Inflation in China, The Next Year

The inflation outlook for China (Brew, here is more) is 5%. The reason is that this will allow for the digestion of the 4 trillion rmb stimulus package. The problem is the overheating of the economy as we know.

So I was asking a friend about the reality and she says that food is at least 20-30% higher. Food and other things represent 70% of the cost of the basket of goods upon which China bases its CPi. This being China, however, that basket is complex and no one really knows how it works. Thus the government can tell “Chinese truths’ and make the cpi be what they wish. My contact who is in the know agrees that in the near term nothing will change in the inflation rate.

Thus, this person told me to use US money to do building here and capitalize on the lower US interest rate and high Chinese inflation and come out a double winner.

She says the housing in the suburbs is down 30% . Chinese in good standing will pay 8% for a home loan, and that is for a house that will last maybe 30 years, and remember in China you only have rights to the property for 70 years from the date it was manufactured.

Lastly, she says house prices will stay weak for a year then when restrictions are lifted, she does not know. if the restrictions are not lifted then there will be a supply shortage after a year, presumably because the builders will bail as they cannot make money.

she adds
“developers got lot of land in 2008-2009, that’s the reason for the a massive supply now, but the property restriction has decreased the land transactions by from 60-70% , so I believe there will be supply shortage in 1-2 years.”

Beijing to Promote Electric Vehicle Use

China, or Beijing is promoting electric vehicles, which is kind of a good idea. Electric vehicles are cool for they can usually minimize the negative impact of cars on the roads, but they still burn fossil fuels to charge the batteries. The problem is that in China over 70% of the power is driven by coal and Chinese plants are super inefficient. Thus, the utilization of electric vehicles has been shown to actually be ‘un-green’ due to this factoid.
aside from this, Chinese e vehicles tend to have that Chinese characteristic of ‘suckiness’ and are of marginal quality. Its cool that the Chinese want to go to greener applications but the sad thing is that its of little use.

btw I found out that solar thermal , solar cooling and solar water heaters can still work in the horrible Beijing pollution, it does not impact the panels.

oops I ADD’ed it. but this article is about the fact that in Beijing if you buy an ev you do not have to enter the license plate lottery which precludes many from buying cars. I am bored now with this post so if you want to read this specifics then go here
http://evworld.com/news.cfm?newsid=26747

Comment on Bribery in China

Here is a comment from http://www.puddingandchopsticks.com, an awesome site with killer photos. He is replying to my post about bribes. (ps, pudding you do know that 250 or er bi wo is a way of saying ‘dumbass’ at least in these parts. So it may be some double entendre to screw you)

“Now if are Chinese and need it translated, do you know that your friend is getting a kick back? I suppose that rich people here know that they are getting taken some of the time. Or hell, they might not know, but since most rich take bribes and kick backs, that’s how they got rich, then they must know that when they need something done, someone is getting a kick back.

So, if I get a kick back from something, then need something done, my friend would also get a kick back, thus we are all equal again. But being foreigners, it doesn’t happen this way. As soon as we get a kick back or act “Chinese” in anyway we are called out on it. How’s that work? Anyway.

Also I find it funny that lately every machine that my factory needs to buy cost 250,000RMB. Regardless of anything. Somethings fishy there..”

Chinese Boss of High Speed Rail Death Representing China Internationally

In China you fk up, you move up.
From here

Mr. Wang, who was dismissed Tuesday after public outrage over a deadly high-speed train crash worsened with his ham-handed public utterances, is heading to Poland, where he will represent China in an international railway association, the official Xinhua news agency said Thursday…
Mr. Wang faced an unusually combative news conferenceduring which reporters asked why government workers had hastily buried a damaged rail car rather than preserve it for investigators (it made rescue work easier, he said) and why an unconscious 2-year-old girl was found in the wreckage long after officials had abandoned the search for survivors (he called the belated discovery “a miracle”).”

China’s House Prices Falling- Bubbling Bursting in China?

Here is a snippet from here
“The newspaper said that nearly 10 housing projects in Shanghai have lowered prices, offering discounts of around 30%, as of Oct. 21. The largest discount was 42% on a development of villas.”

With all the money escaping China and all the strict controls on the net and imprisoning people and rich chinese thugtards moving to Canada (like 25 from yiwu a few months ago) uncle c is not a happy man.

One City in China Demolishes 7200 Illegal Facilities

Wenzhou China is busy. They are busy filing for visas to ABC, anywhere but China , and trying to cya as the financial system melts down.
In addition to this, they are also abandoning their illegal facilities or maybe are just late on bribes. For according to this article, the chicoms have demolished 7200 illegal facilities. What these places are , are the real factories, not the showcase ones, ie the ones they produce in but not the one they show the clients.
In order to keep such facilities alive they need to bribe the cops and chicoms and now the money has run out so the factories are being closed…

“Shitty Sheep” and “Dangerous Duck” Sold in China-Food Quality Proboblems

In addition to not playing well with the environment, China does not do food well. It is surprising how much they can foul up naturally occurring substances.
Chinese sheep are being fed clenbuterol irrespective of the faac that it’s a no-no and that it casues cancer. But then again, China has at least 1 300 000 000 people so they do have spares. article here
http://www.chinadaily.com.cn/china/2011-10/27/content_13984607.htm

Worse than this is a guy who is selling fake Duck Meat. The guy’s plant supposedly is infested with maggots and what he sells for duck meat is processed duck bone, sugars, and condiments.
article here
http://www.wantchinatimes.com/news-subclass-cnt.aspx?cid=1103&MainCatID=&id=20111027000018

China’s CNOOC Has Another Oil Leak

China, who does not play well with nature. Dramatic proof of this is that once again China’s oil giant has another oil spill but is not telling the people. The reasons are humiliation and fear. Humiliation at the fact they suck at such endeavors and fear the people will get upset with their inability to deliver….
Story here http://www.wantchinatimes.com/news-subclass-cnt.aspx?cid=1105&MainCatID=&id=20111027000004

Bribes in China at The Working Level

Taking a bite in China. In China nothing is free. For instance, if you need work done and ask a Chinese friend if they know someone, they surely will. The problem is that the person they suggest will be the one who will give them the biggest kickback….wtf?
Lets say you need a document translated. You will ask Wang who says they have a friend who can do it. He asks how much it pays and you say 3000 words for 500$. He says ok then contacts all his friends whose English is probably marginal and then either
a-asks who can do a 3000 word translation for the cheapest amount
b- who can do it and who will give him the biggest kickback from the 500
The person who gives him the best kickback will then be recommended. Actually this person may then do the same iwth his friends and this can happen at a few levels. The result is a chain of many people who each took a bite out of or a piece of the action and the end user or sustomer gets screwed.

China’s Financial Woes

Good summary by Brewskie on China’s problems
From Brewski

” As I said before: imagine China’s inflation if she hadn’t allowed her currency to appreciate the past few years (roughly 20%). The food dilemma appears hard to crack, considering drought and storms socked crops over the summer (basic economics: high demand for bottle necked supply will appreciate prices regardless of a stronger currency).

I’ve also been reading about the whirlwind going on in Wenzou, the Shenzen property market, Ordos (where, like Wenzou, is seeing bankrupt business owners flee to avoid debt); the Shanghai property market, where prices recently plummeted 20% due to developers’ discount, has been stirring riots among cankerous home owners. Now, the Pearl River Delta, one of China’s most important export-processing centers, has seen a flurry of businesses kissing daisies as failures rose 30% the past four months.

http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20111026000034&cid=1202

I know the Chinese government recently has ordered banks to step up lending to SMEs in hard-hit places like Wenzou. Sounds a bit too little too late. With the SMEs’ neck-deep in shark loans, to me, this sounds like an alcoholic who decides to fight his/her addiction by substituting straight vodka for a daily beer case.”