Monday, March 04, 2013

China's Property Bubble – Why Is '60 Minutes' Telling the Tale?

By Staff Report

  http://www.thedailybell.com/28782/Chinas-Property-Bubble--Why-Is-60-Minutes-Telling-the-Tale

 

This '60 Minutes' Video Of China's Ghost Cities Is More Surreal Than Anything We've Ever Seen We have written about China's ghost towns — neighborhoods with massive new buildings not inhabited by any people. Many see this as the clear evidence of overbuilding and a housing bubble. – Business Insider
Dominant Social Theme: China is a monster. The sky is the limit.
Free-Market Analysis: For a few years now, perhaps three, we covered the potential implosion of the Chinese economy.
When we began writing about it, we were one of the first alternative media papers to be pointing out that China was in a great bubble. We got feedback flack. It was explained to us – somewhat patronizingly – that China couldn't be in a bubble because foreigners had funded China's economy in various development districts.
But it looked a bubble to us.
And then came news about China's ghost cities. We weren't the very first to report on them, but we were among the first, and we were not surprised.
That's how it works here at The Daily Bell. We follow elite memes and test the reality that surrounds them. In this case the meme was "China – an economic powerhouse ... Won't fail. Can't stop."
We reduced our commentary for a while because we'd covered the story and there wasn't a lot more to report. But we'd written numerous stories, and you can find them if you look. This 60 Minutes article is the proverbial "big deal" as US vice-president Joe Biden might say.
There is not a lot of interpretation necessary. Money Power grows restive. The top elites are worried, or seem to be. Perhaps they've pushed too far, too fast in their apparent quest for world government.
From our point of view, the world's current situation is a kind of directed history. Central banking money flows run economies. By tightening or loosening the spigot, central bank controllers can expand or contract economies. And both in Europe and the US, economies have contracted.
But perhaps Western Money Power doesn't have the same control in China. China has a Western system but ultimately the ChiComs are the ones that run it. And maybe they have run it into the ground.
Either it was planned or it was not. Or a combination of both. But we wrote that when the property bubble burst, if it did burst (as all bubbles must) then the Chinese Communist Party itself would be in trouble.
So listen to this video snippet, excerpted above: the part where one of the largest builders of homes in China (and thus the world) is interviewed. He seems paralyzed by fear, and says a housing bust would be a disaster. He even predicts regime change ... just as we forecast years ago.
This is the ChiComs third strike. Maybe they can survive it, maybe not.
We hope for the sake of the Chinese people that the proverbial "soft landing" can take place. Because in the past we've also pointed out something else. In fact, we use the hoary cliché of baseball:
Strike one ... the US economy goes down.
Strike two ... Europe swings and misses.
Strike three ... China whiffs.
The world's economy will suffer a great blow if the Chinese economy seizes up. That 60 Minutes is covering the possibility and even seeming to forecast it is not a good sign.
60 Minutes sets trends. It is a Money Power mouthpiece. Something is going on.
Where it leads, well ... we've already made our predictions.
Conclusion: Take care.
(Video from CBSNewsOnline's YouTube user channel.)