Yichun is a poor city in a poor province. Income of Yichun residents was little more than half the national average last year. That hasn’t stopped the government from going on a spending spree. The new local police headquarters has a miniature dome reminiscent of that on the Vatican’s St. Peter’s Basilica…
“I miss Chairman Mao,” says Wang, sitting on a red plastic chair in front of a billboard for newly built Pinaster Town, featuring a picture of a woman in high heels stepping out of a Rolls Royce. “The common people cannot afford these houses.”
This is all very good press coverage of a potential crisis. Keep an eye on this story.
That ''unbylined'' Bloomberg story was written by Henry Sanderson and me, Michael Forsythe, in Beijing. You can verify that with a quick Web search. Thanks for the kudos. If you can update post with our names would be most appreciated. That story took months to put together.
#1 Posted by Michael Forsythe, CJR on Tue 11 Oct 2011 at 07:13 PM
Look, this is bang on. 20 odd years of growth rates of 8% + p.a has created a huge house of cards that is about to collapse. China has enormouse problems - and because of everyones obsession with US / Europe - aren't paying proper attention to this out of control beast. The collapse of China will set off a massive global downturn.... take cover now. You have been told.
#2 Posted by ricardo, CJR on Tue 11 Oct 2011 at 09:51 PM
Screw the finances.
If China craps out.
What are the political implications? The military consequences?
What will China do to keep its Gravy Train rolling?
What won't it do?
#3 Posted by padikiller, CJR on Tue 11 Oct 2011 at 11:26 PM
"soft landing"
#4 Posted by Edward Ericson Jr., CJR on Wed 12 Oct 2011 at 04:03 PM
Sounds like they are going to need a federal stimulus. Oh wait. That's all they have had. Nevermind.
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#6 Posted by Chanel Bags, CJR on Fri 15 Jun 2012 at 10:12 PM