"There is no rationale for a country at that level of economic development to have not just...

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Venerability Comments (3052)
 
I am sure you could have said the same about the US and its big infrastructure projects when they were months - or some cases, weeks - old.

The PermaShorts' China trashing has gone into overkill mode the past couple of weeks.

It's silly and malicious, and not in the US's best interests, as I am sure China is monitoring every word and getting angrier and angrier. Wouldn't you?
13 Jun 2011, 11:52 AM Reply Like

warrenrial Comments (536)
 
Nouriel is just reporting the truth.
13 Jun 2011, 12:09 PM Reply Like

Venerability Comments (3052)
 
No. He is talking his book, pure and simple.

For instance, the new Beijing-Shanghai high speed rail link is just getting inaugurated NOW.

Again, I can imagine Dr. Roubini and Mr. Chanos and the rest of the China Bashers - or those like them - complaining that no one would ever use a transcontinental highway system when we inaugurated ours just a little over a hald century ago.

Their counterparts were there when the transcontinental railroads - a little over a full century ago - linked far-apart population centers across a landscape almost barren of settlers and industry.

China is in the early stages, in terms of its domestically oriented activities, of an Industrial and Consumer Revolution massive in scale.

There are over four times as many Chinese citizens as American citizens.

They are moving into the bourgeoisie faster than any population in world history.

They will desperately need and want those highways and railways and airports and housing and everything that goes along with them.

China isn't pursuing anything akin to Growth for Growth's Sake.

It's pursuing Growth for Its People's Sake.
13 Jun 2011, 12:18 PM Reply Like

Duude Comments (3274)
 
This isn't surprising at all. The Chinese government isn't just paranoid about civil unrest in their country. They have a real problem brewing. Wide-spread protests throughout the country are commonplace. They just aren't covered in the press due to its reporting will only encourage more protests. But civil unrest is coming like a freight train, and its all about the increasing wealth of a minority while the majority is either displaced or taken advantage of by the ruling class. The overbuild of infrastructure is just a result of an increase in government planning so as to reduce the underemployed. They've followed the philosophy, 'if we build it they will come', which will likely be correct in the long term. Nevertheless, the only return in the near-term is more jobs for the underemployed. Greater productivity will come much later.
But all of the trash-talking on China isn't really off base. Far too many Chinese firms have been filing unsubstantiated financial results only to later sell off the assets to some other Chinese firm leaving shareholders with nothing. Certainly, not every Chinese firm is doing this. But who can know in this environment? The blame for this goes on the lack of Chinese enforcement against this sort of thing. Personally, I'm not ready to invest in any Chinese stocks till the government gets their act together.
13 Jun 2011, 12:28 PM Reply Like

warrenrial Comments (536)
 
Anything China does is is not in the best interest of its People's Sake.
13 Jun 2011, 12:33 PM Reply Like

Venerability Comments (3052)
 
Warren,

How would you like it if China - or any other country - said the exact same thing about the US?

Well - some do. And we generally consider them enemies.

Do we really want to make an enemy out of China to accommodate some very greedy - now way TOO greedy - Short sellers?
13 Jun 2011, 01:24 PM Reply Like

Rob Viglione Comments (330)
 
Keep spending at all costs! That's the mantra of modern smoke-and-mirrors economics. All current stakeholders will be well compensated and long gone before the system unwinds.
13 Jun 2011, 10:41 PM Reply Like