China debt out of control, crisis could be worse than U.S. housing market crash

 

 China's local government debt "out of control": says Auditor : The spectre of massive local government debt threatens to haunt China, with a senior Chinese auditor warning that the debt is "out of control" and could spark a bigger financial crisis than the US housing market crash. The IMF rating agencies and investment banks have also raised concerns over Chinese government debt. 

 

"But it is rare for a figure as established in the Chinese financial industry as Zhang to issue such a stark warning", the report said. "It is already out of control. A crisis is possible. But since the debt is being rolled over and is long-term, the timing of its explosion is uncertain," he said. Last week, Fitch cut China's sovereign credit rating, in the first such move by an international agency since 1999. On Tuesday, Moody's cut its outlook for China's rating from positive to stable.

This was reported and denied over a year ago when Chinese TV Host Says Regime Nearly Bankrupt

China’s economy has a reputation for being strong and prosperous, but according to a well-known Chinese television personality the country’s Gross Domestic Product is going in reverse.Larry Lang, chair professor of Finance at the Chinese University of Hong Kong, said in a lecture that he didn’t think was being recorded that the Chinese regime is in a serious economic crisis—on the brink of bankruptcy. In his memorable formulation: every province in China is Greece.

The restrictions Lang placed on the Oct. 22 speech in Shenyang City, in northern China’s Liaoning Province, included no audio or video recording, and no media. He can be heard saying that people should not post his speech online, or “everyone will look bad,” in the audio that is now on Youtube.

I never thought about all that but it all makes sense. Anyway it is like North Korea the regime doesn't give a damn as long as the military prospers and is fat and happy as it is. The rest is a facade like the US. Only difference is in a so called Democracy we must divulge some of it to keep up our facade of a Democracy.

Factbox: Pentagon details China's military expansion :The Pentagon said that China was on track to forge a modern military by 2020, a rapid buildup that could be potentially destabilizing to the Asia-Pacific region. Its annual assessment to Congress on China flagged all the major concerns over its growing military might, including Beijing's widening edge over Taiwan.

It also noted cyber attacks in 2010 -- including on U.S. government computers -- that appear to have originated in China. Here are details from the report:

The Chinese are working on a stealth aircraft said to be years away but looked pretty advanced to me, building a base in the middle east and in the Gulf of Aden, and building their first Aircraft carrier as they unveiled a retrofitted Soviet carrier and announced a missile designed to sink aircraft carriers, they are also instigating around Asia with their Navy. They will get worse as we get closer to the way of the Roman Empire.

Cooperation between China Russia and the US is critical not just Russia but China too! Obama was right to say our ties will shape the future of the 21st century. The US and China are eying each other and moving very cautiously as they try to strike a balance. A few years back I began to view our relationship with China as the most important in the world.

Not because we drove each others economy but because if at the time with Bush's instigation to war with Russia China due to the fact of how our 2 economies are so intertwined that if something happened China would side with us not Russia. I never imagined that today problems between China and Japan let alone Vietnam would be the issue.

As we discussed there have been at least three cases of groups of Chinese military ships crossing through the area of Okinawa since November 2008, first 4 ships then 6 then 8 and now 10 including destroyers and submarines. That case appeared to be the first involving surfaced submarines. The group of 10 ships, including the submarines, was observed about 90 miles (140 kilometers) southwest of Okinawa in international waters.

Two missile destroyers and three frigate ships from the same group were spotted participating in a flight exercise of carrier-based helicopters April 7-9, the Defense Ministry's Joint Staff Office said in a statement The war ships were in international waters but close to Okinawa and Japan was not notified. That area as you may know has natural resources under the ocean and islands claimed by both Nations.

It is important that we stay in Okinawa as China plays a more important role in Asia and around the world as she gains strength militarily and economically as we just discussed. Remember our discussion on the importance of China and the US staying together to move successfully through the 21st century

We must maintain as much of the old world balance and order as we can to maintain a balance as we try to move progressively and successfully through the 21st century! I know of China and Japan's past, I know of the still ongoing Island disputes, the disagreement over natural gas in another area of the East China Sea, I also remember that with China's economic clout rising she took the number 3 seat on the world bank and we talk constantly that China is taking the leading role in Asia and Asia relations.

Being in a superior position puts one in a unique position of power and that power must be handled gracefully, with humility, responsibly, and not abused. That is something I taught all my sons and America under Bush did a lousy job of handling.

 

 I am a little worried that China too is getting a little too heavy handed and abusive with her new position of power and beginning to take what she wants instead of being content with what she has which is what I constantly lecture has to be the case if we are to have a future. The time when man and the planet could handle war and colonialism is over, period or else!

We are Taiwan's, Vietnam's, Australia,  and Japan's protectors. As China flex's their military muscles in the area we are not supposed to worry. Just what are we supposed to think they are going to do with their advanced weaponry, missiles, stealth aircraft, aircraft carriers and the like. 

 

Their threats are going to become more ominous until they cannot be ignored and it is too late. We have been here before. The world was not supposed to worry as Hitler built his arsenal and we know how that turned out.

We know that North Korea starves and ignores its citizens while she builds one of the worlds largest militaries and instigates the west. China though for what its worth had me fooled.China makes us think she is a wealthy Nation but after reading the story in the above link it makes total sense that she is in trouble too.

We think China as being very wealthy with its vast military build up but I forgot something I repeat often right here. Europe their biggest market and the US are both hurting and since we are all tied together today that automatically means China is hurting too. 

 

China does a heck of a job hiding it but when you look at the vast military area she has rapidly had to invest in, in order to compete with the US who has had centuries to build theirs it all makes sense. I would like to know what you think about this.


James Joiner
Gardner, Ma
http://anaverageamericanpatriot.blogspot.com