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China See H P I As A Disease And Threat That Needs Dealing With

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http://uk.finance.yahoo.com/news/-China-syndrome-means-country-tele-2146325823.html?x=0

'China syndrome' means country faces dangerous property bubble
Kamal Ahmed, 21:26, Saturday 29 January 2011
One of China's leading economists has said that the country is facing the possibility of a dangerous real-estate bubble and rising inflation which could put growth at risk.
Yu Yongding, senior fellow at the Chinese Academy of Social Sciences (CASS) and former member of the monetary policy committee of the People's Bank of China, said that the demand for new property was so high that prices were in danger of soaring out of control.
Speaking at the World Economic Forum in Davos, Mr Yongding said that China's authorities would have to act to calm the market and that the rate of growth would have to be lowered: "Definitely inflation is the biggest concern so far. At the same time we are concerned about a real estate bubble.
"The demand for houses is still tremendous. So there is a tug of war between the central bank and the real estate developers. If the bank loosens [the property] policy there may be a re-emergence of a real estate bubble."

They have seen what it can do to an economy and do not want it there. They have a problem though because the HPI dragon has long been set loose in that country.

If we began to see HPI as a disease to be contained and then eradicated our nation would not be anywhere near the 5TR debt it is in.

But without that much debt to feed on our bankster class woud not be enjoying such a big feasts.

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They have seen what it can do to an economy and do not want it there. They have a problem though because the HPI dragon has long been set loose in that country.

Yep, they have a problem.

But if they are today where we were in about 2003, they're in a better position to do something about it before it gets much worse. Just a thought ...

Oh, and look at how much they've got saved. They could be well-placed to play Keynes successfully (as they did briefly in 2008/9), as opposed to the corrupted corpse of Keynes Brown & Co perpetrated.

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a dangerous real-estate bubble and rising inflation which could put growth at risk.

It is targeted as growth over here.

They must be talking about actual economic growth; higher production / greater efficiency; rather than then colloquial english usage of the word 'growth'; something that is stationary becoming more expensive.

The Chinese are absolutely correct; real estate booms crush economic growth

Edited by Stars

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China has already seen manufacturing in it's "trade zones" decimated by HPI.

China had areas allocated for "economic development" where they allowed a much more capitalist approach.

Factories sprung up and jobs were created. Pretty soon a large portion of chinas shoe manufacturing industry was located there.

Then the land speculators moved in, rents went through the roof, and all the factories closed within 12 months.

It actually resulted in a short term rise in the world cost of shoes.

Now the factories are based outside of the "trade zones" and are back under more "communist" control.

The trade zones are now barren industrial wasteland.

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One of China's leading economists has said that the country is facing the possibility of a dangerous real-estate bubble and rising inflation which could put growth at risk.

Yes the Chinese are so smart doing somnething about it after prices got to 22 x earnings! (v 7-8 x here)

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Yes the Chinese are so smart doing somnething about it after prices got to 22 x earnings! (v 7-8 x here)

And even at these dangerous valuation levels, the boom mentality hasnt gone away, with couples desperate to buy anything they can possibly afford. Multigenerational mortgages are being arranged for shitty small flats with no central hearing. They worst thing is that they dont even own the property, they are all on 50/75 year leases from the government.

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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