ZeroHedge: Turns Out China IS Lying About Everything

[johnd83]

In what may come as a shocking surprise to exactly nobody, the next great discovery as more and more layers of the global ponzi onion are exposed, is that China was, in fact, lying about everything. Yes, we know, stunning.

http://www.zerohedge.com/news/turns-out-china-lying-about-everything

China has been messing with us for years. Our government has allowed it because the elite have gotten very rich off the ponzi scheme, but it needs to stop. China has not been acting in good faith and yet we are paralyzed to do anything about it.

[leveymg]

1. FDI in China is the mother of all bubbles.

When that bursts, all others cascade down with it.

[TalkingDog]

11. What you said.

They are the lead climber and we are all strapped to it.

[Aerows]

15. Exactly.

This is a shock to no one.

[RKP5637]

2. The US has, over the years, built its own trap with China, we are about caged, and the

US will willingly even pull the trip wire if someone can make a buck. And one day historians well might be writing how the US became subjects of China without one shot fired.

[Warren Stupidity]

3. There is a quote from Lenin, falsely optimistic wrt the USSR, but relevant.

QUOTATION: They (capitalists) will furnish credits which will serve us for the support of the Communist Party in their countries and, by supplying us materials and technical equipment which we lack, will restore our military industry necessary for our future attacks against our suppliers. To put it in other words, they will work on the preparation of their own suicide.

http://en.wikipedia.org/wiki/Talk%3AUseful_idiot#Lenin.27s_.22rope.22_comment

Often misquoted as
The capitalists are so hungry for profits that they will sell us the rope to hang them with.

But then again China is not the USSR. They are more like the latest installment of the Middle Kingdom.

[RKP5637]

5. Interesting! Thanks, as always!!! n/t

[coalition_unwilling]

7. Warren, Lenin reportedly said to a member of the Soivet Politburo that capitalists would

sell the rope with which to hang them. I think it was about 1925, IIRC. I don't think it's a mis-quote.

[Warren Stupidity]

9. It is a misquote in the sense that there is no documentation for it

In his writings. He might have said the rope quote, he might not. He did write the text I quoted, which is close enough anyway.

Unlike einstein's insanity, at least it is sensible.

[xocet]

10. Einstein's insanity? Please elaborate. n/t

[Warren Stupidity]

14. The definition of insanity is doing the same thing over and over

Again and expecting different results.

On the internets Einstein said that, or Ben Franklin, or Mark Twain, only none of them said it, and it isn't even close to being a definition of insanity.

[xocet]

19. Thank you for the clarification. n/t

[johnd83]

6. I think the "US became subjects to China" is overblown

The "debt" they have are just numbers in a spreadsheet. We would just print the money and take the hit long before we became subjects to China. We as a country also have way more natural resources and better trained citizens which are far more important than cheap labor and lax environmental standards for economic prosperity.

[RKP5637]

12. Yep!!! n/t

[DCBob]

4. I have spent quite a bit of time in HK and Macau recently.

There are few signs things are beginning to slow. Of course, HK and Macau are not good indicators of China overall economic well being or not even though they are both technically part of China now.

I suspect there is going to be a crash at some point. There are many weak points in the Chinese economic model... societal, enviromental, politcal, etc. Im surprised it has lasted this long.

[johnd83]

8. You could go to NYC and think that the US economy is fine

The Chinese have been selling us finished goods for less than the cost of raw materials. That can't go on forever...

[Aerows]

16. Precisely

This is something that many do not understand. They are on the verge of collapse because of it.

[RKP5637]

13. Also, don't they keep building endless huge malls that none ever occupy, just to keep

workers busy trying to prop up the economy. That can't go on forever either one would think.

[Aerows]

17. All the ghost cities they are building

They build and build and no one lives in them.

[RKP5637]

18. I find that all so really really weird! Like WTF are they doing. Maybe they

need to build another great wall too. I hate to say it, but I think all of these economic systems we have today are going to really end up screwing us all long term, maybe even sooner.

[lapislzi]

20. Here's what I've been told by Chinese.

I'm in daily contact with Chinese factories. This time of year, until about August, is what is known as "Peak Season." I have a pretty good handle on what goes on at the factory level.

Factories are running at full capacity, or should be.

Here is what I know:

1. Production delays have improved compared to previous years. Factories are finishing goods on time, perhaps due to reduced demand.
2. Few or no complaints about labor shortages. This is unusual, especially in the Pearl River Delta free trade zone, which has chronically been short of labor.
3. No complaints about electricity outages. In prior years, we would hear about daily shutdowns due to no electricity to operate machinery.
4. Few complaints about the price of raw materials.
5. Continued warnings about the value of the RMB rising. The Chinese government is playing this very conservatively, but it's no secret that the Chinese currency is absurdly under-valued.
6. Shipping companies, which are a big fat cartel, are taking more vessels off line to keep demand and prices high. The "Peak Season Surcharge" which they love to slap us with every year, is a joke. They should just call it what it is: money for nothing.

Although it's still early in the season, I don't expect many changes to this scenario.

I'd be interested in hearing from other DUers who deal with China on a regular basis.