I saw a news report yesterday about one city which could house 1.5million and had a a pop’ of only about 50,000. They were built as way for the new rich in China to park their cash in what became an enormous bubble. Hugh Hendry has said that China has progressed under a fiat system and therefore has been able to print their way into a lot more mistakes than would be possible under a gold standard where a developer only gets one chance so to speak and cant be bailed out with printed money.
If China wanted to fill those cities they could declare a jubilee and go on a PM standard.
This is actually good news for the Chinese, Think about it.
Prices of homes what chinese people need plunge. Means it’s becoming cheaper and affordable for the Chinese people who complained a year ago about high prices to buy an apartment.
Low prices plus (very imporant) when the Chinese Yuan begins to rice makes the situation even better for the Chinese government to have it’s complaining problem in control. Now people type here, “the people still don’t earn that much”, but with a rising yuan and prices going down, you don’t need to raise salaries. It’s not about how much have in your hands, you need to question what it’s worth (purchasing power).
with rice i meant RISE.
Let’s not forget either, BUBBLES are created and when they are suppose to burst, let them burst, don’t propt them up otherwise it gets worse. Don’t be affraid (This is what I have been taught in Brazil and what makes sense if you think about it)
the problem with bursting property bubbles is people dont have the money to buy back into houses that really are not serviced by public transport etc and really shouldnt have been built in the first place and a lot rot. And in the meantime asset bubbles means petrol is more expensive so living there isnt feasible. And food prices have gone up etc.
The stereotypical deserted old US haunted house is a remnant of another housing bubble in the US. It may be better to cut and run from some of these buildings than waste resources maintaining them on the expectation that people may move in at some future time but what a complete waste bubbbles create.
(Anyone seen Jimmy Chen?)
This is what happens when you build fake cities. Just like in the United States. When you build on a FAKE foundation, sooner or later the whole shitty thing comes crumbling down.
this works right up to the point they have reached in china it in fact drives it , keep riding the rollercoster and eventualy the next hill is too high and back you go, the ferther you push the worse it gets . china needs an entire population to show up get / create jobs and move in, all in one step. this is not going to happen , why move there if there are no jobs? this city is on the mongolian step that is way the hell in the middle of no where, is it not? i mean what is out there to suport such a city? any industry will need long shiping routs in and out , unless there are mines or oil or somthing out there to justify its existence, even then it is still a boom town subject to the wims of the comidity in question the creation of “bubbles ” is a ponzi scheem this is the reality we need to get our heads around and quit enabling it and start tarring and feathering the perps when they show up selling tickets to there rolercoaster. not cleaning up the mess like a hungover bar owner wondering where last nights profit went to.
This is gonna be like Mad Max, but on bicycles!
When the Western world is in ruins, China plans on recruiting the Western’s intellectuals with free housing.
Hollywood needs to get over their and film some more actions movies. Just think of the money a movie studio could save from not having to construct a building before blowing it up.
“this is not going to happen , why move there if there are no jobs?”
Well sorry for you, because it’s already happening what is not being talked about nor in the so called “advanced” nations. China isn’t an entire free society but when it comes to business, go there for yourself and you’ll see they create any business they want to survive. They create jobs and their government knows that. We in the so called advanced nations keep underestimating but also overhype China, but they will survive..they’ve done it before and it’s happening again. Do your homework.
Communist party yesmen minority get everything. Everyone else (the proletariat) gets everything taken from them and handed over to the CCCP bourgeoisie. Communism never has worked, why do people think it will ever work. Their Great Leap Forward caused millions of people to die of starvation, and historians instead call it the Great Leap Backwards. Occupy Wall Street Communism will be the Great Leap Backwards of the USA as Russia laughs at all the OWS protestors who march straight into their own doom.