Tuesday, July 5, 2011

Chinese Construction Charts and the Coming Chinese Crash

The following charts show China's construction relative to other countries. There is no hard and fast rule that a trend in one country will necessarily mimic a trend in another. China has a fast growing economy and there appears to be a strong ethic to save amongst the Chinese people, which is a solid foundation for construction growth. That said, the Chinese central bank has been pumping major quantities of money into the system, something it has only slowed in recent months. This slowdown in money printing is surely to have a negative impact on the construction sector of the Chinese economy, as the prior money printing has most assuredly resulted in at least part of the growth in the construction sector coming from a manipulated pseudo advance. With this money printing now slowing, a crash in the sector is sure to come. It will impact the entire economy and also result in a crash of the Chinese stock markets.



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  2. Though I agree with you on China, it seems your friend Stefan Karlsson believes otherwise.. Frankly he sounds a bit Keynesian and according to his logic, since the US had good fundamentals, it should not have had its Great Depression as well. I wonder what you think about his analysis.

  3. China is one the finest country which has best construction companies are available, also they has great professional in building and construction industry.
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