| Makes me wish I was young again… =)
To commemorate my return we’ll start with a rail gun shot into uncle chicom marble nut sack:
Has China’s infrastructure improved any? Hell no:
http://www.globalpost.com/dispatch/news/regions/asia-pacific/china/120716/economy-infrastructure-building
“Fourteen bodies have been recovered following a mudslide that ripped through the construction site of the massive Baihetan Dam on June 28. According to Chinese state media, rescue teams are still searching for 26 missing workers and their relatives near the site in southwest Sichuan province.
The mudslide, at what will be the world’s third largest hydro-electric plant upon completion, is the latest in a string of high-profile infrastructure accidents. It comes days after by Premier Wen Jiabao announced increased spending on public works to shore up China’s slowing economy.
[…]
The 90th anniversary of the Party in 2011 coincided with the opening of the world’s longest sea bridge, the world’s longest gas pipeline, and the much-touted high-speed railway from Shanghai to Beijing.
Beijing had already announced 23 new major infrastructure projects, costing $100 billion this year — before it decided on the new round of road, rail, ports, power, telecoms and water spending.
But more and bigger doesn’t necessarily mean better. There have been problems.
Collapsing bridges, roads, dikes and dams, particularly in rural areas, have been well-publicized embarrassments for the technocrats in Beijing. Many of these failures are rooted in endemic corruption among local officials, who siphon off cash and subcontract work to friends or inexperienced firms.
According to CNN, four bridges collapsed in 2011 in the span of a week. At one of the bridges, in Chongqing, a major city near the site of the mudslide, 40 people fell 460 to their deaths; later, an investigation uncovered kickbacks and theft. Some of the money was reportedly used to build a hostess bar.
And speaking of infrastructure, what’s a little China bashing without some bridge failures? Three – count ’em: three! – big, bad bridge failures I stumbled upon in a matter of minutes.
http://newscontent.cctv.com/news.jsp?fileId=147287
http://english.cri.cn/6909/2012/07/04/2821s710064.htm
http://europe.chinadaily.com.cn/china/2012-07/04/content_15549531.htm
Why avoid surgery in China? Because 60% of health care workers still smoke; many hospitals allow smoking on their premises.
http://www.chinahearsay.com/chinas-health-care-workers-and-smoking/
The shadow banking system, the fifth wheel of China’s economy, is decoupling from the private sector she lends to; loans are tanking:
http://www.alsosprachanalyst.com/financials/underground-lending-rates-fell-as-demand-for-credit-shrank.html
“That is according to Yicai, which reports that underground lending rates in Shenzhen have fallen from the high of 120% per annum (yes, you read it right) to somewhere between 28-32% per annum. On top of that, discounts are often offered, so the actual rates could be much less. One of the creditors in Shenzhen is offering 2.3% per month, and discounts can be offered to borrowers who borrow more than a few million RMB, while another one suggested that monthly rate has fallen to 1% or below on average.
The fall is attributed partly to the lack of demand for credit as the economy slows, consistent with our belief that China is in a debt deflation, which means that demand for credit shrinks as overstretched private sector deleverages. Not only is demand in underground banking falling, the volume of trusts products issuance will likely fall on a month-on-month basis in July according to Yicai after hitting a record high in June. On top of the lack of demand for credit, recent concerns over the credit risks within the trust industry are also said to have made these trusts companies cautious.”
But while the shadow banking system, private companies and the Chinese economy overall shrivels, the Big 4 are “making it rain” for their SOE ponzi schemers like NBA ballas in a strip club.
http://www.alsosprachanalyst.com/economy/chinas-big-4-banks-doubled-lending-in-first-half-of-july.html
And finally, the man who called Enron, Jim Chanos, is saying China’s internal debt situation makes Greece & Spain look like “child’s play.”
http://www.valuewalk.com/2012/06/jim-chanos-china-makes-greece-and-spain-look-like-childs-play/ |
Understanding China, One Blog at a Time 