China's Effort To Rein In Property Bubble Has Rents Soaring And "Rental Loans"

When you force 900 million people into cities, you can expect problems. All kinds of them. And China has them.

Resultant Problems

  1. Property bubbles
  2. Massive air pollution
  3. Massive water pollution
  4. Exploding rents
  5. Insolvent banks
  6. Corrupt State-Owned-Enterprises (SOEs)

When bubbles expand, all of those things add to GDP. When the bubbles finally break, and cleanup costs and insolvencies soar, GDP goes into the gutter.

This is another reason all these people thinking China will soon overtake the US as an economic power do not know what they are talking about.

Every few months we see such claims. Here are a few rebuttals.

  1. China's Alleged "Victory Plan" Over the US Dollar
  2. Petroyuan's Crash at Birth
  3. Forget the Yuan: King Dollar is Here to Stay

Yes, the US has a lot of problems, but China's problems are far worse.

China is not remotely prepared to be the global economic leader.

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