Ah, but China is a giant on spindly legs, just as Japan was in the 80’s. A quote from a related article over at Mish’s pretty much tells the tale:
All my young in-laws are rushing in to buy condos putting life savings down as well as laying down additional borrowed family cash down and then paying way more to buy each month than it would cost them to rent. It’s as if the boom crash in the west never happened and they believe themselves immune.
Indeed – the tip off, for me, was some tens of millions of dollars being paid for an apartment in Hong Kong. When people are being that stupid with money, a crash is inevitable. But the bankers are counting on it – especially those most heavily invested in China.
What astounds is that it is certain that no major entity is doing business in China without providing bribes and kickbacks to the elite. It is certain that China’s government is lying about economic and government spending statistics (China’s announced military budget, for instance, is a laughable lie). China is a corrupt, cruel government which makes its living by cheating its own people and ripping off western economies, especially ours. And here we go – and why? Because the money men still think they can get easy profits out of China. So does the Chinese government, which has essentially ordered this madness to happen. And easy profits are all they care about – because that is how you get the swell bonuses which buys the pretty toys which make you a better person than everyone else…
It will come crashing down – and the latest replacement for the United States will be shown to be the absurdity it always has been.
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