http://online.wsj.com/article/BT-CO-20110705-700024.html
Moody’s has announced that China’s local banks have been hiding up to $540 billion in loans made to local government agencies with little or no documentation that are unlikely to be repaid. Since the Chinese central government ultimately guarantees the banks, this “discovery” might ultimately damage the credit of the Chinese government.
John Batchelor’s guests have long said that none of the numbers about the Chinese economy can be trusted.
Just in the last week, China opened a 26 mile long bridge, built at a cost of close to $2 billion that will cut about 20 minutes off a trip
http://www.telegraph.co.uk/news/worldnews/asia/china/8608279/China-opens-worlds-longest-sea-bridge.html
On opening day, there was little traffic. It is hoped that eventually there will be 30,000 cars a day paying $5 each. A long time ago, I wrote about a similar toll bridge in Japan built as a stimulus public works project that stands pretty close to empty.
If you notice that the bridge looks very similar to the new Bay Bridge under construction out in San Francisco, it’s not your imagination.