Guest Post: Boots On The Ground In China: Signs Of A Slowdown Are Obvious

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Wed, 10/26/2011 - 19:42 | 1814754 hambone
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And as the Chinese are trying to diversify out of China (knowing it for the ponzi it is), the rest of the developed world rushes to get in (to avoid the ponzi they currently occupy)!!! 

Ancient chinese secret, Confucius say, buy gold (bitchezzzz)!

Wed, 10/26/2011 - 20:16 | 1814942 lemonobrien
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Actually, Buddhist never turn down gold as a gift; but will turn down almost everything else.

Wed, 10/26/2011 - 20:27 | 1814977 TruthInSunshine
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Real estate, bitchez.

They quit making it...

...but it sure does get recycled a lot.


*It's always a great time to buy a house! This message brought to you by The National Association of Realtors™,  The National Mortgage Brokers Association , ReMAX, your local property tax assessor's office, and Bang Dae-Ho.

Wed, 10/26/2011 - 21:29 | 1815189 PulauHantu29
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About 18 months ago The Middle Kingdom advised itsw people to buy gold and that RE was too high....the PRC began tightening credit, bank reserves, etc..

The gubberment there even opened numerous "offical" gold stores with the royal approval and official prices I read...

Many people listened...some did not. These are the protesters I suspect.

Wait until The Land of Oz feels these effects of a slower Dragon that eats less copper, iron,'s gonna be painful....

Wed, 10/26/2011 - 19:39 | 1814759 Seasmoke
Seasmoke's picture

i dont think the Chineese treat those who scam them , as nice, as the American sheep do when they are scammed

Wed, 10/26/2011 - 20:10 | 1814912 trav7777
trav7777's picture

ROTFL...the entire national economy is a scam

Wed, 10/26/2011 - 20:25 | 1814972 Imminent Crucible
Imminent Crucible's picture

Chanos 1, Rogers 0.

Game over.

Wed, 10/26/2011 - 20:41 | 1815029 Raging Debate
Raging Debate's picture

Ya. But it was fun globally while it lasted! Now time for organized decentrialization. The good news is the Internet and flow of information make it shorter cycle to recover. Plus Interwebs is fun.

Wed, 10/26/2011 - 21:10 | 1815126 kito
kito's picture

Chanos 1 rogers 0????? Bwahahahahah based on simon "chilean utopia" black???? Bwhahahah dream on. China is doing just fine. Growing pains are about all china will have while the u.s. needs morphine as it dies a slow painful death....

Wed, 10/26/2011 - 21:24 | 1815176 malikai
malikai's picture

Ditto. I spent 4 months in Beijing throughout this year. I'll be spending the next two months there as well. I haven't seen ANY of what he's talking about.

Wed, 10/26/2011 - 22:31 | 1815532 LowProfile
LowProfile's picture

Beijing, eh?

Funny, Maryland has the lowest employment rate here in the US, perhaps that has something to do with it's proximity to...  Washington, DC?

You may want to spend some time outside the capital city.  Collapse starts at the periphery.

Thu, 10/27/2011 - 03:54 | 1816281 e-recep
e-recep's picture

Shenzhen is doing fine and it's nowhere near Beijing. What's all this "China is in trouble" claptrap? I see it all the time on Mish's blog and less often here. Does it alleviate the pain or what?

Sun, 10/30/2011 - 07:32 | 1825978 sub Z
sub Z's picture

Yeah… China has its share of problems but, from an observation standpoint, Shenzhen looks fine. Restaurants are packed, shoppers are buying expensive luxury brands, movie theaters are hopping, I have never seen so many expensive cars packed in one place, the Chinese are savers and have little debt, the middle class is small but the same size of the US population, lots of rich people, lots of competition - something lacking in the US, practices a thing called capitalism, they are investors economically and in themselves, modernized infrastructure, big name global businesses investing and have a large stake in, a medical system that doesn't squeeze the life out of people and has good food (xrays, doctor visits, medication, about the same cost as co pays, good service, you can stay in one building to get all the testing done), nice public transportation system, an education system that works, low taxes, actual electric vehicles… ever hear of a Buick Excelle XT or Envision or a $1.44 million (9.18 million yuan) Dartz armored vehicle? Expected to be popular among China's new money, who are in desperate need of ever more ostentatious vehicles. There is hope there and nothing but fear here.  

From a business standpoint, would you want a market of 1.3 billion hard working and motivated Chinese or a milked dry to the bone, filled with despair, highly regulated, socialized, jobless, homeless, no-good, rotten, four-flushing, low-life, snake-licking, dirt-eating, inbred, overstuffed, ignorant, blood-sucking, dog-kissing, brainless, dickless, hopeless, heartless, fat-ass, bug-eyed, stiff-legged, spotty-lipped, worm-headed sack of monkey shit and taxed to death 300mm with a debt to GDP ratio of over 600% not counting obligations? The US has overcome the obstacles thrown at it in the past and I don’t see much difference in China. So the rich speculator gets squeezed and the people who couldn’t afford a nice place get a chance hopefully. What happens when they are better off and demanding things with a stronger currency? To have no jobs, high inflation, deflated property values, high taxes, and huge debt at the same time while the other guy sucks the food out of your kids mouth? That is the question folks, yes it is.


Thu, 10/27/2011 - 01:38 | 1816135 defencev
defencev's picture

Sure. Charlatans are now moving to so-called front markets. After recommending to put your savings in Mongolian tugriks SB is now suggesting to get rid of Yuans he just recommended a month ago. Whatever. Just continue your subsrcription to "Sovereignman:Confidential"...

Mon, 10/31/2011 - 05:42 | 1827841 sub Z
sub Z's picture

lulz... see it's ok, he saw it on the television

Wed, 10/26/2011 - 19:40 | 1814760 Fake Jim Quinn
Fake Jim Quinn's picture

Real estate bust, female Char Peis

Wed, 10/26/2011 - 19:40 | 1814765 Debtless
Debtless's picture

Even after a major slowdown - they'll still lap everyone else. Solly.

Wed, 10/26/2011 - 19:40 | 1814767 jcaz
jcaz's picture

I thought that land in China was state-owned,  which would be the ultimate fuck-yoo....  Oh look, your property has gone up 200%.... Oh, I mean OUR property has gone up 300%,  the shell YOU own atop of it has dropped 100%-  seeyabye.

Wed, 10/26/2011 - 19:40 | 1814769 Bunga Bunga
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Sorry, OT: ALL trading on the Australian stock exchange has been halted indefinitely.

Wed, 10/26/2011 - 19:46 | 1814798 chump666
chump666's picture

thats' good, safe my ASX 200 futures shorts. 

Wed, 10/26/2011 - 19:47 | 1814804 chump666
chump666's picture

on topic: a China hack job huh?

Wed, 10/26/2011 - 19:50 | 1814818 jcaz
jcaz's picture

Hahahah!!!!  That is AWESOME!   Just when it looked like the pixie dust was going to carry stocks higher.....   This will make the flash crash look like a hiccup....

What can take stocks down?  


Wed, 10/26/2011 - 20:56 | 1815078 chump666
chump666's picture

ASX news.  somthing is up, looks like a hack IMO

ASX spokesman Matthew Gibbs said that the market was halted at 10.05am after market participants were unable to conduct transactions.

  • At that time 6700 trades had already taken place, he said, but the nature of the problem was still unknown.
  • "At this stage we just don't know what the problem is," he said.
Wed, 10/26/2011 - 22:04 | 1815401 StychoKiller
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Hmm, Stuxnet or Skynet...flip a coin...

Wed, 10/26/2011 - 21:43 | 1815303 crazyjsmith
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Best headline of the day...We now move markets with HOPE!!

US Stocks Edge Up As Investors HOPE For European-Debt Solution

Wed, 10/26/2011 - 19:55 | 1814847 chump666
chump666's picture

wow! I have seen markets break, but this, this is something else.  Should shatter confidence for a few hrs once it's fixed, if it's fixed.

Wed, 10/26/2011 - 20:29 | 1814988 TruthInSunshine
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A major stock index stops trading - period - for an undetermined amount of time.

That should instill a lot of confidence in the greatest ponzi ever!


Practice run, bitchez.

Wed, 10/26/2011 - 20:44 | 1815036 chump666
chump666's picture's funny because it's true

Wed, 10/26/2011 - 22:03 | 1815396 StychoKiller
StychoKiller's picture

Whiskey Tango Foxtrot??

Wed, 10/26/2011 - 19:41 | 1814777 Quintus
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Gold is, and has always been, fully internationalized.  There is no country in the world where it cannot be traded for anything you might want or need.

Seems like the best thing you could advise these clients to do is start stacking.

Wed, 10/26/2011 - 19:42 | 1814780 YesWeKahn
YesWeKahn's picture

in china, properties don't sell anymore, trust me

Wed, 10/26/2011 - 19:43 | 1814784 chump666
chump666's picture

It's all Wenzhou going sub-prime meltdown style.  Plus the grey/black money markets imploding should take out most businesses, developments, insurance, banks etc etc etc.

Europe is old news.

Now China.

Wed, 10/26/2011 - 19:47 | 1814789 Drunken Monkey
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Their Kung Fu is good, but not good enough to save the Princess.

Wed, 10/26/2011 - 19:45 | 1814795 doug79
doug79's picture

Hi China  Hey my house in Vancouver is for sale.  Great way to diversify.

Thu, 10/27/2011 - 03:56 | 1816285 e-recep
e-recep's picture

Land is like gold. It's scarce and will never be as worthless as Citi shares.

Wed, 10/26/2011 - 19:55 | 1814849 Gordon Freeman
Gordon Freeman's picture

This is all bullshit--as if China is some American-style Ponzi scheme.  I am looking out of a downtown Beijing hotel room as I write, so I have "boots on the ground" here, too, Simon baby.

Yes, they are going through a property bubble bust.  Remember when silver was $50/oz?  Remember what happened next?  Same thing. Didthat destroy the PM market?  Uh, no.

The attitude here is: so what if some people lose money?  That's what happens when you speculate, remember?  The young people here are fucking dancing in the street about this--Simon Black is a moron.

The Chinese economy is a fucking colossus, and almost everything you read in the U.S. financial media about this place is wrong.  Let me put it this way: if you can't get rich trading with the Chinese, you really, really, really ought to find another line of work...

Wed, 10/26/2011 - 19:58 | 1814864 jcaz
jcaz's picture

Wow- you're up early then.... You're on a blog at 8am and not at work?


Wed, 10/26/2011 - 21:40 | 1815283 Gordon Freeman
Gordon Freeman's picture

Fuck you, asshole. This is work.

Wed, 10/26/2011 - 23:52 | 1815903 Freddie
Freddie's picture

LOL! GE obsolete wind power technoiogy salesman Gordon got no dinky do boy last night so he no happy man.  You funny boy Gordon.

Wed, 10/26/2011 - 20:01 | 1814876 Mark123
Mark123's picture is a dynamic place and people, but you would have said the same thing in the USA in the 1920's.  China has increased it's internal debt by about $3.5 trillion over the last couple of years to keep the party going.



Wed, 10/26/2011 - 20:11 | 1814914 chump666
chump666's picture

China is a HUGE speculative time bomb and it's ready to blowup.  The only people buying China stocks is the Chinese goverment.

We are all watching China now. 

Wed, 10/26/2011 - 20:13 | 1814924 chump666
chump666's picture

and Japan.

Wed, 10/26/2011 - 20:45 | 1815041 chump666
chump666's picture

and India

Wed, 10/26/2011 - 20:41 | 1815030 jm
jm's picture

The Chinese conomy will be fine after some indigestion, but that doesn't make it a good place for investors.  Workers, politicians and bureaucrats have capital seignority on default recovery.  Creditors have next to none.  

Stay out.

Thu, 10/27/2011 - 00:08 | 1815951 chump666
chump666's picture

and I repeat

"We are all watching China now."


Wed, 10/26/2011 - 20:12 | 1814923 trav7777
trav7777's picture

yes, that is exactly what China is...a ponzi.

Wed, 10/26/2011 - 21:17 | 1815161 peekcrackers
peekcrackers's picture

ponzi was going to be the new walmart china car for just under 3k in the U S

Wed, 10/26/2011 - 23:13 | 1815738 Moon Pie
Moon Pie's picture

A near 3 million man army vs. a corrupt banking/legal system in the U.S. and U Rope?

I'm laying China +7 (months to total destruction from commencement of hostilities).

Over/Under 888 million people killed.

Thu, 10/27/2011 - 04:19 | 1816313 malikai
malikai's picture

If that happens, you'll be part of the +/- 888 million killed, so the bet is worthless.

Wed, 10/26/2011 - 20:14 | 1814930 bahaar
bahaar's picture

Ponzi can happen anywhere in the world.  In fact ponzis happen only when economy looks upbeat.  Everyone jumps in because no one wants to be left behind.  I don't know about China, but I know property prices have sky rocketed in India.  Price of two bedroom condo in a second tier city costs 10 times the average salary.  And underground economy is booming.  Apparently in Bangalore most poor people (maid-servants, house painters etc) hand over a chunk of money (probably borrowed fromt eh bank) to apartment owners who then lets them live rent free.  Obviously the owner of the apartment lends it out ( or hands it over to a pool) at much higher interest rate, most probably to developers.  Who then buildd and sells aprtements for yet higher price.  And then the owner of the new apartment charges a higher rent and some individual borrows fromt the bank and hands it over to the aprtment owner....


so to say that Indians and Chinese are savers, that they make hefty downpayment on housing and therefore there oculd be no ponzi is not correct.


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