China’s government leaders have touted their progress in transforming the country into a “modern nation” over the past few decades by enabling individuals, state-owned companies and municipalities to take massive loans to chase the “Chinese dream.”
Today, however, it appears to be payback time, according to a video on youtube.com, produced by Al Jazeera English. The economy is slowing down and “cracks in the system are starting to appear.”
Some say the country’s building boom never delivered prosperity. Others say the government’s spending has been “reckless.”
The country has relied on the same methods of boosting the economy for way too long, leading to what appears to be the beginning of the end of China’s widely touted “economic miracle.”
And with all the bad investments, the country’s debt continues to mount. In 2005, China owned 164 percent of its GDP. Today, it has almost doubled, according to the video.
The video highlights large cities, water parks, apartment complexes and retirement homes where construction has been halted and plans have been cancelled. While owners hope to find sellers, the prospect of selling many of these properties is extremely unlikely. Workers continue to loose jobs and industries continue to decline.
The empty “shells” of buildings standing everywhere have become “symbols of a wild spending spree some say have gone on far too long.”
In my lectures and radio show I often referenced that there would be a collapse in China’s future. You can only build so many unprofitable ventures before you go broke!
Click here to watch the complete video.