It's a Fake World

[FluffyMcDeath]

There is a lot of money in blowing smoke.

Fake singing.

Fake economic boom.

 

[metalman]

China’s ghost cities epitomize the problem with printing money Paul Krugman-style

 

[FluffyMcDeath]

China’s ghost cities epitomize the problem with printing money Paul Krugman-style

The weird thing is that if the government spent the money it was getting to build infrastructure and then put people in it then it wouldn't be unproductive construction - it would actually be improving the quality of life of the people. Instead, bizarrely, they are building "investments" which are completely unproductive because the people who are investing have too much money to spend and the people who should be buying from the investors don't have any money because the investors have it and don't want to pay the workers enough to buy the homes.

Perhaps it's part of the governments plan to level out the investors. After the investors plough their money into homes that nobody but they can buy, when it all collapses then the investors will be as poor as the general population. Then the general population will be able to move into housing the investors helped fund but got killed by.

 

[metalman]

Its all to meet the GDP growth goal's of China's central planned economy

Central planned economies are always focused on a 5 year plan, and will always fudge the books to meet goals

example: Mao's Great Leap forward! having peasants build backyard blast furnaces

"Huge efforts on the part of peasants and other workers were made to produce steel out of scrap metal. To fuel the furnaces the local environment was denuded of trees and wood taken from the doors and furniture of peasants' houses. Pots, pans, and other metal artifacts were requisitioned to supply the "scrap" for the furnaces so that the wildly optimistic production targets could be met. Many of the male agricultural workers were diverted from the harvest to help the iron production as were the workers at many factories, schools and even hospitals. Although the output consisted of low quality lumps of pig iron which was of negligible economic worth"

 

[FluffyMcDeath]

fake, fake, fake

 

[metalman]

fake, fake, fake

Who knew Hannah Montana was really a stripper ?!?

 

[metalman]

China Property Collapse Has Begun

 

[metalman]

The loan default by Kaisa Group Holdings Ltd., after the second surprise exit of a Chinese property tycoon in six months, is prompting investors to ask who’s next.

 

[metalman]