posted on Aug, 26 2015 @ 10:12 AM
Let's travel back in time a bit.
Spain seemed to be doing really well economically until 2008 when the crisis hit.
Their debt to gdp was down to just 36 percent in 2007 from 67,5 in 1995 while their gdp rose sharply.
The economic growth in spain was based on building activities, most will have seen the pictures of unsold housing blocks, not to long ago a newly
was sold for only
to Chinese investors.
Anyway, while Spain has turned the tide and is back on a sustainable path again, it took them 6 years to do so and it will take another 5 to 10 years
before unemployment levels are back to normal proportions.
The same thing that happened in Spain has been seen in China for many years now, lots of economic activity generated through building ghost cities for
example, the cherry on top of the cake is of course people lending large
amounts of money to enter the stock markets
So are we really surprised about the economic downturn in China? it is a no brainer that many chinese
people have lost large amounts of money during the crash in the stock market.
Also, there comes the day that just like in Spain the bill for all the generated economic activity is presented since there has not been much return
on investment and when construction stops, what will that mean for employment rates in China, the affordability of these homes, wat will it mean for
the boosted gdp of China which has been growing exponentially over so many years.