are bets are off it that disappears.

[factoryrat]

Chinese communist slave economy implodes...

Globalist dem and republican free traders are deeply saddened.....

And broke.

How’s that cheap communist subsidized labor working out for you?

[Sgt_Schultze]

There are a lot of American corporate manufacturing assets over there to be confiscated.

[factoryrat]

Former US companies got in bed with the chinese devil. They have no room to complain when they get screwed.

The chinese will natioalize those companies anyways when they decide that the US is at its weakest. So will mexico, and every other third world shithole that we’ve whored our industrial base out to.

[Mr. Douglas]

Didn’t they build a few cities that nobody ever moved into?

[Mr. Douglas]

They probably planned for it. That is, the facilities have probably already paid for themselves.

[drop 50 and fire for effect]

I concur, I am half convinced that the recent military activity and adventurism in the South China Sea is an attempt to mitigate internal dissent.

No one can know the true state of the Chinese economy. The official figures are completely untrustworthy. The state remains a major player through government (Party) owned companies (The PLA is a huge player in business).

If and when the economy crashes, the effects are incredibly unpredictable. You could just have demonstrations, you could get a civil war, or you could get a general war in eastern Asia and the Western Pacific.

I fear that the Party has been keeping the lid on so tight that instead of letting the pressure off slowly, the pot explodes instead.

[familyop]

According to “news,” the Chinese economy has been collapsing every week or so since 2007. It’s part of an effort to keep the dollar unnaturally, internationally high, and the Renmimbi, unnaturally, internationally low. The result has been mostly one way trade and balance of payments deficits for the USA.

[familyop]

"It will bring down the entire world’s unprecedented debt and real estate bubble."

If it were true, it would do that, alright, the hard way. The bond collapse, skyrocketing interest rates, market crashes, decreasing revenues, skyrocketing unemployment, continue cycles, defaults and inflated prices of products would be magnificent.

[Chode]

just how many ghost cities can they build before they all fall down???