China's real estate bubble: 'The biggest in human history' .

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posted on Mar, 4 2013 @ 11:04 PM
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While much of the world appears to be either celebrating some kind of economic recovery, or looking to Europe as the possible next financial crisis to blow, there is this ominous housing bubble simmering away in China - potentially much more catastrophic than some of the other financial and economic issues covered by main stream media.

This video is essential viewing to see just what is going on in China with regard to their housing and construction bubble. Only a couple of days ago, China announced some evasive policy action to try and keep their housing market from overheating. China's government appear to be getting worried. As ZeroHedge point out, the issue is now finally getting some main stream media attention. Have a look at this 12 minute video from 60 Minutes on CBS News and you'll see why there are some major growing concerns.



Further commentary at ZeroHedge: China's Housing Bubble Goes Mainstream America




posted on Mar, 4 2013 @ 11:22 PM
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I certainly wouldn't rule out china's real estate bubble bursting in the nearer future.

Remember the 'Ghost Cities of China'... ?











posted on Mar, 4 2013 @ 11:34 PM
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China efficiently PROCESSES 97% of mined rare earths,

whereas the EUroAmerican countries own 97% of major earth resources, yet are unable to process them because too much of their budget (from American taxpapers, predominantly)goes into Nuclear warheads and droping Uranium bombs all over the Mideast.

So its not surprising that US has faced an economic collapse, housing bubble burst, and infrastructure failure including new construction.

Obama is pissed and what to use that as excuse to take action against China. You all know where this "action" leads ultimately, right? It's the American way....




posted on Mar, 4 2013 @ 11:38 PM
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Been hearing about this scenario for a couple of years. Just have to wait and see how China deals with the crisis. I imagine short term they will act like there is nothing out of the ordinary. But long term, something has to give.



posted on Mar, 4 2013 @ 11:50 PM
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Originally posted by surrealist
While much of the world appears to be either celebrating some kind of economic recovery, or looking to Europe as the possible next financial crisis to blow, there is this ominous housing bubble simmering away in China - potentially much more catastrophic than some of the other financial and economic issues covered by main stream media.


Where is anyone celebrating an economic recovery? Anybody celebrating such a thing is a fool because it has not happened. The massive debt that is suffocating every 1st world nation has not been paid off or defaulted anywhere and till it is recovery is impossible. The only country who could legitimately claim a recovery is Iceland because they finally stopped letting their banks get away with raping them.

Now as far as China, their economy has been propped up on the US and Europe buying cheap crap from them, while they have used theft of intellectual property, slave labor, and environmental destruction to grow with no concern for the consequences. Well, the consequences are going to come home to roost there in a big way. People are now getting angry about the pollution and it is shutting down cities because it is not safe to even go outside. Workers are demanding higher wages and better conditions. The real estate bubble popping might very well be the spark, but high unemployment is even more likely.

One way or another, I fully expect a civil war, but before that I expect China to launch a few wars as a distraction and as a way to grab some resources and kill off some of their overflowing supply of young men. The real question is will the US be drawn into war with them by following our treaties to protect Japan and Taiwan, or will we ignore them.



posted on Mar, 4 2013 @ 11:52 PM
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Some of this is just the west saying look, look over there while their pants fall down around their ankles.

China has a largely controlled economic system with tight controls when needed. I would not be surprised if the 'at risk' finances involved here are actually western funds.

You can be sure that China will not collapse. Perhaps it will be the greedy few (without the proper connections) who will learn a nasty lesson made even worse when the Govt imposes stricter controls and the people all applaud. It could go as far as China being in a strong position to denounce and decry the stupid western capitalist system and revert to what they have always had.

China continues to educate their people, here comes lesson #354 from the new red book!

P
edit on 4/3/2013 by pheonix358 because: (no reason given)



posted on Mar, 5 2013 @ 12:32 AM
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You haven't heard the half of it.
Developments from Sanya from the island on Hainan have got absolutely bust, I'm just bloody amazed at what Chinese will pay for something they are only 'leasing' technically they don't own it.
It's called Phoenix Island, apparently the Dubai of China




Now apartments on Phoenix Island which reached the dizzying heights of 150,000 yuan ($23,356) per square metre in 2010 are on offer for just 70,000 yuan ($10,899), said Sun Zhe, a local estate agent. "I just got a call from a businessman desperate to sell," Sun told AFP, brandishing his mobile phone as he whizzed over a bridge to the futuristic development on a electric golf cart. "Whether it's toys or clothes, the export market is bad... property owners need capital quickly, and want to sell their apartments right away," he said. "They are really feeling the effect of the financial crisis." Read more: www.news.com.au...


Here where I am in Guangzhou, it's getting absolutely stupid for what people pay for and what they get. Chinese are VERY MATERIAL PEOPLE and like 'FACE' (showing off) when they can, so this is used as leverage for the young 20 something male to force his parents in giving their life savings so he can put a deposit on that over inflated apartment and find that trophy wife that goes with it, so the developers flog the 'whole' westernized luxury thing to jack up prices.
My apartment isn't even 3 years old and there's already structural problems, cracks in the out walls, ect.
I told my wife we'd never buy an apartment here for investment or as the Chinese think 'quick money', and there are many well educated Chinese who absolutely agree with my assessment.
Now there's about 4 to 5 new developments in there 2nd and 3rd phases that no one will touch.



posted on Mar, 5 2013 @ 12:42 AM
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yea seen this on 60mis CBS here in the US,the mess in China, it is a time bomb waiting to go , when it does... who are they going to blame??
Here are some options to consider:
The first them selves, for being in a rush to invest... not to make a buck.
, but to have a nest egg in
Second one... Blame their leader ship, from going from Socialism to capitalism. like that would happen or could it?

Do i need to say post er list the last ,
for every other nation does it,
they make threats almost daily against it,
this nation which i speak of...
ok you win
it is...








the USA.
edit on 5-3-2013 by bekod because: line edit



posted on Mar, 5 2013 @ 06:45 AM
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Originally posted by pheonix358


China has a largely controlled economic system with tight controls when needed.

P
edit on 4/3/2013 by pheonix358 because: (no reason given)


Are you serious? Have you been to China? Are you aware of what is really going on with state-owned companies?

These state-owned companies are laughingly incompetent. They are extremely inefficient as they are exempt from normal market conditions. They are also exempt from the usual checks and balances.

Vietnam is a good example of the pitfalls of state capitalism.


Investors are skeptical of the government’s economic management and question the reliability of statistics. The country’s central bank says borrowers have stopped paying back 1 out of every 10 loans in the banking system, but Fitch Ratings said the percentage of bad loans might be much higher. If the 1997 crisis was often blamed on “crony capitalism,”

Vietnam’s problems could be described as crony capitalism with a communist twist. State-owned companies are stacked with friends and allies of the Communist Party hierarchy. “The state is being manipulated by people within the state to make money,” said Jonathan Pincus, the dean of the Fulbright Economics Teaching Program in Vietnam. “Getting the Communist Party out of the management of these companies, that’s what is required,” he said. “I don’t see that on the table.”

Like property bubbles in other parts of the world, investors in Vietnam took advantage of free-flowing credit to construct buildings with the hopes of flipping them for a profit. One key difference is that some of the largest property speculators in Vietnam are state-owned corporations with top connections in the Communist Party and access to cheap money. Those companies are now grappling with unsustainable debt levels, or in the case of Vinashin and Vinalines, two large government conglomerates, flirting with insolvency.


www.nytimes.com...



posted on Mar, 5 2013 @ 07:53 AM
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This is the most insane thing I have ever seen.



posted on Mar, 5 2013 @ 08:16 AM
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reply to post by KamaSutra
 


It has nothing to do with the budget. The simple fact is that we used to mine them, but stopped because it was cheaper to import it from China. Now we've invested in newer ways to process the rare earths back in the US, since China is hoarding their own.

Link

Relax. We're not out of the game by a long shot.



posted on Mar, 5 2013 @ 10:13 AM
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reply to post by surrealist
 

From what I understand, its similar to what happened in the US.

Interest rates were kept artificially low which encouraged borrowing. People were able to get money for nothing.

The increased artificial demand drove up real estate prices causing the bubble.

When will they learn that centrally planned anything doesnt work.

From the Federal Reserve to the welfare state to social security to the student loan bubble to the warfare state.

Everything they touch, they destroy.

And now that they've destroyed our way of life, they're rolling out a police state to deal with the aftermath...

We need help. Hang on, I'll throw up the signal:



edit on 5-3-2013 by gladtobehere because: (no reason given)



posted on Mar, 5 2013 @ 01:07 PM
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Rise of the new Shanghai. LINK1

Existence of Polluted Cities. LINK2



posted on Mar, 5 2013 @ 11:35 PM
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reply to post by surrealist
 


It's not a "real" bubble since to be a bubble means the over inflation of assets on a banks balance sheet. In Western Economies the bubble "burst" due to a credit collapse from defaulting loans. In China the main holders of these liabilities are nationally controlled banks operated by the Central Bank of China. China has had absolutely no problem absorbing the debts freely, since they like their currency devalued anyways. In the USA it caused all kinds of havoc, and the EU's central bank structure rendered it defenseless. China, on the other hand, is quite literally designed for this kind of thing..



posted on Mar, 6 2013 @ 12:01 AM
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Originally posted by Rockpuck
reply to post by surrealist
 


It's not a "real" bubble since to be a bubble means the over inflation of assets on a banks balance sheet. In Western Economies the bubble "burst" due to a credit collapse from defaulting loans. In China the main holders of these liabilities are nationally controlled banks operated by the Central Bank of China. China has had absolutely no problem absorbing the debts freely, since they like their currency devalued anyways. In the USA it caused all kinds of havoc, and the EU's central bank structure rendered it defenseless. China, on the other hand, is quite literally designed for this kind of thing..



Central planning always fails. This will be no different.

If it does succeed, then it will buck a trend that has been consistent through all of history.



posted on Mar, 6 2013 @ 12:15 AM
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Originally posted by ConspiracyNutjob

Originally posted by Rockpuck
reply to post by surrealist
 


It's not a "real" bubble since to be a bubble means the over inflation of assets on a banks balance sheet. In Western Economies the bubble "burst" due to a credit collapse from defaulting loans. In China the main holders of these liabilities are nationally controlled banks operated by the Central Bank of China. China has had absolutely no problem absorbing the debts freely, since they like their currency devalued anyways. In the USA it caused all kinds of havoc, and the EU's central bank structure rendered it defenseless. China, on the other hand, is quite literally designed for this kind of thing..



Central planning always fails. This will be no different.

If it does succeed, then it will buck a trend that has been consistent through all of history.


Can you show that "Central planning always fails."

I am thinking of the Chinese and thousands of years of history under first the Emperors and then the current Govt. How about the Roman Empire!

The only reason that we are in a mess now is the shift from Govt control to "lets sell everything to private enterprise" crap that was foisted on us in the 80s and 90s. The downward spiral we are now in is caused by the dearth of controls and the current spiral started when Reagan lifted controls on the Banking sectors.

P



posted on Mar, 6 2013 @ 01:06 AM
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Originally posted by pheonix358

Originally posted by ConspiracyNutjob

Originally posted by Rockpuck
reply to post by surrealist
 


It's not a "real" bubble since to be a bubble means the over inflation of assets on a banks balance sheet. In Western Economies the bubble "burst" due to a credit collapse from defaulting loans. In China the main holders of these liabilities are nationally controlled banks operated by the Central Bank of China. China has had absolutely no problem absorbing the debts freely, since they like their currency devalued anyways. In the USA it caused all kinds of havoc, and the EU's central bank structure rendered it defenseless. China, on the other hand, is quite literally designed for this kind of thing..



Central planning always fails. This will be no different.

If it does succeed, then it will buck a trend that has been consistent through all of history.


Can you show that "Central planning always fails."

I am thinking of the Chinese and thousands of years of history under first the Emperors and then the current Govt. How about the Roman Empire!

The only reason that we are in a mess now is the shift from Govt control to "lets sell everything to private enterprise" crap that was foisted on us in the 80s and 90s. The downward spiral we are now in is caused by the dearth of controls and the current spiral started when Reagan lifted controls on the Banking sectors.

P



Have you looked into the last time China went through hyperinflation? It was the result of central planning.
They will have hyperinflation again before this currency war is over.

The Roman Empire collapsed because of central planning, they debased their currency. The content of silver in their coinage was close to 100% when first introduced. By the fall of the Roman Empire it was less than 2%.

The US government is doing the same thing. They have devalued the purchasing power of the USD by 96% since the inception of the Federal Reserve.

Central planning is always doomed to fail. You can have a lot of prosperity while the people are happy to go along with it, but it's demise is often swift and brutal.



posted on Mar, 6 2013 @ 01:55 AM
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reply to post by ConspiracyNutjob
 


Sir, you see only central planning as the problem. The problem is not central planning, it is greed! Greed for wealth and greed for power are the reasons that all empires fall. It is the reason that the US will fall.

Central planning has nothing to do with it. It just happens to exist at the time that greed and power destroy society.

Empires always collapse. The stars are always in the sky. Do the stars cause the empires to crumble, no they don't. Think critically.

P



posted on Mar, 6 2013 @ 03:07 AM
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Originally posted by pheonix358
reply to post by ConspiracyNutjob
 


Sir, you see only central planning as the problem. The problem is not central planning, it is greed! Greed for wealth and greed for power are the reasons that all empires fall. It is the reason that the US will fall.

Central planning has nothing to do with it. It just happens to exist at the time that greed and power destroy society.

Empires always collapse. The stars are always in the sky. Do the stars cause the empires to crumble, no they don't. Think critically.

P





Greed is always present because man is fallen and full of sin and chained to the desires of the flesh, some individuals are chained more than others.

Greed + Central planning is a recipe for disaster.

Free market capitalism within a constitutional republic with sound money has at least some chance of success despite the greed.



posted on Mar, 6 2013 @ 06:50 AM
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reply to post by ConspiracyNutjob
 


In this case it really has nothing to do with Central Planning, it's entirely about the makeup of their central bank and the over all economic objectives that just happen to be in line with required inflation needed to inject into a banking sector loaded with debt. China literally works the opposite Western economies do, a strong currency is bad, a weak currency is good. Very weak. The weaker the better. How do you make it weak? Print more, inject it into your banking system.

It also helps that they have a massive trade surplus.





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