Status of Chinese People

About China and Chinese people's living condition

  • China Organ Harvesting Report, in 19 languages

  • Torture methods used by China police

  • Censorship

  • Massive protests & riots in China

  • Top 9 Posts (In 48 hours)

  • All Topics

  • Books to Read

    1. A China More Just, Gao Zhisheng
    2.Officially Sanctioned Crime in China, He Qinglian
    3.
    Will the Boat Sink the Water? Chen Guidi, Wu Chuntao
    4.
    Losing the New China, Ethan Gutmann
    5.
    Nine Commentaries on The Communist Party, the Epochtimes
  • Did you know

    Reporters Without Borders said in it’s 2005 special report titled “Xinhua: the world’s biggest propaganda agency”, that “Xinhua remains the voice of the sole party”, “particularly during the SARS epidemic, Xinhua has for last few months been putting out news reports embarrassing to the government, but they are designed to fool the international community, since they are not published in Chinese.”
  • RSS Feeds for Category

    Organ Harvesting

    Human Rights

    Made in China

    Food

    Health

    Environment

    Protest

    Law

    Politics

    Feed address for any specific category is Category address followed by 'Feed/'.

  • Enter your email address to subscribe to this blog and receive notifications of new posts by email.

    Join 223 other followers

The China Bubble (1)

Posted by Author on December 28, 2009

Gady Epstein, Forbes Magazine, dated December 28, 2009-

China’s economy is humming along in high gear, thanks to a fast-growing pile of dicey debt. Such booms tend to end badly.

China’s economy is the envy of the world. As developed nations struggle to eke out a bit of growth and to get unemployment rates out of double digits, Chinese output gallops ahead at an 8% annual rate. This $4.7 trillion economy, it seems, is the world’s dynamo and the prototype for the future.

Take a close look, however, and you may come away thinking China resembles nothing so much as Japan shortly before its stock and property markets melted down two decades ago. A speculative frenzy of borrowing and bidding up is at work. If and when prices crash, there will be hell to pay.

Signs of the times: government bureaucracies funding themselves by foisting debt on state-owned business enterprises; local governments raising capital by selling land at sky-high prices to corporations they own; and a People’s Bank of China lavishing liquidity on the entire system in a way that makes Federal Reserve Chairman Ben Bernanke look downright stingy.

“It’s a Ponzi scheme whose head is the central bank, and it can print money,” says Victor Shih, a China expert at Northwestern University……. (to be cont’d)

– From The Forbes

Sorry, the comment form is closed at this time.