I was reading Dr Makow's site (henrymakow.com) when I came up on the following list. What's scary is that most people are fooled by all the pretty tall buildings going up in China which most don't realize ARE SITTING EMPTY! Due to real state prices Chinese people can't afford them!

Just a few from the list. Is China going to hell in a handbasket? What kind of impact will this have on global politics?

Famous investor James S. Chanos predicts the Chinese crash (he predicted the Enron crash)
http://www.nytimes.com/2010/01/08/bu.../08chanos.html

Can anybody come up w/ some good news for once so that I don't get so depressed? k, tx.

China is not the country you should worry about. They are posed to leave this global depression in the best shape relative to rest of the world.

Usually when Chinese crash, it is pretty bad yes. Shoddy engineering and building materials, I think.

oh, it's a global collapse. make no mistake about it.

"leave" global depression?

too many people x not enough energy x insatiable greed = collapse.

if china is going to crash bad its a global collapse

There will be many ups and down for China on the way to being the largest superpower, just like the US had experienced in the past on the road to being #1.

What? China makes cheap crap. If anything it will make their crap cheaper for the rest of us. And if it also means they tone down their oil use then prices should go down for that too.

Taiwan used to be make the world's cheap stuff as well. Look where they are now, basically every laptop in the world goes through Taiwan at some point.

Side point, the US used to be world's largest maker of cheap crap as well, in the 19th/early 20th century.

Trading their surplus dollars for real stuff of value seems like win-win for them.

On the potentially bright side, a Chinese collapse might lead to a breakup of the Middle Kingdom. Really, really bad in the short-term of course (the warlord phase of the 1920s redux?) but the successor states, particularly those in the southeast of the country, might end up as engines of growth. Granted, Blade Runner is a possibility too.

And before that when I was a kid in the early sixties, Made in Japan meant piece o' crap.

China won't be there for awhile. The vast majority of their population is still subsistence dirt farmers.

Will they keep buying yank debt?

According to Chanos what is going to happen in China is 1000 worse than what happened to Dubai.

The other issue is that American merchants have demanded that China supply goods at the cheapest prices, knowing full well the goods would be of poor quality. Crap was expected as big profit was the prime motivator over the past 40 years.

Have you seen the recent numbers of graduates coming out of Chinese universities that specialize in computer science, engineering, and sciences? The Universities in Canada are being overrun by overachieving Chinese. These guys are hungry and they want our jobs, now.

And a company can hire 4 Chinese engineers who are as qualified or more than any 1 American graduate for the same overall cost.

The point that Mishes is making in this video is an interesting one. He's saying that China is a lot of smoke and mirrors with their economy and they, like us, are feeling the effect of printing too much and artificially expanding the economy except they are running a command economy that has not quit out like the rest of us and is gonna be worse shape because of it. If they are, as he says, just printing money and adding that right to their GDP it makes me agree with him that China might be a paper tiger.

/Conspiracy Mode/
Maybe this was the point of this crash - to level China's economy so it stops becoming a threat to the US and keep it a cheap source of goods for time to come.

Wouldn't a Chinese collapse be far worse for the US than China?

I caught a bit of Beck's show this afternoon, him and his blackboard had it all figured out, from Greece==>France==>Germany==>???==>USA==>China the dominoes would all fall down. Of course he and his followers knew the answers. I just couldn't break the code to understand what they are.

Higher education in China is still very far behind the west. The quality is low due to the high demand for qualified teachers which they don't have enough of. Not only that but cheating is rampant and is often encouraged.

A chinese collapse where the government did nothing would be bad. But what would happen is they would need the rest of the world to buy their goods, so they'd print up money and buy more debt from the rest of the world to support the rest of the economies. They'll create inflation for themselves in order to keep their economy alive by keeping their cheap products...cheap. But as Mish says, they'll print the money supply and add it to GDP so it continues to look like a good investment.

Or they will attempt to go to war to exert dominance and be unilaterally crushed.



wooo I just made all that up but it sounds great doesn't it.

Pretty much...

And Clinton's headlong rush into the new world has that reality leading to the 2nd great dismantling of America's workforce...the whitecollar dismemberment/.

You guys say you want a free market...be careful what you wish for.

A lot of folks leaving colleges this spring will never make 70% of the money they expect to.

China has issues to deal with in the next 40 yrs...a complete revamping of the interior's infrastructure, a complete revamping of their demographics, how to reconcile its entry on the world stage with large-scale human rights abuses....etc. etc....a belligerent Moslem Uigur population which might cause certain soft alliances with Iran/Islamic nations to deteriorate(think Pakistan).....but overall it will continue to grow and be more and more properous in the coming yrs. Any quick glance at America's top engineering schools will tell you why.

All problems will be solved with the following steps:

1. lower taxes especially if your rich;
2. end all welfare except social security and medicare;
3. down size the government except for defense;
4. praise jesus; and
5. bomb people who don't.

Glen Beck's agenda reduced to its essence...