why China's bubble will burst

[somebozo]

Note that government ownership of central banking is a backstop to all of this, providing the guarantee of never ending economic growth that is larger than could otherwise be."

The Indians are so quick to troll in favour of uncle sam that they forget all central banks in the world are owned by government execpt in USA which is pretty much the problem of their economy and all the useless wars they are fighting around the world. The US fedral reserve does not work in favour of the nation, it uses the nation for it favour!

 

[raavan]

you can ask the same question 20 years ago about thousands of this kind of specialists reports filled with datas,figures,charts..but the result,real facts failed their study.

Agreed, but the real facts are a bit different this time around as mentioned in the article

---------- Post added at 09:47 AM ---------- Previous post was at 09:44 AM ----------

The Indians are so quick to troll in favour of uncle sam that they forget all central banks in the world are owned by government execpt in USA which is pretty much the problem of their economy and all the useless wars they are fighting around the world. The US fedral reserve does not work in favour of the nation, it uses the nation for it favour!

No body is trolling here except ...... and the article is certainly not in favor of america, on the contrary it highlights some problem that west is encountering right now and China might in future

 

[beijingwalker]

more than 10 years ago when Zhu Rong Ji was premier of China,Asia was hit hard by the wold financial crisis.Zhu's counter attack is to invest heavily,almost all money availble into infrastructure,huge projects,stimulus packages...all those foreign reports said China way over spent its ability,would collapse in one or two years.....ablah blah,sounded like that doomsday was arriving China.and result...China got on a fast train for the growth and development,all the infrastucture investment paid off handsomely in the end.

I still remember some funny joke of those reports,one say that in China,the economy was like "the grandfather took and spent all the money of their grandchildren's".that's really bad,isnt it.but look at China now,over 10 years after that,the country boast 3.2$ trillion foreign reserve,over 30% of the world total,seems like the grandfather paid back the grandchildren handsomely,haha

 

[below_freezing]

^^^^ when people start ignoring the ground realities , usually it is a pretty good sign of a decline of empires.It happened to America, its happening to Europe etc Do you have any arguments to refute the statistics mentioned in the article or u prefer to live in delusional world

The one child policy does not exist. There is a planned parenthood policy in China. The name in Chinese is "Planned Parenthood". There is no "one", "child", or even "policy" in the name of this directive. As a planned parenthood policy, there are many groups that have multiple children. In fact, any family can have as many children as they want, provided that they can pay the licensing fees.

The house bubble does exist, but once it is deflated, there's nothing to worry about. Houses in China are not bought on high credit; instead, there's usually a 30-40% down payment with many houses being bought with straight cash. Whoever bought the houses are stuck with them. Because of that, any speculators will be forced to either rent out the houses at low cost or take a loss and sell back to the government which will then re-rent them as low cost housing. Those who already paid for their primary residence have sunk their costs in and can do nothing about it. Only speculators lose big. It won't bring down the bank system.

We've refuted the "get old before it gets rich" thing about 50 times already. I think the opposite problem in India, of "prematurely dying before getting rich" is much more serious.

 

[Interpreter]

We Chinese say:"Every day,we cannot even do one thing without hearing someone's sensible,logical,reasonable foretelling like these.We enjoy them,we feed on them,they have become indispensable in our lives."