Billionaire hedge fund investor Jim Chanos, the famous Enron short seller, is in the camp of professionals who view China as headed toward a crash. The China bears suspect that the economy is not as healthy as portrayed, and that many of its components that are actually stronger have become overheated. Basically, they believe that the “entire system is teetering toward collapse.”
Here are three factors that suggest serious problems in China…
* First, they claim the huge $900 billion spent by the government on economic stimulus to support the $4.3 trillion economy is underperforming.
* Second, China could be cooking its books. There are notable inconsistencies in official statistics. They highlight that car sales are rising dramatically but gasoline consumption is flat, one of many unexplained economic phenomena.
* Third, the Chinese potentially face problems with overcapacity. For example, China uses more cement than the rest of the entire world combined, and it increased production by an amount greater than US, India, and Japan’s combined consumption. It’s one example, but the concern is that China will not be able to find a market for many of the goods it is producing in massive amounts.
A collapse of the Chinese economy would send shockwaves worldwide, certainly to include the US. A crippled China could find itself with a destabilized government and would be less able to support purchases of US debt… both are serious concerns. To read more of the full story visit Politico, and view its coverage of China headed toward collapse.
Rocky Vega is publisher of Agora Financial International, where he advances the growth of Agora Financial publishing enterprises outside of the US. Previously, he was publisher of The Daily Reckoning, and founding publisher of both UrbanTurf and RFID Update -- which he ran from Brazil, Chile, and Puerto Rico -- as well as associate publisher of FierceFinance. Rocky has an honors MS from the Stockholm School of Economics and an honors BA from Harvard University, where he served on the board of directors for Let?s Go Publications, Harvard Student Agencies, and The Harvard Advocate.
China as a paper dragon? Yes! Let us be reminded that the dragon is the only sign of the Chinese zodiac that exists only in myth.
China crashing would be the best thing that could happen to the average American. Maybe we could get some jobs back. Believe me they are not our friends.
the write has no basic knowledge about China, he said few times in past two decades, nothing happen, you can pray, but god will not show up, China is very solid, the banking system is the strongest in the world, huge reserve and saving, high education system, low crim rate, stablize society, what is writer is thinking ?
Pingback: comic con san diego()
Pingback: work from home jobs()
Pingback: how to play golf()
Pingback: buy instagram followers without following()
Pingback: poker online kostenlos spielen ohne anmeldung deutsch()
Pingback: how to win the lottery books just click the following web site()
Pingback: official hoodia()
Pingback: hollywood plastic surgery before and after()
Pingback: slot machine da bar giochi gratis()
Pingback: Love Letters For Her()
I consider this trade a mean-reversion play. We're not hanging around if it doesn't work out--and I certainly don't think these stocks will regain the momentum they had during last year's monster run. This is a short-term trade, OK? But a little disbelief rally can hand us some quick double-digit gains.
Bubbles in land, mortgages, art, gold… tablets. Who knew? An astute lifelong student of financial and economic history, for one. What’s next? Marc Faber takes a stab at an answer below…
Fact: More Americans than ever before are choosing to give up their citizenship. If you’ve been finding America’s tax laws inconvenient or even oppressive, however, read on. Peter Schiff outlines options for avoiding government intrusion in your life… without giving up your citizenship...
Like everything in life, there are winners and losers -- money production is no exception. In fact, thanks to the opening the money spigot, Guido Hülsmann of the Mises Institute explains we're ultimately looking at worsening income inequality. Read on...
If you believe Apple’s advertisements, each new “iWatch” will be covered with gold. And they plan to sell millions of them. Today, our friend and colleague, Frank Holmes, takes a look at just how much gold Apple needs to pull it off, how serious they are, and what to watch for as the gold markets respond…
Stephen Petranek explains how the blood pressure medication, Verapamil, could be used to do big things for sufferers of Type 1 diabetes. Click here to see why some are calling this a sign of hope...