Think Again on China: It's Really a Debt-Burdened Builder of Bridges to Nowhere

2010-10-19T15:22:00.000Z

China's economy may be the ultimate grey swan, according to investor Vitaliy Katsenelson.

Katsenelson is concerned China's enormous growth rates haven't been built on anything real, but rather a command economy ready to collapse.

That command economy has created cities and malls with no residents, based on a demand it manufactured itself. His thoughts dovetail nicely with the thinking of that other well-known China bear: Jim Chanos.

It's a powerful presentation, that also spells out the result of a Chinese collapse for the broader world economy. including a collapse in commodity markets.

Think Again On China: It's Really A Debt-Burdened Builder Of Bridges To Nowhere

The world is hooked on credit.

China is going to get hit by weaker customers in Europe and the U.S.

Not enough demand for cement...

And not enough demand for Chinese steel...

Growth may be high, but...

Starbucks dealt with this problem of over expansion...

But China has yet to...

Evidence of those decisions...

Ghost town...

Absolutely empty...

On every street.

In every tower.

How is China still growing, while the world slowed?

But the Chinese government is lying.

Evidence of those lies...

China takes it up a notch.

But China has to do whatever it takes to grow.

And the massive stimulus was no surprise.

China grows, the world slows.

But how real is this?

Property prices still surging.

And affordability is awful.

Massive quantities of empty homes.

Property investment a huge part of the economy.

The problems of the command economy.

Beware, what is once true is not always true.

The fearful what if.

Don't think China is superior.

Is the Chinese consumer ready?

But there are serious problems.

Migration a big concern.

Population not properly counted.

Debt actually pretty big in China

And what if China busts?

Still a China bull?

Check out 10 Chinese companies set to dominate the world by 2020 >

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