The coming collapse of the Chinese economy
Bob Morris @ Jul 25th 2008 07:09 - Category: Unfiled
The Yellow Brick Road explains in great detail why the roaring economy of China is heading for calamity.
Huge state subsidies, massive debt, an increasing exploited and angry rural class who have no property rights, overt corruption, and a recession are all contributing to their growing economic problems.
China is facing the default on its debts and a possible financial collapse unless it dumps all its foreign reserves.
That of course means big trouble for the US.
When it all starts it will be very ugly here but even more ugly there.
This is still very much a minority opinion. But one I think will prove true.
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Zog The Obvious on 26 Jul 2008 at 7:03 am #
My 2 cents (and, like McCain, I admit I don’t really know a whole lot about economics):
A debt-driven economic boom is a sure-fire recipe for disaster. The chickens eventually come home to roost.
All you have to do is look at what’s going on in the U.S. to see that this is true.