posted on Dec, 3 2010 @ 01:03 AM
There is no doubt China is on the way up.
However, just as a counterweight, let me toss out the following phun phacts about the Chinese economy:
- Excess floor space exceeds 3.3 billion square meters and there are still 200 m being built this year.
-The price to rent ratio is 39.4 times versus 22.8 times in America before the housing crises.
- Banks are hiding their exposure in Local Investment Vehicles.
- On a Sovereign level, China’s debt to GDP comes out at 107%, five times published numbers.
- China has consumed just 65% of the cement it has produced in the last six years.
- There are 200 m tons of excess steel capacity, more than the EU and Japan’s total production this year.
There is now enough EMPTY office space in China to give EVERY MAN, WOMAN, AND CHILD in China (yes, all 1.2 billion of them) an empty cubicle. That is
just completely insane.
I'm not saying China will crack up and fall apart but there are a lot of unsettling signs that harcore China bulls just don't want to
edit on 12/3/10 by silent thunder because: (no reason given)