Insane Economics

Just an astounding bit of news from Zero Hedge:

Ever wonder how China can endlessly generate goal-seeked GDP of precisely 8.00001% year after year? Or how it can constantly find use for the massive and ever-larger surplus of warehoused commodities? Simple – never stop building. Which, apparently means blowing up empty building before they are even finished and rebuilding them. Rinse. Repeat. After all gotta keep all those construction workers from rioting, and all those USD reserves redirected into Brazilian and OZ commodities, now that China is not really buying US debt anymore. China Hush has some stunning pictures confirming that in its search of the great home bubble perpetual engine, the politbureau comrades may have stumbled onto the bricks and mortar equivalent of Shangri La…

It seems that China is demolishing buildings only a few years old in order to make room for even newer, larger buildings. This is sheer madness – but a strong indicator that I’m right in thinking that China’s economy is Potemkin. Shiny and bright on the surface (at least those parts of the surface the Chinese government presents to foreign governments and investors), not so pretty underneath. It must never be forgotten – though it has been quite ruthlessly forgotten by the money men of the West – that China is governed by an inhuman dictatorship. It is corrupt, it is cruel – and it is heading for a fall.