| Submit your comments on this article |
| China-Japan-Koreas |
| The fragile Chinese economy |
| 2006-05-08 |
| According to Ernst & Young, the accounting firm, bad loans in the Chinese financial system have reached a staggering $US911 billion ($1.18 trillion), including $US225 billion in potential future NPLs in the four largest state-owned banks. This equals 40 per cent of gross domestic product and China has already spent the equivalent of 25-30 per cent of GDP in previous bank bail-outs. This sounds remarkably similar to Japan in the 80's when everyone assumed they would take over the world. It took over a decade of a deep and painful recession to recover from the resultant collapse. Japan didn't have nukes and a large, restive population. Could be real trouble brewing in the next few years. |
| Posted by:RWV |
| #5 RWV - great analogy considering Japan in 80's. The other concern is the disparity between city versus rural ChiComs. |
| Posted by: Captain America 2006-05-08 23:19 |
| #4 Just remember Hu is the go to man for the Clinton Campaign Chest. |
| Posted by: Nimble Spemble 2006-05-08 22:03 |
| #3 See my comments in the other related article. China is about to undergo the Largest Medically Caused AIDS Epidemic, not to mention a rasher of other woes. Couldn't happen to a nicer buncha sh!ts. It is vital to continue the embargo of advanced arms technology until China finally collapses. Giving them any leverage only spells expansionist disaster. |
| Posted by: Zenster 2006-05-08 21:42 |
| #2 Oil is $70 BBL now. China's problems will all come to head when we deal with the Iranian problem & fighting disrupts tanker trafic in the straits. Maybe even precipitates a Chinese civil war. No wonder China wants to stonewall the US in the UN. We take out Iran, China falls en passant. |
| Posted by: Ebbirong Ebbereting1688 2006-05-08 21:20 |
| #1 Iff the twin-fists or natural forces of capitalism + modernization doesn't cause the Chicoms and their Stalinist bureaucracies to implode, then China's only other recourse is State expansion by any means necessary, espec by military force. Thats what happens when power-centric pols and 'crats make too make promises knowing there isn't enough $$$ in the universe to cover their hyper-correct lying arses. |
| Posted by: JosephMendiola 2006-05-08 21:13 |