Chinese economy nearly bankrupt? Inflation rate is 16 percent?

The Extra News ^ | 11/17/2011 | Extra News

[se99tp]

(...)Until recently only Chinese dissidents and some economists criticized the Politburo policy, which can be compared to printing money: building cities for no one and the sale of land. This time Chinese professor of finance, the television host, Larry Lang confirmed that Chinese economy is almost bankrupt:

-the real public debt is US $ 5.68 trillion -the real inflation rate is 16 percent

[Hodar]

Maybe we should send Jimmah Carter over to help them out?

[Pearls Before Swine]

To paraphrase Bruce Willis in Die Hard, “Welcome to the party, pal(s)!”

[ken21]

bump.

[my small voice]

That’s what Obama likes...and 81% individual and 70% business tax rate!

[sten]

i’m guessing their inflation is up due to so much money floating around

our money

[TheOldLady]

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[CowboyJay]

"i’m guessing their inflation is up due to so much money floating around

our money

Along with them fighting to maintain a peg to our dollar - which Bernanke has been doing his level best to turn into affordable fuel for woodstoves.

[BfloGuy]

Along with them fighting to maintain a peg to our dollar

You're right. They've inflated for years to maintain that peg. Their dollar reserves -- which are really Treasury Bond reserves -- didn't cause the mess they're about to find themselves in. Just as we've created our own economic problems, they created theirs.

[CowboyJay]

"Just as we've created our own economic problems, they created theirs."

Agree completely. They really didn't have to maintain the peg to prop up their exports. It was mainly a convenience designed to build some pricing stability international contracts. They got the same thing we did by unleashing too much liquidity - asset bubbles and commodity inflation. I think their economy's fundamentally more sound than ours was when the bubbles started to pop, but we'll see.