This page has been archived and commenting is disabled.

From Hard Landing To Train Crash, All Chinese Indicators Have Slammed On The Brakes

Tyler Durden's picture




 

As Robin might say "Riddle me this Batman": how can an country, supposedly growing its economy at over 7%, with factory output up over 9%, manage all of this superlative production while rail traffic is shrinking at almost 5.4% annually?

 

China Freight Traffic Volume - Railways:

 

 

Source: Sean Corrigan of Diapason Commodities

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Tue, 08/28/2012 - 08:52 | 2743177 SeverinSlade
SeverinSlade's picture

You mean the Riddler?  Robin is too busy giving Batman a HJ.

Tue, 08/28/2012 - 08:53 | 2743183 CPL
CPL's picture

It's time to short the fuck out of chinese shares.   Whos' got a shit list handy to look through.

 

I'm sure all of us shorting an object carried a bucnh more weight than just one of us.

 

Who wants to make some cash?

Tue, 08/28/2012 - 08:54 | 2743188 THX 1178
THX 1178's picture

WTF who is actually IN the market anymore?

Tue, 08/28/2012 - 08:57 | 2743195 GetZeeGold
GetZeeGold's picture

 

 

All in the ghost markets....we be grateful dead investors.

 

Pick a room....any room. They're all empty.

 

Tue, 08/28/2012 - 09:03 | 2743222 THX 1178
THX 1178's picture

HFTs-- the ghost(s) in the machine(s)

Tue, 08/28/2012 - 09:12 | 2743250 old naughty
old naughty's picture

Holy crap, Batman !

Tue, 08/28/2012 - 09:30 | 2743293 slewie the pi-rat
slewie the pi-rat's picture

no, that was slewie

pSinger, bGross & tylerD can kiss my fuking ASS!

Tue, 08/28/2012 - 10:26 | 2743457 Doubleguns
Doubleguns's picture

Must be all those new airports shipping everything by air freight. /S

 

http://www.forbes.com/sites/gordonchang/2012/07/22/will-china-build-82-u...

Tue, 08/28/2012 - 12:25 | 2743842 prains
prains's picture

LOTS OF DONKEYS

Tue, 08/28/2012 - 08:58 | 2743202 CPL
CPL's picture

Nobody...but with a flag this big I would be retarded to not check it out.   Don't have to trade it.  But for the sake of interest the DD has to be done.  I would kick myself otherwise for not doing anything.  I am a curious monkey.

 

http://www.4-traders.com/news/China-Signals-Imminent-Launch-of-Margin-Tr...

 

That information plus this information means China is going in for the hard ride down.

Tue, 08/28/2012 - 09:13 | 2743258 reload
reload's picture

I`m in the same boat - having a close look at Aussie Banks, China needs research also.

Regarding China - another little tell may be that Brasil felt the need to unvail a recent stimulus package. Were they not building new ships and ports to keep up with Chineeses demand for eaw materials until very recently?

I never thought the west could pull a `Japan` anyway, and no way if the BRIC nations are spent forces for now.

Tue, 08/28/2012 - 09:32 | 2743295 Oh regional Indian
Oh regional Indian's picture

And meanwhile the "I" in BRIC careens downwards on every metric.

Socio : Bad News

Political : Bad News

Fiscal : Screwed news

China has been built as a war economy, make no mistake. That much production will swing to making obscene amounts of hardware.

Beware the Bear and the Dragon. India too. China can literally and figuratively rain on our parade, any day.

ori

Tue, 08/28/2012 - 10:17 | 2743418 bahaar
bahaar's picture

India could actually do with some of that rain. 

Alas China pulled drew in all the rain (cloud seeding?) and India is parched.

Tue, 08/28/2012 - 10:57 | 2743568 financial apoca...
financial apocalyptic contagion's picture

madarchod bahaar

In which corner of India are you holed up in?

It hasn't stopped raining in Gurgaon/Delhi for the past 20 days

Oh and fuck China

Tue, 08/28/2012 - 09:32 | 2743296 agNau
agNau's picture

Might be a good idea to have tight stops.

http://tiny.cc/eh6qjw

Tue, 08/28/2012 - 09:03 | 2743221 disabledvet
disabledvet's picture

"dark pools of Soros."like a ship that never comes to port...

Tue, 08/28/2012 - 09:05 | 2743229 SeverinSlade
SeverinSlade's picture

The answer is no one which makes things all fine and dandy while the markets are going up.  But in a game of hot potato, things are only okay as long as people continue to pass it back and forth.  Once the music stops and we have a genuine panic (and believe me, we will) then the markets will implode (as evidenced by the fact that volume always surges massively during risk off periods - takes the market weeks/months to rally significantly but days/weeks to drop like a brick).

Tue, 08/28/2012 - 09:50 | 2743351 Lofty
Lofty's picture

Sshhh...Otherwise they'll unplug the Algo's.

Tue, 08/28/2012 - 09:01 | 2743215 slaughterer
slaughterer's picture

Hate to say it, but most of the best Chinese shorts (the reverse merger scams) were shorte here at Zh a long time ago.   You missed the China-scam basket Tyler put together for us a half year ago.   

Tue, 08/28/2012 - 09:09 | 2743239 CPL
CPL's picture

Those ones were the obvious ones.

 

I'm talking the LLEN's...Secondary markets like SAY...we are talking about a place on the planet that has NO resources.  All imported.  Food, autos, clothing...textiles...I know it seems odd but China has advanced enough as an economy that they can export inflation as well.

 

I'm looking for the ADR's that snuck under the radar.  The Tylers are in good standing with their picks.  But now we all have the opportunity to jack hammer a short chain unlike the world has ever seen.  My theory is a 80000% return by leap frogging from one short to another.  With the Chinese investors about to be allowed Margin...

 

HO HO HO!!!  I love the Chinese people...culturally gambling is what will crush their society...always has.  Chinese aren't known for their drinking or drug habits...but gambling.  HOHOHOHOHOHOHO...it'll be like shorting during dot.com.  One fool after another lining up to get wiped out.

Tue, 08/28/2012 - 09:18 | 2743261 laozi
laozi's picture

China: Four typical features: 1. Gambling 2. Saving (at least 50% of income) 3. Working hard 4. Hierarchical structure

They might prove to be resilient due to 2 and 3.

If not, it is not gambling that will be their fall. It is point 4.

Tue, 08/28/2012 - 09:24 | 2743277 CPL
CPL's picture

Agreed, true organisational efforts have been so poorly managed, like we are seeing here, nobody really believes anything out of China numbers wise because to be wrong as a manager there also means that you get shot.

 

I'm still of the mindset that consumer credit in financial markets will be used just as amazingly poorly as the western world.  It's one thing when people are throwing away cash they have.  The shape of the situation is one where the investor can wait it out.

 

Add in an insane interest rate on borrowed money in a market with a beta build to cause trapeze artists to faint.  That makes a different animal...it makes a reactive animal.  It also opens up the possibliity of another technology feature once margins are allowed.

 

HFT/Algo trading.  The chinese get to fire up their first legion of them.  Can't operate an Algo without bear and bull.  All in all dangerous situation.   I won't go throwing money down a hole yet, but the situation is bad enough now that this move of nearly free credit wrapped around equities markets...well, see how well it's all going here.

 

Only people left are the big bagholders...no more wiggle room, no more playing in Western spaces...

Tue, 08/28/2012 - 09:50 | 2743349 laozi
laozi's picture

Most of what you said I simply do not understand, so I have to answer: "Yes, but you should also consider the effect of the deprecating Yuan." or some other nonsens :-)

Tue, 08/28/2012 - 09:10 | 2743245 laozi
laozi's picture

Agreed. China has been dropping like a stone for many months now. Still not sure if Wen consider this a "hard landing"? They might control this still, but they do not want to cut interest rate... so it has to be investments in INFRASTRUCTURE (yes again).

Tue, 08/28/2012 - 09:28 | 2743287 BigJim
BigJim's picture

Someone explain this to me:

The Chicoms (or whatever we call them now) have Trillions in excees foreign reserves. They are also determined to keep their citizens mollified by increasing their wealth.

In the West, we did a lot of government-directed 'stimulus' even when we were already up to our eyebrows in debt.

Why won't the Chinese government do the same?

In an environment where anything like true price discovery has been eliminated, and deflation spells ruin for TPTB... isn't shorting them asking for trouble?

Banking on the PBoC not opening the money spigots to keep their own ponzi going a few more years (while they feather their nests and move more wealth offshore) strikes me as gambling.

Tue, 08/28/2012 - 09:46 | 2743340 laozi
laozi's picture

"In the West, we did a lot of government-directed 'stimulus' even when we were already up to our eyebrows in debt."

They can open the wallet, lower the interest and lower the capital ratio for the banks to ease the economy. But they do not want to, since they are actually trying to contain the housing bubble. Therefore infrastructure is all they have left to pour money into... even though they already have too much of it. More to come...

Tue, 08/28/2012 - 10:07 | 2743390 redd_green
redd_green's picture

Re  "Why won't the Chinese government do the same?",  oh, they are.    Most certainly.   Railroad projects, subway projects, all sorts of infrastructuure, constantly updating the electrical grid and power generation.  Thera are many hundreds of billions going into infrastructure, which does stimulate the economy there.

Tue, 08/28/2012 - 10:38 | 2743498 ElvisDog
ElvisDog's picture

Ask yourself, what is the obvious unintended consequence of massive stimulus? Food and energy price inflation. What is the one thing that will drive the hundreds of millions of working poor Chinese to desperation? Food and energy price inflation. That is why the Chinese government can't convert its Forex reserves into a massive stimulus program.

Another comment about infrastructure, which a lot of people assume is "good stimulus". Problem with infrastructure is once you build it, it needs constant maintenance, which costs money. Asphalt roads last about 2-3 years before they need resurfacing. Airports, railways, etc. all need constant maintenance too. So, if a country builds infrastructure beyond what that country needs it is a net negative, because there is an excess supply of that infrastructure (no real benefit) that is sucking maintenance costs out of the economy (misallocation of capital).

Tue, 08/28/2012 - 14:42 | 2744337 mkkby
mkkby's picture

They don't care about maintenance. They build vacant cities just to keep their people employed and not rioting.  They're already letting it all rot.

Tue, 08/28/2012 - 09:25 | 2743280 _ConanTheLibert...
_ConanTheLibertarian_'s picture

Have been in FXP for a while.

Tue, 08/28/2012 - 09:20 | 2743267 Jake88
Jake88's picture

This comment gets 5 thumbs up. Doesn't say much for the readership of ZH. Or maybe this article just wasn't too long for some of the readers.

Tue, 08/28/2012 - 08:53 | 2743181 LawsofPhysics
LawsofPhysics's picture

Awesome.  Simply Awesome.

Tue, 08/28/2012 - 08:53 | 2743185 CPL
CPL's picture

Yes it is.  Xmas in August.

Tue, 08/28/2012 - 08:56 | 2743196 LawsofPhysics
LawsofPhysics's picture

The lies grow bigger by the day and the paper-pushers and their political puppets more desparate.

Tue, 08/28/2012 - 09:15 | 2743260 kridkrid
kridkrid's picture

Here is one I would like to add to the list of lies... and one that should make it abuntantly clear how "unified" the two parties are...

Gov't spending is relatively flat.  Obama has increased spending LESS than any president in the past 50 years... yet debt is EXPLODING!  GDP is increasing, but gov't revenue is COLLAPSING... wha-huh-wha?

IT'S ALL A CHARADE!!!!! 

IT'S A TRAP!!!!

Tue, 08/28/2012 - 09:25 | 2743278 LawsofPhysics
LawsofPhysics's picture

There was a reason why excessive usury was punishable by death.  It eventually leads to greed, capital and resource mis-allocation and mal-investment.  There is a very cost for capital creation, but if all you are doing is creating capital to service debt, your economy is dead.  The bad debt or unproductive debt (debt that is not leading to real innovation of real goods) must be cleared from the system.  Until then the black hole that is sucking in all liquidity will continue to grow and the mal-investment and mis-allocation continues.

If history is any guide, shit will only get real when supply lines break and producers of real commodities people need to survive start defaulting on contracts to deliver.

Tue, 08/28/2012 - 09:38 | 2743312 kridkrid
kridkrid's picture

To make matters even worse... All "money" is loaned into existence with usury.  Only there isn't enough "money" in the system to pay both interest and principle.  By design the scenario is describe is baked into the system and there is no way out.  By Design.

Which is my point above.  The parties can nibble around the edges of the issue, but Obama can't outright defend his flat spending because it would ultimately expose the system for what it is.  There are only a few pieces of data that can't be manipulated... gov't revenue is one of them. 

Tue, 08/28/2012 - 10:14 | 2743405 redd_green
redd_green's picture

Not all money, but you have hit the big nail.    Money is multiplied through the fractional reserve lennding system, but it is injected into the commercial banking system.    The original dollar created from nothing is backed by a treasury bond, which we, the taxpayers, must pay interest on forever.   The multiplier, could be up to 6 or 8 or higher, is a direct result of fractional reserve lending.

Tue, 08/28/2012 - 14:56 | 2744371 mkkby
mkkby's picture

I assume you are US based (?).  Shit will get real when Europe, Japan and the UK crash and start to recover.  Then the US safe haven status will have competition.  When that happens the US will "go Greece" like every insanely over leveraged drunk must eventually.

Tue, 08/28/2012 - 09:39 | 2743320 chunkylover42
chunkylover42's picture

Using very rough numbers:

Gov't spending is flat at $3.2 trillion/year

Gov't revenues are flattish at $2.1 trillion/year

$3.2 - $2.1 = $1.1 trillion in spending that must be funded.  It is done so through the issuance of new debt.  Ergo, debt increases rapidly (exploding, as you said).

Rate of change matters significantly, but nominal levels are just as important.

Tue, 08/28/2012 - 10:25 | 2743451 kridkrid
kridkrid's picture

http://www.truthfulpolitics.com/images/u-s-federal-government-revenue-cu... - I don't think gov't revenues are flat.  They may have "flattened"... but they have declined significantly from their high water mark.

I was surprised by my down votes, until I realized that my post may have looked like a defense of Obama.  It isn't... my post is a critique of our political system that is not able to tell a basic truth because the truth exposes a greater lie... the greatest lie, in fact... that our monetary system is fraudulent. 

Tue, 08/28/2012 - 19:55 | 2745090 Lednbrass
Lednbrass's picture

There are an increasing number of deeply stupid people showing up here lately (DKos and Red State types), don't worry about it. A downvote from an idiot is not a problem as they are angered by reality, what you said is indeed the truth of the situation and the numbers can be verified.

 

Wed, 08/29/2012 - 02:08 | 2745754 Ar-Pharazôn
Ar-Pharazôn's picture

i would not be surprised if on zh we have gov sponsorised trolls

Tue, 08/28/2012 - 08:53 | 2743184 Belteshazzar
Belteshazzar's picture

I wonder how much if any of that decline in rail traffic is due to increasing private car use.

Tue, 08/28/2012 - 09:03 | 2743220 CPL
CPL's picture

http://www.nytimes.com/2012/08/28/business/global/no-quick-fix-for-chine...

 

Not much.  ALL auto makers are getting caught in china channel stuffing.  The numbers from the entire auto industry are complete drivel.  Euopean makers are especially bad with the lying.  The US doesn't need to worry about spin control on this one.  Nobody in Asia buys US brands for the obvious reason they are the expensive import.

 

Western world couldn't figure out where things are in an Asian marketplace with a hand drawn map and a compass. 

Tue, 08/28/2012 - 09:29 | 2743291 laozi
laozi's picture

So you are saying that there are no expensive cars (BMW) on the street in China? That is silly. You should go and see for yourself.

Wed, 08/29/2012 - 02:10 | 2745757 Ar-Pharazôn
Ar-Pharazôn's picture

start a reading school

Tue, 08/28/2012 - 09:22 | 2743271 Non Passaran
Non Passaran's picture

Wow what a great observation. Send your resume to the author now!

Freight traffic is dropping because people are transporting raw materials in their Gilly's, riiiight! That also explains why some of those China made cards come with traces of asbestos.

:-)

Tue, 08/28/2012 - 10:19 | 2743425 redd_green
redd_green's picture

Awesome question.   I was just there for a month in July, traveled to a few major cities.   The railroads are everywhere packed with people, and there are long lines.   There are so many people in China,  that you could give half of them cars, and ther railroads would still be very busy.    Local bus transportation is in similar shape.   We visited a town in the North of China that has gone from a handful of cars, to tens of millions of cars in about a decade.  The local busses are mostly standing room only, most of  the time around rush hours, to and from work.  They (local bus companies) definitely lost revenue, but its difficult to see since there are still so many people everywhere.  

Tue, 08/28/2012 - 11:17 | 2743632 ironsky
ironsky's picture

Or trucks on the interhive highway system?

Tue, 08/28/2012 - 08:53 | 2743186 francis_sawyer
francis_sawyer's picture

Answer to riddle: "Ancient Chinese secret"...

Tue, 08/28/2012 - 09:02 | 2743216 Manthong
Manthong's picture

“Master, I am puzzled”.

“That is the beginning of wisdom".

http://www.youtube.com/watch?v=W2yIkDVs0cA

Tue, 08/28/2012 - 09:25 | 2743281 francis_sawyer
francis_sawyer's picture

Cola nut ~ un Cola nut... Can you choose wisely?

Tue, 08/28/2012 - 09:37 | 2743309 Manthong
Tue, 08/28/2012 - 11:32 | 2743678 francis_sawyer
francis_sawyer's picture

lol ~ I don't even have to click it to know that's from Indiana Jones 3

Tue, 08/28/2012 - 08:54 | 2743189 forrestdweller
forrestdweller's picture

they all have a BMW now, and good german trucks.

they don't need trains anymore.

Tue, 08/28/2012 - 08:54 | 2743190 Wakanda
Wakanda's picture

May you live in interesting times.

Tue, 08/28/2012 - 08:55 | 2743194 Capitalist
Capitalist's picture

This is Keynesian growth which the Chinese government generates through goal seek.

Tue, 08/28/2012 - 08:56 | 2743197 KidHorn
KidHorn's picture

I don't trust any data out of China. Good or Bad.

Wed, 08/29/2012 - 02:13 | 2745761 Ar-Pharazôn
Ar-Pharazôn's picture

finally someone.... they just have to erase what they dont want to see and put other numbers.... central planning is too nice for these kind of things

Tue, 08/28/2012 - 08:58 | 2743199 Martin W
Martin W's picture

They simply load coal and iron on camels! WTF is rail?

Tue, 08/28/2012 - 09:26 | 2743283 francis_sawyer
francis_sawyer's picture

Yaks godammit... YAKS!

Tue, 08/28/2012 - 08:57 | 2743203 forwardho
forwardho's picture

Real data is what counts. this wonderful stat, along with last falls baltic dry index maps out reallity. It may not be pleasant, but the truth will open your eyes and once seen cannot be un-seen

Tue, 08/28/2012 - 08:58 | 2743204 Jlmadyson
Jlmadyson's picture

It's all coming down in front of our faces while bankers and politicians put their best desperate spin on it each and every day.

Spin however will not save us from the inevitable.

Nor will Libor manipulation this time.

Infinite QE is no trump card either. Last bullet perhaps but not silver.

Jim Rodgers: China is boomtown. Why are they easing?

Wake up Jimmy boy the WW trainwreck is here and China is front and center.

Tue, 08/28/2012 - 10:16 | 2743414 onebir
onebir's picture

Well Jim is the Commodity Man...

Tue, 08/28/2012 - 08:59 | 2743210 irie1029
irie1029's picture

Hmm that is freight not passenger... my guess is they are hitting a rough patch :)

Tue, 08/28/2012 - 09:00 | 2743213 Peter Pan
Peter Pan's picture

This is great. from just having ghost cities we will end up having ghost trains as well in China.

Tue, 08/28/2012 - 09:01 | 2743214 Cast Iron Skillet
Cast Iron Skillet's picture

cause they're using more boats?

Tue, 08/28/2012 - 09:04 | 2743223 mrktwtch2
mrktwtch2's picture

just like the old ussr ..they lie..you cant trust any numbers coming out of china..

Tue, 08/28/2012 - 09:06 | 2743231 Dr. Engali
Dr. Engali's picture

Versus the honest to goodness facts coming from the ministry of truth in the good old U.S.S. of A.

Tue, 08/28/2012 - 09:16 | 2743262 Non Passaran
Non Passaran's picture

We trust their rail stats, though!
Otherwise it'd be difficult to know they're lying, wouldn't it?

Tue, 08/28/2012 - 09:37 | 2743310 laozi
laozi's picture

From what I have heard the Chinese elite do not trust their underlings statistics either, so THEY look at the rail and energy consumption stats to see what is going on. It is all we have, take it or leave it.

Tue, 08/28/2012 - 09:04 | 2743225 slaughterer
slaughterer's picture

Batman: Easy Robin, Chinese railway replaced by BYD electric "Munger megatrucks" and high-speed monorail CA gifted to China.  

Tue, 08/28/2012 - 09:13 | 2743256 LawsofPhysics
LawsofPhysics's picture

Hey look, oil at $95.  Didn't quite get your $93 call did we?  Glad I have tight stops in the range-bound centrally planned mess of a "market".

Tue, 08/28/2012 - 09:04 | 2743226 rufusbird
rufusbird's picture

Jimmy has been talking his book so long now he can't change.

Tue, 08/28/2012 - 09:04 | 2743227 Dr. Engali
Dr. Engali's picture

The Chinese don't need  trains to ship ghost products to ghost cities. They can levitate them there.

Tue, 08/28/2012 - 09:06 | 2743230 orangedrinkandchips
orangedrinkandchips's picture

"Pretty sneaky sis"

Tue, 08/28/2012 - 09:10 | 2743244 kridkrid
kridkrid's picture

Ha!  http://youtu.be/9KsfiqAdSW0?t=20s - And the CRASH just moment after the line.  Well played.

Tue, 08/28/2012 - 09:07 | 2743234 americanspirit
americanspirit's picture

Yes but long distance ( 100+ km/day) Coolie traffic is actually way up so the train data doesn't matter. Got that straight from the PBOC website. No worries mate.

Tue, 08/28/2012 - 09:09 | 2743240 Munkey
Munkey's picture

Looks like Australia's envious economic position as Chinese collateral damage is a shoe in. Lucky we have an Obama certified "World's Greatest Treasurer" at the helm.

Tue, 08/28/2012 - 09:21 | 2743268 Yen Cross
Yen Cross's picture

  Ghost Cities, Ghost Trains, Ghost Ships!  A F..king "Paranormal Reality Show" producers " WET DREAM" !

Tue, 08/28/2012 - 09:21 | 2743269 lizzy36
lizzy36's picture

The lies close to the end will make these ones look amusing.

Enjoy the end of summer days. 

The fall will be interesting.

Tue, 08/28/2012 - 09:23 | 2743273 JimBowie1958
JimBowie1958's picture

How much of the rail decline is due to the development of more modern forms of transport like private trucks, courier, software downloads and air traffic? The same thing happened to the US in the 1960s, Though our economy was growing  rail traffic declined and used railway milage also went down dramatically.

My money is on the biggest factor being the Chicoms lying their collective asses off.

Tue, 08/28/2012 - 10:11 | 2743402 onebir
onebir's picture

Not much. They built quite a lot of railways as part of the stimulus spending, airlines have been complaining about the competition where some new routes have started:

http://en.wikipedia.org/wiki/Wuhan%E2%80%93Guangzhou_High-Speed_Railway#Reaction_from_airlines

And I think road freight is generally more expensive (trucks are less fuel efficient than trains, & the railway network is probably more heavily subsidised, being a huge monolithic employer).

Tue, 08/28/2012 - 13:56 | 2744210 JimBowie1958
JimBowie1958's picture

How much volume of freight is moved by air? That is what the charts were measuring, but I am thinking more in terms of value of the freight, so the reduction in average size of freight under consideration might also play a role.

But rail is a 19th century means of moving freight (appologies to those in the rail industry, nothing personal), and I am not thinking that a reduction in its use is necesarily a bad thing within realistic limits.

As to the advantage of trucks, so much freight involves higher costs by rail if you consider the added time it takes to take the freight to the rail station, as opposed to a trucking company picking it up on your warehouse doorstep.

Wed, 08/29/2012 - 02:22 | 2745770 Ar-Pharazôn
Ar-Pharazôn's picture

my opinion is that your half-right....

 

i work for a construction and transportation enterprise and i would say, on the subject of moving freight on trains, that it's all matter of good organization...

 

true the fact that costs a bit more cash and time BUT you take out of the roads all the freights, which where i live is not bad and you have less pollution.

 

as another guy said before, trains are far far more efficent on fuel and faster on long dinstances....

Tue, 08/28/2012 - 09:39 | 2743317 intric8
intric8's picture

Why? Because the quality of train transport in china is similar to their overpasses. Literal train wrecks waiting to happen.

Tue, 08/28/2012 - 09:43 | 2743328 TrustWho
TrustWho's picture

Don't worry, Daddy Bernanke is working on a ying yang QE program for Chinese Banks. Daddy has everything under control. He just ask happy thoughts from all the serfs.

Tue, 08/28/2012 - 09:47 | 2743344 Seasmoke
Seasmoke's picture

SEE NO TRAINS

Tue, 08/28/2012 - 09:54 | 2743360 Son of Loki
Son of Loki's picture

When Deng Xiaoping visited outide china and marvelled at the wealth and progress he exclaimed, "Money is glorious!"

 

I guess he didn't see the greed part.

Tue, 08/28/2012 - 09:57 | 2743369 magpie
magpie's picture

It doesn't matter what color a cat has, as long it catches mice.

Tue, 08/28/2012 - 10:01 | 2743378 azzhatter
azzhatter's picture

This is a true story of my time in China setting up a company. Dealing with local government officials to get a license.

Me- We would like to register our company with your district.

Chinese Official- Very good. How much revenue do you plan to generate?

Me- We plan to be at $USD12 million in 5 years

Chinese Official- It's not very big, we think you can be at $50 million

Me- No, it's too optimistic, we won't buy market share. Perhaps $18-20 million if we beat expectations

Chinese official- But China is growing very fast. We think $50 million is a good target. You have great product

Me- Well, $50 million would be outstanding but beyond our wildest expectations

Chinese Official- China always exceeds expectations, we will put you down for $50 million

Next day I read that his district just registered a new $50 million dollar company in the local paper. A big celebration is planned and surely this official will be promoted for his excellent work in attracting multiple $50 million businesses.

After 5 years of dealing with corruption and outright thievery, we reached $7 million in revenue and still losing money on bottom line

Tue, 08/28/2012 - 10:26 | 2743456 irie1029
irie1029's picture

Spot on.  

Tue, 08/28/2012 - 10:55 | 2743559 web bot
web bot's picture

Frightening...

Demographics in the long term play for China but they need to fix their corruption problem. They need to get the low and middle class to be like us... follow the rules so the elites can prosper, then they'll be ready to really be like us. /sarc.

Tue, 08/28/2012 - 10:04 | 2743384 DUNTHAT
DUNTHAT's picture

China is a Mercantile Nation whose sole objective is to provide jobs (not profits) for its population.

They have blown their wad.  They spent all their stimulus Yuan manufacturing cities and infrastructure with no occupants.

Their people can't afford to live in those cities because their wages are so low in order to maintain the exporting based economy.

Now Chinas' customers, U.S., Europe, and Japan have all hit a brick wall.

The forthcoming carnage will be truly amazing.

 

Tue, 08/28/2012 - 10:15 | 2743412 ParkAveFlasher
ParkAveFlasher's picture

Rair is decrining!  Sram on the brakes! 

Tue, 08/28/2012 - 10:45 | 2743516 bahaar
bahaar's picture

But China has used their wealth to build wonderful infrastructure and a formidable military.  That's all that matters.  They can now bribe and bully Africa and rest of Asia to buy their products.  So I doubt their hard landing will be all that hard.

Wed, 08/29/2012 - 02:26 | 2745771 Ar-Pharazôn
Ar-Pharazôn's picture

as i previously said in others articles:

 

Better for the chinese that their military vehicles and everything else is made better than the crap they export.

Tue, 08/28/2012 - 12:30 | 2743860 Zymurguy
Zymurguy's picture

I travel occasionally to a factory of ours located out in the rural countryside U.S..  Along one of the highways I take there is a long railway siding perhaps 20-30 miles long.  For the non-railway folks a siding is typically used for temporary parking of cars to let other trains pass.

Back in '08-09 this siding saw thousands of rail cars parked empty... just sitting idle, never moving, never being used.  By about 2010 they all were moved and I presumed they were being used again.

Last week I saw all those cars there again, sitting, not moving.  It made me think that we're really going right back into another big shit storm.

Can anyone provide a link or information that indicates the amount of railway usage currently in the U.S.?

Tue, 08/28/2012 - 12:43 | 2743933 OhOh
OhOh's picture

No problem it's the decrease in imported goods back to the cities from the port which is declining.

Tue, 08/28/2012 - 20:14 | 2745135 Jafo
Jafo's picture

This will be just another stat to be fudged in the next round of data releases.  Expect the numbers to be much more rosy next time even though things have not improved.

Wed, 08/29/2012 - 00:34 | 2745704 Redhotfill
Redhotfill's picture

Holy Hamburger Batman! Those chinks are building TRUCKS!

Do NOT follow this link or you will be banned from the site!