Its really just a government bubble – from SBS:
Vast new cities of apartments and shops are being built across China at a rate of ten a year, but they remain almost completely uninhabited ghost towns.
It’s all part of the government’s efforts to keep the economy booming, and there are many people who would love to move in, but it’s simply too expensive for most.
Video journalist Adrian Brown wanders through malls of vacant shops, and roads lined with empty apartment buildings… 64 million apartments are said to be empty across the country and one of the few shop owners says he once didn’t sell anything for four or five days.
Click here for the video report. It is a must-see report – not because it shows the whole truth (no short, video presentation can) but because the truth of China is only slowly dribbling out…most “experts” are still talking up China’s growth as if it is real. It isn’t – it is a fraud; the Chinese government has built up a gangster economy in which a select few are allowed to rob the people of China (and foolish western investors) to their heart’s content as long as they provide swag for the Ruling Class and, of course, agree to the continued repression of the Chinese people.
The most telling quote in the piece is where it is noted that if the Chinese government sets a GDP growth target, the lower level officials will make it happen – regardless of whether or not there is any economic sense. This will come crashing down – you can’t actually do this. You can’t command an economy to prosper…and the people of China are noticing that a very few are getting fabulously wealthy while most Chinese continue on in poverty, a lot of it quite grinding.
Here’s the really bad news – a lot of large, western banks are deeply invested in China, and when China goes down, they go down with it…and take us with them.
HAT TIP: Mish’s
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