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Educated Opinion

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there is a "small" financial crisis going on in a small town in China right now,

it is not reported in the main stream media,

this "small" problem can have the potential of the straw that breaks the camel's back.

we'll see... stay tuned.

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there is a "small" financial crisis going on in a small town in China right now,

it is not reported in the main stream media,

this "small" problem can have the potential of the straw that breaks the camel's back.

we'll see... stay tuned.

The suspense is killing me Tams, can you let me know so i can ask my contacts to ask their contacts to ask their people?

 

XS

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Even if the eurozone is able to get through this phase of their fiscal crisis, it may be "out of the frying pan and into the fire" for the world economy. There are problems with a growing asset bubble in China. The increased money supply that comes with money being moved into a hot economy has fueled a lot of poor quality investments and speculation (the money had to go somewhere).

 

Attached is an interesting article about lending practices that have cropped up due to the recent credit tightening imposed by the government. I can't claim to understand the full impact of what it all means, but it doesn't sound good.

 

Private Lending Frenzy Triggers Financial Crisis in China's Entrepreneurial Hub | China News | Epoch Times

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what shall we call it?

financial crisis ?

excessive debt and imbalances ?

banking emergency ?

currency catastrophe ?

deeper double dip recession ?

post crack up boom * ?

worldwide depression ?

 

How ‘bout

total systemic collapse?

 

Are you ready?

 

References: ie light reading ;)

 

TraderView - Alternative Investment Specialists || Managed Futures :: Forex :: Advisor Rankings

* ’07 Fingers of Instability series good starting place …

(btw, it appears Ty was not ready... but ??? )

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I read something like this a few of days ago.

 

Cloud over city as elite flee debt - The Standard

 

And this is just one town out of the thousands there.

 

 

From that article, and what little exposure I've had to things that go on in China, I get the impression that there is a subculture of a "Gold Rush", "Lawless", "Wild West" mentality of many people in China trying to get rich through manufacturing cheap goods, and all sorts of business ventures. The article speaks of people who borrowed large at huge interest rates, and then of people committing suicide and leaving town quickly. The implication is, that the normal failure rates that apply to any new venture are starting to "kick in", and business ventures are collapsing in China.

 

Interestingly, it probably never crossed my mind that business failures would affect China. With all the hype about China's GDP, and growth and success, I just blindly thought of China as an incredible success story without giving it a second thought.

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Lack of freedom of expression, censorship coupled with being a proud nation, I try to be optimistic and believe the success but ... well who really really knows what goes on in the background.

 

not really an educated opinion but I think its healthy to look at a different angle

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Lets not forget that China is a huge country. This is demographics in motion on steriods.

 

One small thing here can snowball quickly.

 

China's existing and developing middle class will be the consumer that will bring the world out of recession. We should be working with this country, not against them.

 

XS

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Lack of freedom of expression, censorship coupled with being a proud nation, I try to be optimistic and believe the success but ... well who really really knows what goes on in the background.

 

not really an educated opinion but I think its healthy to look at a different angle

 

There is plenty of freedom of expression here mate, yeah some censorship and that's a pain sometimes...but how else do you suggest to keep 1,300,000,000+ people in line?

 

XS

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