China Turns Over

Karl FitzgeraldMultimediaLeave a Comment

Renegade Economists Show 405

As broadcast on the 3CR airwaves 5.30 – 6pm Wednesdays.
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Show Notes
Karl reveals his lead indicator of looming economic calamity as we step through why China has exploded so spectacularly this week. Jim Chanos lends his insights on why he bet so heavily against the Chinese economic miracle. Thanks Unsplash for the pic

China Turns Over by Renegade Economists on Mixcloud

Related Links
** Pls read – China’s Economic Fundamentals Exposed
Jim Chanos on Charlie Rose – watch the full interview, excellent!
From the Subprime to the Terrigenous – must read report on how land turnover pre-dates credit crunch.
China’s developers growing bankruptcy
Further pressure on Chinese developers
Ambrose Evans Pritchard and China’s trillion dollar reserves not so grand
Jim Chanos – The Man Who Got China Right. Wish I had of quoted on air:

“I’ll never forget the day in 2009 when my real estate guy was giving me a presentation and he said that China had 5.6 billion square meters of real estate under development, half residential and half commercial,” Chanos told me the other day.

“I said, ‘You must mean 5.6 billion square feet.’ ”

The man replied that he hadn’t misspoken; it really was 5.6 billion square meters, which amounted to over 60 billion square feet.

For Chanos, that is when the light bulb went on. The fast-growing Chinese economy was being sustained not just by its export prowess, but by a property bubble propelled by mountains of debt, and encouraged by the government as part of an infrastructure spending strategy designed to keep the economy humming. (According to the McKinsey Global Institute, China’s debt load today is an unfathomable $28 trillion.)

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