This is a must watch video from Jim Chanos on the property bubble in China. My favorite line:
“There is roughly 30 billion square feet of non-residential property under construction in China. This means that there is enough office space being built to have a 5 by 5 foot cubicle for every man, woman and child in China.”
Here is the video:
Big suprise 2012
China Bluff Exposed, Regime Overthrown- China’s communist regime continued to print money, lending it to everybody that wanted and didn’t want it. The giant housing, infrastructure, and manufacturing bubble came to a violent crash when the debts where not paid and inflation forced the authorities to tighten despite massive unemployment. The combination of high inflation and high unemployment in the urban centers took the people to the streets. The Chinese citizens refused to accept state intervention in the economy and their personal life demanding more personal and economic freedom resulting in prolonged civil unrest which almost reached a full scaled civil war. The collapse of the Chinese regime and economy resulted in a colossal bust for commodity prices, albeit temporarily and caused a severe recession in Australia, Brazil, Russia, Argentina, and the Gulf States.
http://israelfinancialexpert.blogspot.com/search/label/predictions%202010
This is the essay Mr. Chanos references:
http://web.mit.edu/krugman/www/myth.html