China official flees country with nuff funds

[MdmeX]

http://news.yahoo.com/china-official...000317236.html#

[MdmeX]

Show me some of that moola........

[Assasin]

so the chinese communist them thief like the capitalist them???

[HL]

...now over to 1Don!!! to xplain the runnings....

[Muadib]

Don1 missing in action.. Mars Robot must be giving problems..

[Assasin]

LOL.

[Don1]

Don1 missing in action.. Mars Robot must be giving problems..

lol

[Jawge]

mek yuh feel good eeh?

[World Fan]

Lots of well to do are leaving

[Assasin]

Why, it not as wild as it use to be?
Or they are easily exposed now.

[Skeng DX]

people like freedumb

[Assasin]

Then him nuh coulda left without the money if a freedom a di problem?

Him have to wait till him have so much of the people's money?

[HL]

Don1 missing in action.. Mars Robot must be giving problems..

hahahaahahhaa

[World Fan]

China bubble in 'danger zone' warns Bank of Japan

http://www.telegraph.co.uk/finance/f...-of-Japan.html

China bubble in 'danger zone' warns Bank of Japan
China risks a repeat of Japan’s boom-bust disaster 20 years ago as exorbitant property prices combine with a demographic tipping point, a top Japanese official has warned.
China Asia Great Wall of China Great Wall Beijing Great Wall near Mutianyu Asia landscape historic hills UN
Richard Koo, from Nomura, said worries about China’s slowdown have spread from financial markets to national security officials. Photo: Alamy
Ambrose Evans-Pritchard

By Ambrose Evans-Pritchard, International Business Editor

9:06PM BST 21 Aug 2012

Comments231 Comments

“China is now entering the 'danger zone’,” said Kiyohiko Nishimura, the Bank of Japan’s deputy-governor and an expert on asset booms.

The surge in Chinese home prices and loan growth over the past five years has surpassed extremes seen in Japan before the Nikkei bubble popped in 1990. Construction reached 12pc of GDP in China last year; it peaked in Japan at 10pc.

Mr Nishimura said credit and housing booms can remain “benign” so long as the workforce is young and growing. They turn “malign” once the ratio of working age people to dependents rolls over as it did in Japan.

China’s ratio will peak at around 2.7 over the next couple of years as the aging crunch arrives. It will then go into a sharp descent, compounded by the delayed effects of the one-child policy.

“Not every bubble-bust episode leads to a financial crisis. However, if a demographic change, a property price bubble and a steep increase in loans coincide, then a financial crisis seems more likely,” he said in Sydney at a conference on asset booms.
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Japanese stocks have fallen by 75pc and Tokyo land prices by 80pc since the economy first began to slide into a deflationary trap two decades ago, although real per capita income has held up well. Any such fate for China – a much poorer country today than Japan in 1990 – has shattering implications.

Such a warning from a Japanese official may ruffle feathers in Beijing. The Communist authorities have studied Japan’s Lost Decade closely and are convinced they can avoid the same errors.

The Pacific rivals are embroiled in a bitter dispute over the Senaku/Diaoyu islands in the East China Sea. Nationalists from both sides have landed on the Japanese-administered islands.

It is unclear how easily China can manage the hang-over after letting home price-to-income ratios peak at nose-bleed highs of 16 to 18 in the coastal cities of Beijing, Shanghai, Tianjin, and Shenzhen.

The authorities deliberately choked the boom by tightening credit last year but have discovered that it is not easy to stop the effects spilling into the rest of the economy, causing an industrial recession.

Export growth fizzled over the summer. Komatsu’s index of excavator usage – a proxy gauge of Chinese construction – fell 13pc in July. The Yangtze ship-building industry is in dire straits. China’s largest shipbuilder, Rongsheng, has not had a single order this year.

Richard Koo, from Nomura, said worries about China’s slowdown have spread from financial markets to national security officials.

Jing Ulrich from JP Morgan China said the mini-slump may drag on as Chinese exporters struggle with a recession in Europe, wafer-thin margins and price wars.

“The unpleasant situation for industrial companies is unlikely to change until the second quarter next year. The country’s stock market will face big challenges in coming months as excess production capacity becomes more obvious,” she said, predicting that growth would slow from torrid rates of 10pc to nearer 6pc over the next five years.

Premier Wen Jiabao has warned repeatedly that China’s economy is badly out of kilter. He is trying to wean the system off exports and investment – a world record 49pc of GDP – switching to home-bred consumer demand.

A report earlier this year by the World Bank and China’s Development Research Centre warned that the low-hanging fruit of state-driven industrialisation is largely exhausted.

They said a quarter of China’s state companies lose money and warned that the country will remain stuck in the “middle-income trap” unless it ditches the top-down policies of Deng Xiaoping. This model relied on cheap labour and imported technology. It cannot carry China any further.

The reformers agree but good intentions are fading as the downturn deepens. Those calling for another blitz of cheap credit to keep the old game going are gaining the upper hand.

The city of Chongquing this week unveiled a $240bn (£153bn) investment in electronics, car plants, petrochemicals and other industries over the next three years, equal to 150pc of its GDP. This follows vast spending proposals by Ningbo, Guangzhou, and Changsha, apparently with the blessing of state-run banks and the Politburo.

Whatever the offical mantra, Beijing is bringing out its bubble pump again.

_________________________________________________

http://www.guardian.co.uk/commentisf...lapse-bit-rich

Western tales of China's imminent collapse are a bit rich

If the EU or US had the kind of growth experienced by China, it would be termed an unparalleled success, not a crisis

Chinese workers making television sets
'China’s economy is not in a crisis comparable to the west.' Photograph: Mark/EPA

For three decades, the gap between China's rapid economic growth and western economies' increasingly poor performance has widened. Throughout the 1980s, China's economy grew on average 6.7% a year faster than OECD economies. During the 1990s, the lead increased to 7.4% and since 2000, it has been 8.4%.

But with China's increasing lead in economic growth came the claim that its economy faced an imminent meltdown. As such claims clearly bore no relation to the facts, they functioned as propaganda. For this reason, they were particularly emphasised at various points during the western economic slowdown.

It is therefore unsurprising that, as the latest data shows US GDP growth slowing to 1.5% and the EU's economy contracting at an annualised -0.6%, articles duly appeared warning of immense crisis in China. A typical example appeared in the New York Times, where under the dire headline "China confronts mounting piles of unsold goods", the author advanced the following analysis: "The glut of everything from steel and household appliances to cars and apartments is hampering China's efforts to emerge from a sharp economic slowdown." The article lists various data regarding China's housing and car markets, and argued that "problems in China give some economists nightmares".

Let's examine what's really happening instead: the market economy necessarily continuously has sectors with shortages, and others with excess supply – the market exists to create the adjustments arising from this. As there are always "unsold goods" in individual sectors, it does not prove anything as they may be balanced by others in which shortages exist.

Take current examples from China. Its car makers are currently facing difficulties, in part due to city authorities making car ownership more difficult (they realised that given China's population, attempting to have the same balance between public and car transport as in the west creates gridlock). But in another sector, China's mainland smartphone producers are currently enjoying huge competitive success, seizing 54% of China's market (now the world's largest) from non-mainland producers. Chinese firms such as Lenovo, Coolpad, Huawei and ZTE are pushing ahead of Apple and Taiwan's HTC in market share.

Only the average of all sectors shows the real economic situation, and that trend is clear: China's economy has slowed moderately. Its year on year GDP growth in the second quarter of 2012 was 7.6%. Over the same period, the US economy grew by 2.2%, the EU's was up by 0.2% and the UK's shrank by 0.5%. China's GDP growth was therefore three times that of the US, 74 times that of the EU and going in the opposite direction to the UK. This is quite sufficient to show that China's economy is not in a crisis comparable to the west: what is claimed to be crisis in China would be unparalleled economic success in the US or Europe.

This does not mean China faces no economic problems. In the last decade, China has undergone the most rapid increase in per capita GDP in a major economy in human history; it is impossible to undergo such growth without problems – among the most notable being serious environmental issues and a socially destabilising level of income inequality.

In the first half of this year, China's economic policy making was also hampered by influences stemming from the erroneous World Bank Report on China, which advocated abandoning the economic policies inaugurated by Deng Xiaoping, which have produced such success. It recommended that China should instead adopt a western economic structure – a somewhat strange proposal given the current crisis of the US/European economic model. This led to initial hesitation in launching sufficient state investment to reverse economic slowdown, a mistake corrected in July when premier Wen Jiabao stated "currently the main task is to promote reasonable investment growth" followed by China's regional authorities rolling out wider investment-based stimulus programmes.

There are serious economic policy issues to be discussed on China. The latest blooming of the hardy perennial "the coming collapse of China" is not among them.