An honorable member of the Coffee Shop Has Just Posted the Following:
since 2000, i've predicted the Communists in China will fall..........i'm velly velly sure i'll see it in my lifetime.......debt in China growing 3 times as fast as economic growth............building empty cities with over 60 million apartment units in the middle of nowhere.............
China's unemployment rate of 4.5% is inaccurate, as only people registered with the local government are counted while excluding large numbers of unemployed farmers.
Former Chinese Premier Wen Jiabao estimated the number of unemployed stood at 200 million in 2010. With China’s working population of 940 million, the real unemployment rate is 21% !
China’s manufacturing sector is losing jobs to cheaper countries..........Dongguan City, an important industrial city is experiencing a 2nd wave of business collapse—over 4,000 businesses shuttered last year. From 2008 to 2012, over 72,000 corporations closed down.
Real estate drove China’s economic growth for the past 20 years. The communist regime had worked to stop the housing market from crashing, but dozens of industries upstream and downstream of the real estate industry had fallen into production overcapacity since 2013.
China’s total debt stands at 282% of its Gross Domestic Product (GDP). Most of this debt is made up of government and corporate debt. Local governments owed the most debt, with an estimated debt value of about RMB20 Trillion but National Development and Reform Commission official Li Tie acknowledged that the official figure is less than half the actual debt, as most local governments only reported 10-30% of actual debt.
China is currently experiencing its 3rd peak of bad loans caused by real estate. The 1st was during the Zhu Rongji era when a USD170 billion debt took 6 years to clear. The 2nd crisis was in the mid-2000s, and was mitigated by foreign banks. But Chinese economic growth has been fueled by a constant supply of freshly printed currency over the years, and with a massive increase in the money supply, excess liquidity could start to become a major problem.
The top 1% of Chinese households had more than 1/3 of the nation's wealth, while the bottom 25% of households had only 1% of national assets. Nearly 60% of Chinese people are poor, a state of affairs ripe for destabilizing social unrest.
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27-05-2015, 06:00 PM
China's Impending Economic Doom and Collapse of Communism !
