Wednesday, November 23, 2011

OMG, Investors Think the Chinese Government is Going to Save Them in China

Billionaire short-seller Jim Chanos discuses China with Bloomberg's with Betty Liu. He reports that investors making investments in China think the government will protect their investments from collapse.

Good luck with that.

The Chinese government is in a huge bind. In order to keep the manipulated economy propped up, they need to print even more money than they are now. This will result in even greater price inflation than the Chinese are already experiencing. China is a mess.

Chanos outlines in this interview the problems with the Chinese banks. As bearish as Chanos is, I am even more bearish, somewhere between 25% and 50% of Chinese GDP "growth" is phony centrally planned "growth" that has no real value. There are empty train stations and airports all over China. Even Vice-President Joe Biden recently pointed out there are between 30 million and 50 million vacant apartments in China.

When it becomes obvious that a good part of China is a centrally planned mess, the crash that is going to occur will be of epic proportions.

Here's Chanos on China.

1 comment:

  1. Yes they do a lot wrong, but individually they are big time savers and producers and can "afford" a collapse. Yes, they need to stop government spending that is stripping away their living standard, allow their currency to rise and allow consumers to consume what they produce.