The inaugural issue of Polestar Communication’s Market Review covered quite extensively the effects of the “Kondratieff” Long–Wave on all markets, with added emphasis on the Chinese economy. The following article provides very strong indications that our analysis was correct and that the outrageously insane fiscal commitments by the Chinese over the last 4 years, to truly insane levels of building of their infrastructure and their country-wide RE * speculation, WILL prove to be their undoing.
For those “who can see” and for those “who will listen” the coming explosion of the Chinese RE “Bubble” will be an almost exact replay of the US RE “Bubble" explosion in 2007-08. BUT since ALL overbuilding in China is sponsored by the STATE, it is the STATE that will suffer in China. Namely, rather than individuals being ruined and bankrupted as we are still experiencing (and WILL for many years to come) here in the US, in China it will be the entire State that will be effected! The very surprising result of that unique phenomena will be the shocker in the currency markets that we dealt with in great detail in our Market Review.
Therefore, as the Chinese economy implodes over the next 3 to 4 years, the end-result will be a US Chinese confrontation in the world’s currency markets – that is NOW in play.
Therefore, as the Chinese economy implodes over the next 3 to 4 years, the end-result will be a US Chinese confrontation in the world’s currency markets – that is NOW in play.
As readers of our Market Review will instantly recognize in the following article, the set-up is even NOW being set up, just as we predicted, maybe even a bit earlier than we expected.
China Sees Growing Challenges as Declining Demand Weakens Exports: Economy
Bloomberg; By Bloomberg News - Dec 7, 2011 4:13 AM ET
“China sees an increase in domestic costs and a slowdown in overseas demand putting “severe” pressure on its exports next year, a sign that policy makers may have little appetite to allow faster gains in the yuan. . . .
The yuan weakened last month by the most in more than a year, a shift that may stoke the ire of U.S. lawmakers and presidential candidates who see the Asian nation’s competitiveness as a damper on American job growth. China’s surging trade surplus since joining the World Trade Organization a decade ago has helped the country accumulate a record $3.2 trillion in foreign-exchange reserves and made it the U.S.’s largest overseas creditor.
“The room for yuan appreciation is very limited and the currency will have higher volatility,” said Dariusz Kowalczyk, a senior economist with Credit Agricole CIB in Hong Kong. “It seems China is moving to protect its exporters more aggressively, especially as the external environment deteriorates.” …”
* While the over building in the RE “Bubble” in the US was marked by empty subdivisions and some empty strip malls and some "see through" office and Condo towers in the major cities, the current RE “Bubble” in China is marked by ENTIRE EMPTY CITIES, some of which were built to accommodate 1,000,000 people!
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