John Batchelor and especially his Asia WSJ guests have been warning for a while that China at some point is going to collapse. Reuters is joining the chorus
http://mobile.reuters.com/article/idUSTRE79901L20111010?irpc=932
(that’s a link for cell phones if it looks odd)
The current growth rate is not sustainable. Trustworthy accounting doesn’t exist. Corruption is routine part of doing business. A lot of the money is flowing into real estate prices as they can’t build new things fast enough. The high speed train crash a couple months ago and the government solving the problem by burying the evidence is a huge clue about how things work in China.
Hmmm… that aptly describes the situation here in recent years:
Unsustainable growth rates
Fraudulent accounting practices
Political and corporate chicanery
Boom/bust in real estate values
Suppressed Amtrak ‘incidents’
As goes America, so goes China?
They learn quick!
A variation on a theme: We may live in interesting times.