China=Enron?

eagleseven · 2009-11-11T18:33:19+00:00

Is China headed toward collapse? - Eamon Javers - POLITICO.com The Chinese, with their unbridled capitalistic expansion propelled by a system they still refer to as “socialism with Chinese characteristics,” are still thriving, though, with annual gross domestic product growth of 8.9 percent in the third quarter and a domestic consumer market just starting to flex its enormous muscles. That’s prompted some cheerleading from U.S. officials, who want to see those Chinese consumers begin to pick up the slack in the global economy — a theme President Barack Obama and his delegation are certain to bring up during next week’s visit to China. “Purchases of U.S. consumers cannot be as dominant a driver of growth as they have been in the past,” Treasury Secretary Timothy Geithner said during a trip to Beijing this spring. “In China, ... growth that is sustainable will require a very substantial shift from external to domestic demand, from an investment and export-intensive growth to growth led by consumption.” That’s one vision of the future. But there’s a growing group of market professionals who see a different picture altogether. These self-styled China bears take the less popular view: that the much-vaunted Chinese economic miracle is nothing but a paper dragon. In fact, they argue that the Chinese have dangerously overheated their economy, building malls, luxury stores and infrastructure for which there is almost no demand, and that the entire system is teetering toward collapse. A Chinese collapse, of course, would have profound effects on the United States, limiting China’s ability to buy U.S. debt and provoking unknown political changes inside the Chinese regime. The China bears could be dismissed as a bunch of cranks and grumps except for one member of the group: hedge fund investor Jim Chanos. Interesting proposition, and worrisome. I cannot say I would be surprised if the Chinese government was cooking its books, as it is responsible only to itself. Who would risk re-education to challenge Chinese government officials?

Thread starter eagleseven
Start date Nov 11, 2009

Abishai100

VIP Member

Oct 23, 2014

Dragon Age

America has been talking about abolishing the Federal Reserve. The liberation of Hong Kong has opened up new avenues for free market negotiations between USA and China.

We know that the Enron insider-trading fiasco revealed the modern age intrigue surrounding finance privatization and asset networking.

In many ways, Enron heralded in the modern era which could be considered a Dragon Age, a time when ambiguity itself creates intrigue for ambitious venture capitalist speculators.

In such an age, socialist states such as China engaged in the new global market represent networking intrigue and finance foresight. We shouldn't necessarily equate China with Enron, however, street-talk these days favors a trumpeting of 'dollar knighthood.'