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GMO's Edward Chancellor Discusses China's Red Flags - A Must Read For A Fresh Perspective On China's Bubble
China’s Red Flags - A White Paper by GMO's Edward Chancellor
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When the China juggernaut eventually stalls, yes with 1.3 billion consumers and their currency in upward mobility they face a rude awakening..Yes, and that awakening will be the stark reality that they are now the ruling economy....And the US will be relegated to the dustbin of history...
With Obamacare......
http://www.youtube.com/watch?v=ZKLVPp7epC8
View this if you dare ZH posters,,,,Your President exposed!!! Reality is the demon.........
Yea we know he is a Hypocritician.
The words Cat and Bag come to mind.
Prepare to be flagged. Or is that flogged.
Spot on
I thought there was a financial coup in the U.S.? Sounds possible though, who is this guy?
Exactly geopol... The rest of the world will implode, China will go through a heavy recession of not a short term depression but most importantly, their currency will survive and with it, the purchasing power to buy all the energy they need to pull their population out of what is basically poverty. They have the population to create one billion new American style consumers at home, no doubt the middle east, south america and Africa will flourish with them and the industrialised nations will finally get their comeuppance. And we wonder why the US is determined to cut China off from the middle east blood supply.
Yes! We should tear down all the border fences and border walls and let the people of America leave—for the land of opportunity. China!
China will need to spend 2 dollars for every one dollar for environmental clean up. Massive dust storm in Beijing the last few days are becoming common. The northern desert is moving south. Its river are polluted beyond repair. Its air is virtually unbreathable. Anyone that thinks this environmental ponzi scheme can go on without end is a fool.
China wishes it had 1.3 billion consumers. If we had access to real numbers, I think we'd find that China's munfacturing and construction "miracle" has benefited 200 million (workers, managers, owners combined) at most. Maybe as much as 300 million tops. That leaves 1 billion people still living peasant lives.
Can China get its newfound relative prosperity to spread to another 700 - 800 million people? Can the Chinese government allow that much power into the people's hands? Can it afford not to?
They are a long way from becoming a stable economic power... and there's a lot of trip points along the way.
well there's 100million+ party members
so do the math re: who benefits
<ass-kissing = on>Thanks Tyler, you keep topping yourself! <ass-kissing = off>
To paraphrase Disraeli:
"If every Chinaman would just increase the length of his shirt by 1 foot, the looms of England would be busy forever"
It's all been said before. It's all been dreamed about, lusted over, greeded over (I know it's not a word), fantasized about - BEFORE.
Great quote - does everyone forget how Barclay's got started in the first place?
For you guys getting health insurance rate hikes today and in the days to come I have a suggestion, drop all coverage on kids under 18. If you haven't gotten your notice you will in a few days, expect huge hikes and they will not end. You can probably eliminate a huge portion of your monthly bill by getting rid of the kids on the policy. Of course they eventually will have to jack up everyone's rates to meet this.
There is no reason at all to carry kids on your policy unless they are already sick. Of course this is what DC wanted.... no insurance companies and bankrupt States. The States better wake up quick.
http://worlddarkestdays.blogspot.com/
For all you with fake tans (salon type), 10% excise tax starts today, Suckers!
Get the children off your health insurance policy now, get your State to start revoking all the agreements with the federal government.
Accept cash only.
Fairly comprehensive. The trouble is, real bubbles tend to go on for a lot longer than skeptics believe.
so, if the Chinese bubble continues,
buy BMW stock?
surely no one would be as optimistic as party apparatchiks
China is tightening, slowly but surely. This has 2007 written all over it.
BTW, is the avatar Joseph Conrad? "Heart of Darkness" seems attuned to the times...
Good observation, but Ben and his bosses at the TBTF banks had succeeded beyond their wildest dreams. Only fly in ointment? They are now far more addicted to the dope called the printing press. And Ben and Janet Y think they can avoid the ultimate crash at least until 2013.
A Great Track Record?
Chinese cooking oil siphoned from restaurants' waste tanks and stripped out of raw sewage is being resold on the cheap and has for years tainted approximately one out of every ten meals cooked in the eastern nation, according to a recent study.
http://rawstory.com/2010/03/chinese-consumed-millions-gallons-toxic-sewa...
Yuck and double Yuck!
And this is the end result of Chinese "production"
http://www.chinahush.com/2009/10/21/amazing-pictures-pollution-in-china/
So our kids can have cell phones that make pancakes,,,also the Congo with coltan mining, with ten year old children, and a life expectancy of fifteen..
The confessions of an economic hit man...John Perkins.... Banana republics with dictators as billionaires under the guidance of the American / IMF debt machine..
Sleep well...
Geopol, the culprits are hardly limited to the US and the IMF. I've got a country for you operating in a vacuum without any help whatsoever from either the US or the IMF, and it exhibits a character and degree of destruction far worse than anyplace tainted by those two: Burma, an almost wholly owned subsidiary of the People's Republic of China. What hell China has wrought on its own land and people, it is in the process of exceeding in its neighbor.
Ah competition and its spirit. Such an excitment.
Still are you sure that the China single champion Burma can beat every other IMF/US champions all around the world? Would like to see that bout. Thralling...
Tragic. End of life of all that technology is equally tragic
The way we are living is simply not sustainable, from any angle one looks at it
Americans did a lot of weird, wild things on their way to the top as well. Ever hear of a snake oil salesman? Just WHERE do you think that term came from? In a hundred years, the Chinese will term people selling shady materials "oil salesmen" and won't remember where the term came from, even as they sign checks to sponsor a poor white child in third world America. Fat Chinese Sally Struthers will appear on the hollowvid next to a little white boy with flys walking on his eyes, and they won't even remember that the US was once a superpower.
You think Russian mail order brides are big now, wait until mail order American brides hit the Chinese market!
The Chinese government will pay women to come to China just like the Australians did years ago. The Chinese men will not find wives as many females were aborted in the great one child per family campaign. Either that or China will have to start a war to reduce the amount of men in the country.
Ahh, the maladjustments of Cultural Revolution under the socialist dictators. It can be a very trying experience—for women and men. As for those who lived through it in China, they were, they said, “alive in the bitter sea” (“Ku-hai yu-sheng”). During Mao’s Cultural Revolution, to be beautiful or fashionable was bourgeois and could get you into trouble with the State. So it was plain, baggy proletarian blue for the gal on the street; none of those body-hugging cheongsams with high mandarin collars, side fastenings, tight waists and slits up the side.
Kinda reminds one of the dreary American look of T-shirt and blue jeans for women, ie, drab unisex. Shades of Obama Cultural Revolution?
i always thought the definition of communism was something along the lines of "central seizure of resources/wealth/assets for arbitrary reallocation"
i don't see what the difference is in having those resources going somewhere else besides the black hole of the pentagon - adjusted for inflation in 2010 dollars over the past 112 years (since the spanish american war?) the US has probably spent hundreds of trillions on overseas adventures..?
could've built a lot of 500mph mag lev trains from LA to New York for that..
as for chinese pollution, how many nukes were tested in the southwest US? isn't there wind down there?
dp
Interesting Article,
If the state controls all news flow, tv, internet etc. One would think that manipulation of markets can go on for as long as control is maintained.
It's interesting to dovetail google's action into this thread. If not blocked, one could make a case that the manipulation could be exposed or directed in a way that would benefit the west. It could be the breeze that blows over the house of cards.
The flow of information was much more concentrated, and therefore controllable, in the middle of the last century. But as history shows us, even back then the samizdat got its message through. So in today's internet age, I wouldn't count on the control of information to maintain my control over the economy, the people, or the state.
I've read around 25-30 books on financial bubbles and manias, and my favorite is "Devil Take the Hindmost: A History of Financial Speculation" by Edward Chancellor, who is the author of the paper above. I highly recommended his book to all ZH readers.
Today, those red flags are not only “flying around Wall Street’s current darling, The People’s Republic of China,” they are also flying around The People’s Republic of Obama.
Now that the Obama Market-Economy Wrecking Crew has moved into every neighborhood with Obamacare and an extortion threat of deadly force if you don’t use its services, will Big Bro Obama go as far as the Castros who line up those who disagree with their Castrocare system against a wall? As someone asked, “Cuban health care—isn’t that an oxymoron?”
And we have cheerleader congressmen, such as Castro-defender Sheila Jackson Lee (D-TX), comparing the fight for Obamacare with civil rights.” Said Sheila: Today, I voted in favor of historic legislation to expand health insurance coverage to 32 million Americans, including 180,500 of my constituents in the 18th Congressional District, who are uninsured…
CUBA’S DOCTOR ABUSE | Investor’s Business Daily | 02/25/10
Health Care: Remember Cuba's vaunted medical missionaries — those who treated the poor abroad for nothing, supposedly out of selfless motives? A lawsuit shows they were nothing but a communist slave racket.
It ought to bear a few lessons for our own country as the role of doctors in the health care debate drags on.
Back in 1963, Cuban dictator Fidel Castro launched a much-praised initiative to share Cuba's medical doctors with the poor around the world. The idea, of course, was to appear to be acting on higher motives than the profit-driven doctors in free societies. It was small scale and propaganda-oriented.
But in 2003, Castro went big, and shipped 20,000 doctors and nurses to Venezuela's jungles and slums to treat the poor, doing the work "selfish" private-sector doctors wouldn't. Hugo Chavez touted this line and the mainstream media followed.
Now the ugly facts are getting out about what that really meant: indentured servitude to pay off the debts of a bankrupt regime.
This week, seven escaped doctors and a nurse filed a 139-page complaint in Miami under the RICO and Alien Tort acts describing just how Cuba's oil-for-doctors deal came to mean slavery.
The Cuban medics were forced to work seven days a week, under 60-patient daily quotas, in crime-riddled places with no freedom of movement. Cuban military guards known as "Committees of Health" acted as slave catchers to ensure they didn't flee.
Doctors earned about $180 a month, a salary so low many had to beg for food and water from Venezuelans until they could escape.
What they endured wasn't just bad conditions common inside Cuba. The doctors were instruments of a money-making racket to benefit the very Castro regime that has ruined Cuba's economy.
"They were told 'your work is more important to Cuba than even its sugar industry,'" their attorney, Leonardo Canton, told IBD.
That's because their labor was tied to an exchange: Castro took 100,000 barrels of oil each day from Venezuela's state oil company in exchange for uncompensated Cuban labor.
Most of the oil was then sold for hard currency, bringing in cash. Cuba also charged Venezuela $30 per patient visit, meaning a $1,000 daily haul per doctor. But the doctors never saw any of it.
In a situation like this, it's pretty obvious that when the state gets involved in medical care — telling doctors whom they can serve, what they can charge and what they can treat — it doesn't take long for slavery to result. The Cuban government has told other doctors, such as surgeon Hilda Molina, that her brain "is the property of the state" as reason to control her travel.
That ought to be lesson to those who seek to reform medical care in the U.S. on the backs of doctors. Free medical care is never free.
http://www.investors.com/NewsAndAnalysis/Article.aspx?id=522289
I want to kick Sean Penn's teeth in!
why not aim 3 feet lower?
Wasn't the doctor who saved Fidel's sorry ass a selfish private sector doctor from the EU?
Best comprehensive contrarian China case I've seen and I don't think he misses any good arguments I've sen elsewhere.
Here's the Al Jazeera story on Ordos, the 'empty city' mentioned in the paper.
http://www.youtube.com/watch?v=0h7V3Twb-Qk
[Yes, that Al Jazeera. This appears to be a very informative, straightforward news story that would put many similar US offerings - or lack there of- to shame]
what are you, some kind of terrorist sympathizer?
moose-lims are all stone throwing holocaust deniers, or at least that's what the Freepers tell me..
and THEY know journalistic integrity, and certainly would never be surprised when they encounter it in a place they were told was completely lacking it.
http://www.youtube.com/watch?v=2bUV85jXVrU
I showed this to my London-blitz surviving father and he said "That's what they call full employment over there."
Any quality in anyone's TV news is a surprise at this point and Al-J has certainly pulled some stunts that would make Dan Rather blush.
GMO is reliably correct - and reliably early. If they're just now talking about a China bubble, there's still money to be made on the way up.
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