Has China Crashed?

Posted: December 15, 2011 by chad98036 in Uncategorized

For years we have been told that China, like the rest of the world, was in the middle of an unsustainable credit bubble.  According to the Telegraph that bubble is popping this week:

(S)omething is wrong when the country’s Homelink property website can report that new home prices in Beijing fell 35pc in November from the month before. If this is remotely true, the calibrated soft-landing intended by Chinese authorities has gone badly wrong and risks spinning out of control.

The growth of the M2 money supply slumped to 12.7pc in November, the lowest in 10 years. New lending fell 5pc on a month-to-month basis. The central bank has begun to reverse its tightening policy as inflation subsides, cutting the reserve requirement for lenders for the first time since 2008 to ease liquidity strains.

The question is whether the People’s Bank can do any better than the US Federal Reserve or Bank of Japan at deflating a credit bubble.

In the words of Leslie Chow:

Comments
  1. […] Has China Crashed? (doubleplusundead.com) […]

  2. alexthechick says:

    I’m actually afraid of what’s going on in China right now, what with the credit crash and the uprising in that one city, well, it’s not going to be good over there.

    • veeshir says:

      I’m kind of worried for Vietnam (how funny is that?), Philippines, SoKo, Japan and even India with the Chi-coms making noises in the South China Sea and sending out their aircraft carrier.
      China needs a “short” war to get the people united. And we all know how “short” wars work out. The 100 Years War was supposed to be a short war.

      Although….. Tsar Putin I could use a war too.
      Maybe they’ll fight over the Vladivostok area. That would be horrible but funny.
      Making that the likeliest hot-stop to get hotter.
      And how funny would it be for Obama to tell them both to cool it? That would be the only time his favorite response to any conflict would be apropos.
      Funny and endy.

      Just wondering, if China goes after our allies and we go to war with China, can we tell them we don’t owe them money anymore?
      That would make a major war actually monetarily profitable.
      We would actually make money the second we declare war on the most populous and dangerous country (besides ourselves) in the world.

      That’s horribly funny too.

      • alexthechick says:

        I’m on record saying that I think China is going to make a play for Siberia and Tsar Putin will then nuke them. At which point I say we say yeah that money we owe you? Not so much!

  3. Mitchell says:

    China also has a LOT of young men and increasingly fewer women for them to marry. Killing off some of that potentially troublesome population in a war has significant upside too. 2012 is teeing up to be a spectacularly unpleasant year.

    • veeshir says:

      I’ve been saying that too and that they were going to invade Russia. Russia’s population is getting older and drunker.

      But they really seem to be looking at the South China Sea and all the resources (like oil).

      But I just don’t think they think they’re ready to take our navy on. One aircraft carrier group and a couple extra nukular subs should be able to pretty much wipe out their navy.

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