Thursday, July 21, 2011

IMF Warns on Chinese Real Estate Bubble

 Prices in some larger cities still look "bubbly," Nigel Chalk, IMF mission chief to China, told reporters while discussing the IMF's annual report on the Chinese economy. That's an understatement and it goes way beyond the real estate sector. Price inflation is very high in China, which is causing the Chinese central bank to slow money growth, which will cause a classic Austrian Business Cycle theory crash in the country.


  1. The IMF also warned about the Swedish housing bubble, anyone know what's going on over there?

  2. I read in the WSJ Asia the other day about pig prices sky rocketing in China. The president or someone really high up stated that much of the inflation was CAUSED by pig prices going up. So in order to curb inflation - and pig prices, the government will now subsidize pig farmers with 100 Yuan/pig in order for the overall number of pigs to increase. By doing that the hope is that the prices will go down and also the inflation.

    China really has some severe problems.