Posts Tagged ‘China’
Economic roller coaster to hell

Dongguan in Guangdong is on the brink of bankruptcy. Up to 60 per cent of its villages are running up deficits and will soon need a bailout from the township.

It’s a race to the bottom between the US, EU, Japan and China to name but the four largest global economies. It’s perfect timing for an alternative currency to come into being.

It’s not so much a case of being on a road to hell, but a roller coaster.

 
China – More signs of a slowdown

More indications China has problems:

10 signs of economic trouble that China’s official data won’t tell

1. Makers of heavy equipment are facing troubles: Makers of heavy equipment are facing increasing difficult in collecting receivables. These companies provide vendor financing for buyers at increasingly generous terms, but it turns out that increasing number of buyers simply will not be able to repay the liabilities as the economy slows. There were even rumours that it that one of these companies was to lay-off 30% of its work force.

9. The arcane corners of (shadow) banking: Credit crisis in Zhejiang which pulls 600 companies into it: One company in Zhejiang of China gone bust. It wasn’t a big deal, until it is. It turns out that a lot of small and medium sized companies rely on “credit guarantors” to obtain bank credits. While normally you would think that such guarantors are some independent third party performing such service, it turns out that these companies in Zhejiang simply guarantee each other. So when one company went bust, banks pulled loans from every company that are guaranteed by the company that has gone. As the chain of guarantees continue to be exposed, it turns out that more than 600 companies are in it, and banks are trying to pull loans from all of these companies.

Chart 25 on Chinese investment as a percent of GDP in this presentation sums up the unsustainable nature of the China model.

To paraphrase an old saying:

If China catches a cold, will the likes of Australia sneeze?

 
Chinese poet on trial after using Skype

Role on the Asian century:

Chinese dissident on trial after using Skype to send poem

Prosecutors charged Zhu Yufu with subversion, citing his poem, It’s Time, as well as text messages sent using Skype… Chinese prosecutors cited a poem and messages sent on Skype in the trial of a dissident, his son and his lawyer said, in the latest case highlighting the Communist party’s drive to silence political challengers.

Hat tip boingboing

Meanwhile in enlightened Australia they are introducing “quiet” carriages on trains. Initially it is to be enforced by signs and other passengers. Later it will not doubt be enforced more forcefully. Perhaps if it is political talk then they can be charged with sedition, as well as speaking. It is such a sad sign of how damaging political correctness is.

Not that long ago good manners were taught. Along with offering seats to pregnant ladies, people on trains did not shout down the phone or blast out music. But political correctness put paid to that. Got to overthrow societies norms so we can create a more just, equitable, insert your choice of adjective, society. Of course we end up with something less pleasant to live in. Manners don”t just maketh the man. Cumulatively they maketh the society. But the goal was so noble. Now they are trying to recreate customary good manners. Can they put Humpty dumpty back together again? If not then it will be the strong arm of the law. People will be prosecuted for speaking or the rule of law will be further undermined. Nice.

The picture heading this post speaks volumes about free speech in the European Union:

Finnish politician charged with inciting racial hatred

“This trial is absurd and preposterous. I voiced my personal opinions during the election debate, and I was not inciting hate against any specific group. You can’t be judged on your opinions,” told Mäenpää to YLE ahead of the hearing on Tuesday.

Politicians saying what they think. We can’t have that. I mean, whatever next?