In May of last year I wrote a blog post titled “Don’t Worry About China.” My theory was that, based on the history of how the media spins things, China’s economic situation is probably far worse than we realize. Remember that in Russia’s hey day the media touted them as an unstoppable economic force. Same with Japan in the 80′s. It’s not until the inevitable collapse that you see it was smoke and mirrors.
And now we have China. The latest command economy to waste vast amounts of resources. Just like the Soviets built train stations in the middle of nowhere with no tracks running to them, so does China build vast cities with nobody living in them. Watch and awe:
[H.T. - The Mises Blog - Link]
China is in the midst of the largest housing bubble the world has ever seen. And when it pops, either economically or socially, it’s going to be nasty. Real, real nasty.