Stimulus Spending Run Amok-In China

[85 Cutlass Brougham]

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The Chinese are in desperate need to continue to have 8% growth in their GDP. So, they have embarked on a huge amount of stimulus spending to keep it going. This city is one of their projects that so far has little real use. Now, for all those who think China is not in trouble in the near future, maybe it is time to think again. They are heading for a crash like Japan experienced in the early 1990's because of their growth based economic model which cannot be sustained indefinitely. Their economy is far too planned, and is propped up by politicians who are afraid of what would happen if pure market forces were allowed to regulate things. The real question is: How long can they keep the genie in the bottle? When it all unravels it should be fun to watch. My prediction? It will take 5-10 years to come undone at the longest.

(Yes, I know this video is from Al Jazeera, but I doubt they are wrong 100% of the time. Take it with a grain of salt, but see it for the interesting story it really is.)

 

[carmangary]

That empty city and empty home looks kind of nice. Maybe we should start immigrating to China. Just think how much we would save by not having to have everything shipped to us on a boat. I bet you could get a new socket set for $0.13.

 

[megaladon6]

they've been saying this for a few years. the problem is that a communist gov't (read brutal, despotic, totalitarian...) can push things much farther than you'd think. especially when something like 80% of the population are illiterate peasants with no electricity and no need for reading or electricity.
and if you look at communist russia, they have an amazing ability to lie to themselves. much like our environmentalists they measure things in specific areas to make it look better for them and ignore the areas that they've pulled jobs and money from.
not that i don't think it'll crash, i just think it'll be more like 15-20yrs, unless something changes.
you'll know things are getting bad when they REALLY get into bed with russia, and about to collapse when they invade russia.

 

[jayschevy]

i watched a program about china on pbs a few months ago.it said that piracy was a huge part of their economy,and that if it was shut down their economy would fall.dont know how old the program was,but it was interesting.
something i learned off another forum about china,if you get caught with 500 or more pellets for a pellet gun.you will get 3 yrs. in prison for it.