Economists of all stripes have all commented on China's property bubble as hedge fund manager James Chanos said on the Charlie Rose show the other day, that China is "on a treadmill to hell," the same sentiments are offered by Paul Krugman and Ben Bernanke. As in Mexico, free trade has created false hopes and rampant speculation. The Chinese government has two choices: let the good times roll unhindered and hope for the best until the crash or try to throttle the economy and hope that it doesn't cause a crash. The first way a crash is certain to happen but no one can say when the second way a crash is almost certain to happen, only sooner.
When it does come it will create an economic vortex like a black hole and will swallow the whole economic universe. The fate of the United States of America is in the hands of a Chinese dictatorship. There is no divining it, there is no logic to it, only greed and power and idiocy and no one has the courage to say, Stop it. I do see in my bowl the media asking, "How could this happen?"
It happens when government no longer answers to the people and only to the people with money.
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