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China in a Bubble?

Really, this is an important topic but this article is just plain wrong on almost all counts. Common sense will point you to the facts that China will have a stable supply limited commodity market. This has the support of a government liquid with trillions of U.S. treasury bonds. Peasants stock piling enough copper to disrupt markets? What are you smoking anyway :) China's internal demand is outstripping their capacity for supply in almost every sector. That's why they are being so aggressive to strike partnerships with Brazil, Africa, anywhere else that is strategic. And major projects such as their nationwide high speed rail system (costing $800 Billion dollars) will have the commodity supply side pegged for a decade. This will consume several years of all the steel produced in the world! Read the Financial times series on this. Yes, this is government stimulus, but they have the money, no debt, and when all is said and done China will have built an infrastructure that will fuel growth for coming decades. Real Estate is another matter. The government puts up with speculation and insider profits in order to have an engine for their urbanization policies. But a bubble? on what terms are you basing this on? Real estate ownership is possible for the lowest wage earner and there are aggressive policies from renters on up. The major objective is to move people from the country to urban areas where they can contribute to the economy. This strategy is working very well for China, this heavily supported policy is not a bubble and will not, as a whole, produce the across the board market failure experienced in the rest of the world.