I have posted quite a few times on China, and in the last 6+ months, how China is NOT in a position of strength. Sure, long term, between now and 2035 China has a rosy future, but quite a bit can happen between now and then.
My previous blog post Chinese Economy more fraudulent than USA showed plenty of excess capacity in some of China's largest cities. In one city, more excess commercial space (unused) than the entire commercial space available in Manhattan.
But this next video takes the cake. An entire city built without the people of China being able to afford to live in it. Why may you ask? China is operating in the global insanity that the US also follows, as described in Misrepresenting Economic and Financial Data. The explanation in Mish's post on why China has so much overcapacity is China paid people to build the city and other excess capacity, so the WORK DONE can be counted towards China's total GDP!
This is clearly an active distortion of reality, building a city, to not be used, but to count the work, and developed real estate to build up China's numbers is a distortion of productivity.
There is no one country that can save the world from itself. The lies must result in losses, and the cleansing must occur before the next economic cycle can begin.
The good news is, once this downturn ends, the next economic upswing should bring on a fantastic growth period.
Watch this video, to scratch the surface of understanding the mentality of a country to build an empty city, then think about the massive inefficiencies/distortion/over valuation that must be through the entire country of China. Frankly, its incomprehensible.
No comments:
Post a Comment