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China Banks Nearly Bankrupt: "Every Province in China is Greece"
Townhall.com ^ | November 16, 2011 | Mike Shedlock

Posted on 11/16/2011 8:23:09 AM PST by Kaslin

In one of these headline news stories that sounds shocking but is not shocking in the least, The Epoch Times reports Chinese TV Host Says Regime Nearly Bankrupt

China’s economy has a reputation for being strong and prosperous, but according to a well-known Chinese television personality the country’s Gross Domestic Product is going in reverse.

Larry Lang, chair professor of Finance at the Chinese University of Hong Kong, said in a lecture that he didn’t think was being recorded that the Chinese regime is in a serious economic crisis—on the brink of bankruptcy. In his memorable formulation: every province in China is Greece.

The restrictions Lang placed on the Oct. 22 speech in Shenyang City, in northern China’s Liaoning Province, included no audio or video recording, and no media. He can be heard saying that people should not to post his speech online, or “everyone will look bad,” in the audio that is now on Youtube.

In the unusual, closed-door lecture, Lang gave a frank analysis of the Chinese economy and the censorship that is placed on intellectuals and public figures. “What I’m about to say is all true. But under this system, we are not allowed to speak the truth,” he said.

Despite Lang’s polished appearance on his high-profile TV shows, he said: “Don’t think that we are living in a peaceful time now. Actually the media cannot report anything at all. Those of us who do TV shows are so miserable and frustrated, because we cannot do any programs. As long as something is related to the government, we cannot report about it.”

He said that the regime doesn’t listen to experts, and that Party officials are insufferably arrogant. “If you don’t agree with him, he thinks you are against him,” he said.

Nothing Shocking About Mistrust, Lies, Suppression of News

The article was clearly meant to sensationalize. I gave it a big "so what else is news?"

You may wish to read the reasons for Larry Lang's statements but there is nothing shocking at all about mistrust, about news suppression, about lies, about Chinese bank insolvency.

I say that because I have reported on numerous occasions "the entire global financial system is bankrupt".


TOPICS: Business/Economy; Editorial; Foreign Affairs
KEYWORDS: feelgood; freetrader; globalist; propaganda
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1 posted on 11/16/2011 8:23:10 AM PST by Kaslin
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To: Kaslin

They have our money and they are still bankrupt?

We need to print more...


2 posted on 11/16/2011 8:25:11 AM PST by null and void (MSGT Dean Hopkins USMC (ret) WWII-Korea-Vietnam 11/9/1925-10/22/2011 My hero, my Dad)
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To: Kaslin

Time to have a year of jubilee and zero out the debts I guess.


3 posted on 11/16/2011 8:26:26 AM PST by DonaldC (A nation cannot stand in the absence of religious principle.)
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To: Kaslin

So, if the PRC is a bubble and goes ‘pop’ how much of the world do they take down with them?


4 posted on 11/16/2011 8:28:53 AM PST by Little Ray (FOR the best Conservative in the Primary; AGAINST Obama in the General.)
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To: null and void

There is no such animal as GAAP in China..we have no way of telling if they are making any $$$. Most industries, that employ the vast majority of Chinese, are either run by the PLA, and/or cronies of the ChiComs...maybe we need to start speaking of “crony communism”..and they are bleeding billions....


5 posted on 11/16/2011 8:31:26 AM PST by ken5050 (Perry/Gingrich 2012!!)
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To: Kaslin

China is up against the ropes. Sounds like a good time to redouble my efforts to not purchase anything made in China


6 posted on 11/16/2011 8:32:28 AM PST by RC one (Voting isn't a simple act of civic duty anymore, it's a complex act of civil war.)
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To: Kaslin

Gave up trying to explain to people that 10-15% endless growth was not real.


7 posted on 11/16/2011 8:32:58 AM PST by SouthTexas (You cannot bargain with the devil, shut the government down.)
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To: RC one

China is a “Potemkin Country.”


8 posted on 11/16/2011 8:33:58 AM PST by dfwgator (I stand with Herman Cain.)
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To: null and void

Sounds like they need to kill more of their offspring.
That’ll solve it... at least, that’s what I’ve heard libs say...


9 posted on 11/16/2011 8:34:27 AM PST by MrB (The difference between a Humanist and a Satanist - the latter knows whom he's working for)
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To: Little Ray

“So, if the PRC is a bubble and goes ‘pop’ how much of the world do they take down with them?”


100% would be my guess.


10 posted on 11/16/2011 8:35:12 AM PST by chessplayer
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To: Kaslin

Then move in for the kill by blocking their cheap, slave-labor goods from our country.


11 posted on 11/16/2011 8:36:05 AM PST by TBP (Obama lies, Granny dies.)
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To: null and void
They have our money and they are still bankrupt?

It means they are going to need to sell our T-bills in order to buy peace at home.

12 posted on 11/16/2011 8:36:28 AM PST by PapaBear3625 (During times of universal deceit, telling the truth becomes a revolutionary act.)
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To: Kaslin

Recommended reading ... http://www.amazon.com/Wild-Swans-Three-Daughters-China/dp/0385425473


13 posted on 11/16/2011 8:36:32 AM PST by OldNavyVet (One trillion days, at 365 days per year, is 2,739,726,027 years ... almost 3 billion years)
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To: Little Ray
So, if the PRC is a bubble and goes ‘pop’ how much of the world do they take down with them?

I think the only thing keeping the world economy going is that everybody is equally so screwed up

14 posted on 11/16/2011 8:37:32 AM PST by qam1 (There's been a huge party. All plates and the bottles are empty, all that's left is the bill to pay)
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To: Kaslin

Perhaps, but no one is going to push their system over the edge. They are not subject to bond markets, George Soros, speculators or protestors.


15 posted on 11/16/2011 8:38:27 AM PST by PGR88 (I'm so open-minded my brains fell out)
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To: RC one

I went shopping for comforters for a new bed, and I was amazed that even the comforters were 99% from china. I don’t want chinese chemicals on my sheets next to my body.


16 posted on 11/16/2011 8:39:27 AM PST by rokkitapps ( Hearings on healthcare waivers NOW! (If you agree make this your tagline))
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To: Kaslin
yeah, yeah, yeah. I've been hearing that China is going to collapse for many years now.

The fact is the banks are owned by the Chinese government and all they have to do is print more yuan. They aren't going to fail.

Meanwhile, they continue to buy U.S. companies, and disassemble them and move them to China.

This is just more disinformation designed to lure China's trading partners into not doing anything about their unfair trade policies.

17 posted on 11/16/2011 8:39:57 AM PST by DannyTN
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To: PapaBear3625

Who are they gonna sell them to?


18 posted on 11/16/2011 8:41:11 AM PST by RockinRight (One year from now, we have an opportunity to take our nation back.)
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To: null and void

China owns a large number of our Treasury bonds, which they can sell in exchange for devalued dollars. And when the Fed proceeds with QE3 (and they will), they can monetize more of our debt, driving the dollar even further down. Oh yes: this is all going to end so well.


19 posted on 11/16/2011 8:41:42 AM PST by andy58-in-nh (America does not need to be organized: it needs to be liberated.)
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To: qam1

Well, when everyone owes everyone else money, it’s kind of a wash, isn’t it?


20 posted on 11/16/2011 8:41:46 AM PST by RockinRight (One year from now, we have an opportunity to take our nation back.)
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To: Kaslin

this is rich!

their mayors have been cookie-cutter building housing that they can ill afford.

the last i read, some 64,000,000 excess housing units were available, but unoccupied.


21 posted on 11/16/2011 8:41:58 AM PST by ken21
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To: PGR88

Depends...when contracts are let to Chinese companies to manufacture stuff, there is usually a considerable down payment with the contract signing..helps the factories pay for labor and raw materials, and also helps to guarantee that the goods are paid for when finished. If there is a sense that China/Chinese factories are in big financial trouble, then companies will be much less willing to advance funds, nor will banks/factors be willing to step in and finance..


22 posted on 11/16/2011 8:43:56 AM PST by ken5050 (Perry/Gingrich 2012!!)
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To: SouthTexas
Gave up trying to explain to people that 10-15% endless growth was not real.

Try analogizing to Madoff.
23 posted on 11/16/2011 8:47:12 AM PST by UnbelievingScumOnTheOtherSide (REPEAL WASHINGTON! -- Islam Delenda Est! -- I Want Constantinople Back. -- Rumble thee forth.)
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To: DonaldC

Would that apply to individuals or just governments?


24 posted on 11/16/2011 8:48:38 AM PST by ChocChipCookie
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To: Kaslin

Hi Kaslin. The financial illiteracy demonstrated in these comments is something to behold.


25 posted on 11/16/2011 8:49:56 AM PST by SaxxonWoods (.....The days are long but the years are short.....)
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To: ken21

Maybe they should end the One Child policy?


26 posted on 11/16/2011 8:50:31 AM PST by UnbelievingScumOnTheOtherSide (REPEAL WASHINGTON! -- Islam Delenda Est! -- I Want Constantinople Back. -- Rumble thee forth.)
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To: Kaslin

The Chinese “economy” is built on the backs of their people who earn slave labor wages. As the world slows down and the US and European economies struggle who’s left to buy? The Third World?

Chinese GDP must be feeling the pinch...but you’ll never hear it from them.


27 posted on 11/16/2011 8:51:18 AM PST by O6ret (for)
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To: Kaslin

When the Yuan is overvalued 2 to 1, that means a 50% loss on every dollar of revenue, only partly made up by slave wages.


28 posted on 11/16/2011 8:52:37 AM PST by UnbelievingScumOnTheOtherSide (REPEAL WASHINGTON! -- Islam Delenda Est! -- I Want Constantinople Back. -- Rumble thee forth.)
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To: DonaldC
Time to have a year of jubilee and zero out the debts I guess.

Do you have a savings account? An IRA? A 401(k) account?

Those assets have been invested somewhere; they're someone else's debt.

If that debt gets jubilee'd away, so do your assets.

29 posted on 11/16/2011 8:56:32 AM PST by DuncanWaring (The Lord uses the good ones; the bad ones use the Lord.)
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To: null and void
They have our money and they are still bankrupt?

Funny, that. They also have our debt - which means we have their money - and we are nigh unto bankrupt.

They make stuff, we give them money for it, they give the money back in exchange for bonds which won't be paid. Both are bankrupt. Where'd the money go?

30 posted on 11/16/2011 8:56:43 AM PST by ctdonath2 ($1 meals: http://abuckaplate.blogspot.com/)
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To: qam1

[ I think the only thing keeping the world economy going is that everybody is equally so screwed up ]

“Peter Principle Economics”


31 posted on 11/16/2011 8:56:53 AM PST by GraceG
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To: Kaslin

Geez, I better head over to the Dollar store and buy more useless Chinese cr@p.


32 posted on 11/16/2011 8:57:58 AM PST by Lorianne
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To: UnbelievingScumOnTheOtherSide

[ Maybe they should end the One Child policy? ]

They will end it, but only for chinese nationals living OUTSIDE of mainland china.

This will facilitate the take over of China as a 1,000 year long superpower.


33 posted on 11/16/2011 8:58:00 AM PST by GraceG
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To: rokkitapps

I had to purchase a pillow a few months back. I was more than pleased that I found one that was made in the USA. It was more expensive but of higher quality. I didn’t really want to chance a pillow from China, thinking what all chemicals I’d be breathing in for hours each night.


34 posted on 11/16/2011 8:59:05 AM PST by greene66
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To: DuncanWaring

401K’s and the like are the lever they are going to use over us for endless bailouts.

If we allow it, we deserve it.


35 posted on 11/16/2011 8:59:24 AM PST by Lorianne
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To: Little Ray

The PRC bubble goes ‘pop’, they call in their loans, we say “fat chance”[1], they say “we’ll forgive the loans if you’ll park your navy in the Atlantic for a month”, PRC proceeds to...um...solve their population’s gender discrepancy issue, and when we look back the world nation count has dropped by 1/3rd.


36 posted on 11/16/2011 9:01:11 AM PST by ctdonath2 ($1 meals: http://abuckaplate.blogspot.com/)
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To: Kaslin

So, what’s gonna happen when they call in their loans? /rhetorical question


37 posted on 11/16/2011 9:02:16 AM PST by sauropod (William Kristol does NOT choose my presidential candidate!)
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To: DuncanWaring
Do you have a savings account? An IRA? A 401(k) account?

Those assets have been invested somewhere; they're someone else's debt.

If that debt gets jubilee'd away, so do your assets.

They'll be taxed away or seized outright anyway.

38 posted on 11/16/2011 9:02:34 AM PST by null and void (MSGT Dean Hopkins USMC (ret) WWII-Korea-Vietnam 11/9/1925-10/22/2011 My hero, my Dad)
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To: null and void

That’s more likely.

But the debt will live on.

The banksters that own the government won’t allow otherwise.


39 posted on 11/16/2011 9:03:53 AM PST by DuncanWaring (The Lord uses the good ones; the bad ones use the Lord.)
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To: Kaslin
I had a friend who went back to China to start a software company. He had been born in Beijing.

He came back to the US astounded at the level of corruption and how many cadres had their palms out to prospective businesses. I've also heard that the bad debt banks in China are hiding makes our toxic mortgages look like petty cash.

40 posted on 11/16/2011 9:05:04 AM PST by AU72
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To: DuncanWaring

The jubilee will happen one way or another, be it a controlled scheduled legal occurrence, or an unexpected global economic meltdown which happens with alarming regularity (about every 50 years - funny, that). God opted to make it a planned event in the user’s manual; mankind would rather ignore it (”hey! what about my 401k? don’t think so! ...hey, where’d it go?”).


41 posted on 11/16/2011 9:05:23 AM PST by ctdonath2 ($1 meals: http://abuckaplate.blogspot.com/)
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To: chessplayer

“So, if the PRC is a bubble and goes ‘pop’ how much of the world do they take down with them?”
100% would be my guess.


I made the following post on a similar thread. I think it goes along with this thread too.

The question to me is not whether China is Rich or Poor but how far is the CCP willing to go before it is all brought back under tight control. They have a huge question before them. Is the wonderful growth and potential prosperity for all worth losing the total control they have enjoyed since Mao’s revolutionaries won their war against the Koumintang?

Only they can answer that, Economic Freedom and Total Political control don’t co-exist very well. Of course on the CCP’s side in this question is China’s Five thousand year plus history giving the Emperor’s and their Mandarin’s unconditional control of the populace.

It will be of historical interest to look back in time several hundred years from now. But today? Today I shudder, living in ‘Interesting Times’ is not a good thing from my point of view.


42 posted on 11/16/2011 9:06:29 AM PST by The Working Man (The mantra for BO's reign...."No Child Left a Dime")
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To: ctdonath2
Kondratieff cycle 50 year, Jubilee 49 years, almost as if someone wanted a system that would jam the Kondratieff wave cycle...
43 posted on 11/16/2011 9:10:39 AM PST by null and void (MSGT Dean Hopkins USMC (ret) WWII-Korea-Vietnam 11/9/1925-10/22/2011 My hero, my Dad)
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To: RockinRight
Who are they gonna sell them to?

The same entities that the US government will try to sell T-bills to. But at a discount, because they need the money.

What happens to the US government when they cannot sell T-bills to finance the deficit?

44 posted on 11/16/2011 9:22:22 AM PST by PapaBear3625 (During times of universal deceit, telling the truth becomes a revolutionary act.)
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To: null and void
They have actually been cooking the books for years. They are uber dependent on slave wages and manipulated currency. The global Depression, that is what it is, has squeezed them worse than anybody.

The more debt they buy the broker they get,. No one is going to pay them back and there isn't a damn thing they can do about that.

45 posted on 11/16/2011 9:22:52 AM PST by Jim from C-Town (The government is rarely benevolent, often malevolent and never benign!)
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To: Kaslin
China needs my first wife as their finance manager.
Honey we can't be broke we have plenty of checks in the check book.
Come to think about it, I think her brother is running ours. . . . .
46 posted on 11/16/2011 9:23:50 AM PST by DeaconRed (My Hat Don't Hang on the same Nail to Long. I am a CAT adjuster.)
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To: Kaslin

47 posted on 11/16/2011 9:24:35 AM PST by dfwgator (I stand with Herman Cain.)
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To: null and void
oh yes, China needs our money to continue upgrading their military. Obozo to the rescue!
48 posted on 11/16/2011 9:26:04 AM PST by drypowder
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To: PapaBear3625
It means they are going to need to sell our T-bills in order to buy peace at home.

There's an old Wall Street joke with the punch line “To whom?”. It seems appropriate here.
49 posted on 11/16/2011 10:06:33 AM PST by Cheburashka (If life hands you lemons, government regulations will prevent you from making lemonade.)
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To: RockinRight

True, but it is the admission that cause the SHTF. As long as everyone can pretend they can collect uncollectible debts, the PONZI goes on in bliss. When the musical chairs end and someone actually says “I can’t pay”, like Greece, then the house of cards starts to fall.

That is where we are now.


50 posted on 11/16/2011 10:39:34 AM PST by Freedom_Is_Not_Free (We be fooked.)
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