Keynesian: Booming Chinese Village a Sign of Coming Chinese Collapse

[clb09]

http://www.bloomberg.com/apps/news?pid=20601087&sid=azXVqyY6O8cQ

Its leaders took a farm community with bamboo huts and ox carts in the 1970s and transformed it into an industrial and commercial powerhouse where today many of its 30,000 residents live in mansions and most have a car. Per-capita income of 80,000 yuan ($11,700) -- almost four times the national average -- allows Huaxi to claim it’s China’s richest village.

Huaxi is also emblematic of the country’s construction and real estate boom. Communist Party officials there are building one of the world’s 30 tallest buildings, a 2.5 billion yuan, 328-meter (1,076-foot) tower. The revolving restaurant atop the so-called New Village in the Sky offers sweeping views of paddy fields, fish ponds and orchards, Bloomberg Markets reports in its April issue.

Marc Faber, publisher of the Gloom, Boom & Doom Report, says China is overdoing it. “It does not make sense for China to build more empty buildings and add to capacities in industries where you already have overcapacity,” Faber told Bloomberg Television on Feb. 11. “I think the Chinese economy will decelerate very substantially in 2010 and could even crash.”

Huaxi has an even more ambitious project coming up: a 6 billion yuan, 538-meter skyscraper that would today rank as the world’s second tallest. The only loftier building is the new Burj Khalifa in Dubai.

Dubai Times a Thousand

Such undertakings figured in warnings hedge fund manager Jim Chanos delivered in January that China is Dubai times a thousand. The costs of wasteful investments in empty offices and shopping malls and in underutilized infrastructure will weigh on China, Chanos, president of New York-based Kynikos Associates Ltd., said in a speech at the London School of Economics. “We may find that that’s what pops the Chinese bubble sooner rather than later.”

 

[denison]

another form of deflection to make the US feel better about our own coming collaspe. Like it or not China is on their way up the latter, while we fell off along time ago.


Americans should be more concerned about the coming US collaspe, instead of hoping for other countries to collapse before them. Pathetic.

 

[clb09]

Americans should be more concerned about the coming US collaspe, instead of hoping for other countries to collapse before them. Pathetic.

If China were a beacon of free-market, liberty-focused, small government conservatism then I would not be happy about its coming economic demise.

As it is, China is a giant, centrally-planned communist controlled nation whose citizenry have no access to non-government controlled information let alone liberty.

What I believe is that the communists and their Western corporate partners have successfully brainwashed many Americans (including some on RPF) into believing that China's miraculous economic prosperity is mainly due to free markets and organic productivity.

I am not distracted from America's massive, fundamental problems.

But I refuse to drink the Kool-Aid that Chinese internal investment is natural.

What would the Austrians say about the relation between Chinese Communist Party policy and domestic Chinese markets?

 

[Andrew-Austin]

Its amazing they still worship Mao over there.

 

[torchbearer]

actually, in this keynesian monetary system, the controllers know their is a bubble in the system when the poor and middle class prosper. they then use their lever to pump that money back to themselves so it can "trickle down" to the peasants again.

 

[Brassmouth]

As it is, China is a giant, centrally-planned communist controlled nation whose citizenry have no access to non-government controlled information let alone liberty.

Umm, I call bullshit. You obviously have no idea of what you speak. Millions of Chinese use proxies and private networks to access "illegal" information, just as you would if the US Empire started censoring the internet. Enforcing the Golden Shield laws are extremely difficult, especially given the huge netizen population. The Chinese have access to the same resources we have, and many are getting fed up with the Party.

 

[Brassmouth]

Its amazing they still worship Mao over there.

Equating Mao with Hitler and Stalin is a purely Western conception. Most Chinese see Mao as a great liberator, the man who released the Chinese from millennia of despotism under autocratic emperors.

IMO, it would be wrong to equate adoration of Mao with adoration of statism.

Them loving Mao is like us loving Jefferson. Jefferson started a war and killed many. We was also a slave owner. Does this stop Americans from admiring his ideas and writings? No. Same with Mao.

 

[clb09]

The Chinese have access to the same resources we have

wow.

YouTube - [CNN] Explanation of Chinese censorship of Tibet broadcasts

YouTube - Google China - Tiananmen Square & Tank Man Censored

YouTube - Chinese Plain-Clothes Officials Block CNN Cameras With Umbrellas In Tiananmen Square

LiveLeak.com - Chinese 'Unaware' Of Olympic Torch Trouble.

http://www.weeklystandard.com/Content/Public/Articles/000/000/016/566ljlsr.asp

Those who lived through the Beijing Spring of 1989 will never forget the exhilaration of gathering in the square and the horror of the murderous crackdown, but the regime can for the most part keep them silent. But only a part of the nation has been scarred. For China's young, Tiananmen never happened.

For 20 years, China's Communist party has resorted to euphemisms when it has had to talk about Tiananmen, delicately referring to the slaughter as "the event that happened in the late 1980s of last century" or more simply as "that 1989 affair." For the most part, it has been able to prevent an open discussion of the matter inside China. Textbooks don't mention it, teachers don't teach it, and the state media go out of their way to ignore it. Mainland chat rooms are scrubbed of references to the killings, and Chinese search engines block Tiananmen articles. Censors are quick to delete the number "64," the code the Chinese have developed for referring to the events of June 4.

The erasure of history can never be completely successful, of course. In June 2007, for instance, a paper in the southwestern city of Chengdu ran a classified ad commemorating the mothers of victims of the massacre. The clerk accepted the ad because she had never heard of the incident. Ultimately, three editors were fired.

 

[acptulsa]

Lol. It's a bubble! Run! It's going to blow!!

 

[FrankRep]

If the Chinese bubble pops, who will buy all our debt?

 

[YumYum]

If the Chinese bubble pops, who will buy all our debt?

According to Schiff we will have bond bubble.

 

[krazy kaju]

They're building one of the world's tallest buildings in a town with 30,000 inhabitants? How is that not bubblish? I live in a city with at least three times as many people and the tallest building here is probably a few stories tall, at most.

 

[Brassmouth]

wow.

Facts aren't your forte, are they?

Look up private networks and proxies, and then get back to me.

 

[clb09]

Look up private networks and proxies, and then get back to me.

Look...I don't know if this is something I can explain to you in a forum post or two but people surreptitiously using secret technology simply to access a bit of information is not a great example of the freedom and liberty allowed by the Constitutional Republic of China ("Constitutional Republic of China" was a little sarcasm - just in case you could not recognize it).

Yeah, I know brave dissident groups are providing access to and instruction in the use of communication systems that allow the free flow of ideas in China. The people who have access to information about Tibet ( http://en.wikipedia.org/wiki/Tibetan_independence_movement ), Falun Gong ( http://en.wikipedia.org/wiki/Falun_Gong ) or Taiwan ( http://en.wikipedia.org/wiki/Taiwan_independence ) make up a tiny minority of the Chinese citizenry.

My overall point is this:

If you are suspicious of the motivations and reported economic numbers of the corrupt United States Government then how can you possibly not be suspicious of the economic numbers spewed forth by the far more liberty unfriendly communist Government of China?

 

[LibForestPaul]

I love the tiananmen square vid.
Wonder if Google will do the same when the US and UK come knocking at their gates?

 

[devil21]

ahem

http://www.ronpaulforums.com/showthread.php?t=202179&highlight=shanghai

 

[Truth-Bringer]

If you are suspicious of the motivations and reported economic numbers of the corrupt United States Government then how can you possibly not be suspicious of the economic numbers spewed forth by the far more liberty unfriendly communist Government of China?

That's the one reason I refuse to invest more heavily in China. You certainly can't trust their government's numbers.