Comments on: How does China’s fixed asset investment keep growing at 30% per year? http://www.dinocrat.com/archives/2006/06/18/how-does-chinas-fixed-asset-investment-keep-growing-at-30-per-year/ Thu, 09 Feb 2012 11:49:05 +0000 hourly 1 http://wordpress.org/?v=3.1.3 By: PJ Nasser http://www.dinocrat.com/archives/2006/06/18/how-does-chinas-fixed-asset-investment-keep-growing-at-30-per-year/#comment-201761 PJ Nasser Tue, 20 Jun 2006 00:22:02 +0000 http://www.dinocrat.com/archives/2006/06/18/how-does-chinas-fixed-asset-investment-keep-growing-at-30-per-year/#comment-201761 Ernst and Young have withdrawn that report because <blockquote>it had included unverified forecast data compiled by others as if it were historic information. Ernst & Young said it did not wish to comment further on the specific errors it had made as it had "no desire to make this embarrassing situation even worse."</blockquote> See <a href="http://noolabeulah.blogspot.com/2006/05/chinas-banking-problems-not-as-stated.html" rel="nofollow">here</a> and <a href="http://byzantine-ruins.livejournal.com/453510.html" rel="nofollow">here</a> and <a href="http://www.chinalawblog.com/chinalawblog/2006/05/ernst_yount_red.html" rel="nofollow">here</a>. Ernst and Young have withdrawn that report because
it
had included unverified forecast data compiled by others as if it were historic information.

Ernst & Young said it did not wish to comment further on the specific errors it had made as it had “no desire to make this embarrassing situation even worse.”

See here and here and here.

]]> By: qwerty182764 http://www.dinocrat.com/archives/2006/06/18/how-does-chinas-fixed-asset-investment-keep-growing-at-30-per-year/#comment-201211 qwerty182764 Mon, 19 Jun 2006 02:33:12 +0000 http://www.dinocrat.com/archives/2006/06/18/how-does-chinas-fixed-asset-investment-keep-growing-at-30-per-year/#comment-201211 Many intelligent companies are growing by about 30% per year for the past five years or so, averaged out. Boeing, Catepillar. Basically companies that make actual physical stuff and aren't infected with unions or other stupidity. The world economy includes such economic giants as Etheopia, NK, Saudi Arabia, Algeria, ect ect. Most of it isn't driven by industry like the still capitalist west, but rather by less productive ideology, tribalism, welfare statism and the preservation of aristocracy. China is industrializing, and they have an enourmous population to industrialize. People are still pulling themselves up into a new middle class as fast as the opportunity to do so presents itself. Assuming their state continues to loosen their grip, they could become an economic superpower on their massive population of industrious laborers alone. Not to mention that they're sucking in machining knowledge and capital like a black hole. I think we need to consider the possibility that their growth is all real, and what we'll have to do to compete. Many intelligent companies are growing by about 30% per year for the past five years or so, averaged out. Boeing, Catepillar. Basically companies that make actual physical stuff and aren’t infected with unions or other stupidity.

The world economy includes such economic giants as Etheopia, NK, Saudi Arabia, Algeria, ect ect. Most of it isn’t driven by industry like the still capitalist west, but rather by less productive ideology, tribalism, welfare statism and the preservation of aristocracy.

China is industrializing, and they have an enourmous population to industrialize. People are still pulling themselves up into a new middle class as fast as the opportunity to do so presents itself. Assuming their state continues to loosen their grip, they could become an economic superpower on their massive population of industrious laborers alone. Not to mention that they’re sucking in machining knowledge and capital like a black hole.

I think we need to consider the possibility that their growth is all real, and what we’ll have to do to compete.

]]> By: Brian http://www.dinocrat.com/archives/2006/06/18/how-does-chinas-fixed-asset-investment-keep-growing-at-30-per-year/#comment-201107 Brian Sun, 18 Jun 2006 22:50:55 +0000 http://www.dinocrat.com/archives/2006/06/18/how-does-chinas-fixed-asset-investment-keep-growing-at-30-per-year/#comment-201107 I have great concerns about China's economic and thus political future. The bad loans are a huge problem - their version of the S&L crisis - and on a scale that is difficult to comprehend. Moreover, I suspect a lot of the "investment" they measure is reinvestment of profits by foreign corporations who are not allowed to repatriat the bulk of their profits. This fact I also suspect is linked to China's refusal to allow its currency to float. If they did, the yuan may go up in the short term, but companies would use currency contracts to get money out of the country ultimately forcing the yuan down and putting a real pinch on "real assest investment" not to mention drying up some of the money supply that is vital to service the mountain of bad debts held by the state banks. I have great concerns about China’s economic and thus political future. The bad loans are a huge problem – their version of the S&L crisis – and on a scale that is difficult to comprehend. Moreover, I suspect a lot of the “investment” they measure is reinvestment of profits by foreign corporations who are not allowed to repatriat the bulk of their profits. This fact I also suspect is linked to China’s refusal to allow its currency to float. If they did, the yuan may go up in the short term, but companies would use currency contracts to get money out of the country ultimately forcing the yuan down and putting a real pinch on “real assest investment” not to mention drying up some of the money supply that is vital to service the mountain of bad debts held by the state banks.

]]>