China will collapse soon. It is a house of cards, too.

Discussion in 'Economy' started by Neubarth, Jan 31, 2010.

  1. Neubarth
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    Neubarth At the Ballpark July 30th

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    I have been pointing out that China is not shipping product. Supposedly they have replaced their lack of shipping with domestic consumption. That is a lie, just as much as Obama claiming that Unemployment Insurance claims are falling month after month. The whole damn world has learned to lie about the economy. The Sheeple are expected to believe this. Hopefully there are a few people who can see what is going on.
     
  2. uscitizen
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    uscitizen Senior Member

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    OMG! What will we buy?
     
  3. Big Fitz
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    Okay, not that I don't want to consider this accurate intel, but something's not meshing here. They're not shipping and it's essentially what? Sitting in warehouses, or are they not producing either. Please, I really am curious, where are you getting this intel so I can check it out too?
     
  4. uscitizen
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    uscitizen Senior Member

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    China is following the US model.

    And there is more demand for MBA degrees than tech ones.

    Yep they are likely doomed.
     
  5. Neubarth
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    Neubarth At the Ballpark July 30th

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    To confirm the "not shipping," there are ways of checking short of going to each and every harbor and looking up the shipping coming in from China. Look up the DRYS stock listing or the Baltic Dry Index. Though what the indexes show is the cost of shipping it stands to reason that if there are lots of ships standing idle, the cost of shipping will go down. We have seen that effect for years and know that when the indexes are down, the global shipping is down, too.
     
  6. Douger
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    So are many other counties...ensuring their demise.
     
  7. Big Fitz
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    Interesting stuff Neubarth. I trust China to lie about their economic situation like I trust the sun to set.

    Then if basically products are being made and not shipped, just stored because they aren't being consumed domestically this is like a pressure cooker run dry and left on the stove. Damage is coming. Possibly worse. Wouldn't it be interesting if China suffered catastrophic failure before we did?

    Scary to consider.
     
  8. Douger
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    Yep. I was watchinf Faux "news" and they did a big stor.......NOT

    Revealed: The ghost fleet of the recession anchored just east of Singapore | Mail Online
     
  9. Neubarth
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    Neubarth At the Ballpark July 30th

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    China's gradual switch to a capitalist system has resulted in new concepts in Bank lending. That Bank lending has managed to get totally out of control.

    China's bank lending has created outrageous speculative inventory demand for commodities, Chinese banks lend for commodity purchases, allowing the underlying commodities to be used as collateral. These loans are structured like mortgages, and just like American mortgages, the base, in this case a commodity, is capable of going down rapidly in price. In fact, the Chinese are responsible for bidding the price up in the first place.

    The international news media has been following reports of record high commodity imports by China. That was confirmed by increases in the Baltic Dry Index and DRYS during a period of heavy purchases funded by Chinese banks.

    The purchase surge is being falsely ballyhooed as proving China's strongly recovering economy.

    Also, falsely, the international financial market is portraying China's perceived recovery as a proof of a global recovery. Quite frankly it is a major reason for rising stock prices around the world. If we say the Global Economy is improving loudly enough and often enough and boldly enough, people will believe it. They will purchase foreign stocks and that purchase will drive the stock markets up and that will be used as proof of a global recovery and thus people will be reassured that their money is safely invested. Look at global shipping to see the truth.

    China now has tremendous stockpiles of raw copper oar and copper ingots as well as iron oar and steel and copper sheets that they are trying to pawn off on the world market at outrageously low prices. Why so low? Simple the world can not buy as much as China is now producing and stocks are building up everywhere.

    That speculation on all of the imported commodities to China is going to collapse the Chinese banks.

    The banks have been lending freely to fuel a real estate bubble in China. That, too will fall as soon as a hitch hits the Chinese economy. That could happen any day now, perhaps as soon as Monday......
     
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  10. uscitizen
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    And US investors have been investing big time in China....
     

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