Larry Lang, chair professor of Finance at the Chinese University of Hong Kong, said in a lecture that he didn’t think was being recorded that the Chinese regime is in a serious economic crisis—on the brink of bankruptcy. In his memorable formulation: every province in China is Greece.Think about that last one. Seventy percent of the entire economy is building stuff. That's why China is filled with Ghost cities where nobody lives and Ghost trains that nobody rides.
Fourthly, that the regime’s officially published GDP of 9 percent is also fabricated. According to Lang’s data, China’s GDP has decreased 10 percent. He said that the bloated figures come from the dramatic increase in infrastructure construction, including development, railways, and highways each year (accounting for up to 70 percent of GDP in 2010).
What isn't discussed - but which would be very interesting indeed - is what the return on capital rates are. Of course, any figures that the Red Chinese government* releases will be cooked. Lower level functionaries won't want to be "the guy who didn't meet target", and so the books get padded. The next level up will be doing the same, and so on all the way up to the final 10% GDP growth numbers.
It's nothing but turtles. Turtles all the way up. Some day soon, one of them will sneeze.
We may be screwed by our miserable ruling class, but China (and Europe) are screweder.
* I say "Red Chinese" because it afflicts the comfortable.