Think Again On China: It's Really A Debt-Burdened Builder Of Bridges To Nowhere

China’s economy may be the ultimate grey swan, according to investor Vitaliy Katsenelson.

Katsenelson is concerned China’s enormous growth rates haven’t been built on anything real, but rather a command economy ready to collapse.

That command economy has created cities and malls with no residents, based on a demand it manufactured itself. His thoughts dovetail nicely with the thinking of that other well-known China bear: Jim Chanos.

It’s a powerful presentation, that also spells out the result of a Chinese collapse for the broader world economy. including a collapse in commodity markets.

Source: Contrarian Edge

The world is hooked on credit.

Source: Contrarian Edge

China is going to get hit by weaker customers in Europe and the U.S.

Source: Contrarian Edge

Not enough demand for cement...

Source: Contrarian Edge

And not enough demand for Chinese steel...

Source: Contrarian Edge

Growth may be high, but...

Source: Contrarian Edge

Starbucks dealt with this problem of over expansion...

Source: Contrarian Edge

But China has yet to...

Source: Contrarian Edge

Evidence of those decisions...

Source: Contrarian Edge

Ghost town...

Source: Contrarian Edge

Absolutely empty...

Source: Contrarian Edge

On every street.

Source: Contrarian Edge

In every tower.

Source: Contrarian Edge

How is China still growing, while the world slowed?

Source: Contrarian Edge

But the Chinese government is lying.

Source: Contrarian Edge

Evidence of those lies...

Source: Contrarian Edge

China takes it up a notch.

Source: Contrarian Edge

But China has to do whatever it takes to grow.

Source: Contrarian Edge

And the massive stimulus was no surprise.

Source: Contrarian Edge

China grows, the world slows.

Source: Contrarian Edge

But how real is this?

Source: Contrarian Edge

Property prices still surging.

Source: Contrarian Edge

And affordability is awful.

Source: Contrarian Edge

Massive quantities of empty homes.

Source: Contrarian Edge

Property investment a huge part of the economy.

Source: Contrarian Edge

The problems of the command economy.

Source: Contrarian Edge

Beware, what is once true is not always true.

Source: Contrarian Edge

The fearful what if.

Source: Contrarian Edge

Don't think China is superior.

Source: Contrarian Edge

Is the Chinese consumer ready?

Source: Contrarian Edge

But there are serious problems.

Source: Contrarian Edge

Migration a big concern.

Source: Contrarian Edge

Population not properly counted.

Source: Contrarian Edge

Debt actually pretty big in China

Source: Contrarian Edge

And what if China busts?

Source: Contrarian Edge

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