While everyone else is watching Europe, most of us have missed all the momentous goings-on in China – and why not? We know more about the history of the European nations, many of us have relatives or ancestors from there, and we have the sense that what happens in Europe is more important.
We do know a few economic factoids about China. Our huge out of whack balance of payments, for example, isn’t news. And from time to time, we read of China’s booming economy and the sometimes unspoken thought that China is so, so superior to us – being a command-and-control economy, their leaders can make the economy get up and dance at their whim.
The Chinese economic planners are so smart, the thinking goes. They opened up their economy even while keeping the clamps on the political situation (code for kept Communist Party in power and allowed no opposition). So that was the Best of All Possible Worlds (see previous post on Candide), right?
Wrong. Even though a few intrepid reporters have gone in and filmed ghost towns in the vast Chinese hinterland, the financial pundits have barely noticed – except for Mish and his friends and advisors. Now inReal Estate Crash in China Underway: Foreign Funding Down 80%, Land Sales Down 57%, Starts Down 27%; Expect Chinese GDP to Plunge, Mish lays it all out for you.
One final thought to keep you up at night. Are you aware of the huge male-female imbalance in China due to the One-Child policy vigorously enforced by the Communist geniuses? What is that country going to do with all the extra men the policy created???