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
The economist Milton Friedman didn't go far enough when he said, "Concentrated power is not rendered harmless by the good intentions of those who create it." In fact, as Bill Bonner explains, those same good intentions are often used as pavement on a road that leads to a rather ominous and fiery destination. Read on...
Since the Internet boom of the 1990s, Internet infrastructure has not had a major upgrade in carrying capacity. Now, for the first time in more than a decade, an immense spending cycle is about to be set in motion, and it's aimed at upgrading those "old pipes." Josh Grasmick explains how you can get in on the ground floor of this investment trend...
The best use of a new technology is to solve an old problem you never gave much thought to. It's these problems that become so common, people naturally come to accept them. Now Bitcoin is doing just that, by helping to solve some of the simplest (and most common) problems people face... like splitting a dinner bill. Jeffrey Tucker explains...
Over the past three years, few investments have performed worse than coal. Investors hate it because coal stocks bring them nothing but pain. Environmentalists hate coal because it pollutes. And the list goes on. But recent price action suggests that some of those attitudes might be changing. Greg Guenthner explains...
Taken individually, most people perform relatively well in their daily lives. They get up, drive to work and interact with various other people, largely without incident. But when big groups of people get together, they can be incredibly pig-headed, demanding "action" when the best course of action would simply be inaction. And before you know it, chaos ensues. Bill Bonner explains...