China Goes Full Keynesian-tard: Demolishes Never-Used Just-Built Skyscraper

Tyler Durden's picture




 

"Growth" meet "mal-investment boom-bust" In a perfect example of the smoke-and-mirror-ness of China's credit-fueled expansion, a 27-storey high-rise building which was completed on November 15th 2015 was just demolished, "having been left unused for too long."

As China People's Daily reports,

Directional blasting demolition of a high-rise building was completed successfully at 7 a.m. on November 15, 2015 in Xi'an, in northwestern China's Shaanxi province.

 

 

The building was 118 meters high (27 floors) with a total construction area of over 37000 square meters.

 

 

Having been left unused for too long, the building could not be brought back into use so local government decided to demolish it.

 

 

It is reported to be the highest building that has ever been demolished in China.

*  *  *

The silver-lining - now workers can clean up the mess, dig a bigger hole... and fill that in - all in the name of Keynesian "growth."

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Sat, 01/09/2016 - 16:54 | 7022980 All is chosen
All is chosen's picture

Psst: Don't tell the Germans

 

or the Swedes

 

or the Swi.....

Sat, 01/09/2016 - 19:35 | 7023568 THX 1178
THX 1178's picture

What happened? Nailgun?

Sat, 01/09/2016 - 16:56 | 7022986 buzzsaw99
buzzsaw99's picture

it was probably defective

Sat, 01/09/2016 - 16:57 | 7022987 American Psycho
American Psycho's picture

Where "building you up to tear you down" has a different meaning. 

Sat, 01/09/2016 - 16:57 | 7022989 AMonkeysUncle
AMonkeysUncle's picture

They could have just flown a small drone into it and watch it collapse through the path of most resistance. Works every time.

Sat, 01/09/2016 - 16:58 | 7022995 DrZipp
DrZipp's picture

Prices on real estate were about to tank.  Destroy housing stock until there is a shortage again.

Sat, 01/09/2016 - 17:01 | 7022998 debtor of last ...
debtor of last resort's picture

I don't know the difference between the boom and the bust anymore.

Oh, did the bankers jump before or after?

Sat, 01/09/2016 - 16:59 | 7022999 Bam_Man
Bam_Man's picture

And some people are wondering "How could the Yuan be in free-fall?".

Raffing out Rowd.

Sat, 01/09/2016 - 16:59 | 7023003 pupton
pupton's picture

These are the kind of "shovel ready" jobs we need here in 'Murica...

Sat, 01/09/2016 - 17:00 | 7023004 RaceToTheBottom
RaceToTheBottom's picture

Just practicing.....

Sat, 01/09/2016 - 17:00 | 7023009 Bam_Man
Bam_Man's picture

Maybe I should consider going long dynamite futures?

Sat, 01/09/2016 - 19:43 | 7023606 verbot
verbot's picture

Load mem...mem...load archive....archive... Load wit.....file missing press any key to continue...
I only logged on to comment about 9/11.
We have had several hi rise steel frame buildings recently catch fire and lo and behold....no falling buildings...
It's science that is the problem... Physics dictate certain outcomes and the corrupt criminals in government claim physics no longer apply to three steel frame buildings in Newyork...
Frankly I get such a giggle when good folk point this out and one or two shills show up to claim science and physics do not apply to those three buildings that fell in NewYork.
The deep state apparatus can not under any circumstances allow folks to think steel frame building don't fall when they catch fire so they come out like cockroaches to claim somehow, and some way those three buildings are "different".
Science tells us they are wrong and all one must do is remember that "free fall" is 32feet per second per second and all of the facts become clear about who is right and who is wrong..
There was recently a fat idiot on YouTube declaring HE would debunk the issue of jet fuel burning hot enough to melt steel(along the government storyline) so he burns a steel rod 300 degrees higher the jet fuel can ever burn and suddenly claim a win over science. Of course he is an idiot and potentially an x military type(gone to pot with the fat belly) so that was expected from those who fear they would end up at The Hague for charges of war crimes.
So if any of you out there ever see George Bush please take him to the proper authorities thank you...
The rest of you keep the pressure on those who would claim science does not apply to three buildings are n NewYork on 9-11-2001
Also remind those criminals that statutes of limitations DO NOT apply to war crimes.
And because of that fact we all may One day see those Israeli agents being executed alongside the American traitors they were working for....
End of line.....

Sat, 01/09/2016 - 17:01 | 7023010 silverer
silverer's picture

Does the loan still have to be paid back?

Sat, 01/09/2016 - 17:02 | 7023014 Bam_Man
Bam_Man's picture

Repeat after me, "The Chinese banking system is solvent..."

There was no mortgage on that building, right?

Sat, 01/09/2016 - 17:03 | 7023018 directaction
directaction's picture

The USA needs to copy China, do this each and every day. Build a skyscraper, destroy it, build another, destroy it. Do this over and over and over again in cities across the nation and the economy will race ahead. Think of the profits in the equity markets!  :)

Sat, 01/09/2016 - 17:03 | 7023019 Peter Pan
Peter Pan's picture

They might be practising for their own Twin Tower disaster.

Sat, 01/09/2016 - 17:04 | 7023023 Westcott Canon
Westcott Canon's picture

I think the Chinese would be better buying gold bars and having the moved for point A to B and back to point A if they need to create makeshift work.

Sat, 01/09/2016 - 17:05 | 7023024 Yen Cross
Yen Cross's picture

  The farmers get nothing, and like it... As usual<

 I guess those copper ore stashes weren't as high as we thought?

Sat, 01/09/2016 - 17:05 | 7023025 Fuku Ben
Fuku Ben's picture

Hmmm... that looked an awful lot like World Trade Center (WTC) Building 7 going down. I'm beginning to get suspicious of the September 11 government narrative.

Sat, 01/09/2016 - 17:06 | 7023027 _ConanTheLibert...
_ConanTheLibertarian_'s picture

This was probably building no. 7

Sat, 01/09/2016 - 17:06 | 7023029 WTFUD
WTFUD's picture

Why not just dig holes and then fill them in? You can get rich by diggng a ditch!

Sat, 01/09/2016 - 17:08 | 7023037 Bam_Man
Bam_Man's picture

And have them do it with teaspoons. They'll get even richer.

Sat, 01/09/2016 - 17:13 | 7023055 WTFUD
WTFUD's picture

Spoon ready jobs? They use chopsticks, though!

Sat, 01/09/2016 - 17:08 | 7023036 Seasmoke
Seasmoke's picture

We call that The Krugman.

Sat, 01/09/2016 - 17:09 | 7023039 - - - - - -
- - - - - -'s picture

what a waste   black children in africa could have eaten the building

Sat, 01/09/2016 - 17:14 | 7023060 Youri Carma
Youri Carma's picture

Better to fly a plane in it and then blow it up and say the Arabs did it so you can start a war anywhere you please which makes it even more profitable.

Sat, 01/09/2016 - 17:15 | 7023064 Albertarocks
Albertarocks's picture

Did the report say which kind of plane they used?

Sat, 01/09/2016 - 17:17 | 7023070 Clesthenes
Clesthenes's picture

There’s more to come.

It was, and will be, well advertised – and no one noticed.

Societies across the globe have been destroying capital opening over the last 70 – 100 years while all observers believed the process was an example of production of capital.

It was all disguised by one simple word, “investment”.

For our purposes, “investments”, mean, money put in “plant, machinery or software”.  And what makes this so alarming is that this is a component of the so-called Gross Domestic Product (GDP), regardless of territory.

The money and resources expended on such investments are no longer available to anyone else.  They are entered on accounting ledgers as delayed expenses, with the anticipation that they will be “expensed” (or recovered) annually over the next 5-30 years.

In other words, the money and resources represented by such investments are lost forever – unless the business in question can recover such money and resources over those 5-30 years.

If ineptitude or lack of foresight intervene, we are looking at a massive write-off of capital.

Then there is the GDP component of government spending, which represents money spent on toilet seats, munitions and attendant bribery that will never be seen again – except what is stashed in off-shore banks… and that as a minus.

These two components mean that, fully, 35% of the US GDP index is pure fluff.

This is the conclusion I reached by examining data, assumptions and formulas provided by the US Treasury, Federal Reserve and other sources.  There is more: street gangs and drug cartels, the federal government’s – and China’s – role in arming, protecting and forming alliances with such gangs and cartels… and a dozen or so other items.  They all point to a conclusion that a vast operation is being perpetrated…  I began this Part 2 (of my examination) with the question, ‘What financial shock do Judeo-Bolsheviks plan?  (Part one and Part two) Do they plan to inflate the dollar to zero… push stocks to a PE ratio 300, then slam them to a ratio of single digits or even minus numbers… repudiate the federal debt… replace Federal Reserve bank notes with Treasury bank notes…?’  And, how do China’s ghost cities fit into this unprecedented operation?

And, why are Endocrine Disruptors present almost everywhere in the American environment… do they evince a kind of chemical warfare… and for who’s benefit?

Consider all these government-provided facts and you see that throwing resources at “investments” (regardless of their disguise) is a kind of insanity that will inexorably usher in the next Dark Age – with a duration five times longer than the previous one, owing to the “monetization” (by central banking) of such “investments” beyond counting.

Sat, 01/09/2016 - 17:18 | 7023074 CHX
CHX's picture

Lots of broken windows, superb (/sarc). However, that aino skyscraper...

Sat, 01/09/2016 - 17:21 | 7023083 CHoward
CHoward's picture

Better to bring it down then have it collapse because of shoddy worksmanship and material.  Less embarrassing this way.

Sat, 01/09/2016 - 17:21 | 7023086 Ms No
Ms No's picture

How many people there are living in slums and freezing their asses off at night?  Can't leave a place vacant as it make make prices affordable so it's better to destroy structures/commodities as if they are infinite.

Completely sickening.

Sat, 01/09/2016 - 17:22 | 7023089 Slippery Slope
Slippery Slope's picture

Notice something else odd about the picture? That's right, there are cranes on some of the buildings in the background, still being built, and soon to come crashing down.

Sat, 01/09/2016 - 17:23 | 7023093 GhostOfDiogenes
GhostOfDiogenes's picture

China is paper tiger-ironic

https://en.m.wikipedia.org/wiki/Paper_tiger

Sat, 01/09/2016 - 17:24 | 7023099 Pumpkin
Pumpkin's picture

Yeah, but don't worry, Silverstein upped the insurance on it.

Sat, 01/09/2016 - 17:26 | 7023100 css1971
css1971's picture

Destroying real wealth to manipulate the perceived value of an asset class is quite literally insane.

Real energy was used to create it. They quite literally burn rock to make cement. It requires enormous amounts of energy. The steel work also requires huge amounts. Then there's the thousands of hours of labour to add the facilities and fixtures and fittings.

People could have lived there. Reduction in homelessness, real improvements to lives. I don't believe for a second that any problems with it couldn't have been solved (unless it had been built unsafely).

There is a very serious problem with the system we use today and it isn't as simple as "the keynesian's did it" because exactly the same happens every time demand is satisfied.

Sat, 01/09/2016 - 17:27 | 7023109 BettingTheFarm
BettingTheFarm's picture

I call BS. The news article states clearly, demolition date was Nov 15, 2015, not Jan 9, 2016 as this ZH post implies by "just demolished".

 

Further, the original article does not say when the building was built. The ZH post claims the building was completed on Nov 15, 2015, this is a lie. I don't know myself how old the building was.

 

ZH, the reality is bad enough as it is, no need to dilute your credibility by making it seem worse.

Sat, 01/09/2016 - 17:34 | 7023137 Yen Cross
Yen Cross's picture

Semantics?

Sat, 01/09/2016 - 17:47 | 7023188 Rick Blaine
Rick Blaine's picture

Yep.

I'm glad someone else noticed this.

Sat, 01/09/2016 - 18:51 | 7023409 Yen Cross
Yen Cross's picture

Someone did. Stay frosty.

Sat, 01/09/2016 - 17:59 | 7023241 Anopheles
Anopheles's picture

The building was finished in 1999.   ZH credibility has been trending towards zero. 

Sat, 01/09/2016 - 18:42 | 7023370 css1971
css1971's picture

Link?

Sat, 01/09/2016 - 20:59 | 7023835 The Ingenious G...
The Ingenious Gentleman's picture

"The 27-storey building in Xi'an city included a basement level and covered more than 37,000 square meters. It was built in 1999, but was never put into use."

http://www.ndtv.com/world-news/118-metre-high-building-demolished-in-china-1243669

 

Sat, 01/09/2016 - 18:06 | 7023265 Skateboarder
Skateboarder's picture

Damn dawg, you pwned this Tyler.

Sat, 01/09/2016 - 17:32 | 7023127 all-priced-in
all-priced-in's picture

I bet the building was not safe - so they brought it down using this excuse.

 

Som Ting Wong - you pour foundation good?

 

Hol Le Fuk - I thought you pour foundation!

 

Bang Ding Ow - We build 27 story high-rise on mud puddle?

 

 

 

 

 

 

 

Sat, 01/09/2016 - 21:09 | 7023864 ebear
ebear's picture

"I bet the building was not safe"

Wait until there's a major earthquake and we find out how many others are also unsafe.

Think Mexico, 1985

Sat, 01/09/2016 - 17:32 | 7023129 Haydukez
Haydukez's picture

When I was stationed at Offutt Air Force Base in 1985 I worked with weather satellites for Space Command and we'd budgeted 250 billion dollars for two underground hardened command posts for the DMSP satellite program. This got defunded along with a new branch of the military, "the Space Force" due to Iran Contra, the Challenger, and three failed Atlas launches in a row, one of which's payload was an heirloom spy satellite. 

Modelling weather during nuclear winter was a strategic necessity after all. 

 

So building and then blowing up buildings seems significantly less insane than modernizing nuclear weapons, militarizing space, and the F-35 et al.

Sat, 01/09/2016 - 17:38 | 7023151 Truth Eater
Truth Eater's picture

Just think of all the fine middle eastern young men and africans who could have been put in there.....    and then demolished.

Sat, 01/09/2016 - 17:41 | 7023161 my wag
my wag's picture

Sorry, Keynesian economics never advocates over production. It encourages govt intervention to help in the lulls of economic cycles. Any govt intervention beyond the economic capacity can create inflation or as we see in China, an overbuilt economy. Too much of everything that can now be effectively utilized: housing, buildings, concrete plants, steel plants....all overbuilt in a subsidized quest to build their economy up. But missing the concept of: 'what next'?

Sat, 01/09/2016 - 17:42 | 7023163 joego1
joego1's picture

The Chinese have people living in rat holes under the streets, why don't they just let people live there?

Sat, 01/09/2016 - 17:44 | 7023174 Ms No
Ms No's picture

No kidding.   We are lucky they are not destroying food while people starve. That will probably come later.

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