Waves of civil unrest and protest are growing in China today, as in so many other parts of the world. Apparently Chinese people too are fed up with corruption and theft by some elites at the expense of the masses. The BBC has been doing some good reporting on recent uprisings.
In the below CNBC interview, Gordon Chang, Author of “The Coming Collapse of China” talks about why he is skeptical about China’s growth and says its rising export numbers do not make sense. Here is the direct link. The Chinese downturn story is likely to be another negative catalyst for still over-priced stock markets moving into 2012.
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Hi Danielle,
I have read your book with great interest (I totally agree with your perspective) and regularly consult your blog. As you indicate, even mighty China is likely to undergo a slowdown, althoughI hesitate to call it a collapse. It is too early in its economic development to undergo a collapse in my opinion. What I am surprised about is that nowhere do you or your team address the largest risk of all: the collapse of the US. At $15 trillion and counting of government debt and about four times as much in unfunded liabilities, the US is essentially insolvent. The only solution the Federal Reserve has is to monetise the debt, ie. print money. This game cannot go on and it will likely hit in 2012 (with a dysfunctional government with no serious intention of reducing the deficit), when investors realise the emperor has no clothes. This is far more dangerous than the Euro crisis, which will, I think, in a chaotic way gradually get solved through fiscal integration. The US dollar could collapse swiftly, up to 30% according to a think tank for which I have great respect: LEAP 2020. This is the real danger that your readers need to be made aware of.
Hope this helps
Regards
R. Millette