{"id":466565,"date":"2010-03-24T11:27:00","date_gmt":"2010-03-24T15:27:00","guid":{"rendered":"e2249889-c78b-43e3-9643-b1d7d4aa587b:412441"},"modified":"2010-03-24T11:27:00","modified_gmt":"2010-03-24T15:27:00","slug":"chinas-financial-bubble-ready-to-pop","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/466565","title":{"rendered":"China&#8217;s financial bubble ready to pop"},"content":{"rendered":"<p>The Chinese economy is a financial bubble that will inevitably pop, according to Edward Chancellor, author of the classic text on financial manias, Devil Take The Hindmost. In <a href=\"https:\/\/www.gmo.com\/Europe\/CMSAttachmentDownload.aspx?target=JUBRxi51IICi3XDk3kgShyaxnDe%2ft3GtNdfbW3V%2bu5X9OpjBFxQN1nv8Ys%2bCNCqeh9QLxflkBbA2yu17szUivY6GTiSswW%2bdKMPr52uvAJo%3d\" >a new report<\/a> for GMO, the Boston-based money manager, Chancellor lists 10 signs of a bubble in progress. They range from \u201cblind faith in the competence of the authorities\u201d to \u201ca surge in corruption\u201d to \u201cinappropriately low interest rates.\u201d<\/p>\n<p>Chancellor figures that the Chinese economy meets all 10 of the criteria. And he has harsh words for some of the cheerleaders for China. \u201cWall Street\u2026 tends to downplay the darker aspects of the Chinese demographic story,\u201d he writes. <\/p>\n<p>\u201cChina\u2019s population is set to decline in 2015. The worker participation rate will peak this year. It\u2019s anticipated that the number of people joining the workforce will fall off quite rapidly. Yet it\u2019s this section of the population that tends to move to cities and has provided China with an apparently limitless supply of cheap labor.\u201d<\/p>\n<p>Chancellor figures that if China\u2019s economy slows below Beijing\u2019s 8% growth target, calamity will ensue. Excess capacity will stifle new investment, the real estate bubble will burst and non-performing loans will bring down the banking system. <\/p>\n<p><i>Freelance business journalist Ian McGugan blogs for the Financial Post.<\/i> <\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/network.nationalpost.com\/NP\/aggbug.aspx?PostID=412441\" width=\"1\" height=\"1\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Chinese economy is a financial bubble that will inevitably pop, according to Edward Chancellor, author of the classic text on financial manias, Devil Take The Hindmost. In a new report for GMO, the Boston-based money manager, Chancellor lists 10 signs of a bubble in progress. They range from \u201cblind faith in the competence of [&hellip;]<\/p>\n","protected":false},"author":4060,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-466565","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/466565","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/4060"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=466565"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/466565\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=466565"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=466565"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=466565"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}