Beijing warned property bubble worse than US

Beijing warned property bubble worse than US

www.ft.com

removed by staff

(visit the link for the full news article)

Asian stock markets plummeted upon this announcement. For years, I've been reading about the Chinese housing bubble, but I've noticed a lack of interest here on ATS on the topic. I guess most people do not realize the severity of this situation and how it would affect them.

As a result of globalization, countries are inter-dependent on one another. Western banks have invested billions in the Chinese real estate market and if the Chinese bubble explodes, there is a significant chance that fresh bail outs will occur.

Not just that, the importance of the Chinese economy on a global level has increased so much in recent years that a bubble 'worsen than US' would be catastrophic for global stock markets. We've seen what the American bubble has done. Can you imagine the consequences of a bubble worse than that?



www.ft.com
(visit the link for the full news article)

I'm not sure the bubble needs to be worse than the US one, since the effect will snowball.. and whatever fragil recovery they are trying to sell us will be lost..

I guess we are at the tipping point... and I am not sure with all the bailouts that have already come to pass how many last throws of the dice the establishment have with that one...

Interesting weeks ahead...

Seeing all of this stuff go down this way is a fairly strong argument against globalization. Obviously more regulation on the banking sector is in order, if we weren't all so interconnected these problems wouldn't happen. I don't look forward to the fallout from all of this. I hate to say it, but I hope it does drive us all to be more independent of each other. There is a lot to be said for xenophobia.

This is the only way they can institute true global governance. Collapse first world markets down to equal 3rd world and rebuild everything up equally from there under a global governance framework. This is no longer conspiracy theory, the globalists have tipped thier hand and are now speaking openly and freely about it. The masses have started to awaken politically so they shifted into overdrive. Why do you think all of the financial instituions and real estate giants here in the U.S. and abroad haven't really been hurt aside from PR? Here comes your global oligarch utopia.

reply to post by Mdv2


Very important news, S&F. Unfortunately the link requires registration for more access.

Collapse the world economy, dismantle the US federal reserve and replace it with the new global financial entity if they succeed, quite scary stuff. People don't suspect it, a grand scheme right under your nose.

reply to post by Jazzyguy


I noticed. Weird, when I found it I could see it without registering. Anyhow, here is another source (CNN) China told property risk is worse than U.S.

What I saw on TV, but couldnt get confirmed this morning, was that they also warned for social discontent:

China’s property market problems are worse than in the U.S. or U.K. before the financial crisis, the Financial Times said today, citing an interview with Li Daokui, a member of the Chinese central bank’s monetary policy committee. The country’s housing market problems combine a possible bubble with the risk of social discontent, he said.

source

Those with any knowledge about China's past understand why the Chinese government rules the country with iron fist... enemy number one is social unrest. As a consequence of the many uprisings that happened in China's past, they deal with their people in the way they do - one most Westerners don't understand.

reply to post by Mdv2


I been reading on that issue for a while now, I guess the economic boom in China is causing the nation to create and repeat the mistakes done in the US after all.

Greed always takes over common sense, but we know that is predictable as China right now keeps their currency under valuated for their benefit and to defeat US exports, but is going to come back and bite them in the butt eventually

Something else that American people should know, China influential families are buying pieces of property in the US to solidify their influences in the US with the migration of their young to no only educate the themselves in the US but to hold status in US society.

What this means is that is going to be a generation linked to China that will have the money, education and power to influence politics.

Something like what the illegal immigrants are achieving but faster as education and wealth is in favor of China immigrants.



[edit on 1-6-2010 by marg6043]

Originally posted by Mdv2
reply to post by Jazzyguy

 

Those with any knowledge about China's past understand why the Chinese government rules the country with iron fist... enemy number one is social unrest. As a consequence of the many uprisings that happened in China's past, they deal with their people in the way they do - one most Westerners don't understand.

Actually, I do understand china. Even though I deal with world affairs (albeit I just "resigned" very recently), Asia is my home turf after all. The way I see it, the major contributor of china social unrest throughout its history (ancient or otherwise) is actually the china sovereign itself.

reply to post by Mdv2


I'd say there is a lack of interest on the subject because people on ATS would rather see the U.S. crash and burn?

Just an observation...

www.sbs.com.au...

Good reportage on the ghost towns of China. The Chinese government is working hard to keep the growth rate up. They are creating a huge bubble and as soon as it bursts, we're screwed. A collapse of China would devastate the rest of the world.

Originally posted by Mdv2
there is a significant chance that fresh bail outs will occur.

They won't be bailouts from the US. We can't afford to dole out cash to anyone. Our debt ceiling is maxxed out and we can no longer continue to dole out cash we don't have.

The frightening issue here is that, in the event of an economic collapse in China, they might start dumping their holdings in US debt instruments to raise cash. That would crush us.

I couldn't read any of the sources and when I Googled the title it says the FT article is from 2010?

Also, the Chinese have a $3 trillion surplus in the bank. When the 2007 financial crisis happened in the U.S. we were like $9 trillion in debt, and we still borrowed money to fix it. Now we didn't really fix it, we just covered it up, but the Chinese have more than enough to patch theirs too. None of that will keep their bubble from bursting and affecting the world economy though.

edit ohh this thread is from 2010 too. nvmmmm

S+F OP you are right it is not mentioned much on ATS Loam has done some good threads on this, and China this area over the years have a look maybe link one, good stuff.

Originally posted by Crakeur

Originally posted by Mdv2
there is a significant chance that fresh bail outs will occur.

They won't be bailouts from the US. We can't afford to dole out cash to anyone. Our debt ceiling is maxxed out and we can no longer continue to dole out cash we don't have.

The frightening issue here is that, in the event of an economic collapse in China, they might start dumping their holdings in US debt instruments to raise cash. That would crush us.

Exactly, or even a run on the dollar or global event.

They are switching to gold for current purchases so fast anyhow.

Ive no doubt at all by spring next year probably earlier the 08 "Crisis" will pale by comparison.

Kind Regards,

Elf

Originally posted by MischeviousElf
Ive no doubt at all by spring next year probably earlier the 08 "Crisis" will pale by comparison.

It sure seems like that. The most accurate economic doomsday forecaster of the last 30 or so years has gone on the record as saying he's prepping for another crash that will make the last two seem tiny.

Of course, if the chinese real estate bubble bursts first, we can blame them for our ills.

Yes some of us have been watching this for a while....

posted on 22-10-2009 @ 06:15 PM

AND

posted on 9-1-2010 @ 12:06 PM


Inflation will come back and bite the Chinese very hard in the coming months/years. Then we will see just how well their economy will continue to grow. Stay tuned.

Buckle your seatbelts, China is in for a bumpy ride IMO.

reply to post by SLAYER69


Thing is, globalization made economies interdependent on one another, meaning that the US will get a cold when China sneezes and so will we Europeans when the US does. It's going to be a chain reaction and I have strong doubts the US has enough resilience to cope with that. I only see one way how the Fed could deal with Chinese withdrawal of capital: more quantitative easing and hence, a weaker dollar and higher inflation. That could very well be the deathblow to the US Dollar.

And also,
Right next door we have the worlds 3rd largest economy Japan, officially now in recession 3% +-, and with no end in sight, Fukishima may be seen in history books, as the main tipping event, for the house of cards coming down.

None of it is good, and I don't see any way out, and war is their only option for all governments/empires.

Circling Eagle, (some would say vulture), awaking Tiger, Prickly Bear all fighting to stay alive, protect their territory and eying each other closely, lets just hope they never get in the same field.


Kind Regards,

Elf

Originally posted by MischeviousElf
None of it is good, and I don't see any way out, and war is their only option for all governments/empires.

I agree and the time has come that saying this is no longer fear mongering, but rather a realistic pontential outcome of events.

Originally posted by djvexd
This is the only way they can institute true global governance. Collapse first world markets down to equal 3rd world and rebuild everything up equally from there under a global governance framework. This is no longer conspiracy theory, the globalists have tipped thier hand and are now speaking openly and freely about it. The masses have started to awaken politically so they shifted into overdrive. Why do you think all of the financial instituions and real estate giants here in the U.S. and abroad haven't really been hurt aside from PR? Here comes your global oligarch utopia.

Well i'll be damned, sounds like maybe a *global currency*
could be issued not to long after everyone has been brought
to their knees...

You wouldn't say they had this planned now would you?