Monday, January 2, 2012

More on China's Problems

On Christmas Eve day, just over a week ago, we wrote of trouble in the housing market of China. Now an article in Foreign Policy by Gordon G. Chang takes a very gloomy view of China's political and economic situation in 2012. Here is an example:
Since late September, economic indicators -- electricity consumption, industrial orders, export growth, car sales, property prices, you name it -- are pointing toward either a flatlining or contracting economy. Money started to leave the country in October and Beijing's foreign reserves have been shrinking since September.
I wonder how much of this is wishful thinking?