China's A Bubble & Entire Countries Could Go Broke

  • metta

    Posts: 39090

    Jan 15, 2010 12:58 AM GMT
    Next up for finance: China’s a bubble, entire countries go broke


    http://www.wired.com/beyond_the_beyond/2010/01/next-up-for-finance-chinas-a-bubble-entire-countries-go-broke/



    http://www.guardian.co.uk/business/2010/jan/14/world-economic-forum-future-crises-warning
  • Posted by a hidden member.
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    Jan 15, 2010 1:09 AM GMT
    There's gotta be a more professional website to convey the same thing but yes, when capital has nowhere to go it means the current technology and the current framework are not good enough.
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    Jan 15, 2010 1:16 AM GMT
    Since "communist" China almost own America, how do you feel this will effect Americas recovery from their recession?

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    Jan 15, 2010 1:19 AM GMT
    Pattison saidSince "communist" China almost own America, how do you feel this will effect Americas recovery from their recession?



    IT'S AFFECT DAMMIT! IT'S BLOODY *A*FFECT!

    Why do SO many people get this really TRIVIAL thing wrong! Argh!
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    Jan 15, 2010 1:27 AM GMT
    Is this surprising?

    http://www.realjock.com/gayforums/671559
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    Jan 15, 2010 1:59 AM GMT
    TigerTim said
    Pattison saidSince "communist" China almost own America, how do you feel this will effect Americas recovery from their recession?



    IT'S AFFECT DAMMIT! IT'S BLOODY *A*FFECT!

    Why do SO many people get this really TRIVIAL thing wrong! Argh!


    LOL LOL

    hahahaha

    discrete instead of discreet evokes the same reaction in meicon_biggrin.gif
  • beaujangle

    Posts: 1701

    Jan 15, 2010 2:24 AM GMT
    Aren't many countries already broke? The debt level is enormous and has been so for a while.
  • jrs1

    Posts: 4388

    Jan 15, 2010 3:02 AM GMT
    TigerTim said
    Pattison saidSince "communist" China almost own America, how do you feel this will effect Americas recovery from their recession?



    IT'S AFFECT DAMMIT! IT'S BLOODY *A*FFECT!

    Why do SO many people get this really TRIVIAL thing wrong! Argh!


    1: I know how you feel, Tim:

    grammar-nazi.jpg

    but

    2:
    saupload_calvinhobbscalmdown.jpg
  • Posted by a hidden member.
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    Jan 15, 2010 7:24 AM GMT
    Everyone loves to speculate

    http://www.nytimes.com/2010/01/13/opinion/13friedman.html?scp=2&sq=friedman&st=cse
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    Jan 15, 2010 8:18 AM GMT
    metta8 saidNext up for finance: China’s a bubble, entire countries go broke


    http://www.wired.com/beyond_the_beyond/2010/01/next-up-for-finance-chinas-a-bubble-entire-countries-go-broke/



    http://www.guardian.co.uk/business/2010/jan/14/world-economic-forum-future-crises-warning


    d0028500_05055471.jpg


    This was a really interesting book that detailed the bizarreness of Chinese growth. James Kynge worked as a financial reporter in China for years before writing this book in the early 2000's. Therefore, his work missed the really crazy stuff in the last 4 or 5 years.

    One of the practices he noted was the fact that the CCP controlled the banking and lending system, and despite "open" stock exchanges, most companies on the trading board were at least partially or wholly state owned and managed.

    Banks would literally lend to any company that had pull, despite the fact that a company was producing millions more units every year than it could sell. Chinese companies cannot compete in their own home market, and thus are forced to turn to export markets for profits. "Growth" for a company is measured by production, not profit. Often, a company's solution was to expand into other markets that were already saturated. The fact that they were expanding was enough to warrant a low interest loan from the banks. icon_eek.gif
    Kynge questioned how long this was tenable.

    Kynge's conclusion was that facing myriad economic, social, financial and environmental pressures, the CCP's goal has evolved to create state sponsored "champions" such as Japan and Korea's (Mitsubishi, Kia etc etc): they'd created a Faustian deal that in return for power and legitimacy to govern, they would deliver the jobs to the billions who needed them.

    It's a really good read, and Kynge did a good job explaining the concepts and events of modern China's growth.
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    Jan 15, 2010 8:20 AM GMT
    Read a story or two on this matter. Kinda reminiscent of the whole real estate scene that was going on but eventually proved unsustainable. Nobody wanted to listen to the naysayers who said it couldn't continue but who were being realistic and honest. Lo and behold, the bubble popped.

    Hold on y'all. Beijing Express may be derailing.
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    Jan 15, 2010 8:59 AM GMT
    MeOhMy saidIs this surprising?

    http://www.realjock.com/gayforums/671559




    Citing your own work? Ego much? icon_biggrin.gif
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    Jan 15, 2010 1:28 PM GMT
    Pattison saidSince "communist" China almost own America, how do you feel this will effect Americas recovery from their recession?



    OMG so extreme!

    Lets keep it real. China is equally dependent upon the US as we are on them. Together they won't let either one fail. Each country is the others best customer!
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    Jan 15, 2010 5:29 PM GMT
    danielryan said
    Pattison saidSince "communist" China almost own America, how do you feel this will effect Americas recovery from their recession?



    OMG so extreme!

    Lets keep it real. China is equally dependent upon the US as we are on them. Together they won't let either one fail. Each country is the others best customer!



    Which portion of which country are we talking will be supported?
  • Webster666

    Posts: 9217

    Jan 15, 2010 7:44 PM GMT
    Good luck finding anything in our stores that isn't made in China.
    Until we stop buying their poison products, their economy will keep right on booming.
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    Jan 15, 2010 8:08 PM GMT
    TigerTim said
    Pattison saidSince "communist" China almost own America, how do you feel this will effect Americas recovery from their recession?



    IT'S AFFECT DAMMIT! IT'S BLOODY *A*FFECT!

    Why do SO many people get this really TRIVIAL thing wrong! Argh!



  • danisnotstr8

    Posts: 2579

    Jan 15, 2010 8:12 PM GMT
    TigerTim said
    Pattison saidSince "communist" China almost own America, how do you feel this will effect Americas recovery from their recession?



    IT'S AFFECT DAMMIT! IT'S BLOODY *A*FFECT!

    Why do SO many people get this really TRIVIAL thing wrong! Argh!


    <3
  • beaujangle

    Posts: 1701

    Jan 15, 2010 11:28 PM GMT
    danielryan said
    Pattison saidSince "communist" China almost own America, how do you feel this will effect Americas recovery from their recession?



    OMG so extreme!

    Lets keep it real. China is equally dependent upon the US as we are on them. Together they won't let either one fail. Each country is the others best customer!



    Yes, indeed, 'CHIMERA'?
  • pandx970

    Posts: 357

    Jan 16, 2010 8:41 AM GMT
    waaaait. didn't iceland go broke? like the country? you mean bigger countries might actually go brokeicon_exclaim.gif
  • jrs1

    Posts: 4388

    Jan 18, 2010 12:37 AM GMT
    speaking of los Chinese:

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    Jan 18, 2010 12:47 AM GMT
    TigerTim said
    Pattison saidSince "communist" China almost own America, how do you feel this will effect Americas recovery from their recession?

    IT'S AFFECT DAMMIT! IT'S BLOODY *A*FFECT!

    Why do SO many people get this really TRIVIAL thing wrong! Argh!


    soundboard.com