Understanding China, One Blog at a Time

An American in China

Archive for October 19th, 2011

China Cuts US Debt Holdings- So What?

Posted by w_thames_the_d on October 19, 2011


Will Hutton wrote a book called “The Writing on the Wall: China and the West in the 21st Century” (review here). The first part of it is incredible and the second is pedestrian, but its well worth the 17 or 18$ kindle price. In it he describes the west and China and their histories, if you’re a numbers junkie then its awesome.
In one section Hutton explains how China owns foreign debt, and how they really must do so.
Part of the issue is they need to stabilize or manipulate their rmb to the tune of the 30-40% undervluation, but also they need a place to dump their excess cash. The cash they hold, in great part, finanices their expansion and lending to SOE’s which are less than productive.
So when we hear China is dumping our debt, its actually a good thing for they will hurt more than we will. I mean where else will they put their cash? In Greece? In High speed death coffins ?

snippet from here

“BEIJING – Chinadivested $36.5 billionofitsnetholdingsofUSTreasurydebtinAugust….Themovewasthebiggestsell-offofdollarassetsbyBeijingthisyear, despiteasurgeinforeigndemandforUSfinancialassetsas
investorssoughtasafehavenamidtheEuropeandebtcrisis.”

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What is The Sign in Front of China’s “Red House”

Posted by w_thames_the_d on October 19, 2011


This is all that one can see of zhongnanhai which is like the White House in Washington. Aside from the fact that its hidden, or as transparent as the policies that emanate from it, the place has all the charm of a fart. My real question, however, is wtf does that sign say? I mean, I’ve been to many capital buildings and have yet to see a man made sign at the entrance.
1-Does anyone know what that big freaking sign says?

2-cheesy light metal sign looks like should be swinging from the cluttered innards of an ice cream vendor’s truck
3-are the locals so daft that they must be told what this place is? Oh yeah its china so maybe most of them do not know who actually lives there
4-is it just me or does it look like those signs at high school football games saying,,”go Get ’em Bears” etc…

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US Says China’s Aircraft Carrier an ‘Iron Coffin’-HAHAHAAH

Posted by w_thames_the_d on October 19, 2011


Like, love, or hate the US, they come up with some great lines. Be it bubble headed Bush telling Iraq to ‘bring it on’ to quotes from Dirty Harry. I guess its no wonder the US is called the 8th wonder of the world….
But the issue at hand is the US called China’s pos aircraft carrier an ‘iron coffin’. How funny is that? Story here
In reality anything made in China could be called a ‘coffin’.

For instance I propose the following changes when describing Chinese products:
-elevators are ‘moving coffins of little mercy’
-chinese milk can be called ‘coffin in a cup’
-cooking oil is ‘recyclable coffins’
-chinese drivers are called ‘coffin makers’
-chinese medicine is called ‘fake meds but real coffins’
-chinese air is called ‘visible coffins of mass destruction’
-dog food made in China can be called ‘better buy a canine coffin
-fake rice is called ‘coffin chow’
-chinese cars are called ‘dont buy that fking coffin!”
-Chinese bikes are called ‘low speed coffins’
-China is called a ‘coffin of immorality and brutality’
-chinese water is called ‘coffin brine’
-escalators are ‘coffins of abuse and neglect’
-Chinese high speed death trains can simply be called ‘iron coffins that move too fast and kill people because chicom officials skimmed off billions of dollars all to feed their hair dye, viagra and prostitute fetishes’
-toothpaste can be called ‘roll up coffins of dental expiry’
-chinese pork can be called ‘if its pork and not red meat dyed to look that way then its ‘porcine coffin in a pastry’

-chinese land is called ‘even coffins decay in this infested soup of garbage and toxicity that they call land’

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More on China’s Housing Bubble

Posted by w_thames_the_d on October 19, 2011


More from resident expert Brewskie on China’s housing bubble.

“P.S. – Speaking of housing bubble, it looks like Wenzhou, which is really old news, isn’t the only place having trouble. Shenzhen’s housing market is in flames, with 3,000 real estate agencies having closed this year, and Ordos is having Wenzhou-like trouble, with businesses collapsing (it says “hardly a day went by without a new business closing shop”) and owners eloping to evade debt.

http://www.wantchinatimes.com/news-subclass-cnt.aspx?cid=1102&MainCatID=11&id=20111017000027

On Shenzhen, I heard from a guy who does business there say in ’07, it had a nasty (albeit short) real estate downturn. He said there was literally an army of real estate agents with placards canvassing on the street, many pounding his cab’s window in plea.

He also said some neighborhoods in Shanghai have more real estate agents than (other) businesses

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Comment on China’s Housing Bubble

Posted by w_thames_the_d on October 19, 2011


Here is a comment from Brewskie who along with the King should co-author a book with yours truly. Brew addresses the issue of China’s housing bubble. (Brew I have some shots of the welds at that one shitty structure. I will upload them later)

Comment:
China’s housing bubble and the flats’ quality perhaps wouldn’t be so bad in the first place – if the cardboard buildings’ pads didn’t come with a first-world price tag.

A flop in the property market is inevitable. Here’s a concern. The optimists argue a downturn, while initially painful, would be a good long-term bet, because many Chinese would finally be able to afford the home they’ve always desired (in my naive days, I produced the same argument). The worry: a Chinese who buys his/her first home discovers, to his/her detriment, the pad made of hardened oat meal stinks up, craps out, cracks up, leaks about, coughs up (happy toilets), and curls a sardonic tongue at the owner’s watery tears – the “tongue” of course being the peeling floor. And oh. Did I mention the owner splurged more filling the vacant walls/space (with toilets, sinks, appliances, flooring, stairs, etc.) than on the pad’s purchase price?

Let’s put it this way to bring perspective. Let’s pretend we have a magical world called “Hogswort” (how original!), where all the half-blood princes are purchasing $50,000 BMWs. The libtard American economics professors – the same jokers who, six years ago, were banging their King Kong chests over the performance of a shaky US economy, over subprime lending and CDSs – may look at this and postulate: the mass purchases of expensive automobiles reflects a surging, dependable economy with sustainable growth.

The problem? Those BMWs only last one year. Talk about an investment sink hole!

And that’s the problem I see with the dudes throwing their bones into decrepit pads just so the horny lads can bang a shallow dame; or the suckers dumping money into investment vehicles in hopes of becoming pseudo moguls.

Last year, when I was just beginning to scope out the infrastructure’s quality, a smart reader commented on a China Daily article of lousy condos: “Why would anyone want to spend a lot of money on a home that wears out quickly?”

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Link to Video of Child Run Over and No One Stopping to Help in China

Posted by w_thames_the_d on October 19, 2011


Here is the link of the video from yesterday’s post about the child who was run over in China and 18 or 19 people passed by and no one attempted to help.
http://v.youku.com/v_show/id_XMzEzMDY4OTcy.html

click or cut and paste on the link and then hit the play button. It’s all in Chinese but you will get the gist.

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