tag:blogger.com,1999:blog-11906042.post6107129878443109787..comments2024-03-29T10:51:27.752+13:00Comments on Not PC: China’s Coming Default?Peter Cresswellhttp://www.blogger.com/profile/10699845031503699181noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-11906042.post-35086785900475627122014-01-26T16:47:47.707+13:002014-01-26T16:47:47.707+13:00I am pleased someone has picked up on this.
China...I am pleased someone has picked up on this.<br /><br />China keeps announcing rising GDP figures and it means one of three things -<br /><br />1. They are communists and simply lie about the numbers<br />2. They are actually selling all this industrial output to somebody<br />3. They are communists and have a vast 'make work' scheme in operation<br /><br />Point 2 is the important one, and hard to fathom; is it really the case that 'the West' are buying vast amounts of Chinese made products? is everyone <i>really</i> on a spending spree? (and paid for with what?)<br /><br />Anecdotal evidence suggests that the bumper Christmas shopping period in New Zealand was unique within the Western World (and certainly didn't occur in most of America, Britain or Europe) and so to whom did China sell products to which justified a 7% (or whatever) GDP growth during that quarter?<br /><br />In reality I suspect the truth is mainly in 'point 3' and various Chinese industries are simply making things for the sake of making them in order to employ people.<br /><br />For instance, I suspect the Chinese have enormous numbers of people building ships - they turn up for work and they make ships; whether there are orders for these ships is irrelevant. <br /><br />All very similar to digging ditches and filling them in during the Great Depression.<br /><br />Whatever the truth I think China is reaching a point where the game is up and delighted there is an article on pc.blogspot.com pointing this out.Mr Lineberrynoreply@blogger.comtag:blogger.com,1999:blog-11906042.post-5879865002367381482014-01-25T01:20:11.833+13:002014-01-25T01:20:11.833+13:00@thor42 if the Chinese call in that debt, as you s...@thor42 if the Chinese call in that debt, as you say, what do you think the Americans are going to pay it with? The Chinese are n a bit of a bind themselves. Old adage: When you owe the bank $5000 and you can't pay, it is the bank with the problem. When you owe the bank $1Mil and can't pay, it is the bank that has the problem. The best solution for the Chinese is to start consuming their own goods, for that to happen they'll have to allow their currency to value at the higher market rate. <br />@Angry Tony. While it appears that doing business is easier in China, and in some ways it is, there are many other issues that make it a dangerous place: lack of functioning & objective courts, Guanxi, a culture that excuses such things as retro pricing, confiscation (see lack of courst) etc etc. However, from a street freedom point of view, I agree - much less burdensome state oddly enough, but this is more the state ignoring the little guys enterprise not a lack of regulation. Suzuki SamuraiAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-11906042.post-41690364151316168202014-01-24T23:18:18.617+13:002014-01-24T23:18:18.617+13:00China is a far better environment in which to do b...China is a far better environment in which to do business than any Western economy. If it wasn't previously obvious that unions, regulation, welfare and the universal franchise just destroy businesses and ultimately economies --- it sure is now.<br /><br />Until that changes, China just isn't going to crash. It's called capitalism. The Welfare West should try it sometime.Angry Torynoreply@blogger.comtag:blogger.com,1999:blog-11906042.post-39980144987178975182014-01-24T18:02:21.777+13:002014-01-24T18:02:21.777+13:00"Overall credit had increased to $23 trillion..."Overall credit had increased to $23 trillion dollars..." <br />Well, given that a pretty large chunk of the $17 trillion US national debt is owed to China, they could always "call that in". Ok, it would make the US economy sink like a rock, but it *would* put a good-sized dent in that $23 trillion. It would *also* mean that the crisis then created in the US would cripple their military muscle (the military needing to be paid and all that......). So, it'd be a 2-for-1 thing. thor42noreply@blogger.comtag:blogger.com,1999:blog-11906042.post-46452226936640741042014-01-24T14:22:57.484+13:002014-01-24T14:22:57.484+13:00For the last few years, every time I think of Chin...For the last few years, every time I think of China I see them erecting a giant bell atop each new empty towerblock building. <br />Cathedrals, set to toll every hour on the hour - some ominous, diminished tone.<br />Shane Pleasancehttps://www.blogger.com/profile/06144367923437327037noreply@blogger.com